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[+12 sentences]Mr Speaker, I would like to begin by expressing my support for the broad thrust of Budget 2026, delivered by Prime Minister Lawrence Wong. This Budget reflects fiscal discipline, strategic foresight and a continued commitment to strengthen our social compact in a more uncertain and fragmented world. It balances long-term investment with immediate support for Singaporeans and businesses. At the same time, in a mature economy like ours, the central question is no longer simply gross domestic product (GDP) growth. What matters is whether growth translates into mobility, fairness and confidence across generations. Increasingly, confidence means this: first, can I sustain my earning power? Can my children do better than me? And can I retire with dignity? I will address this life-cycle economic security of Singaporeans in three parts today. But Mr Speaker, before that, however, it is important to note that we are navigating a changed and uncertain world. Geopolitical shifts are reshaping global trade and weakening the international order we have long relied on. At the same time, technological advances, particularly in artificial intelligence (AI), will profoundly reshape how we work, learn and live. It is therefore heartening that the Government is taking decisive steps to invest for the long term. We see this clearly in the Budget, with development expenditure rising faster than operating revenue and expenditure.[+2 sentences] This reflects a deliberate choice to strengthen long-term capabilities. But this also raises an important point. Some of my residents in Toa Payoh have asked me, "Why are there not more 'goodies', especially when we had a Budget surplus of $15.1 billion in 2025?" Mr Speaker, this is an understandable question.[+2 sentences] But the surplus reflects, in part, the volatility of the global environment. Unexpected developments, whether geopolitical tensions or trade disruptions, can quickly affect growth and revenue. While we performed better than expected in 2025, as our economy grew 5% beyond our expectations and multinational companies (MNCs) here did well and paid higher than expected corporate income tax, we cannot assume that such conditions will persist. In fact, latest developments in the past week out of the United States (US) with the new prevailing 15% global tariff and the risk of war in the Middle East adds to unanticipated volatility.[+2 sentences] Beyond the immediate tariff impact, the deeper concern is the increasing unpredictability of global trade rules and how it could eventually impact global inflation, growth and business sentiment going forward. Globally, beyond the uncertainty of potential refunds, companies must now navigate the specific country- and sector-specific incidences of new import duties. For Singapore, there is still the risk of the semiconductor and pharmaceutical sectors being imposed tariffs. So, it is therefore prudent that we channel today’s windfall towards strengthening resilience for tomorrow, rather than locking in spending that may not be sustainable.[+26 sentences] We must also not make the mistake of assuming that the profit cycles will always remain in Singapore's favour. Mr Speaker, at the same time, we must remain grounded in the realities faced by Singaporeans. I am certain our People’s Action Party (PAP) Members of Parliament (MPs) are aware of the pain points on the ground and will be sharing their views and concerns in this Budget debate today and over the next few days. In preparing for this debate, the Government Parliamentary Committee (GPC) for Finance and Trade and Industry have engaged widely through, for example, the PAP Policy Forum (PPF), resource panel discussions and industry engagements. I would like to thank the PPF team for facilitating these engagements, which included more than 100 participants in focus groups and over 1,000 survey respondents. The message is clear. Cost of living remains the top concern. Healthcare affordability, job security and retirement adequacy follow closely behind. From my ground engagements, additional concerns have surfaced: rising business costs for small and medium enterprises (SMEs), higher foreign manpower costs, housing affordability for future and current generations, AI-related job anxieties for all ages, including young job seekers, and dealing with carbon transition costs and pressures from an ageing population – as our society ages and in general, live longer, concerns about a comfortable life as one gets older comes with the accompanying concerns. Singaporeans are not only concerned about growth in the abstract. They are concerned about whether growth translates into real improvements in purchasing power and economic activity. Mr Speaker, in Malay, please. (In Malay): Mr Speaker, the cost of living has gone up sharply in the past five years, not only due to COVID-19, but also because of global supply chain disruptions and an inclination towards narrower views of national interests. Small business leaders remain cautiously optimistic, but are still concerned about structural cost pressures, rising foreign manpower costs and uneven gains from growth. While these factors are partly external in nature, that is scant consolation for ordinary Singaporeans. The fact is that every dollar is now yielding progressively diminishing returns. This concern also overlaps with the issue of retirement adequacy – which I will touch on later. If we are to ensure that Singaporeans can retire with confidence, we must mitigate cost of living pressures on a structural level. One of the main expenses for households and retirees is food. As a visible example, the price of a bowl of mee siam or mee soto has gone up from around $2.00 to $2.50 and now around $4.00 in many places today. This is a 50% to 100% increase in less than 10 years! This puts direct pressure on households, especially low-income groups and retirees. In the food and beverage sector, it is imperative for us to strengthen transparency in rental arrangements and assess subletting practices, so that they do not contribute to unreasonable increases in food prices. Additionally, healthcare costs remain a major concern. In the long term, we need to ensure that the healthcare system remains affordable and inclusive. That being said, we must also recognise the Government's efforts. As we have seen over the past five years, the Government will not shy away from providing comprehensive transfer packages, such as the Goods and Services Tax (GST) offsets, to cushion the impact for Singaporeans and especially our lower-income households. Structurally, we have also enhanced schemes like MediShield, introduced the Jobseeker Relief Scheme and made the GST Voucher Scheme permanent, in order to give peace of mind to households who need help with their expenses. In addition to structural support, Budget 2026 continues the trend of providing one-off temporary support – in the form of the Cost-of-Living Special Payment, Community Development Council (CDC) vouchers and utilities rebates – when our fiscal position allows us to do so.[+49 sentences] (In English): Mr Speaker, I will now continue in English. The Ministry of Finance (MOF) Occasional Paper shows that Singapore has made real progress – real incomes have grown across deciles and, after taxes and transfers, inequality has declined. These are important achievements. But two structural realities remain. Wealth inequality is higher than income inequality and relative mobility may moderate as our economy matures. This is not a crisis, but it is a structural signal. If we take a longer-term view, including insights from economists like Thomas Piketty, the challenge is that wealth compounds faster than wages. And wealth generates optionality: the ability to take risks, invest in education, support transitions and access opportunities. Over time, opportunity can become linked to starting point. Mr Speaker, we must therefore continue strengthening start-line equality. We have made good progress through schemes, such as KidSTART and ComLink+. The next step is to sharpen outcomes. We can consider publishing clearer mobility indicators, such as school readiness, attendance and literacy. We should also strengthen our efforts in terms of access for lower-income youths through internships, mentoring and enrichment opportunities. We already have done so. But because mobility is not only about grades; it is about access. Mr Speaker, if wealth compounding is structural, we must broaden capital participation. The new Central Provident Fund (CPF) life-cycle investment scheme mentioned in Budget 2026 is a step in the right direction. As this is rolled out, it will be important to ensure: first, simplicity; second, strong default options; third, low fees; and fourth, safeguards against behavioural risks. Mr Speaker, we already have strong support across the life-cycle, from the Child Development Account to Edusave and the Post-Secondary Education Account, as well as SkillsFuture. These are important foundations. The next step is whether we can connect and strengthen them within a more explicit life-cycle mobility framework, with a modest asset-building element that compounds over time. Other countries have explored similar approaches. For example, Canada’s education savings system uses government top-ups, including targeted support for lower-income families, to help build education assets over time. This principle is clear – to broaden access through compounding, while keeping support progressive and fiscally disciplined. In our context, we can consider a Singapore Opportunity Account framework: a modest starting stake, progressive top-ups for lower-income households, a safe, low-cost investment structure and restricted uses, such as education, skills upgrading, housing support enhancements or CPF top-ups. This is not redistribution. It is structured participation in asset-building. Let me illustrate briefly. A student from a lower-income household may have the ability to pursue a specialised course or industry attachment but lack the financial buffer. Such an account could support these opportunities. Later in life, the same individual may wish to transition into a growth sector. The account could support reskilling. And at key life stages, it could support housing stability or CPF top-ups. In this way, we are not just supporting income. We are enabling mobility across the life-cycle. Mr Speaker, this can be implemented without significant new fiscal burden. By integrating existing schemes, targeting support and using capped matching with long-term investment and possibly private sector involvement, we can achieve more impact per dollar. This is an area where further study could strengthen how we design mobility-enhancing policies going forward. Mr Speaker, let me turn now to one specific area of our tax structure: the exemption of the first $20,000 of chargeable income. This framework was introduced in Budget 2002 to cushion lower- and middle-income Singaporeans as we shifted towards indirect taxation. But that was more than two decades ago. Since then, median incomes have more than doubled, the GST has increased and cost structures have shifted materially. Yet the threshold has remained unchanged. In real terms, its value has eroded. As incomes rise while thresholds remain static, bracket creep occurs quietly. More lower- and middle-income earners enter the tax base, not because they are significantly better off but because the system has not been recalibrated. Mr Speaker, the case here is not for tax cuts. It is for calibration. A phased adjustment, for example, to $25,000 or $30,000, would: first, provide meaningful relief to lower- and middle-income groups; second, help them retain more savings and potentially asset-building; and third, restore structural fairness without undermining progressivity.[+1 sentence] In this way, we strengthen progressivity while maintaining fiscal discipline. As our revenue mix has shifted more towards indirect taxes, it is reasonable to ensure that the lower-end of our income tax structure remains appropriately calibrated. So, I hope the Ministry could consider reviewing whether the $20,000 exemption threshold remains aligned with its original purpose, given more than two decades of structural wage growth, higher reliance on indirect taxation and evolving cost of living realities.[+5 sentences] Mr Speaker, third, I would like to address the retirement adequacy of Singaporeans, as I have done since the Budget 2022 debate. I am glad and grateful for the Prime Minister's continued focus on the issue. Among other things, the Government-supported increase in our seniors' CPF contribution rates and the top-up for seniors who have lower CPF balances will boost the nest eggs for our seniors to retire and age with dignity. These must be seen alongside the other moves that we have made in recent years to help Singaporeans grow their retirement funds, such as the Silver Support and the Matched Retirement Savings Scheme (MRSS). My question is, what is the Government's assessment on whether the MRSS has been successful in achieving its outcomes? Will the MRSS be continued or even expanded to encourage family members and even husbands, to top up their elders' or homemaker wives' CPF balances and take advantage of dollar-for-dollar matching? And whether the Government also review the Silver Support qualifying thresholds as our seniors live longer and deplete their earlier resources under their conditions currently?[+4 sentences] The new and exciting announcement is the planned option for CPF members to invest their funds in a Lifetime Retirement Investment Scheme. But as CPF introduces low-cost life-cycle investment products, behavioural design becomes critical. The default structure matters more than choice. If CPF members are nudged into life-cycle funds, those funds must: first, automatically de-risk; second, be globally diversified; third, have strict fee caps; and lastly, include switching safeguards. The question I have is, will the new CPF life-cycle products include automatic glide-path de-risking, internationally benchmarked fee caps and behavioural safeguards, and what are the terms of reference that have already been given to the CPF Board?[+5 sentences] Mr Speaker, finally, another small but significant step we can take is to better define what retirement adequacy should look like. This is because Singaporeans see their CPF balances, but many residents that I have spoken to do not understand what "adequacy" means. As investment choice expands, volatility risk increases. This makes it more important for every Singaporean to be able to be clear on what is "adequate" for himself or herself. I recognise that there are inherent difficulties with such a definition. Among other things, it is no longer clear at what age an average Singaporean should retire and as human beings, we can never be sure how long more we will live after retirement. However, can CPF provide scenario-based projections, including downside stress scenarios, to strengthen confidence among Singaporeans that they can adequately provide for themselves after retirement?[+4 sentences] Mr Speaker, Sir, Budget 2026 is directionally sound. It directs fiscal discipline. It invests in long-term capability. It strengthens our social compact. Our task now is refinement – to ensure that our fiscal strength translates into sustained mobility for Singaporeans, for pushing for greater start-line equality, for broadening capital participation, calibrating fairness.[+4 sentences] At the same time, we must take care of Singaporeans' later years by strengthening work longevity and ensuring that seniors can retire with dignity. If we do these well, through Budget 2026 and future Budgets, this will not only support Singaporeans through today's pressures. It will also reinforce confidence in the Singapore model itself – a model where growth, fairness and mobility move in tandem. Mr Speaker, I support Budget 2026.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)2751 words
[+7 sentences]Mr Speaker, my speech titled, "Taking Care of Our Own," will cover three issues. First, I will speak on the broader geostrategic environment and its implications for Singapore. Secondly, I will discuss the point made by Deputy Prime Minister Gan Kim Yong over the Economic Strategy Review's mid-term update that GDP growth may not translate into jobs for Singaporeans, before discussing the Budget announcements pertaining to AI skills upgrading and opportunities for our workers. Finally, I will speak about the fiscal position and call for more cost of living support measures for low- and middle-income Singaporeans and for families with children. The spectre of the Liberation Day tariffs loomed large over Singapore in April last year. The PAP Government dissolved Parliament just days after the Trump administration's announcement. The political timing of the general elections was calculated to put the PAP in the most advantageous position, with tariff uncertainty serving as a rallying call for voters to back the tried-and-tested. Since then, however, there has been remarkably little information of the sectoral tariffs and their actual impact on Singapore. Despite the doom and gloom surrounding the Liberation Day tariffs, this PAP Government begins its new term with what may be the greatest fiscal surplus any PAP Government has seen in decades.[+23 sentences] The Trump administration has determined that the US must re-jig, reset and in some cases, dismantled key pillars of the international system that delivered decades of peace and relative stability in the Asia Pacific. But the US, nonetheless, retains deep influence in the region through its military and economic ties with friends and allies – Singapore, Malaysia, the Philippines, South Korea, Australia, India, Japan and others. Trump or no Trump, these links will continue to take significant priority and shape the strategic calculations of countries across the region. And as the US moves towards a more confrontational posture with China, temperatures in the Asia Pacific have risen and they look set to continue rising. The comprehensive electoral victory of Japanese Prime Minister Sanae Takaichi and the growing domestic political appetite for a more normalised diplomatic and military posture suggest that Japan's pacifist constitution, held for around 80 years, will finally be set aside. The prospect of Japan or even South Korea acquiring nuclear weapons to counterbalance China and North Korea, is now closer to a probability and not merely a possibility. The increased militaristic signature reflects a regional circumstance unfamiliar to many middle-aged Singaporeans and it remains a source of concern for them. Closer to home, recent hostilities between the Association of Southeast Asian Nations (ASEAN) neighbours – Thailand and Cambodia – remind us that regional fraternity and camaraderie do not guarantee peace dividends. The heightened security environment will keep the Government fully occupied. But for Singapore, the challenge is not just about managing foreign policy. It is what these developments mean at home for our society and our cohesion. Prime Minister Wong's remarks on the back of Prime Minister Takaichi's comments about Japan's interest in Taiwan's security in November 2025 are a case in point. A notable number of online voices in Hong Kong and China, including some Singaporeans, raised concern that the Prime Minister's comments were insensitive towards Chinese sentiments. This points to something we must address directly – more needs to be done to engage Singaporeans, new immigrants and citizens of all races alike in an interactive and open conversation about our national interests. Without that, the phrase "national interest" risks becoming a shorthand to shut down a conversation rather than to start one. We are a multiracial, multicultural society, not proportioned equally with a growing stock of new immigrants, whose loyalties understandably will take time to root. In this context, building resilience in our psychological defence is more urgent than ever. The Workers' Party (WP) in Parliament, reflecting the political diversity of our people, looks forward to playing a positive role in strengthening that sense of home and our unity as one people. I have ended my last two Budget speeches with a call to support our men and women in uniform. It appears that our cyber defence agencies have already tasted combat in their virtual trenches, even if that domain remains shrouded in operational secrecy. As in previous Budgets, Singaporeans will know there is non-partisan support for the defence-related priorities in this Budget. That consensus remains clear and it holds. Uncharacteristically, one of the most politically significant statements this year to date did not come from the Budget, but from the Deputy Prime Minister Gan at his January media interview on the mid-term update of the Economic Strategy Review. The Deputy Prime Minister observed that GDP growth may no longer translate into jobs for Singapore.[+2 sentences] What this does is to put every job-related policy, initiative and scheme announced by this Government into sharper perspective than ever before. For each more so than before, Singaporeans deserve a well-publicised and detailed report card, one that distinguishes rhetoric about promises kept with measurable outcomes subject to Parliamentary and public scrutiny. The Deputy Prime Minister Gan's remarks on GDP growth also call into question whether three of the four national bonus components, partly used to determine total Ministerial salaries, remain fit-for-purpose.[+1 sentence] If the Progressive Wage Model is driving income gains for the lowest 20th percentile rather than productivity, how far should it constitute a criterion of the national bonus for the Ministers? Is the unemployment rate among Singaporeans still the right measure or has under-employment among Singaporeans become a more telling and fairer gauge to assess how much bonus Ministers ought to receive? And if GDP growth will no longer reliably create good jobs for Singaporeans, should it remain in the Ministerial bonus formula at all?[+10 sentences] Arising from this year's Budget initiatives, I would argue that the national bonus should be anchored to one objective outcome: good jobs for Singaporeans in the age of AI. AI dominated this year's Budget, the first of this term of Government. Yet more than three years after ChatGPT changed the world, AI remains an enigma for much of our workforce and many of our businesses. I will make two sub-points. First, the Budget speaks of employing AI to facilitate end-to-end business transformation. This is an ambitious ask. Multinational companies (MNCs) and companies, like DBS and Grab, have the resources to experiment, to sandbox ideas and even to absorb failure. SMEs are not necessarily in the same position. For some of them, navigating AI to improve productivity is not just challenging; it can feel impossible. I look forward to the actionable strategies from the Ministry of Trade and Industry (MTI) on the Champions of AI programme and specifically, how SMEs will benefit from it. On AI-related subsidies through the Productivity Solutions Grant (PSG) and other initiatives, such as the Enterprise Innovation Scheme, clear standards and requirements must be established before grants and subsidies are paid out. AI-related grants and subsidies must be ringfenced for truly transformative productivity gains, so that these taxpayers' subsidies are not gamed or abused. Singaporeans would remember the Productivity and Innovation Credit (PIC) scheme of yesteryear and how some individuals and businesses exploited it.[+26 sentences] Promoters helped to set up shell or dormant companies solely to claim PIC benefits with false documentation or listing phantom employees to meet qualifying conditions. Other reports questioned how many genuine research and development (R&D) breakthroughs were operationalised for businesses through the PIC scheme and whether they moved the productivity needle in proportion to the subsidies that were paid out. We cannot repeat that mistake with taxpayers money with this latest productivity push through AI-related subsidies. For workers, the redesign of the SkillsFuture website to make AI learning pathways clearer is a welcome step. At an overarching and strategic level, the AI Council must take a special interest in ensuring that AI-related outcomes are scoped properly. Because done right, this raises Singaporean businesses and workers to higher productivity. My second point covers the phrase used by the Prime Minister, "Because we take care of our own." That was arguably to me the most significant line in the entire Budget speech when it came to AI's impact on workers. Last week, both CNA and The Straits Times ran a Financial Times opinion piece by Sarah O'Connor in the online and print mediums, respectively, titled "We have to stop calling some jobs 'low-skilled'". She wrote that, nobody – not your teachers, not your parents, not even the Organisation for Economic Cooperation and Development's (OECD's) head of skills analysis – knows which skills will be most valuable tomorrow. If that is daunting for our students and parents, one can imagine how it feels for a mid-career worker worrying about the next mortgage payment and their family while trying to retrain for a world that appears to constantly shift beneath their feet. There is an age-old problem that manifests itself – workers take up courses, earn new certificates and qualifications, but still find jobs hard to come by. Compounded with that now, is the requirement to master AI. With the merger of Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) into one agency, there is an opportunity to improve one-stop support for our workers, especially for those who have been retrenched or displaced, steering them towards areas of real opportunity, not just available courses. I note the Ministry of Culture, Community and Youth (MCCY) Minister's comments about greater public sector involvement in supporting job placement for workers at a media interview on the mid-term update of the Economic Strategy Review some weeks back. I welcome that and look forward to seeing developments in this area. On that note, the Ministry of Manpower (MOM) should present a report card on the Jobs-Skills Integrator initiative announced at Budget 2023. These integrators were supposed to bridge the gap between industry needs, training providers and workers. To my knowledge, Parliament has not received a full account of how many workers have benefited, what the shortcomings have been or how this initiative will evolve. That account is overdue. To round-up this section, I wish the Government, our businesses and our union leaders and workers every success in the undertaking of making AI work for Singapore and to create good jobs for Singaporeans. Mr Speaker, no Opposition response to the Budget is complete without an assessment of past announcements and a call for a report card on their success or shortcomings. Singapore's Budgets are rarely standalone exercises. Take the Forward Singapore exercise. At Budget 2024, the Government announced plans to spend $40 billion on Forward Singapore initiatives through 2030, with $5 billion committed at that inaugural Budget. To my knowledge, there has been no well-publicised tracking of cumulative spending since then. On that same note, this year's Budget revealed that the next cycle of the Research, Innovation and Enterprise (RIE) 2030 plan stands to be funded to the tune of $37 billion, up from $25 billion in the previous cycle from 2021 to 2025. Yet, there was no comprehensive report on how the previous $25 billion was used, how many jobs were created for Singaporeans, where outcomes met their objectives, where they fell short or even whether it is simply too early to tell.[+8 sentences] There is real value in reporting such outcomes publicly, at minimum, through an occasional paper at the close of each RIE cycle. Such transparency allows MPs on both sides of this House to fulfil their duty in scrutinising public expenditure as part of their responsibilities as MPs. It gives our people, and our youth in particular, a clearer picture of the opportunities ahead and helps attract the best minds to Singapore. There is much work still to be done in demonstrating how efficaciously taxpayer dollars have been spent. Across most Budgets, there is a lack of easy-to-rack outcomes on the headlines that have been announced. The Government should be conscious of the public cynicism and detachment that grows when Singaporeans cannot see a clear accounting of how public funds are being used and communicated for ease of understanding and what results have been achieved. That is not good for Singapore and it sits in contradiction with the participatory spirit that Forward Singapore was meant to embody. I will speak further on this sub-point during the MOM's Committee of Supply (COS) debate, with specific reference to the Progressive Wage Credit Scheme (PWCS), a scheme that was due to end, but has since been extended in this year's Budget. On the fiscal position, the Government begins this term on a firm footing, with a surplus of $15 billion for FY2025, an $8 billion surplus expected for FY2026, with potentially more anticipated as corporate tax collections are expected to rise from FY2027. These surpluses already far exceed the $2 billion to $3 billion or thereabouts, in additional revenue that the GST hikes of 2023 and 2024 were supposed to generate.[+3 sentences] There will be significant public interest in how these surpluses are ultimately deployed, especially given the pressures of an ageing population and the persistent concern over inequality. Before I turn to address some specific measures in the Budget, it is worth noting the results of the National Trades Union Congress' 2026 Survey of Economic Sentiments released last month. The findings are instructive. The top concern cited by 37% of workers was wages not keeping up with the cost of living. The second was having enough savings for retirement, at 28%. Job security came in third at 19%, followed by caregiving demands at 9%, and concerns about AI disruption at 6%.[+27 sentences] These are not abstract anxieties. They are the lived concerns of working Singaporeans and they should shape how we evaluate what this Budget delivers. I believe more should be done to assuage cost-of-living concerns of Singaporean workers and families. On cost of living, this Budget introduces yet another tranche of CDC vouchers. Singaporeans can be forgiven for treating the scheme as a permanent one. It was not originally conceived as such when CDC vouchers were set at $100 per household. With another $500 tranche to be dispersed in 2027, the time has come to refine the CDC Vouchers Scheme to better help Singaporean families. Currently, the vouchers are distributed on a per household basis, regardless of household size. That is not equitable. A household of two individuals receives the same as a household of five. I propose a simple and targeted adjustment. Retain the $500 base for all households of three members or fewer. For owner-occupied households with more than three members, provide an additional $150 per person. Based on the average Singapore household size of 3.06 persons in 2025, this is a modest and practical refinement, one that better reflects the actual cost-of-living burden larger families carry. On families with children, this Budget raises the monthly household income threshold for student care fee assistance to $6,500. I welcome the expansion in reach, but I ask the Government to also review the subsidy calculation framework in favour of greater subsidies as it reviews this sector. Before the Budget announcement, there were 11 subsidy tiers for households earning between $1,500 and less, and $4,500. The top tier provides a 98% subsidy up to $295 per month. The lowest provides just 20%, or $59. This can be simplified further, starting at the new Local Qualifying Salary figure of $1,800 and below, with perhaps two to three additional tiers to better support parents with school-going children, with the lowest tier receiving at least a 50% subsidy. Alternatively, the preschool subsidy framework provides all qualifying families with a meaningful base subsidy regardless of income, with additional support determined by income. That design is both simpler and more reassuring to families navigating the system. I ask the Government to consider a similar approach for student care subsidies. The redistributive cost is relatively modest, especially when we consider our chronically low total fertility rate (TFR), but the impact on families and their confidence that the system is always working for them would give the reassurance of a more generous helping hand. In conclusion, this Budget was delivered against a backdrop of genuine uncertainty, a shifting global order, the disruption of AI and the anxieties of working Singaporeans who worry about whether their wages, their savings and their children's future will keep up, to say nothing of the continued relevance of some jobs, particularly entry-level ones. In this context, taking care of our own represents one standard by which all Government policies will be unpacked, measured and scrutinised by the WP in this term of government. Mr Speaker, the WP supports Budget 2026.
Mr Speaker3 words
[+1 sentence]Mr Alex Yam.
Mr Alex Yam (Marsiling-Yew Tee)1281 words
[+8 sentences]Mr Speaker, in Mandarin, please. (In Mandarin): Mr Speaker, the past few years have not been calm for the world. We have just emerged from the pandemic, yet global recovery has been hesitant. Businesses have had to reorganise their supply chains and families have had to readjust the rhythms of daily life. Just as many thought we were entering a new phase of stability, global politics suddenly shifted gears and circumstances changed rapidly. Some commentators have even described this as a kind of "gangster-style" logic in international conduct. Rules have become negotiable. Agreements can be signed and just as easily overturned. The US Supreme Court struck down the tariff measures and shortly thereafter, a new 15% tariff was announced on all countries, friends and foe alike.[+33 sentences] This is not the textbook version of globalisation. It is a more direct and raw contest of power. Great power politics has returned. US-China competition continues to intensify. The Middle East remains tense, with the shadow of Iran still looming. Small and middle powers are increasingly pressured to declare positions and choose sides. When large waves crash against the shore, small boats feel the impact first. Singapore is not a bystander. We are a small and open economy. When storms arise, we are among the first to feel them. But amidst the storms, what ships fear most is not only the external waves, but also internal friction. Unity cannot be merely a slogan; it is the prerequisite for maintaining strategic resolve in a complex world. Therefore, in such a world, this Budget is not merely about numerical balance, but national assurance. After the Budget Statement, over the past few days, I have heard some interesting comments. When the Government runs a deficit, it is criticised as fiscally irresponsible. When it runs a surplus, it is said to have miscalculated. It is like a person who brings an umbrella and is mocked for being excessive, and yet if he does not bring one and gets drenched, he is mocked for being foolish. National finances are not month-end accounts. They are an inter-generational responsibility. In recent years, our Budgets have not only met fiscal targets, we have won a larger battle. Because today, we have a surplus. Therefore, We have more "ammunition" to face the storms ahead. A surplus does not mean over-taxation. It means that in an uncertain world, we planned using conservative assumptions and reality has turned out better than expected. If we had planned using optimistic assumptions instead and subsequently found ourselves unable to pay for healthcare, ageing and security, who would bear the cost? Not the accountants. Not the commentators. It is the people. As the ancient saying goes: "One survives in adversity and perishes in comfort." When a budget aims to be "just enough", it often ends up being "slightly short". In such a world, we must build strength and prepare in advance. Before troops move, provisions must be ready. The bow must be fully drawn and the arrows well supplied. Only then can we act effectively when the need arises. We must clarify a basic principle: GST is a long-term structural revenue source.[+1 sentence] A fiscal surplus is largely cyclical. Long-term responsibilities cannot be funded by short-term fortune.[+23 sentences] Ageing does not disappear with economic cycles. Healthcare spending does not fluctuate simply because one year is strong and another is weak. Using cyclical revenue to fund permanent obligations is like using your bonus to pay a mortgage. Of course, no one says they enjoy paying taxes. But what would truly be unfair is not adjusting tax policy today, it would be having to raise taxes suddenly during a downturn tomorrow. The real question is not whether we can spend more in any particular year, but whether we can support Singaporeans sustainably over the coming decades. Singapore's fiscal philosophy has always been simple: plan early, act prudently, share gains when conditions allow. This is not poor marksmanship. It is long-range targeting. When conditions turn out better than expected, the Government returns support to citizens through various packages. That is precisely the meaning of preparedness. As an ancient text puts it: "Digging a well when thirsty is inferior to preparing before the rain." We would rather be called conservative today than be forced into hurried tax increases tomorrow. When the world is uncertain, when great power rivalry intensifies, when supply chains and financial systems can shift overnight, a surplus is not a luxury. It is insurance. If the next storm arrives, we will not need to borrow in haste, raise taxes suddenly, or cut social support. That is true fiscal responsibility. Let me say candidly: a fiscal surplus does not mean people feel no pressure. Residents do not speak to us about macroeconomic indicators. They speak about daily life. They worry about: (a) whether AI will replace their jobs; (b) whether prices will continue to rise; (c) whether shop rentals will increase again; and (d) whether families can sustain expenses over the long term. These concerns are real. Therefore, a Budget must be macro-sound and micro-relevant. In the North West District, we run Little Steps @ North West, supporting families participating in KidSTART. Children aged zero to six receive $500 in annual support, with additional essentials provided in partnership with businesses.[+24 sentences] From early childhood education to parent-child bonding and nutrition, we walk step by step with families. This is not a large-scale subsidy. It is a long-term investment. These measures may not be large in scale, but they are concrete. The meaning of policy lies not only in national figures, but in the small sigh of relief in everyday life. A Budget is not merely a fiscal document. It paints a picture of the society we want. Let me use a New Year metaphor: the Yusheng. Yesterday was the seventh day of the Lunar New Year, we all did "lohei". The fish represents the economic foundation. If the fish is not fresh, nothing else matters. AI adoption, enterprise transformation, and industry upgrading ensure that the fish remains fresh. And may our Budgets always have surplus. The shredded vegetables represent skills and education. Future security comes from adaptable capabilities, not fixed positions. Peanuts and sesame represent social support. Support for families, seniors and the vulnerable ensures that society can move forward together over the long term. This is no small matter. The sauce represents our we-first spirit. Not "what do I get?" But "how far can we go together?" Each ingredient alone seems ordinary. But combined together, they create the flavour of the New Year. Fiscal discipline is like the golden crackers simple in appearance, yet holding the entire structure together. Coming to the earlier topic, as great power rivalry intensifies and international law and trade rules come under strain, small and middle powers must cooperate more closely. Singapore has a responsibility to strengthen ties with other middle powers, uphold the multilateral system, and stabilise trade networks. When rules are challenged, we must stand up to defend them. This too is part of the purpose of the Budget’s support for diplomacy and international engagement.[+4 sentences] Singapore has never grown amidst an environment of certainty. Our independence was uncertain. Financial crises were uncertain. The pandemic was uncertain. Yet each time, we relied on two things: resilience and unity.[+3 sentences] When the next wave rises, we will have the resources, societal trust and capable people. As long as we continue to move forward together, Singapore will continue to rise! Today is the eighth Day of the Lunar New Year, I wish for favourable weather and good harvests and peace and prosperity for the country and its people. (In English): Mr Speaker, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Vikram Nair.
Mr Vikram Nair (Sembawang)1411 words
[+1 sentence]Mr Speaker, I support this Budget. This Budget covers a great many areas and as in previous years, supports Singaporeans in a range of thoughtful ways: providing support for young families who wish to have children, working adults who need support to get better jobs, seniors to have better healthcare and quality of life in their later years and businesses as they cope with a range of disruptions.[+10 sentences] These are all welcome measures and are possible because of Singapore’s strong fiscal position, thanks to decades of prudent financial management by successive generations of leaders. In my speech though, I wish to focus on one area that troubles me most – the breakdown of the international world order that provided a stable backdrop for Singapore’s success since Independence. For decades, an international rules-based order grounded in international law has underpinned global peace and prosperity. For small states like Singapore, this framework better ensured that sovereignty was respected, disputes are resolved peacefully and trade flowed freely. It gives small states like Singapore a measure of protection in a world which may otherwise have been dominated by power politics. Over the years, Singapore has consistently advocated for a rules-based multilateral system and respect for international law. However, the global environment is rapidly evolving. We are witnessing heightened geopolitical rivalry, economic fragmentation and a growing willingness by some states to prioritise what they believe to be national interests over collective commitments. While international law remains indispensable, we must also be realistic and prepare for a world in which non-compliance is going to be more common and where major powers may not always abide by either the letter or the spirit of international commitments. Recent events underscore this reality. Russia’s invasion of Ukraine represents a clear violation of the United Nations (UN) Charter and the principle of territorial integrity.[+3 sentences] In the Middle East, the conflict triggered by Hamas’ attacks on Israel on and the subsequent war in Gaza have intensified regional instability and humanitarian crises and the findings of breaches of international law. In our own region, tensions in the South China Sea continue to test the strength of international maritime law. The most dramatic changes in the last two years have probably been the position of the US. The main concern last year was the imposition of tariffs on allies and competitors alike. This year, the capture of the Venezuelan President was contrary to the peremptory norms against the use of force.[+11 sentences] The US plans to take Greenland put it on a collision course with its European allies and threatened to fracture the North Atlantic Treaty Organization (NATO), especially when it appeared that the US was considering the use of force to take Greenland in its earlier statements. Together, these statements suggest that while international law remains vital, compliance can no longer be assumed or taken for granted. For small countries like Singapore, it is especially important for us to stay vigilant and prepared to deal with emerging threats and challenges. During the Budget debate in 2022, I said that we need to remain committed to defence spending even during times of peace, and while there will be many demands for our spending and it will always be tempting to say we should cut defence spending in times of peace, that will be a mistake. I also said that we must continue to maintain and build good and deep relations as well as mutually beneficial economic and defence ties with as many countries as possible. I remain firmly of that view. In this connection, I welcome the Government’s continued commitment to invest in Singapore’s defence, including physical warfare capabilities as well as cyber defence and counter-terrorism capabilities. A credible and technologically advanced defence force remains the bedrock of our sovereignty. Beyond its defence capabilities, however, Singapore has very sensibly also adopted the strategy of diversifying its foreign relationships and defence relationships. On the security front, we maintain strong and longstanding defence ties with the US, including close training and operational cooperation. At the same time, we engage constructively with other nations, including China and ASEAN partners. As for economic trade, Singapore currently has 28 Free Trade Agreements spanning Asia, Europe and the Americas.[+8 sentences] We are part of major regional agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, which bind countries to common standards and open markets. These agreements provide multiple avenues for growth and reduce over-dependence on any one market. They also signal Singapore’s continued commitment to open, rules-based trade despite global protectionist trends. Going forward, we must continue to champion international law and multilateralism while widening and deepening our network of partnerships. I wish to make the following observations. First, while we continue to advocate multilateralism, it is equally important to recognise that many international institutions were established in an era where great powers were more willing to cooperate consistently within established frameworks. Today, the legitimacy and effectiveness of these institutions are increasingly being challenged due to divergent national interests and competition. Consider the United Nations. Although the UN Charter remains the foundational framework for international peace and security, the UN Security Council has been hampered by geopolitical divisions.[+6 sentences] When permanent members are in conflict or have opposing interests, collective action can be difficult to achieve. Collective action under the UN banner has not been possible in most of the conflicts today. For a small nation like Singapore, we must recognise that when large powers do not cooperate within multilateral fora, the system becomes weaker and the norms which such international institutions uphold become more vulnerable. Small states have the most to lose when rules are eroded. This leads me to my second observation which is about minilateralism. As the World Economic Forum puts it, minilateralism typically involves small groups of countries or organisations collaborating to solve shared problems. While multilateral institutions remain essential, and we must continue to support them, smaller groupings of like-minded states can move faster and more pragmatically when progress stalls at the global levels through smaller agreements.[+1 sentence] Singapore has already demonstrated this approach. For example, in the digital domain, Singapore has pioneered the Digital Economy Agreements with trusted partners to establish common rules on cross-border data flows, cybersecurity and digital trade.[+5 sentences] Such agreements help shape global norms and position Singapore as a trusted digital hub. Going forward, Singapore can continue to champion issue-based coalitions in areas such as green and sustainable finance, carbon markets and emerging technologies. Such coalitions complement and not replace the broader multilateral system. Third, as a small nation, it is important that Singapore strengthen its capacity in emerging domains of competition. Today, security is multi-dimensional and extends well beyond conventional military threats. Strategic contest between nations increasingly play out in domains such as cyberspace, artificial intelligence, quantum technologies, space assets and the resilience of critical infrastructure.[+3 sentences] For example, cyberattacks can disrupt essential services including power generation and banking. Disinformation can erode social cohesion. Singapore must therefore invest decisively in these emerging domains. Strengthening cyber defence capabilities, enhancing digital resilience across both public and private sectors, and building trusted AI governance frameworks which will be essential and which is envisioned by this Budget.[+3 sentences] By doing so, we not only protect ourselves but also enhance our relevance in the international arena. Fourth, Singapore is in a unique position to play a bridging role in the new world order. In a world of intensifying major power rivalry, countries that can maintain credibility across divides become increasingly valuable. Singapore has long cultivated a reputation as a consistent, honest and trusted partner. We maintain strong defence and economic ties with the US, engage constructively with China, and remain firmly anchored in ASEAN.[+8 sentences] This balanced posture allows us to facilitate dialogue. Our consistency and credibility are our strategic assets. Singapore’s role is not to choose sides in power competition. It is to maintain open channels with all while remaining firmly grounded in principles of sovereignty, peaceful dispute resolution, open trade and international law. This means we must speak clearly when rules are violated, but avoid rhetoric which will unnecessarily escalate tensions. We must continue to deepen ties broadly, so that no single relationship defines our position in international relations. Mr Speaker, while we cannot control the direction of the global order, our preparedness to navigate the global order is within our control. By combining principle with pragmatism, and openness with resilience, Singapore can continue to thrive, even in a more uncertain world.
Mr Speaker3 words
[+1 sentence]Mr Henry Kwek.
Mr Kwek Hian Chuan Henry (Kebun Baru)1857 words
[+3 sentences]Mr Speaker, over Chinese New Year, I spoke with residents in Kebun Baru about the Budget and the year ahead. What struck me about this year was how central AI has become in my conversation to them. Young graduates told me that good entry-level jobs and internships are now harder to come as companies re-organise themselves around AI. A young academic volunteer told me a story he wanted to build a simple application. He got a quote from a local IT service company for $70,000 to build the application. He got frustrated, hired somebody from Vietnam at $10 per hour and spent the weekend to build that same application using AI agents.[+13 sentences] I also spoke to a tech savvy SME entrepreneur who spent his breaks in between Chinese New Year house visits, building, orchestrating AI agents to automate many parts his back-office for his SME. I met an accountant in her 50s, after watching a clip on the robotic wushu performance, turned to her family and asked, "What happens to my job?" And I met an investor who told me that correlation between Nasdaq and AI is now very close. He would notice a big drop in one segment of the Nasdaq stock market and that usually comes after Anthropic introduces a new part, a new module, a new feature in the systems. So, our people have sensed that AI has matured quickly and is now reshaping lives in ways that felt theoretical just a year ago. Prime Minister Wong has decisively centered our Budget on AI, outlining a bold vision for Singapore in a changed, AI-charged world. I want to build on this vision by speaking on three areas where I believe we can move even faster: how the Government itself builds digital services with the world's leading AI firms helping us, how we can accelerate the IT service industry, and how we ensure our SME support reach more layers of our enterprise base. First, how can the Government build more digital services with the world's leading AI companies' support. Today, I believe that the Government e-services are still largely procured through traditional IT methods – where AI, if used at all, is bolted on rather than embedded from the outset. AI-centric development is fundamentally different: AI is integral to design, coding, testing and continuous improvement process. Services are faster to build, cheaper to maintain and adaptive rather than ageing between upgrade cycles. I propose that this becomes the default methodology for all new Government services and to scale it as a whole-of-Government over time. And we should not build this alone. Over 60 companies, including Google and Microsoft, have established AI Centres of Excellence here.[+12 sentences] These firms should not only help Singapore enterprises adopt AI; they should also be co-developing our AI-centric stacked deck itself, building together with the Public Service. This is how we build a sovereign national AI system – something I spoke about in the last Budget debate – not from scratch at prohibitive cost, but through structured co-development with the world’s best, on our terms, anchored in our values. When the Government is merely a customer, our leverage is limited. When the Government is a sophisticated co-development partner – bringing deep domain knowledge expertise of public service delivery and regulatory complexity – we deepen their commitment to Singapore and build internal capability that stays here. Beyond our own services, Government should revive the spirit of the Industry Transformation Maps (ITMs) with an AI-centric lens – working together with Prime Minister Wong’s four AI Mission sectors to identify common problems solvable through AI across different sectors and building shared solutions together with the industry. Next, how we accelerate the IT services industry. Singapore's IT services industry – the firms that actually deliver technology projects across the public and private sectors – may not be adopting AI-centric development fast enough. These firms are the delivery layers between AI strategy and real world outcomes. If they do not transform, the strategy stays on paper. This is not a talent problem. Our tech workers are ready – curious, hungry and well-educated. The bottleneck could be structural inertia within the IT services firms, compounded by the complexity of making AI-centric development enterprise-grade. Large companies have found it easier to continue with familiar methods while adding AI as a cosmetic layer. Therefore, I propose a phased mandate: Government IT contracts should progressively require AI-centric development methods. New projects first, legacy contracts given longer runways and a clear three-to-five-year transition pathway.[+14 sentences] This is not without precedent – we mandated Building Information Modeling (BIM) adoption in the construction industry and we can transform that. When the Singapore Government becomes the driver of demand, industry follows. Alongside the mandate, the Government should also transfer its frameworks and playbooks to polytechnics, universities and IT service firms. And over time, Singapore's AI-centric methodology will not just become a public sector asset but something that will drive industry capability. Third, our SME support can be more differentiated. When it comes to AI, two groups are ready to move, and they need different support. The first group are SMEs led by founders with strong technology backgrounds like the SME entrepreneur I mentioned about – programming using AI agents over Chinese New Year. For these founders, the barriers to scale have collapsed. They understand understand AI and can now grow at speeds previously requiring the capital and headcount of a much larger enterprise. Yet our bespoke innovation grants have traditionally been reserved for larger companies. And I urge the Government to open these grants to tech-capable SMEs – these are Singapore's next generation of high-tech growth. The second group are conventional SMEs that need help adopting AI in day-to-day operations. Here, Prime Minister Wong's expanded PSG is the right instrument. But the approved vendor list today are very traditional tech companies. Over time, there will be a growing tier of AI-centric firms delivering accounting, payroll, marketing services or products. I hope the Government can consider actively onboarding these firms as PSG-approved vendors and co-fund the transition cost so that conventional SMEs can access them quickly.[+13 sentences] Taken altogether, some will argue that the AI levels the playing field against Singapore. In a narrow sense, they are right – a talented developer anywhere, armed with enough AI tools and call code credits, can generate entire applications overnight. On a pure cost, we were never going to win this race. But this is the wrong race to run. The Economic Development Board (EDB) has long described Singapore's value proposition as Trust, Knowledge and Connectivity. AI-centric development does not erode this advantage – it amplifies them. On trust: in an AI-centric world, where AI agents transact and AI systems make decisions, trust becomes the most precious commodity in the digital economy. Businesses will site AI operations where they trust the legal framework and the Government behind them and Singapore has spent decades building exactly this trust. On knowledge: the tacit knowledge – the kind that cannot be Googled or prompted – lives in the relationships and expertise of the people based here. AI can accelerate the application of our knowledge. On connectivity: we have at least seven distinct global hubs – aviation, shipping, regional headquarters, advanced manufacturing, biotech, chemicals, electronics, and finance – co-located on 700 square kilometres. The collaboration density, between the hubs themselves and the world they connect to, is something no amount of digital connectivity can replicate. In an AI-centric economy, where the most valuable innovations emerge at the intersection of industries, this co-location is a profound and durable. If we move fast enough, if we adopt AI-centric development in Government, bring our IT services industry with us and equip many layers of our SME industry, AI gives us the chance to not just manage our constraints but re-invent our economy on foundations that took decades to build, and that no competitor can replicate overnight.[+9 sentences] Mr Speaker, let me now speak briefly on our Public Service Media. The advantages I have described – Trust, Knowledge and Connectivity – do not sustain themselves. They require institutions to uphold them. Sometime ago, I had a chat with our Minister Josephine Teo who leads Ministry of Digital Development and Information (MDDI), she describes our Public Service Media as Singapore's truth infrastructure. I would go further than that. I would say that our Public Service Media are not just Singapore's truth infrastructure but also our trust infrastructure. The Straits Times has a place in the hearts of most of our people. Zaobao is already the most respected international Chinese-language outlet globally. CNA commands with credibility far beyond our shores and with strategic investment, The Business Times could become the Financial Times of Southeast Asia. In an age of AI-generated disinformation, they stand between our people and a manipulated information space. I urge the Government to make sure that they are adequately and sustainably funded, and that our media professionals find a compelling future in them.[+5 sentences] Because our media is a source of our trust, and is a key voice of our soft power. My last point is about a home for every family. A nation's ambition is not only credible if people feel secure in the most basic of things and I commend the Ministry of National Development (MND) for continuing to build housing quickly. There is one group that I would like to speak up for today, which is the sandwiched-class families with decent incomes who could comfortably service a mortgage but cannot secure loans from banks and Housing and Development Board (HDB). Their incomes are too high for public rental, and Parenthood Provisional Housing Scheme (PPHS) requires a waiting Build-To-Order (BTO). They are left paying high rental rates, with no clear pathways of getting their roof over their heads somewhere. I understand that this group have a lot of complexities and it is not due to any one source of difficulty that they face, but I hope the Government can consider a targeted programme, like how we invented Fresh Start for people in rental estate but the targeted programme helps this group that I mentioned with some of the following features: selective offering of HDB loans, Government-backed mortgage guarantees with maybe a bank like DBS, a structured pathway for BTOs where demonstrated income stability unlocks eligibility, or access to long-term affordable rental while they rebuild credit.[+7 sentences] The gap is real, and these families deserve a pathway. Let me conclude. Mr Speaker, Budget 2026 reminds me of the many Budget discussions and debates we had during COVID. Then, the rest of the world were dealing with COVID. But our Budget not just helped us deal with COVID but also prepared Singapore to emerge stronger together from COVID. Today, just look at the headlines. The world, and even the major powers, are bogged down by geopolitical conflict, internal disputes and disarrays, and trade or even economic wars. In marked contrast, here in this Parliament, we are discussing a future forward Budget that not just responds to a changed world but also prepare ourselves to emerge stronger together in this AI-charged world. Therefore, Mr Speaker, this Budget deserves our full support.
Mr Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied)1639 words
[+2 sentences]Mr Speaker, the 2026 Budget Statement arrives at the moment of profound transformation. Globally, we are navigating tectonic shifts in security, trade and technology, while domestically our workforce is feeling the weight of disruption alongside continuing cost of living pressures. The Prime Minister describes our current fiscal position as fortunate, citing a revised FY2025 overall fiscal position that has resulted in a surplus of $15.1 billion.[+2 sentences] This is attributed largely to the fund-loading of investments and a significant revenue surge. Yet for many Singaporeans and local small businesses, this success feels distant. More than 2,400 retail food establishments closed last year.[+2 sentences] Youths under 30 are experiencing unemployment rates, almost double the national average. As the Association of Small and Medium Enterprises (ASME) highlighted, we are witnessing a two-speed economy despite positive aggregate macro-economic data, local SMEs find themselves squeezed by a perfect storm of rising and operating costs and weaker domestic demand. ASME pointed to a productivity and contribution imbalance: large enterprises contribute 74% of the nation's nominal value-added even though they employed just 30% of the national workforce; in contrast, micro and small enterprises contribute only 11% of the value-added despite employing 45% of the national workforce.[+7 sentences] This revealed a staggering labour productivity gap. Since wage growth is only sustainable when backed by productivity, when micro and small enterprises are stuck in a low productivity second speed, it becomes supremely challenging for them to offer the competitive salaries needed to combat the rising cost of living. Furthermore, as we look toward a future shaped by rapid AI integration and automation, we must confront the risk of structural jobless growth where corporate profits and GDP continue to growth much faster than the labour market. We must put our huge fiscal surpluses to use to support and empower the workers and sectors that find themselves stuck in this slow growth track. It is only by doing so that we can secure the necessary social licence for continued high growth strategies in elite sectors. When the average Singaporean sees tangible structural benefits from these outsized gains, rather than rising inequality, it fosters the public trust and political consensus required to maintain our open and competitive economic model. The House should examine the Government's recurring pattern of overly conservative fiscal projections. The revised FY2025 surplus of $15.1 billion is more than doubled the original estimate of $6.81 billion.[+5 sentences] This $8.26 billion discrepancy is not an isolated incident. It is part of a trend where projected deficits regularly transform into healthy surpluses. While the Government points to the volatility of tax revenue, this consistent underestimation raises fundamental questions of whether the Government is unnecessarily hoarding funds. We need more accurate forecasting that ensures our nation's abundance, benefits current generations as much as future generations. This fiscal abundance also raises questions about the Government's tax strategies. With surpluses of well over $1 billion in all but one of the last five years, totalling $22 billion, should we re-evaluate the necessity of the GST hike?[+25 sentences] The Government said that the GST hike was meant to fund the increased healthcare spending in an ageing society. But the Ministry of Health's (MOH's) revised FY2025 Operating Expenditure was $305 million lower as estimated, mainly due to lower than projecting funding needs for public healthcare institutions. Will the Government be revising its projections for future increases in healthcare expenditure? True prudence is not just about amassing vast fiscal buffers. This is about balancing future security with the current needs of our people. Unnecessary taxation drains liquidity from households upfront, creating a dependency on Government handouts, rather than fostering genuine financial independence. Furthermore, it acts as a handbrake on economic growth by constraining household spending. In 2025, vehicle quota premium collections were 31% overestimates, reaching $8.66 billion. The Certificate of Entitlement (COE) was a primary driver of our massive surplus and the Government expects even more next year, projecting $9.42 billion in revenue. I am concerned that the Government may be reliant on high vehicle costs to anchor its fiscal position. This could create a perverse incentive to allow the COE to remain high and result inertia against necessary reforms to the COE system, which my hon friend Assoc Prof Jamus Lim, the MP for Sengkang had called for in his Adjournment Motion last September. There are other significant revenue spikes that I seek clarification from the Minister. Revenue from licences and permits has searched by $2.08 billion, a 29% increase from the original estimate to the revised FY2025 figure of $9.23 billion. According to MOF's analysis of revenue and expenditure 2026, the transition to the new Singapore Public Sector Chart of Accounts makes year-on-year comparison for this item not meaningful due to changes in scope. However, this accounting reclassification alone does not explain why the Government collected $2 billion more than it told the House that it would just a year ago. Can the Minister clarify what specific licences or permits drove this increase and whether this represents a permanent increase in a regulatory burden, borne by our households and businesses? While reclassification of the FY2025 figures is promised for FY2027, was there some difficulty in providing it in this year so that Parliament could probably track spending changes for this debate? Without a clear bridge between the old and new systems, there is a risk of losing oversight of expenditure growth. Turning to technology, our AI roadmap must look beyond white-collar co-pilots. To ensure an inclusive social compact, we must deploy physical AI for blue-collar workers in manufacturing and logistics, for example. This could include tools like wearable haptic sensors that alert workers to ergonomic risks to prevent long-term injury or collaborative robots, to assist with heavy lifting on the factory floor. Furthermore, AI can be a powerful tool for blue-collar workers who may struggle with English Language constraints. It can translate vernacular dictation into professional English documentation in real time, allowing workers to focus on their technical expertise rather than linguistic hurdles. These tools enable productivity gains that lead to enhance wages and reduce physical strain for those on the front lines. AI should be an equaliser that elevates technical mastery, not a wish that separates our workforce. The Government has also allowed 400% tax deductions on AI expenses.[+10 sentences] I propose that these should include corporate AI subscriptions to give workers access to corporate AI tools to improve their daily productivity while keeping company data secure. Giving every worker a digital assistant should be a baseline goal for our nation that aspires to be an AI leader. This ensures that the benefits of the technology are shared by employee and employer alike. Regarding our social safety net, a gap remains for the sandwiched generation, which falls just outside existing means testing thresholds. We need a more holistic means testing model that looks not just at gross income alone but disposable income after essential expenses are deducted. For example, a household earning $9,000 with special needs children or elderly parents requiring chronic care, may be functionally less wealthy than a household earning $3,000 with no such burdens. Furthermore, I urge a shift towards individual base assessments for our seniors to better protect their dignity. No senior should ever be forced to plead with an estranged adult child for financial support simply because that child's income is bundled into the per capita household income calculation. When subsidies are tied to the disclosure of a child's salary, we leave vulnerable seniors at the mercy of strained family dynamics. Our social safety net should be anchored more to a senior's individual income instead of their children's, to ensure they receive the care and support that they need. MTI's development expenditures is estimated to double to $9.24 billion in FY2026, which is an increase of $4.32 billion in a single year.[+1 sentence] While the Government says this increase is mainly due to initiatives to enhance Singapore's economic competitiveness in an uncertain global environment, can the Minister shed more light on a specific milestone this money is expected to achieve? For comparison, the entire development budget for the Ministry of Social and Family Development (MSF) is a mere fraction of this, at just $260 million.[+2 sentences] There seems to be a disconnect between the Government's own risk assessment and its fiscal response. The Budget Statement identifies significant risks from an AI benefits reassessment and global trade tensions. Yet, the fiscal impulse of Budget 2026 is only 0.6% of GDP.[+4 sentences] This stance appears rather passive. If the risk of job displacement and investment decline is as real as the Government acknowledges, our fiscal injection should be more robust and proactive, particularly when we are riding on a huge surplus from the previous year. We should be building more buffers for our workers now rather than reacting after the displacement begins. Finally, on the matter of security, the Prime Minister stated that defence spending will remain at 3% of GDP. Can I ask if this includes the cybersecurity budgets across the Government, including those under the Cyber Security Agency for the protection of critical information infrastructure?[+7 sentences] With the rise of in sophisticated cyberattacks and hostile information campaigns, it is essential to know the true allocation of security resources. Mr Speaker, a budget is more than just a balance sheet. It is a statement of our national values and priorities. We cannot be a nation that celebrates multibillion dollar surpluses while our middle-income families are squeezed, our seniors fear being a financial burden on their children and our workers worry about a digital future that feels out of reach. Let us build a social compact that does not just manage growth but shares it fairly and transparently. We should measure our success not by the absolute size of our reserves, but by the security, dignity and peace of mind of every Singaporean. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Victor Lye.
Mr Victor Lye (Ang Mo Kio)685 words
[+20 sentences]Mr Speaker, I rise in support of Budget 2026. I will speak about Singapore as a networked economy with trust as our new factor of production. Economists have studied the classic factors of production, land, labour, capital and later adding entrepreneurship in the 1800s. In this uncertain fragmenting world and AI acceleration, I see a new factor of production – trust. Trust is intangible. Yet, it behaves like infrastructure. Trust enables flows – capital, data, talent, goods, decisions. Trust increases resilience to shocks. Trust is the reliability premium that allows counterparties to transact, coordinate and commit to actions at scale, even in the face of uncertainty. For Singapore, as a small city-state, this is and should be our competitive advantage. In 1965, our population was a mere 1.9 million. Today, as a first world nation, we have 3.7 million Singaporeans, 4.2 million if we include Permanent Residents. Singapore is small. Compare this to Tokyo, a city, 37 million people; Delhi, 36 million people; Shanghai, 21 million people; London, 10 million people; New York, eight million people – you get the picture. Even Kuala Lumpur and many of our Asian capitals/cities have a few times multiple, more people than Singapore. Large countries within hinterlands can rely on internal markets, domestic, resources, national industrial stacks. Singapore has no hinterland. Instead, our hinterland must be how deeply we connect to the rest of the world. I see Singapore therefore as a networked economy, where trust becomes the connective tissue that allows a small node like Singapore to orchestrate value across a much larger space. To be a successful networked economy in this globally fragmented and accelerating AI world, trust becomes our factor of production, our competitive advantage. Budget 2026 identifies four AI missions – finance, health, advanced manufacturing and connectivity. Seen through the lens of trust, these missions are strategic growth pathways. In finance, AI can position Singapore as the world's most trusted digital custodian enabling secure asset verification, counterparty validation and trusted trading ecosystems. In health, Singapore can be a trusted hub for clinical trials, diagnostics and genomic innovation. In advanced manufacturing, by anchoring intellectual property with trust, Singapore can embed itself in high value global supply chains.[+22 sentences] Lastly, connectivity. For example, as a port, we cannot just compete by the number of boxes we move. We must use AI to pivot from moving boxes to become trusted coordinator, the operating system that optimises flows across ports, even across geopolitical boundaries. Mr Speaker, ultimately, Budget 2026 AI Missions must translate into real benefits for our people. When we are the trusted node in supply chains, essential good for Singaporeans continue to flow even during crises. We can create trust-centric jobs, coordinating systems, validating data, ensuring digital security. In an AI driven world, Singaporeans can become that human layer of trust, providing empathy and compassion, on top of credibility and judgement which AI cannot. Trust can be our new fact of production, our competitive advantage for a small city state, a network economy. Budget 2026 begins this journey. I propose three areas for consideration. One, institutionalise trust infrastructure. Why not develop regulatory sandboxes where AI innovations are tested and centered in Singapore using our trusted governance frameworks? In this way, Singapore exports trusted governance alongside technology. Two, create global trust credentials to enable not just Singaporeans or Singapore firms but also foreign companies and professionals to carry trusted Singapore verified credentials, demonstrating compliance, skills and experience. Three, develop trusted connectivity standards in sectors important to Singapore such as maritime, aviation and digital trade. Singapore can develop trusted coordination standards. Stewardship of such standards creates relevance and trust for others to deal with us Singapore. Mr Speaker, as a small city state, Singapore cannot out bill the large countries. We cannot outnumber the world. With the fragmenting world and AI acceleration, we can however, be that beacon of trust for the world as a networked economy. When the world asks: "Who can we work with?", "Who can we rely on?", "Who can coordinate these critical systems for the world?", let the answer be Singapore. Sir, I support Budget 2026.
Mr Speaker4 words
[+1 sentence]Mr Yip Hon Weng.
Mr Yip Hon Weng (Yio Chu Kang)1776 words
[+16 sentences]Mr Speaker, Sir, I declare that I work in a global investment firm looking at human capital ecosystem strategies. In my work, I have seen how capital relocates amidst volatility, how labour markets adjust when technology shifts and how nations either manage transition wisely or struggle when they do not. My reaction to Budget 2026 is this: Singapore’s budget surplus reflects global volatility and our strategic credibility. In a fractured world, capital flows toward stability, predictability and the rule of law. That is a vote of confidence for Singapore. I welcome the Government’s steady fiscal discipline. At a time when many countries wrestle with debts and deficits, Singapore’s prudence is an asset. It gives us room to act, credibility to lead and options in uncertainty. But volatility-driven gains are not permanent gains. Cyclical surpluses are not structural revenues. In a more dangerous world, fiscal strength is national defence. Our buffers are not excesses, they are strategic insurance. They safeguard our sovereignty, resilience and freedom of action. As Chair of the Defence and Foreign Affairs GPC, I say this with conviction: fiscal resilience is strategic capability. It ensures we are not forced into decisions by constraints. It preserves our strategic autonomy when circumstances demand it. At the same time, given the current surplus position, perhaps we can signal stability by avoiding further tax increases in the near term.[+38 sentences] I recognise that Government will, when necessary, need to raise revenue. But where new measures are introduced, they should be calibrated carefully and remain progressive. Perhaps there should be no additional effective burden on lower-income households and revenue adjustments should be designed with cost pressures firmly in mind. This is not to question earlier fiscal decisions. It is simply to say: where space exists, we should use it to cushion households and strengthen trust. Because trust in fiscal policy underpins trust in everything else. And trust must also underpin our AI transition. The AI transformation is not theoretical. It is structural, it is global and it is accelerating. Recent analysis from technologists observing the frontier makes this clear. Model performance is not merely improving incrementally, it is compounding. Tasks that required research teams a year ago can now be done in weeks. Tasks that required weeks can now be done in hours. What appears gradual suddenly crosses a threshold and becomes transformational. AI is no longer assisting humans at the edges. AI is helping to build the next AI. Engineers use AI to write code, debug systems, test approaches and accelerate research cycles. But the recent AI coding revolution does not stop at engineers and programmers, because code is essentially logic and workflow. And it is enterprise logic and workflow that is the fundamental basis of many knowledge jobs. This means that AI's ability to generate code and write software autonomously could eventually have greater implications on all knowledge workers, not just programmers. When improvements accelerate the next round of improvements, change does not move in a straight line. It begins to move like a wave. Last week, I met a young Singaporean named Amir outside a tuition centre in Yio Chu Kang. He was waiting for his sister. In his hand was a neatly printed curriculum vitae (CV). Three pages. Strong verbs. Clean formatting. I asked whether he had hired a professional writer. He laughed and said, “No, I used an AI tool to help me. It rewrote my CV. It drafted cover letters. It even suggested interview answers.” Then he paused. “But if AI can write my CV better than I can,” he said quietly, “what happens when it can do my job better than me?” He was not dramatic, he was also not angry. He was simply uncertain. That uncertainty is what many Singaporeans feel. The International Monetary Fund (IMF) estimates roughly 40% of jobs globally are exposed to AI.[+1 sentence] In advanced economies, exposure approaches 60%. Goldman Sachs estimates generative AI could affect work equivalent to 300 million full-time roles.[+3 sentences] These are not alarmist numbers. These are structural signals. Stanford Prof Erik Brynjolfsson recently argued that the long-awaited AI productivity take-off may now be visible. In the US, payroll growth was revised downward by over 400,000 jobs even as GDP grew 3.7% in the fourth quarter.[+18 sentences] Output held steady while labour input declined. That is the hallmark of productivity growth. Productivity rose about 2.7% in 2025, nearly double the previous decade’s pace. First comes investment, then re-organisation, then, if we get it right, harvest. But harvest is uneven. Some firms adapt faster, some sectors benefit earlier, others face displacement sooner. And here is the elephant in the room. Mid-career workers are already feeling automation’s pressure. The accountant whose reconciliation tasks are automated, the marketing manager whose drafting work is compressed into minutes, the operations executive whose reporting is replaced by dashboards. These are not statistics. These are parents, caregivers and Singaporeans with responsibilities. They want to remain useful, valued and respected in their work. Productivity can rise even as some workers experience displacement. Our task is not to deny disruption. It is to govern it. Allow me to group my proposals into three themes. First, Mr Speaker, Sir, measure what matters. AI Missions deserve praise, but alongside ambition, we need measurable labour outcomes. What three to five key performance indicators will be published annually that are explicitly job linked?[+8 sentences] For example, net new roles created, wage uplift achieved, time to redeployment, share of SMEs scaling AI beyond pilots. If this transformation is national, its scorecard must be national and human. AI Champions must not become theatre. What is the gating bar? It should include data readiness, genuine process redesign, measurable productivity gains and meaningful workforce upgrading. And if firms cannot demonstrate transformation beyond pilot projects within a defined period, support should be reviewed and if necessary, withdrawn. Second, Mr Speaker, Sir, protect pathways. Globally, the first wave is not mass layoffs but junior tasks disappearing: drafting, summarising, first-pass analysis. Will AI Mission partners redesign entry-level pathways so that young Singaporeans still get a real first job, real mentorship and real responsibility, even as AI takes over routine tasks?[+6 sentences] The future belongs to “AI conductors”, not merely “AI users”. Our juniors must learn to curate, steer and verify AI outputs. The competitive advantage is not pressing “generate.” It is about asking the right questions and judging the answers. If we lose the first job pathway and if our juniors never get the chance to learn how to be "AI conductors", we lose the future workforce. For mid-career Singaporeans, the fear is not only unemployment, but stagnation and even decline. Will AI support be conditional on job redesign and wage progression commitments?[+13 sentences] If gains flow only to the margins and management, social cohesion erodes. Six months of premium AI tools must not become tokenism. Access is not mastery. How will we measure demonstrable skill acquisition through portfolios, assessed projects and recognised credentials. Workers need employability, not just exposure. Third, Mr Speaker, Sir, build shared capability and trust. Do SMEs have sufficient compute and infrastructure? Will we provide shared credits, secure data environments and reference architectures so that they can compete responsibly? Without shared capability, we risk an AI divide. In regulatory sandboxes, who bears the liability? When AI affects hiring or evaluation, what is the audit framework? Speed without accountability breeds backlash. And how do we remain trusted without slowing deployment? What is the AI Council’s explicit speed-with-safety model?[+4 sentences] This should include: tiered risk categories, standardised evaluation, fast-track approvals for low-risk use. Trust must not become friction. Speed must not become recklessness. Will the Government lead by example? Will the public sector pair AI adoption with systematic job redesign and publish measurable outcomes?[+43 sentences] In conclusion, Mr Speaker, Sir, two centuries ago, in the English Midlands, groups of skilled textile workers gathered at night. They broke into mills and smashed the mechanical looms, the industrial weaving machines that automated the production of cloth, because they believed those machines would destroy their livelihoods. These workers came to be known as the Luddites. They were not ignorant men. They were craftsmen, fathers and providers who feared that mechanisation would render their skills obsolete. History remembers them as opponents of progress. But here is the twist. The looms did not destroy prosperity, they transformed it. Industrialisation was painful and disruptive, but the societies that adapted built new industries, new skills and eventually a broader middle class. The lesson is not that technological change is painless. It is that refusing to prepare does not preserve dignity, preparing does. AI is technological change. It is not to be feared. It is not to be ignored. It is to be governed. But AI moves at digital speed. The Luddites had decades. We may only have years, perhaps only months. History also warns us that when ownership concentrates and meaningful work disappears, inequality hardens. If AI disruption results in productive assets concentrated in a few hands while working people are excluded from opportunity, social strain follows. But that outcome is not inevitable. Every major technological disruption has also created renewal. AI can expand opportunity if directed wisely. That means preparing our workforce today. It means equipping our workforce tomorrow. It means being prepared to recalibrate policy as the technology evolves. The future will remain uncertain. But this Government does not sugar-coat reality. The PAP has never shied away from harsh truths. We will be honest about the challenges on the ground. We will be honest that some jobs will change. We will be honest that some roles will disappear. And we will be honest that the transition will not be easy. But we will also be clear about this: we are here to walk with Singaporeans through the tough times. Let me return to Amir. When I saw him again, he had enrolled in a course. He was no longer asking what AI could do for him. He was asking what he could become. “The tool is not the point,” his instructor told him. “Learning how to think is the point.” “I realised,” Amir said, “that I needed to level up.” Mr Speaker, that is the future we must design. Not a future where workers are discarded. Not a future where productivity rises but trust falls. But a future where productivity funds mobility and automation finances upgrading.[+8 sentences] If we prepare honestly, govern wisely and act courageously, Singapore will not merely endure this wave of change. We will rise with it. If we get this right, Singapore will not merely adopt AI. We will guide it. We will shape it. We will humanise it. And together, we will shape the future of Singapore. I support the Budget.
Mr Speaker4 words
[+1 sentence]Assoc Prof Terence Ho.
Assoc Prof Terence Ho (Nominated Member)2949 words
[+3 sentences]Mr Speaker, thank you for the opportunity to join the debate. I would first like to congratulate the Prime Minister and his team on the forward looking and comprehensive Budget that speaks to the wide-ranging needs of our economy and society. I will make some broad remarks on the Government's fiscal position and spending and use the rest of my speech to outline four priorities that I believe are critical for Singapore's future. As many have observed, what stood out in this year's Budget Statement is the sizeable surplus that the Government is expecting for FY2025, and the positive fiscal outlook in FY2026 and beyond.[+7 sentences] Looking around the world today, a strong fiscal position is both rare and enviable. Fiscal strength allows for policy optionality and gives confidence that the Government has the resources to carry out its policy agenda. As a public policy academic, I often speak to visiting delegations of public officials from other countries. Many are eager to learn how Singapore has accumulated reserves and achieved such a healthy fiscal position, and they want to learn how their countries too can strengthen the public finances. However, the accumulation of our reserves was more or less unique to our circumstances, enabled by a confluence of historical factors as Singapore successfully rode the early wave of globalisation. This is not easily replicable by other countries today, nor can the Singapore Government expect to run large surpluses every year as spending needs grow. The question then is how the Government can best deploy the fiscal resources at its disposal today. Should the Government set them aside for a rainy day by replenishing the reserves, earning financial returns in anticipation of future spending needs and exigencies, or should we invest in our earning capacity – in infrastructure capabilities and human capital?[+9 sentences] Or should we strengthen social support dealing with the challenges we face here and now, which is so important for a sense of assurance and solidarity as a nation? We must, of course, do all these. The question is one of balance and I think there is a judicious mix of each in this year's Budget, which will allow us to address immediate challenges while positioning Singapore well for the future. Singapore is doing fairly well as a nation. As an optimist, I am inclined to see the glass is half full rather than half empty. One could even say that for Singapore, the glass is more than half full. But even if the glass is, say, three quarters full, we cannot be complacent as the shortfall represents Singaporeans who are struggling or insecure. Gaps matter even in a nation that is doing well overall because social cohesion depends not on averages but on those at the margins. What we do to support fellow citizens could determine whether we remain a cohesive society or become one that is divided along socio-economic lines. As a nation, we need to address the gaps with boldness and urgency, and the willingness to transcend existing policy paradigms, because of the scale of the challenges we face, spanning the costs of living, wealth disparities, workforce disruption and population ageing.[+5 sentences] I will touch on four areas I think need our attention and resources. They form the acronym "FEAT" – "F" for future readiness, "E" for empowerment, "A" for assurance and "T" for togetherness. These priorities are mutually reinforcing. Future readiness creates opportunities. Empowerment enables Singaporeans to seize these opportunities. Assurance provides the confidence to navigate change and Togetherness sustains the trust that underpins our shared progress.[+1 sentence] Let me begin with future readiness. This year's Budget focuses on frontier technologies, notably how Singapore can build a competitive, AI-enabled economy.[+2 sentences] We are strengthening our security against new threats, expanding our infrastructure capacity ahead of time and building capabilities in areas such as nuclear energy, to give us more options. In an uncertain world, adaptation matters more than prediction. This is important, not just at the national level but also for organisations and individuals. I am glad that firms will receive support to use AI to transform their business through the new Champions of AI programme and will also be able to tap the enhanced Enterprise Innovation Scheme and the PSG.[+28 sentences] I look forward to more details of these schemes. How firms rework business processes will be critical, whether they use AI to augment or to replace human contribution. There is a need to support firms in building capabilities for human-centric job redesign. Fundamentally, too, we will need to redesign jobs so that the jobs in demand are also the jobs that Singaporeans aspire to do. I will elaborate on this at the MOM COS debate. Ultimately, preparing for the future is an individual responsibility as well. It requires a growth mindset. We are not defined by our Primary School Leaving Examination (PSLE) score or "O" level grades, but by our willingness to learn throughout life. Last year, I took part in an SG60 commemorative book project entitled "Redefining Singapore". One of the contributors to the book, Mr Mohammad Saleem, overcame a troubled youth to become the founder of a social enterprise that provides life coaching. Drawing on his own life experiences, Mr Saleem contributed one of the best chapters of the book. It was deeply inspiring and beautifully written. In both his writing and speaking, Mr Saleem stands out, even among the many eminent contributors to the book. His life story is a testament to the potential that is in each of us and how far we can go if we keep learning and improving ourselves. The second priority I would like to highlight is to empower Singaporeans to pursue excellence. Singapore is where it is today because generations of Singaporeans gave of their best, pursuing excellence in what they did. While we are more comfortable and affluent today, we cannot afford to lose this drive for excellence and, along with it, our society's dynamism and verve. Affluence does not mean we grow soft as a people. Instead, we should think of our resources as an enabler, a springboard to greater achievement. I am not referring to excellence that is narrowly defined, nor am I asserting that the pursuit of excellence should be at the expense of physical or mental well-being. In fact, our society ought to have a place for some who run faster and others who prefer a slower pace, recognising that people at different stages of life and career will have different priorities. But as a society, we need a critical mass of highly motivated people with the hunger and drive to succeed. This is not about hyper-competition but about setting high standards for ourselves, not being satisfied with the status quo but pushing the boundaries of possibility, often through collaboration with others. I know a teenager who constantly challenges his own limits, whether it is learning mathematics, programming, playing music or learning to juggle. Whenever he has mastered something, he was always on to the next target. His intrinsic motivation stems from curiosity, challenge and purpose, rather than extrinsic rewards. I hope this kind of spirit will be pervasive among our youths. We must encourage and empower Singaporeans to be the best each of us can be, whether in creative, sporting or academic pursuits, or in serving the community. In sharing about Singapore's social policy with visitors, I often describe Singapore as a social investment state, where social policy is geared towards education and skills development to enable people to earn a good living.[+5 sentences] This includes significant investment in our national schools and preschools, as well as in lifelong learning. Despite these efforts, we know the playing field is not level. Children from affluent families have access to private tuition and enrichment programmes spanning both academic and non-academic domains. The question is whether, as a society, we can provide even more resources and opportunities for children from lower-income or disadvantaged households. The idea is not to fuel an education arms race, but to expand equitable access to programmes that are truly helpful in nurturing passion and potential. One possibility is to liberalise the use of Edusave to cover high-quality, non-school-based enrichment activities. To narrow the opportunity gap, the Government could provide children from lower-income families with additional support via the Child Development or Edusave accounts – in other words, make Government contributions to these accounts progressive. Donors could also be encouraged to top up the accounts of less well-off children identified by schools or community organisations with matching funding from the Government in the spirit of a "we first" society.[+12 sentences] It is important to provide opportunities, not just during the schooling years, but also into working life and it is not just the Government's responsibility. I know the chief executive officer of a private equity firm who, instead of only hiring top graduates from brand name universities, makes it a point to give opportunities to those from modest family backgrounds and less well-known institutions. A number of those he has recruited and mentored have gone on to become successful investment professionals. Their success illustrates how opportunity, mentoring and the willingness to look beyond credentials can unlock potential that might otherwise remain untapped. Empowerment enables social mobility and is vital for a fair society. There is also tremendous benefit to society when more have the opportunity to fully realise their potential. Next, I will talk about strengthening assurance and social inclusion. Singapore is an expensive city, but it must never become an excluding one. The cost of living will always be high because land is scarce and incomes generally high. Prices are high because of supply and demand. Many shops and eateries set prices according to what most Singaporeans can afford. We must therefore ensure that those who are less well-off are not excluded from mainstream life in Singapore, for instance, by having to forgo social gatherings because they feel they cannot afford to pay for a meal or a shared activity. The past two decades have seen many groundbreaking policy innovations to strengthen social support and assurance, but we must go further because there is still an assurance gap for many Singaporeans.[+12 sentences] The aim must be for citizens to feel a greater sense of financial assurance. This is necessary for our social compact, so that we can face challenges together with confidence. It is also a pre-requisite for public support for Singapore to remain an open economy. There are many ways to strengthen assurance and support, but each comes with trade-offs. If the Government holds down prices or rents, this may distort price signals and reduce market efficiency. If the Government mandates high wage floors, this may raise business costs and crimp employment. The Government could provide more direct support to the less well-off via social transfers, but this would incur fiscal costs and may affect incentives to work. This is not to suggest that we do nothing but rather to highlight that strengthening assurance inevitably involves trade-offs. Greater support may entail fiscal costs or modest efficiency losses but the society that provides confidence and dignity to its citizens is ultimately more resilient and cohesive. I have three suggestions for social policy. The first is to reframe or reposition CDC vouchers. Singaporeans are, by now, very familiar with CDC vouchers, which we have received yearly since 2021. If I am not wrong, the value of CDC vouchers, SG60 vouchers and LifeSG credits announced in last year's Budget amounted to over $3 billion.[+5 sentences] However, the vouchers also appear to some as mere band aid for the cost of living, something that is neither sustainable nor targeted. I take a different view. I see a useful role for vouchers and credits in our social support system, complementing structural or permanent transfers, such as the Workfare Income Supplement, Silver Support Scheme, the GST voucher, along with healthcare and housing subsidies. The advantage of vouchers is that they can be sized according to needs. For instance, more can be given when inflation is high and cost of living pressures are elevated, and when more fiscal resources are available, I believe that with a reframing, the role of the vouchers would be better appreciated by Singaporeans as a form of support that is anchored in the shared ownership of Singapore's success. The vouchers and credits could be repositioned as a social dividend, an annual sum given to citizens that signifies that they have a stake in the country and its collective wealth.[+4 sentences] The Government can determine the size of the dividend it declares each year, depending on prevailing fiscal and economic conditions. The dividend should be universal and progressive, meaning that everyone receives something, while the less well-off receive more. A social dividend would be a form of social support that compliments the structural transfers, is flexible in size and sends a clear message of solidarity and inclusion. This reframing would shift the narrative from short-term relief to shared participation and in national progress. The second suggestion is to give low-income households part of the social dividend in income-generating assets and securities, beyond just cash and vouchers.[+7 sentences] The Government has already adopted various forms of asset-based social policy. These include the CPF system to build up savings, the home ownership policy that has given most Singaporeans valuable housing equity and periodic CPF top-ups for those with less retirement savings. The Government could consider broadening the types of transfers to include income-generating assets, such as mutual funds. This could be designed so that recipients would not be allowed to sell these assets within a certain vesting period and can earn a stream of income from them over time. Asset-based transfers can strengthen financial resilience and foster a shift in mindset, from short-term spending to long-term wealth building and stewardship. Provided they are carefully designed to manage market risk and complexity, such measures offer a complementary pathway to narrow wealth gaps and broaden participation in asset ownership. Third, we need a sharper focus on affordability as a policy objective vital to social inclusion. There are already affordability indicators for public housing, such as the ratio of new flat prices to incomes; and for healthcare, the share of out-of-pocket expenditure in total health spending. We could likewise track the percentage of households whose expenditure on food, utilities and other essential goods and services exceeds a certain proportion of their income.[+12 sentences] Publishing a concise set of indicators covering housing, healthcare and essential consumption would deepen public understanding of cost pressures, and support evidence-based adjustments when needed. It is particularly important that low-income Singaporeans have sufficient consumption choices, so that they can participate fully in society. It is worth thinking about how this, too, can be tracked as an indicator of how inclusive our society is. Finally, the "T" in "FEAT" stands for togetherness. This, I believe, will be the single most important determinants of Singapore's future. Togetherness is not merely a sentiment, but the culture and practice of respect, trust and shared responsibility within society. As a small nation at a time of geopolitical flux, we cannot afford to be divided along partisan lines, ideology or any other societal fault lines. Often, such division starts with disrespect and then progress to denigrating those whose views or practices are different from ours. And very soon, people cannot work with one another on the basis of ideology, politics or worldview, and once the genie is out of the bottle, it is very hard to put it back in. If Singapore gets mired in partisan battles or culture wars like what we observe in other countries, we could win our individual battles but lose the war. Our fiercest fights would be with one another rather than against external threats. Suppose in a hypothetical country, two-thirds of the population support a party or ideology and one-third support a rival, and suppose in the extreme, the two sides spend all the time and resources trying to negate the efforts of the other side. The net strength of this hypothetical country would be two-thirds minus one-third, but if the country is united, then it is two-thirds plus one-third, or perhaps even more than the sum of its parts.[+6 sentences] As Singaporeans, we must recognise and affirm that there is more that we have in common than what divides us. We must do everything we can to nurture a strong middle ground of citizens who are fair-minded and respectful towards one another, a middle ground that is not reflexive, but reflective in our approach to affairs in the public square. Particularly at this time of severe geopolitical turbulence, Singaporeans must close ranks if we are to survive and prosper, and not be swept away by external tides. If we succeed in doing so, we will truly be an exceptional society. And this, I believe, would be the greatest competitive advantage for Singapore in a world of deeply divided societies. Mr Speaker, to conclude, a budget reflects the values and priorities of a society. Ultimately, what matters most is how we care for the vulnerable among us, how we relate to people whose views are different from ours and how we equip future generations with confidence and opportunity. Success will depend not only on policies and spending, but on the collective actions of citizens and stakeholders.[+1 sentence] It is up to each of us, as Singaporeans, to exercise agency and influence to help mould our shared future. If together, we can achieve the FEAT of future readiness, empowerment, assurance and togetherness, I believe Singapore will continue to flourish as a resilient, cohesive and exceptional nation. In my view, this Budget is a step forward in this direction, though we have much further to go.[+1 sentence] For this reason, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr David Hoe.
Mr David Hoe (Jurong East-Bukit Batok)2509 words
[+3 sentences]Mr Speaker, I am speaking in support of Budget 2026 because it strengthens assurance for Singaporeans and also invest in our future. In this response, I will cover broadly on three issues. The first is on the perceived support to parenthood; second, is on closing the opportunities gap; and third, it is a whole-of-Government approach in how we can tackle the first two issues that I have just mentioned. First, if we are serious about encouraging parenthood, we must reshape the lived experiences of parents or potential parents, which shapes perceptions of support given.[+3 sentences] To be clear, Budget 2026 takes meaningful steps in the right direction, such as Child LifeSG Credits, raising of income thresholds for preschool subsidies and student care support, and others. All these follow comprehensive steps taken over the past few years to support parents and families, including significant enhancements to parental leave, the Large Families Scheme and many others. But we have to be candid at where we now stand. Our TFR in 2024 remains at a historical low of 0.97.[+11 sentences] While we all hope that the Government's efforts over the past years would have improved our TFR, in my conversations with parents and also my residents, the current realities makes me doubtful whether this could significantly change in 2026. My point here is this: we have done a lot to encourage Singaporeans to have children for the past decade. But with the historical low of 0.97, it suggests to me that we may not have been effective in shifting the needle. I propose the shift from doing "more" in an aggregate manner to doing "better". Allow me to propose some solutions regarding on how we can overcome such barriers and constraints, drawing from the conversations with young parents and also my resident. I will cluster them into three "S" – first, spaces; second, stress; and third, support. The first "S" pertains to space and housing. Singapore is land scarce and we have to use space efficiently. Over time, HDB flats have become more compact and this is part of our reality today. But if we are serious about encouraging parents to have children and supporting large families, we should make it easier for families planning to have children or more children to secure homes that are conducively sized for them. You see, if we want couples to start thinking about children early, the flats that they choose can influence their decision. One idea is they can select a "room to grow" flat, where it mimics a larger format of HDB units, in what I may call "jumbo BTO flats", and these are thoughtfully designed for modern family needs where some of our families rely on domestic helpers.[+2 sentences] For example, such flats could include layouts with extra bedroom separate from the main living quarters that can accommodate domestic helpers and better soundproofing so that children can play, sleep or study without the entire household being disrupted. If I were to push this idea slightly further, such flats could be priced similar to smaller-sized units through additional subsidies, but with clear conditions. For example, eligibility to apply for such units could be linked to couples committing to have two or more children within the first five to seven years of Minimum Occupation Period (MOP) after key collection.[+9 sentences] If they do not meet such conditions, then there should be a clear and fair "down-sizing" pathways with subsidy clawbacks. Let me be clear here – we should be reasonable in exceptions, for example, if medical, fertility or relationship issues arises. I will be frank here, I do not think that we have really tried a "bigger home for bigger families" housing scheme that ties bigger flats and extra subsidies to having more children, so I think that the idea needs to be tested. I think it is worth studying this idea. At least, it addresses the concern of adequate space if a family is considering having more children and will certainly give them a good nudge in their decision-making before they get married. A second idea is to give families more flexibility to upgrade their larger flats when a new child arrives and relax the existing rules on flat applications within MOP. I am sure many of us, as MPs, have received such requests and what I am about to share is not uncommon. Basically, some families already live in smaller HDB flats, and they find that space becomes too tight after having their second or third child. In such a case, we should consider activating more flexible pathways for them to move to larger flats. For instance, reducing or suspending MOP if couples are expecting or have additional children during that period; and even concurrently "resetting" their eligibility to apply for larger BTOs and for them to accord higher priority in the application process.[+15 sentences] Of course, these details should be thoroughly considered and debated, but the broader point is this: we should be prepared to use policy design to signal that we are ready and willing to reduce the structural and financial hoops for families to jump if they want to secure bigger and more comfortable living spaces, if they want to raise more children. The second "S" pertains to mobility and commuting stress. We rightly pursue a car-lite vision, and as a member of the Ministry of Sustainability and the Environment (MSE) GPC, I support this as it certainly goes a long way in reducing our collective carbon footprint. But families are not abstract units. They navigate daily routines and logistics and arrangements. For larger families, private mobility has economies of scale and can reduce stress. On economies of scale, this is especially so when larger families have to send multiple children to childcare and school each day, and they would like to spare their household from waking up early just to catch public transport. As a father to two, I know this reality myself, because every time I bring my children out, it is not just "bringing my children out", it is bringing out a stroller, a bag with diapers, milk, spare clothes, wet wipes, snacks and things that I would only realise what to bring after a spill, an accident, a tantrum or a sudden fever. When you do this while navigating public transport, every transfer is a stress multiplier. So against this backdrop, we should consider how we can support families with children to address these realities by providing commuting offsets, such as, another idea, private transport vouchers or even substantial family subsidies for large families for private vehicles. Let me move to the third "S", which is on support. During my PAP Clementi market visit on Valentine's Day, a parent pulled me aside to raise a concern, which I have heard repeatedly from many parents – childcare leave. If one person raises this issue, to me, it is a data point. But when different parents raise the same issue independently, it is a signal. The parent's concern is straightforward. Today, parents get six days of paid childcare leave, per child, when their child is six years old or younger, but only two days of extended childcare leave when the child is between seven to twelve.[+6 sentences] This is how it looks like in real life today, primary school children still fall sick and it is rarely a one-day occasion, and they still have medical appointments to go to, and there can be occasional school disruptions such as Home-Based Learning. And for parents with two children or more, the odds of staying home at short notice is actually quite likely. When leave runs out, that same parent told me, she has to take unpaid leave a few times. Our current support environment for parents, hence, may not feel supportive. It then raises a fair question whether the current structure remains fit for purpose. The principle is this: we should keep childcare leave provisions under periodic review, answering the question whether they match the current work and family realities today. For example, instead of a sharp step-down in leave provisions once a child turns seven, we could keep the overall number of childcare leave capped at six days per parent, but allow families to use this portion of their leave flexibly across a wider age band or redesigning the entitlement so it tapers off gradually, instead of a sharp drop, from seven to two. We should also study whether parents with more children should have a modestly higher cap.[+10 sentences] Another aspect of support is accessibility to play. We often say this: we do not want our children glued to their phones and I agree. But in many new BTO estates, the alternatives are limited or not age-appropriate for older children. If we want parents to feel supported, then our living environment must make it easy for children to burn their energy safely and meaningfully. This is where agencies can work together to convert unutilised spaces, such as multi-storey car parks, into sheltered play and sports areas. Mr Speaker, I have raised this question through a Parliamentary Question before, and my fellow Member Mr Ng Chee Meng also asked the same thing for his residents. I am glad that the Government's position has shifted from just simply stating constraints to saying that it is now being studied. But you see, families need clarity. I still get occasional queries from parents of primary school-going children in Clementi Peaks and I cannot keep tell them that the Government is still studying, because they want to know a definite timeline. So, I urge relevant agencies to share the outcome and timeline of this study soon. On this note, I also want to say that I welcome the expansion of the Dual-Use Scheme so that families can access school facilities conveniently.[+16 sentences] But just as importantly, we should review pricing and access rules so that these spaces do not just become "available in theory" but out of reach in practice for lower-income households. Mr Speaker, I raise these parenthood points because they connect directly to my next point about opportunity. The release of MOF's Occasional Paper noted that incomes have risen and income inequality has moderated. These are important achievements. But I worry something that is not said explicitly: even if incomes rise, is the opportunity gap widening and is access to opportunities becoming harder? Because many opportunities today cost money, time and prior knowledge of their existence. Families with more resources can buy enrichment, exposure and networks. As we, as a country, continue to invest in growth and skills, we must keep our promise of social mobility alive. Specifically, I will address two "As" here – awareness of opportunities and access to opportunities. Let me first touch on the awareness of opportunities. As we push into new growth areas and an AI-enabled economy, the first barrier, in my opinion, is not about capability; but it is about clarity. In emerging industries, such as AI, quantum, advanced manufacturing and biomedical sciences, many people opt out early simply because they lack exposure. They do not know what the work actually looks like, what the entry routes are, what are the pathways or what skills are really required there. But those with stronger networks can ask someone, get an introduction and hear early about internships or externships. And those without networks often find out late or, maybe, not at all. Put simply: awareness is uneven and it can become a hidden advantage. So, beyond simply just redesigning a website, we should treat awareness as a policy lever. I hope the new statutory board of the merger between WSG and SSG will reach out to students and workers without strong industry networks.[+2 sentences] I will elaborate more on this during the COS debates. The second "A" refers to access to opportunities. I have said in my maiden speech that aspirations are shaped by experience, and experiences are shaped by access. That is why, previously, I have mentioned the idea of a means-tested "Curiosity Credits," which is a simple idea that regardless of any family background, every child should have the budget to be able to allow them to discover their interests and strengths by having the opportunity to try things, like songwriting, playing a musical instrument, robotics, sports – and the list goes on.[+7 sentences] Because today, such experiences come with a price tag. Higher family incomes can pay, and families with stronger networks hear about opportunities earlier and get better guidance on what to try. Lower-income families often cannot. Before and since raising this idea, I have seen smaller-scale pilots illustrating how this can work, especially for children from lower-income households. The principle is straightforward: access to discovery should not be a privilege but it should be part of how we keep social mobility alive and real. Beyond children and our growing years, allow me to segue into SkillsFuture too. We should also have this "try before you buy" a bigger part of our opportunity system. SkillsFuture can consider creating a low-cost or subsidised "taster" lessons or courses and micro-attachments in new industries, so Singaporeans can experience the nature of the work before committing time and money into a full course. At this point, I just want to take a step back and submit that we should, as a country, continue to be anchored in meritocracy. But we also must be hard-nosed in recognising that meritocracy, over time, may also accumulate and compound advantages across generations.[+4 sentences] That is why we should be open to bolder measures and widen genuine access at formative stages, especially throughout education, which I will expand a bit more on this in the COS debates. Mr Speaker, I want to conclude that the need for whole-of-Government approach to tackle the issues that I have mentioned earlier – parenthood and inequality are wicked challenges. The solution does not sit nicely in one agency, neither does the outcome rarely take the form of a voucher or a subsidy. Taken in isolation, let me submit to everyone that many ideas that I just raised today run against the Ministry's baseline mandate. Because transport agencies will rightly push for a car-lite vision; housing agencies will manage land scarcity and affordability; and fiscal agencies will rightly guard anything against these benefits becoming permanent. That is why we need a whole-of-Government approach only when there is a central agency that sets an overarching objective, deliberate trade-offs, compel design and serve system-wide goals.[+1 sentence] I make this point because it links back to family and opportunities. When system runs coherently, residents experience less friction.[+1 sentence] Mr Speaker, Budget 2026 reflects a continued commitment of supporting families and investing in our children, and I welcome the concrete measures to strengthen affordability and support families with greater needs. But the trends we face, especially on fertility and the risk of widening opportunity gaps, I ask for something more: a sharper willingness to reshape lived experience through whole-of-Government approach, not just in flagship policies, but also in the everyday systems that determines friction, time and stress in residents' lives.[+1 sentence] I support the Budget.
Mr Speaker4 words
[+1 sentence]Dr Neo Kok Beng.
Dr Neo Kok Beng (Nominated Member)2031 words
[+31 sentences]Mr Speaker, Sir, I would like to declare that I am a technology entrepreneur and I have a studio that creates and invest in technology-based venture, such as engineering, aerospace and medical devices. My speech today is going to focus on three main areas. The first area is a vibrant economy; followed by an active caring society; followed by the last topic, which is a resilient nation. On to vibrant economy. Singapore transformed itself from the third world to the first world over the last 60 years, from a labour-intensive industry to a very much technology-intensive economy. How did we do it? What is the secret recipe? What are the systems of governance that enabled us to do so? Those are questions eagerly sought by participants of the Science, Technology and Innovation Policy class, while I was associate faculty at the Harvard Kennedy School. Those answers probably will not be able or to solve our current economic situation going forward as we have entered into more advanced technology, more pioneering efforts and therefore, we probably have to switch our strategy, change our secret sauces or what is the new formula? I was in conversation with Dr Paul Romer, who is the former World Bank chief economist and also the Nobel Laureate for Economics 2018. Romer is well known for his endogenous growth theory, otherwise known as the new growth theory. That probably points a good direction for us. The endogenous growth theory, conceptually, is very simple – matters over things. What are matters? Simply, they can be just factors of production – land, labour and capital. Land, labour and capital have their limits. The more you use the land, it suffers from the loss of diminishing returns. It has scarcity. So, if we pursued these areas, how much land reclamation can we do, how many foreign labours can we import into this country – so there is always a limit, so that is matters. Now things – matters and things are the same – but ideas are very different. Ideas are ingenuity created by human beings. So, ideas generally can be classified as intellectual properties (IPs). So, patents, you came out with ideas, you filed a patent, what happens? You can reuse, reuse and reuse it again. There is abundance against scarcity. The more you use the patents, the more you generate production, the higher the productivity and therefore, it is not the law of diminishing returns. It is actually the law of increasing returns. If we go along this formula, or this road, then, possibly, the GDP growth will be limitless or unlimited. Of course, subject to Utopia constraints. So, where are we now? Singapore rolled out its five-yearly science and technology plans from 1991 to 2010, spending about $25 billion over the years to build up our R&D capabilities, infrastructure and manpower. This year, 2026 to 2030, or what we call the RIE 2030, is allocated $37 billion.[+5 sentences] This is actually a very far-sighted move, because we have to move ourselves from research to innovation and enterprise. With this amount of money that spans over the last 15 years, what have we achieved? Well, it is not easy to measure because R&D is uncertain and of course, if you are doing biomedical applications, it could be 20 years or 30 years before you see any results. However, a simpler way to analyse this situation is to use the Global Innovation Index conducted by the World Intellectual Property Office. We use it as a reference – Global Innovation Index ranking. For Singapore, what is our ranking in 2025? We are ranked number five and that sounds very good, right?[+2 sentences] Well, the ranking has two parts. Innovation input and innovation output. So, innovation input is on infrastructure, the Government actions, especially the R&D dollars.[+3 sentences] We are number one. Okay, we pat ourselves on that. We really invest in R&D. But innovation output – which is the licensings, the trademarks and all the other IPs that we file for commercialisation, we are number nine.[+21 sentences] Innovation input number one; innovation output number nine. Is it really equitable? Are we, after 15 years or 20 years of R&D, still ranked number nine, which is not comparable with the amount of innovation input, or R&D dollars, we put into it. So, how do we measure the commercialisations of IPs? Firstly, what is the research and R&D intensity? How many IPs have we generated based on the R&D dollars? Secondly, how many such patents or trademarks or copyrights are commercialised within the last five years? That could be a factor for us to judge. Remember, patents are perishable goods. A patent only has a 20-year lifetime and from the date of filing. So, if we file today, it does not mean we have the rights of it until that is awarded which is two years down the road, but the clock starts counting. So, we should quickly get it into the market or commercialise it. If after five years, that piece of patent is not commercialised, it is probably going to be obsolete very soon. And if it is obsoleted, then what is the point of filing the patent in the first place because patent is really, really expensive. So, maybe we could consider that if, given a number of "X" years, if the patent is not filed or commercialised by our research institutes or universities, we might want to consider treating it as a public good and licence to any Singaporean companies or Singaporean individuals who want to use the patent for any other innovation purposes, free. Let me move on to another topic – which is how to grow and anchor technology ventures in Singapore. The National University of Singapore started technology commercialisation in the year 2000, when I was an adjunct faculty. And in 2019, we started the Graduate Research Innovation Programme (GRIP). I designed the programme for the teaching part and I was a chief instructor. I am glad that it has progressed to become the National GRIP. I am no more the teacher. During the first phase, we had churned out a lot of companies, about 250 of them.[+10 sentences] I can observe that they are good firms, they have lots of support through the Singapore tech ecosystems. So, the seeding and angel funding are not an issue. The issue then is how we bring them to commercialisation or early commercialisation, because there is a mismatch of expectations. Why? When you move on from the seeding stage to pre-commercialisation or the pilot stage, you need more funding and the funding has to come from the venture capital market. And the venture capitalists are looking at returns at maybe three years down the road and if there is no liquidity event, then they will just hold on. And now, you have a mismatch: one is moving and needs money; one is waiting to see. So, it is a chicken and egg issue. So, how do we resolve this issue? I think that the recent example might point us a way. MetaOptics skipped Series A funding and goes directly to an initial public offering (IPO) on Catalist. And the Minister of State Dinesh was there to witness, with the gong. So, we use this as a reference or the pilot point for us to say, "Hey, why not we create a special path for technology ventures?" Special listing rules for technology ventures that allow them, with criteria listed by the exchange, the sponsors and maybe a group of wise old men, meaning people who have done technology ventures before, to determine whether they are suitable for such acceleration programme, fast track, or we can call it, in Singapore style, through-train.[+5 sentences] On Catalist, this is something that it is possible for us to explore and make these companies anchor in Singapore. Because if they grow to a point that they are ready for IPO, what would they choose? Catalist? No, likely overseas, where the market capitalisations or the valuation is much higher. So, this is something that we really have to grapple with and anchor them early in Singapore. If you look at the Hong Kong Stock Exchange, the HKEX already has a special pathway for specialist technology companies, but this is of a bigger scale.[+25 sentences] I am proposing that we have an innovation within our Catalist for smaller market valuation companies. Let me move on to a caring society. I am very saddened whenever I read in The Straits Times that seniors die in their homes and nobody knows about it. It was reported in The Straits Times that 33 seniors died alone in 2025, undetected. I am a kampong boy. I grew up not in a zinc roof house. I lived and grew up in an attap roof house. I think in our so-called categorisation of HDB, it would probably be a three-room for attap roof, and then zinc roof is a five-room. We knew all our neighbours. We walked into our neighbour's house and slept on the floor – there is no couch – anytime we want. That is the kampong spirit of understanding and looking after each other. We have talked so much about kampong spirit. We have block parties. Did we really actually achieved the type of kampong spirit? So, block parties – you live on the 14th floor, I live on the third floor. Are we that close? The closest people are the persons living here and there – your neighbours, your immediate neighbours, who can look after you if they really understand you. I do not really have a solution for this because times are different. Maybe we should have, instead of block parties, potluck among the three neighbours together to understand each other, to know each other and to take care of each other and to actively look out for each other. Not just care for each other but actively caring for each other. How to do it? I do not have a solution, but maybe a CDC voucher can help to let them have some potluck together among the three families, next to each other. One topic that I am personally involved in is fostering. And we are very sad, very concerned in our fostering community over the Megan Khung case. My colleague here was the chair of the investigation committee. In late 2024, we have 600 foster families and currently, in my house I have three foster kids.[+12 sentences] These 600 foster families support more than 500 children. It is actually not sufficient. But we think that there should be more plans, more awareness activities, more incentives to encourage more people to become foster parents. How are we going to do it? I think I will explain later in the COS. One of my colleagues mentioned that the Singapore TFR has dropped to 0.97. What does it mean? It means that our population will halve in 30 years' time, that is what it means. And therefore, it is an existential issue. We know all the problems – we basically do not have enough space, marry late, have a career and all the kinds of issues. I want to give a proposal: it is that for existing families who do not have kids, should we nudge them a little bit more? How to nudge them? Maybe we should consider for the first-born, we have free childcare and infant care.[+5 sentences] Because for the rest, we already have existing systems of subsidies and also the Baby Bonus. But to nudge them on to having the first kid, when you have the first kid, then the joy of parenting and the confidence of bringing them up all comes into picture. And when you have your first kid, then when you see them grow up, you will look at them and then say, "Oh, maybe we should have another one to keep him or her company." So, let us try out something that shifts the point of TFR a little bit – not to two, not to 1.5, but maybe bring it above one. Mr Speaker, that is what I would like to comment on today and I support the Motion.
Mr Speaker4 words
[+1 sentence]Ms Gho Sze Kee.
Ms Gho Sze Kee (Mountbatten)1915 words
[+21 sentences]Mr Speaker, I would like to start by sharing a Mandarin saying: “居安思危”. Literally, it means to think of dangers when you are dwelling in safety. It is a good reminder for us to always be mindful of future storms and adversities even when we are in peaceful and prosperous times. I wanted to share this with the House because I think that it is a fitting framework for this year’s Budget. It also encapsulates the thinking of the PAP Government very well. One of the hallmarks of the PAP Government is fiscal prudence, thinking far ahead, always with an eye to the challenges of tomorrow. It is this and good governance that got us to where we are today. We must not forget this discipline, for it is our strength and has enabled us to ride through many previous storms together. But the world around us is changing. As the Prime Minister noted in his Budget opening, the old international order that enabled our current prosperity is fading away. The global balance of power, trade patterns and economic structures are all shifting. Geopolitical tensions, technological disruption and climate risks are no longer distant concerns, but challenges that directly affect Singapore. We simply cannot ignore them. Against this backdrop, Singapore too, is changing. Our demographics are shifting. We are maturing as an economy and aging as a society. Social and healthcare needs are increasing. Infrastructure must be maintained and renewed. We need to prepare our people and economy for the disruptions ahead. The demands on our Budget will only grow in the years to come. At the same time, our fiscal levers face real constraints. Today, our revenue rests mainly on two pillars: taxes and statutory collections, and our Net Investment Returns Contributions (NIRC). These two revenue taps have served us well but they are not unlimited.[+11 sentences] We cannot raise taxes indiscriminately without imposing social and economic costs. Our economy cannot sustain high growth indefinitely. And our investment returns are subject to market cycles, global shocks and other uncertainties. To me, the key challenges for our Budget is not how and where we can spend more money, but how we can grow more revenue taps. I would like to share my thoughts on this. Sir, the Government has committed to make our R&D efforts a key pillar of our efforts to remake our economy and maintain our competitiveness. With the RIE 2030 Plan, Singapore commits significant resources to strengthen our capabilities in research and innovation frontiers. But this is not a recent undertaking. Over the years, we have invested heavily in research, development, building world-class universities, research institutes and labs, translational platforms, incubators and funding mechanisms. These efforts have created an environment that nurtures and supports startups and anchor global companies here. These investments have borne much fruit, creating jobs, strengthening our economy and positioning Singapore as a knowledge-based hub. Today, Singapore is the second most competitive and the fifth most innovative economy globally.[+11 sentences] Sir, Singapore’s R&D ecosystem already generates world-class IP. Startups emerging from these ecosystems often attract global venture funding. Yet Singapore’s sovereign stake in these successes is typically modest. The primary goals of our R&D and innovation framework have been to spur economic activity, create high value jobs and anchor industries. In that, we have been very successful. But direct fiscal returns, in the form of Government equity stakes, licensing of IP, or long-term sovereign income, while they exist, have always been a secondary objective and remain small. Yet as public R&D spending grows, I wonder if we may be missing an opportunity to capture a more deliberate share of the upside? Is there more direct value that we can capture? By taking a different approach, could we enhance public returns while continuing to nurture private sector dynamism? I would like to take Taiwan Semiconductor Manufacturing Company (TSMC) as an example. TSMC was spun off from a Taiwanese government research institute as a joint venture with international partners. Today, it is the world’s second most valuable semiconductor company with a valuation about three times the size of Singapore’s GDP. The Taiwanese Government remains the single biggest shareholder and TSMC returns more than one billion dollars annually to the Taiwanese Government.[+46 sentences] This demonstrates that R&D efforts can create spin-offs that deliver substantial long-term sovereign value. In contrast, I looked up two success stories listed in the RIE 2030 brochure: Advance Micro Foundries (AMF) and Mirxes. I discovered that we no longer have any shares in AMF, while in the case of Mirxes, Singapore's first biomedical unicorn, EDB International now holds a less than 2% stake after it was floated, ironically, on the Hong Kong Stock Exchange. Let me be clear. This is not about turning Singapore into a Government-run innovation economy. The private sector must remain the primary driver of innovation and entrepreneurship. Nor am I suggesting that the Government has been careless in deploying funds. I understand that our vehicles, such as SG Growth Capital and SGInnovate, have a different mandates. They operate primarily as catalyst investors, as opposed to being wholly focused on shareholder returns, like Temasek Holdings. What I am proposing is a tweaking of our approach. When taxpayer funds absorb the early-stage risks of spin-offs and startups from our RIE ecosystem, we can also ensure that we share more meaningfully in the direct upsides. We want to retain a more tangible and meaningful share in the ventures that we help build. This means evolving the roles of these Government vehicles from being purely catalyst investors, which seek an exit to move into the next big thing, to becoming strategic partners and long-term shareholders. However, we should have no illusions that this will produce quick returns. It will require generational thinking. The returns would only be substantial only if we can grow a few more unicorns. But if we succeed, we will do more than just create high-value jobs or strengthen our global relevance. We will generate enduring national value, create a new and sustainable revenue tap and provide long-term economic benefits for our future generations. Sir, I would like to share some thoughts on divisions and equitable outcomes. The Occasional Paper on Income Growth, Inequality and Social Mobility Trends in Singapore, released not long ago by MOF, underscores both our achievements and our vulnerabilities. We continue to do well in most areas relative to other developed countries. Our social policies, public housing framework and so on have helped keep inequality in check and supported upward mobility. But the paper also highlights pressure points that we must not ignore. Our system operates under meritocratic principles. But meritocracy, if left alone, can create entrenched privilege and inequitable outcomes. Our education system is the single greatest equaliser in our meritocratic society. It is here that meritocracy must be most staunchly defended, because it is here that privilege and divisions will strike first and, I think, strike the hardest. We must ensure that our educational pathways, especially at the starting points, remain fair and equitable. Sir, our education system is very much admired around the world for its outcomes. We have built in different pathways to success into the system. Over the years we have also introduced broader definitions of merit, to recognise diverse strengths and reduce the over-reliance on exam scores. And we have many examples of successes of the system in this House. There are Members of this House who grew up in very unprivileged circumstances, studied hard, won scholarships and did very well for themselves. And there are those who faltered at different stages of their educational journey, picked themselves up and came back fighting, succeeded in their goals. These are classic underdog success stories of our meritocratic system, and we should be proud of all of them. But we must be careful here. We must look not only at individual success stories, but at broader trends. A few inspiring examples do not automatically mean that outcomes are as equitable for everyone. And generational privilege is already happening. Parents with higher disposable incomes are better positioned to invest in their children's development, whether through extra tuition and enrichment classes. These advantages give children from more affluent backgrounds a head start over their peers. And under the Direct School Admission (DSA) scheme, designed with the best of intentions, is not immune. Many fork out large sums for private lessons in sports, music and coding, all carefully curated to maximise their children's chances in the DSA exercise. There are now coaching academies tailored for entry to the Gifted Education Programme and aptitude tests of specific schools for maths, science and technology DSA. I was surprised to discover that there are even coaches for DSA-oriented leadership development, entrepreneurship and portfolio preparation. Every single lacuna has been filled. What this all means is the DSA scheme is now just an uneven battleground in the education arms race, where those with the advantage of parental resources enjoy a leg up over their less privileged peers.[+3 sentences] Sir, I can understand that DSA is meant to recognise a diversity of talents, create alternative pathways and to break away from over-reliance on exam scores. But we cannot ignore the unintended negative consequences of the DSA in its current form. A little while back, I posted a set of oral Parliamentary Questions, to see how DSA and affiliation admissions intersect and what it means for non-affiliated students who are unable to DSA in. These were motivated by direct feedback from the ground. I heard that some popular brand name schools only had a few places left after DSA and affiliated admissions, and the children who had made the cut-off points at some of these schools had to fight for a small number of remaining places. Some were balloted out despite meeting the even more stringent cut-off points for non-affiliated students.[+2 sentences] Personally, I think that the arguments for DSA are sound and there are valid reasons for it to continue in some form. However, I certainly do not think it should continue in its current form and there are certainly things that we can change structurally to ensure a more equitable system. One of the suggestions I made to the Ministry of Education (MOE) in my supplementary question was to ask MOE to consider setting aside a separate, hard quota for non-affiliated and non-DSA students.[+1 sentence] It is unfair for these students to find themselves crowded out from the race for a particular school even before they get to the starting line. This will preserve an open pathway to some popular schools for them and I think it will be at least a good interim measure. I am glad to note that MOE will study my suggestion and that the Ministry is taking a look at the DSA scheme as part of a more comprehensive review.[+9 sentences] I look forward to the outcome. Sir, as life, as we all know, is inherently unfair. We cannot promise equal outcomes for everyone. But what we can and must do is to ensure equal opportunity and equal pathways to everyone. This is the promise of equality as enshrined in our Pledge and the essence of our meritocracy. Singapore was built on this simple but powerful promise. Meritocracy requires active maintenance in this imperfect world and we must be prepared to review, recalibrate and where necessary, restrain policies that bring about negative outcomes. This is especially so in education, because this is where the trajectory of a life is first shaped. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Mark Lee.
Mr Mark Lee (Nominated Member)1903 words
[+9 sentences]Mr Speaker, earlier this year, Parliament recognised chess as a sport in Singapore. Chess rewards foresight and discipline. It punishes hesitation. Budget 2026 reflects that mindset. It is not a defensive Budget. It is a positioning Budget. Let us first acknowledge the board we are playing on. Externally, the world economy is becoming more fragmented and less predictable. Tariff shocks, supply chain re-routing and geopolitical alignment pressures are shortening planning processes and horizons for businesses. At home, Singapore's total fertility rate remains around 0.97, our median age exceeds 42, labour force growth will slow structurally over the coming decade. At the same time, remuneration per worker rose by about 3.4%, with wage growth outpacing productivity in several labour-intensive domestic sectors.[+1 sentence] Budget 2026 recognises these shifts. The business community welcome the measures to mitigate rising business costs – including the 40% Corporate Income Tax rebate, expanded internationalisation support, enhanced enterprise financing and the expansion of the PSG.[+4 sentences] The direction is correct. But execution at scale will determine whether this repositioning succeeds. Take productivity. Budget 2026 elevates AI as a national priority to boost productivity. The Prime Minister will chair a new National AI Council to drive the agenda, and specific sectors have been identified for coordinated AI transformation.[+7 sentences] This sectoral focus is appropriate. But enabling transformation for SMEs will be the real test. Most SMEs do not lack awareness. They lack integration capacity. AI implementation is expensive – not just software, but data restructuring, cybersecurity, workforce redesign, up-skilling costs of workers and managerial capability. Big firms have both the talent and financial muscle to spread this fixed cost. SMEs often cannot – if transformation succeeds, gains are gradual; if it fails, losses are immediate. Through the Champions of AI programme, expanded Enterprise Innovation Scheme (EIS) for AI expenditure and broader PSG support, Budget 2026 seeks to change the risk equation.[+72 sentences] That is welcome. But execution hinges also on clarity. The definition of "qualifying AI expenditure" must be unambiguous. If not, SMEs will misjudge eligibility, misallocate resources and struggle to justify bundled AI costs embedded in broader systems. Without precision, we risk entrenching a two-speed economy – where large firms execute full transformation while SMEs are left with isolated tools and superficial adoption. In sectors, such as logistics, F&B, facilities management and manufacturing, robotics may deliver more immediate productivity gains than abstract AI tools. The rapid deployment of advanced robotics and humanoid systems in China is already reshaping production economics. However, the cost equation is misaligned. Robotics requires high upfront capital and long payback periods, while labour remains the cheaper short-term substitute. As long as that remains true, firms will default to hiring than automating. If we want AI and robotics to meaningfully raise productivity and preserve competitiveness, the investment signal must decisively shift behaviour at scale. That suggests a different incentive logic – one that first reduces risk at the point of adoption, and then rewards firms that deliver measurable productivity gains. In practical terms, that could include accelerated capital allowances for robotics to improve early-stage cashflow, green-linked automation incentives where AI deployment also reduces energy intensity, and co-investment platforms or shared automation hubs to lower entry barriers for SMEs. Can the Government, therefore, consider layering outcome-linked incentives on top of entry support? Where firms demonstrate sustained productivity improvements – whether through higher output per worker, value-add per employee or reduced energy intensity – enhanced rebates or credits, potentially up to 90% of qualifying outlay, could reinforce genuine transformation. But technology is only half the equation. Management capability is the multiplier. Without structured managerial uplift, AI support will concentrate in already capable firms and widen the competitive gap. Can the Government consider working with the Singapore Business Federation (SBF), Singapore National Employers Federation (SNEF) and other trade associations to strengthen sector-specific management upgrading programmes tied directly to AI integration, job redesign and workforce planning? If we professionalise transformation management, adoption will become more even and less risky. I now turn to manpower and labour. Recent increases in qualifying salary thresholds and adjustments to Local Qualifying Salary reflect a legitimate objective: strengthening the Singaporean core and reinforcing the social compact. Businesses understand and support that principle. However, in SBF's latest National Business Survey, 63% of firms continue to cite manpower costs as a top challenge. On the Employment Pass front, higher thresholds raise the cost of specialised expertise, particularly for multinational firms considering Singapore as a regional headquarters (HQ) or Centre of Excellence. Combined with elevated rental and operating costs, this can influence marginal location decisions. We have already seen instances of HQ relocations with downstream job losses, and these signals warrant close attention. On the S Pass front, domestic sectors, such as F&B and retail operate on thin margins and face immediate pressure. Qualifying salaries are intended to nudge productivity upgrading, but many firms in these sectors have already digitalised and streamlined operations. In sectors where productivity headroom is structurally limited, further cost escalation leaves little room to adjust. Firms are effectively left with two options: raise prices, affecting consumers and cost of living, or compress operations, reducing service levels and employment scale. That is the economic reality we must acknowledge. At the same time, there are narratives suggesting future excess manpower in some service sectors. Yet, on the ground, many businesses remain acutely short of workers for operational and frontline roles. Backend productivity gains do not eliminate the need for human service at the front-end. As such, where productivity headroom is limited and local supply gaps persist, would the Government consider a more granular, sector-calibrated approach, whether through refinement of the Non-Traditional Source Occupation List or conditional flexibility mechanisms tied to demonstrated upgrading efforts? Mr Speaker, when margin compression becomes structural, firms cannot absorb it indefinitely. If adjustment is delayed until distress becomes acute, closures are sharper and workers more exposed. Sector-level mapping can identify fragmented industries where consolidation strengthens resilience. Structured advisory support for mergers and joint ventures, as proposed in SBF's Budget recommendations, can help SMEs scale non-organically before financial stress escalates. Strategic consolidation can be treated as repositioning and not failure. At the same time, worker transitions must remain swift and credible. As structural cost pressures and technological change increase the frequency of adjustment, we should approach procedural changes carefully. Retrenchment incidence remains below the long-term average and re-entry rates remain relatively strong. Most employers comply with the existing five-day notification requirement. In that context, before introducing additional procedural rigidity, such as mandatory advance retrenchment notification, we should ask whether shorter timelines would materially improve worker outcomes, or whether they may instead constrain firms during critical restructuring periods. Businesses do not take retrenchment decisions lightly. Most exhaust every option to stabilise operations before acting. The more constructive question is how to enable early and more orderly adjustment. Confidential early engagement channels could allow firms to signal emerging restructuring risks while recovery efforts are still ongoing, enabling agencies to prepare redeployment support without compromising commercial sensitivity. The objective should be responsible restructuring, preserving business viability while safeguarding workers through timely and effective support. Mr Speaker, if labour supply is structurally tight, senior employment must be treated as a core component of our labour strategy. The extension of the Senior Employment Credit is welcome. However, wage offsets alone do not address the operational realities employers face. Older workers often require role redesign, modular reskilling and workplace adjustments to remain productive over a longer career horizon. SMEs, in particular, face volatility in medical and insurance costs as their workforce ages. If unmanaged, these uncertainties can become deterrents to hiring and retention. If we want businesses to employ seniors with confidence, can the Government examine whether pooled insurance mechanisms, calibrated risk-sharing arrangements and structured workplace redesign support can reduce that uncertainty? I had previously suggested that senior and special needs employment be more directly linked to dependency ratio ceiling adjustments. It may also be timely to revisit whether such alignment can better incentivise inclusive workforce participation while maintaining overall labour discipline. Let me turn to innovation. If Singapore is to move ahead of structural tightening, we cannot rely solely on cost efficiency alone. We must strengthen value creation. That requires accelerating commercialisation of IP, particularly among SMEs. Large firms often have internal R&D pipelines. SMEs do not. We should therefore consider enhancing schemes that embed scientists and research talent directly within SMEs, not only as affordable project-based consultants, but through structured industry attachments that can shorten the path from lab to market. At the same time, IP financing remains underdeveloped. Many SMEs hold valuable IP but lack access to financing instruments that recognise intangible asset value. There may be merit in strengthening state-backed risk-sharing measures to catalyse IP-backed financing, reducing collateral constraints and encouraging financial institutions to participate more actively in this space. And finally, internationalisation. If Budget 2026 is a positioning Budget, then internationalisation is one of its most important instruments. The Government has taken important steps: enhanced Market Readiness Assistance support of up to 70% for SMEs, the raised Double Tax Deduction for Internationalisation cap to $400,000 and expanded Enterprise Financing Scheme limits materially reduce the financial burden of overseas expansion. For companies prepared to reposition and compete regionally or globally, these measures are helpful. However, emerging markets across Southeast Asia, the Middle East, Africa and Latin America offer growth, but they also carry higher political, regulatory and receivables risk. While existing financing schemes provide access to capital, the binding constraint for many SMEs is working capital resilience in higher-risk markets. Would the Government therefore consider calibrating risk-sharing mechanisms more explicitly by market risk, for example, enhanced trade credit coverage or working capital guarantees in markets where the opportunity is real, but the uncertainty deters participation?[+4 sentences] Scale is the second constraint. Many overseas projects are too large or complex for individual SMEs. Procurement frameworks favour size, track record and integrated capability. If we want our firms to compete meaningfully, we must move beyond supporting individual expansion towards structured collaboration. Schemes, such as the Market Readiness Assistance and Enterprise Financing schemes, could be adapted to provide explicit incentives for consortium-led bids, enabling firms to "hunt as a pack" and pool complementary strengths to pursue opportunities that no single company could realistically secure alone. And as firms from Northeast Asia and Europe increasingly view Singapore as a gateway into Southeast Asia, we must ask whether our ecosystem has sufficient regional fluency, multilingual advisory capability, regulatory expertise, deep local partnerships, to anchor these flows here. If we want to capture these investment and trade flows, we must strengthen not just financing, but market intelligence and in-market advisory platforms, working closely with trade associations and chambers.[+1 sentence] Mr Speaker, Garry Kasparov, one of the world's greatest Grandmaster of Chess, once said, "The point of modern chess is not to wait for mistakes. It is to force your opponent to make one." Budget 2026 recognises that Singapore cannot afford to wait, especially in an increasingly uncertain and volatile world.[+5 sentences] It gives us the tools and sets the direction. But forcing the move forward cannot be done by Government alone. Businesses must invest, not delay. Management must redesign, not defend the past. Workers must upskill and not stand still. In a structurally tighter Singapore, hesitation is not caution.[+1 sentence] It is decline. If we take the offensive with discipline and conviction, we will not merely respond to structural change.[+2 sentences] We will shape it. For these reasons, I support the Budget.
Mr Speaker12 words
[+1 sentence]Before I call the next Member, I have an announcement to make.
The Senior Parliamentary Secretary to the Minister for Finance and Minister for Manpower (Mr Shawn Huang Wei Zhong)1786 words
[+47 sentences]Mr Speaker, there is an old Teochew saying that our grandparents' generation will know well, "Buay chang, buay chu, jiak chor hu pee". Sell the field, sell the land, just to eat the pomfret's nose. If you are under the age of 40, you might think and hear that it sounds financially irresponsible. Why would anyone liquidate their assets for a slice of seafood? Our elders were not being reckless. They were being profound. It was never about the fish. It was about the immeasurable value of a family reunited. It was about the sacred act of ensuring that once a year, during the reunion dinner, the family table was abundant. To look at a pomfret on the plate was to see sacrifices made manifest. It was a constant, delicious reminder, that to provide for those you love, you must be willing to give up everything that we have. That same spirit sits on our dining tables, usually unnoticed. I am speaking about the rooster bowl. For those of us who grew up in the 1950s, 1960s, 1970s and 1980s, this bowl needs no introduction. It is the chipped ceramic plate at the hawker centre, the bowl that held our grandmother's curry. For families and generations who seldom tasted meat, the printed rooster was more than a decoration. It was a vassal of hope. It was a promise. The rooster crows and is first to rise. To see that image on the bowl was to be reminded that prosperity comes from hard work, from the rising with the sun, from the toiling while others sleep. It served a dual purpose. First, it reminded us of the taste of a delicious meal and the labour needed to put meat on the table. But second and more importantly, it reminded us of home. And the focus required to feed a family, meant that we understood, viscerally, that there were those who have even less. Why did this design resonate so deeply in our region? The Hokkien word for "rooster" sounds like the word for "family" or "home." So, every time you held that bowl, you were not just holding ceramic, you were holding a piece of linguistic heritage. You were holding "home." But let us be clear about the context of those meals. Back then, meals were simple, often eaten in haste. Many of our forefathers were coolies and labourers, trishaw riders and factory workers. They were paid by the bag, by the piece, by the hour. Lunchtime was downtime and downtime meant less money for the family. So, they ate quickly. In some traditions, the chopsticks and the spoon are seen as a complete set. They represented a life of fullness, of balance. And that is why, in some funeral rituals, you only see chopsticks provided. The spoon is absent because the completeness of life is gone. Despite this superstition, there was a harsher reality. To eat without a spoon was a sign of a hard life. It meant you were so poor, or so rushed, that you had to shovel food into your mouth with just a pair of chopsticks. There was no grace, no leisure. Our Pioneers ate at roadside carts, standing up, backs against the wall, shovelling rice because the next lorry was waiting to be unloaded. It was the pioneering spirit distilled into a meal. Every mouthful was a reminder, "This is why we do what we do. This is why we sacrifice." I want you to wonder with me for a moment. These bowls, so iconic to our childhoods, were not made in Singapore. They were designed by Hakka and Teochews craftsmen in Guangdong and produced in places like Chaoshan in China and Lampang in Thailand, in the 1950s.[+8 sentences] War, migration and geology dictated their origin. So, why did we not make them here? Why did we import our family symbols? Because the clay we had here was not the same. It was not the white kaolin clay suitable for the snowy white porcelain of the rooster bowl. Our geology was different. What we had was stoneware clay, rich in iron and silica. You could not make a delicate, translucent bowl out of it, but you could make something indestructible. You could make the dragon jars, People call it "Leng An”, “Giam Chai Ang” or “Geng” the massive ceramic water jars that sat in our bathrooms and kitchens before modern plumbing.[+4 sentences] Everyone in my generation remembers there was no instant heated water. It was the cold showers, the plastic ladle, the heavy ceramic jar. If you were lucky, someone had boiled water and poured it into the jar to warm it up. This leads us to the ground beneath our feet. If you have ever seen the earth turned over at a construction site in Jurong or at Redhill, you will notice it is not brown.[+19 sentences] It is a deep, organic red. And sometimes, purple. Singapore’s climate, as we know, high heat, heavy rainfall, is a chemical factory. Over a millennia, rainwater filters through the ground, washing away soluble minerals, the soft stuff, like silica and magnesium. What gets left behind are the, hardier, less soluble minerals, iron and aluminium. When iron is exposed to oxygen, it rusts. It turns into iron oxide. That is why our soil is red. When that clay is fired at 1,200 degrees Celsius, the iron acts as a pigment. With less oxygen, it turns grey or blue. With more oxygen, it turns toasty brown or deep red. It bleeds into the glaze. We did not have the fine clay, found elsewhere. We had iron-rich, rugged earth. And from that rugged earth, we forged an iron-willed, rugged people. As our Founding Prime Minister Mr Lee Kuan Yew famously said, we must have that iron. That iron is not just in our soil. It is in our collective spirit, the character, the mettle, the verve in every Singaporean and in every Singaporean family. It is in our stories. Recently, I was moved by a project by our renowned local ceramist Kim Whye Kee who made 100 such ceramic bowls with the pomfret motif and our famous film director Royston Tan who filmed 100 dinners with 100 families. Through their lens, we see the joys, the struggles of each family, each diverse, different phases in life.[+39 sentences] Each making the best out of the clay. We see the iron in them. Among them, three struck the deepest chord in me. We all have a view of the perfect family dinner. For some, it is the TCS Channel 8 drama version. Everyone gathered around a round table, laughing, passing dishes. But for most of us, dinner is a time of reflection, of worry, of joy and of challenge. The first story is of Amin Iskak and Azizah Binte Ahmad. After more than 50 years of marriage, they still sit side by side. Age has slowed them down, but they are never alone. Their children visit often, despite busy schedules. They cook, they lay out the dishes. To the children, they are blessings. Family remains the priority. The second story is of Lee Changloong and his family. Life moves fast. Between tuition and work, time is scarce. Many a times, dinner happens in the car, parked by the roadside, with takeaway containers balanced on their laps. They only have 30 minutes. The world slows down. They talk, they laugh. Home is wherever they are together. The third story is of Chen Zhiming. He knows that time is not something to take for granted. Living with a condition that will gradually limit his mobility, one day he will lose his ability to move. Every meal with family, is an extraordinary experience, one to be cherished. These stories are not anomalies. They are the Singapore Spirit, they are the iron which we forged and build together. As the Malay saying goes, “Bukit sama didaki, lurah sama dituruni.” Hills we climb together, valleys we descend together. rain or shine, we must support these families. This is our collective identity. That is what sets us apart. This spirit of sacrifice, of saving for the future, extends beyond the family table to the nation. It takes a lifetime to build a family. It takes effort, determination, risk and sacrifice to build a better life for tomorrow. It takes incredible forward planning and further sacrifice over generations, for our children to be secure. "前人种树，后人乘凉". The hardships of one generation lead to the comforts of the next. We are thankful for the past generations of what some might call "less-than-accurate fiscal marksmanship" for the prudence, the discipline, the refusal to spend everything we had. Because of that, when COVID-19 struck, we were able to draw on 20 years of surpluses. That prudence, that stewardship, that iron-will to save for a rainy day, that is the dragon jar of our nation that held water when the well ran dry. So, why am I telling you about clay and jars and bowls and family dinners? I think of the three "kia" that make Singapore successful: "kiasu" (怕输), the fear of losing, which drives us to prepare; "kiasi" (怕死), the fear of death, which makes us value safety, life and respect for others; and "kiabo" (怕没) the fear of not having enough, which drives us to work hard and save for the future.[+6 sentences] These are not negative traits. They are our pioneering spirit, forged by unique circumstances. We should never shy away from that. We must be proud. It is this trailblazing spirit that lets us stand tall. We are forged, not born. It is a stark reminder for our current and future generations. We fear our worst fate is to drift into a culture that is frivolous, thinking that we have arrived with easy effort. Even with a rich inheritance, we must develop our own abilities and keep the pioneering spirit alive, and to remain united against all odds, however complex the external environment may be.[+11 sentences] As we grow in success, as we grow in stature, we must always remember our roots. And in Malay, we say “Ikut resmi padi, makin berisi makin tunduk.” Like the padi stalk, the more fruitful we are, the more we bow our heads. We bow our heads because we remember there are more who are less fortunate. There are youth who need the guidance of the wise, and there are wise who need the renewed spirit of the youthful. May we embrace one another and give collectively. We never had the fine white clay. But we forged ourselves. We may be dusty, we may be earthly. But in each of us, forged by fire, there is that iron-will in all of us. Majulah Singapura.
Mr Speaker3 words
[+1 sentence]Ms Eileen Chong.
Ms Eileen Chong Pei Shan (Non-Constituency Member)2689 words
[+11 sentences]Mr Speaker, in Mandarin, please. (In Malay): Mr Speaker, today, I would like to explore a question that we deeply care about, from a young person’s perspective: "What does it mean to live well in Singapore?" This question seems simple, but it is profound. Living well is not just about high income, big houses or rapid economic growth. Living well is more about whether we have time and energy to be with families and whether we have space to explore and grow. Today, I would like to share three indicators for living well. First, time – a resource that money cannot buy. One of the major focuses of this Budget is AI. I support Singapore in keeping pace with the times and embracing AI. Yet while productivity has improved with the adoption of AI tools at work, workload has increased instead of decreased. International research is beginning to confirm this. The adoption of AI tools has not only failed to reduce the employees' workload, but made them busier instead. This is because the adoption of AI tools has accelerated the pace of work, expanded their scope of work and lengthened their working hours.[+1 sentence] I cite this example, hoping that while we embrace AI, we also do not forget to face the potential risk that AI brings. The risk is not merely that AI eliminates some jobs, but that it leads to job intensification, resulting in workplace burn-out.[+6 sentences] Singapore may find ourselves in this situation if we pursued AI adoption without relevant guardrails. I urge the Government and Singaporeans to consider not only how AI can help us improve productivity, but also think about how we can leverage emerging technology like AI to reclaim more time that we can spend with family and friends. Second, presence – something that cannot be achieved even with time, but without energy. A topic I often discuss with friends my age and young Tampines residents is that whether to have children. The biggest consideration is rarely money, but whether we will be an exhausted parent who is physically present but emotionally absent. We all hope to have sufficient time and energy to good parents who can provide our children with high quality companionship. The 2021 Marriage and Parenthood Survey results shows that while over 90% of married Singaporeans want to have two or more children. In reality however, more than half only have one child or none at all.[+38 sentences] Mr Speaker, I support the series of measures introduced in this year's Budget to reduce the burden on Singaporean families. At the same time, I also hope the Government will also provide a complementary set of policies, including childcare leave based on number of children, introducing paid caregiving leave and upgrading Flexible Work Arrangements guidelines to enforceable legislation. This will allow more Singaporeans to have time and energy to be with family and friends. Third, is space for exploration, which complements time and energy. While AI can become a substitute for many things, it cannot replace personal experience and judgement. This is why we should give the younger generation more space to explore and grow, stimulating their imagination and sense of purpose. I suggest further reducing emphasis on examinations, such as by piloting a 10-year through-train programme from primary to secondary school, allowing students to choose whether to take the PSLE. Rather than spending more than a year preparing for written exams, we should focus more on cultivating children's empathy, curiosity, creativity and sense of purpose during the critical adolescent period. It is these difficult to measure qualities that will make young Singaporeans shine in the AI era. Mr Speaker, I support this year's Budget. Singapore must sail against the currents. If we do not advance, we will fall back. We must continue to develop and maintain our competitiveness. However, at the same time, I hope that we do not forget that the basis of a prosperous nation is a people who live good lives. Lives where they have time to be with family. Lives where they have energy to grow their families and accompany their children as they grow. Lives where there is space for exploration so each generation can live better than the previous one. Next, I will share my observations and suggestions in English. (In English): Speaker, I rise today to offer a complementary perspective as a young millennial Singaporean. For many of us, the question we want an answer to is not whether Singapore is competitive. It is whether Singapore is still a place where we can live well. I wrote this speech in an attempt to answer one question that I believe is core for Singapore, as we chart our next phase: "What does it mean to live well in Singapore?" In his Budget speech, the Prime Minister spoke of growth, innovation and resilience. These are important, but a good life is not only built on GDP per capita or AI adoption rates. It is built on time – time for the people we love. It is built on presence – the ability to be there for our families and communities. And it is built on space – space for Singaporeans to grow, to explore and to become themselves. Budget 2026 already speaks extensively to Singapore's competitiveness. So, today, I would like to speak about Singapore's liveability, because for my generation, these are not one and the same thing. Mr Speaker, let me start with time. A significant portion of the Prime Minister's Budget speech was devoted to AI. Indeed, AI will reshape how we work, how businesses compete and how public services are delivered. I support the ambition to harness AI as a strategic advantage, but I also want to acknowledge something that many Singaporeans feel but few are saying out loud – that AI fatigue is real. It is the feeling that no matter how fast we learn, the ground is always shifting beneath us. It is the worry that tools meant to make us more productive to make our lives easier are actually leaving us with more to do. This is not just anecdotal. A recent Harvard Business Review article shared the findings from an ongoing study which tracks how generative AI changed work habits at a US-based technology company with more than 200 staff over eight months. The findings were striking. The adoption of AI tools did not reduce workload.[+1 sentence] They consistently intensified it. AI accelerated tasks, which raised the expectation for speed, which deepened reliance on AI, which expanded the scope of work, which further increased the density and volume of work for each employee.[+9 sentences] The researchers warned that what looks like higher productivity in the short run can mask silent workload creep and growing cognitive strains as employees juggle multiple AI-enabled work streams and tasks. Over time, it will become harder to differentiate between genuine productivity gains and unsustainable intensity. For employees, the cumulative effect is fatigue and burn-out. This matters for Singapore, especially as we call on more Singaporeans to embrace AI at work. The evidence suggests that the risk is not only job displacement, but also job intensification. The risk is not that AI replaces us, though it will replace some jobs, but that it makes us run faster on the same treadmill. AI adoption without guardrails will not give Singaporeans their time back. It may take more of it away. I urge the Government and all Singaporeans to think about not just how AI can make us more productive, but also about how it can give us our time back. Singapore's average full-time working week stands at nearly 44 hours, not including unpaid overtime work.[+2 sentences] This is among the highest in a developed world. Sixty-one percent of Singaporean employees report feeling exhausted. Burn-out costs the Singapore economy an estimated $15.7 billion annually in lost productivity.[+14 sentences] Mr Speaker, productivity gains do not automatically become human gains. Without deliberate policy choices, they tend to remain employer gains. If AI can automate routine tasks, what comes next should not only be what additional tasks can be added to an employee's plate at work. Perhaps it is that they leave the office on time most days to have dinner with their families and not only on quarterly "Eat With Your Family" day. Last year, the Prime Minister spoke of building a "we first" society – a society where we look out for each other, volunteer and contribute. I support this vision, but realising it requires something that money cannot buy – time. A "we first" society needs people who have the time and energy to show up for each other – and I hope this will be one of the design goals of our national AI strategy and not an afterthought. This brings me to presence, which requires both time and energy. I want to share tidbits from conversations with friends, peers and young Tampines residents about growing our families, about having a child or having another one. These conversations rarely begin with money. They begin with a pause, sometimes a sigh and then almost always a shared concern that we cannot be the parents that we want to be – present, engaged, patient, even after a long day at work – instead of giving in to screen time because we are exhausted and need a moment of peace. The Government's own data reflects this. The 2021 Marriage and Parenthood Survey shows that over 90% of married Singaporeans want to have two or more children. The reality, however, is that over half of these married Singaporeans had only one or no children. Our TFR has since plunged below one, holding steady at 0.97 since 2023.[+20 sentences] This gap between aspiration and reality is not a gap in desire. It is a gap in enabling conditions. Young Singaporeans today are not overwhelmed because we do not try hard enough. We are overwhelmed because we are encouraged to get married, to have children, to remain in the workforce, to upskill, to embrace AI, to volunteer and to care for our ageing parents so they can age in place. Yet policies and workplace culture have not fully caught up. Budget 2026 contains welcome measures for families, ranging from additional child Life SG credits, enhanced preschool subsidies and extended means-testing support. Such financial measures matter and we also need a supplementary set of policies to complement them, focused on giving Singaporeans back the time and energy to actually build a family and parent with presence, patience and joy. This is why at the upcoming Committee of Supply debate, I will be putting forward proposals on per child childcare leave, paid caregiving leave and having actual enforceable flexible work arrangement policies rather than guidelines. These will help us to better support Singaporean families as they grow and age and hopefully, lead to higher fertility and stronger family outcomes. And finally, Mr Speaker, I would like to speak about space. I have spoken about time and how the economy consumes it. I have also spoken about presence and how families need it. Now I want to talk about something that connects the two – whether our system leaves ample space for our people, especially our youths, to grow, explore and become themselves. Let me start with our young. The Budget speaks of the importance of strengthening AI literacy and ensuring that young Singaporeans develop rigorous foundations, so they use AI wisely and not as a shortcut. I agree and would like to ask, what are rigorous foundations in a world where AI can generate code, analyse large datasets and even compose music? Surely, the competitive advantage is no longer what we know, but who we are – our capacity for empathy; for creativity that comes from lived experience and not pattern recognition; our ability to sit with uncertainty and not be consumed by anxiety; and our willingness to try something difficult, fail and try again. I welcome the long overdue comprehensive review of our education system. If AI is going to change the nature of work, then surely it must also change what we value in education. And changing what we value, requires changing how we measure. Singaporean families collectively spent $1.8 billion on private tuition in 2023. This is up 64% from a decade ago.[+1 sentence] This is not parental access. It is a rational response to a system that sorts early and sorts sharply.[+12 sentences] The PSLE, for all of its merits in maintaining a set of standards, should not be defining a child's sense of self-worth at an age where they should be discovering who they are and what they care about. I am not calling for us to abandon the bell curve. I am calling for a rethink of how we use it. Rather than competitive grading and sorting, we should use it as a diagnostic tool to track a child's progress over time, identify specific learning needs and celebrate their growth. When access to opportunities is too tightly tied to early academic performance, those of us who take longer to find our footing may find some doors closing before we have even had a chance to knock. This space in our education system should be complemented by space in our economy. I welcome the Budget's emphasis on lifelong learning. Lifelong learning for youths of today may also mean lifelong experimentation – the freedom and space to pursue different paths, combine different strengths and to build a working life that reflects who we are and not just what the market demands of us at the present. Some of our youths are already doing this. They are building portfolio careers, combining roles, projects and pursuits that do not fit neatly into a single job title. This is not a collection of side hustles. It is a reimagining of work that values flexibility, autonomy and personal growth. It reflects the very qualities we say we want in our workforce – adaptability, entrepreneurial thinking and a willingness to take calculated risks. I look forward to hearing more about the mandate of the new Statutory Board formed by the merger of WSG and SSG. I hope it will build complementary and updated frameworks for career development and ensure labour protection and skill certification to accommodate diverse work arrangements, while safeguarding longer-term income security and career progression.[+12 sentences] To conclude, Mr Speaker, I am for growth, I am for staying competitive, I am for the adoption of AI. Singapore must remain economically vibrant, strategically relevant and globally connected. Budget 2026 is titled "Securing our Future in a Changed World". I support this aspiration and I humbly suggest that securing our future is not only about securing our competitiveness. It is about securing the conditions for a good life; a life of time for the people we love, a life where we can be present for our children, our parents and our communities; a life within our space in our schools, in our workplaces and in our neighbourhoods, for people to grow into who they are meant to become. For six decades, we have built a culture that equates progress with movement. It has made many of us, including myself, feel guilty when we are still, because if we are not striving, then, surely, we must be falling behind. Perhaps this explains why the Pace of Life project conducted by Prof Richard Wiseman found that we are some of the fastest pedestrians in the world. Well, sometimes progress is indeed about moving forward, but sometimes, as I have learnt after leaving my first job at 31, progress is about floating, catching our breath, looking around, noticing things that we would have otherwise missed when we are rushing from point A to point B. I believe Singaporeans are ready for a conversation about what we are willing to prioritise to build a Singapore that is both successful and sustainable. I hope the Government will be brave enough to measure what matters most; to trust Singaporeans with flexibility, with dignity and with a little more space to breathe and to be human. Mr Speaker, I support the Budget with the observations I have made.
Mr Speaker49 words
[+5 sentences]Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 3.30 pm. Sitting accordingly suspended at 3.11 pm until 3.30 pm. Sitting resumed at 3.30 pm.
Mr Deputy Speaker4 words
[+2 sentences]Order. Mr Jackson Lam.
Mr Jackson Lam (Nee Soon)950 words
[+2 sentences]Mr Deputy Speaker, Sir, Budget 2026 comes at a time of real change. The world around us is becoming more fragmented, more contested and less predictable. Last year, our economy grew by 5%, which gives us confidence. But this year's projected growth of 2% to 4% reminds us that external headwinds are real and likely to persist.[+12 sentences] In this environment, resilience cannot exist only in our fiscal numbers or economic forecasts. It must be felt on the ground, by our seniors, our hawkers and our SMEs. Today, I will focus on these three pillars of grounded resilience. First, I will touch on our seniors. Singapore's ageing population is no longer something we talk about as a future issue. It is already our present reality. We should celebrate the fact that we are living longer. Longer life expectancy reflects the strength of our healthcare system and our social policies. But living longer must also mean living with security and with purpose. If seniors feel uncertain or anxious about their future, that anxiety does not remain isolated. It affects families and ultimately, it affects society as a whole. Budget 2026 takes important steps. CPF top-ups and higher contribution rates strengthen retirement adequacy. The Long-Term Care Support Fund reinforces CareShield Life. The Senior Employment Credit and the Tripartite Workgroup on Senior Employment encourage businesses to continue hiring and retaining older workers.[+60 sentences] All these are meaningful moves. As life expectancy rises, retirement itself is changing. Many seniors today are healthy, experienced and still eager to contribute. So, the question we should ask ourselves is: are our systems ready for multi-stage careers? We could pilot structured second-career pathways in sectors where labour demand remains strong – healthcare support, community care, logistics coordination, SME administration – these pathways can combine modular training, job redesign and clear placement opportunities for workers aged 55 and above. Digital skills are another key area. While SkillsFuture is broad-based, some older workers may benefit from shorter, very practical modules directly tied to specific job roles. A clearly identified "Senior Skills Track" could lower psychological barriers and encourage more to step forward. We should also recognise that information today can feel fragmented. Employment support, CPF matters, healthcare schemes and long-term care arrangements sits across different platforms. A more consolidated, senior-focused interface – even if it is simply a navigational layer – would go a long way in improving clarity and confidence. Ultimately, supporting seniors is not just about financial adequacy. It is about dignity, contribution and about sustaining inter-generational trust. And that trust strengthens us, especially in uncertain times. Next, I will touch on our hawkers. When we talk about hawkers, we often speak of heritage and culture, and rightly so. But we must also remember: hawkers are small business owners operating on very tight margins. At the same time, hawker centres are shared community spaces, places where Singaporeans from all walks of life gather. In a fragmented world, such shared spaces matter even more. Yet, rising rental pressures, volatile input costs and manpower constraints are placing real strain on many stallholders. If costs continue to outpace revenues, the risk is not just about business closures. We risk weakening a layer of our social fabric. Resilience here means balance. Transparency helps build trust. Publishing periodic rental sustainability indicators, even at an aggregate level, can reassure hawkers and the public that rental frameworks remain aligned with operating realities. On digitalisation, grants are available, but adoption is not just about funding. It requires practical guidance. Structured advisory support, perhaps expanded through hawker associations, can help stallholders with cost control, inventory management and digital payments, that will improve productivity without losing authenticity. Succession is another important area. Pairing retiring hawkers with aspiring entrants through structured mentorship and phased handovers could preserve know-how while reducing entry risks for newcomers. Supporting hawkers is not just about economics. It is about preserving everyday infrastructure that holds our communities together. Next, I will touch on our SMEs. Our SMEs are central to our economy. They create jobs, anchor supply chains and generate domestic value. But today, they face a dual challenge – geopolitical uncertainty and rapid technological change. Budget 2026 strengthens financing schemes, internationalisation support and AI-related incentives. These are necessary steps. However, for many SMEs, the issue is no longer awareness. Most business owners know AI matters. The real challenge is execution. Where do they begin? How much should they invest? How do they assess the risks? Resilience in this context requires structured enablement. Sector-specific AI playbooks, developed with trade associations, could provide practical, step-by-step roadmaps tailored to industries such as logistics, retail, professional services and F&B. Shared advisory models within industry clusters could allow SMEs to access transformation expertise without bearing the full cost alone. We could also streamline grant processes through pre-approved solution bundles for common transformation projects that will reduce friction and speed up adoption. In some cases, SMEs within the same sector could even pool resources to invest in shared AI tools or digital infrastructure – that will achieve scale without overstretching their balance sheets. Global uncertainty should not lead to hesitation. If SMEs upgrade decisively, they strengthen both employment resilience and long-term competitiveness. Mr Deputy Speaker, Sir, resilience must be layered. For seniors, it means inclusion and participation. For hawkers, it means sustainable viability. For SMEs, it means execution capability. Macroeconomic stability gives us room to act. But societal resilience determines whether that stability lasts. If we strengthen participation for seniors, sustainability for hawkers and capability for SMEs, we build resilience that is both economic and social. In a changed and uncertain world, that layered strength will determine whether Singapore simply adapts or continues to lead. Mr Deputy Speaker, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Ms Mariam Jaafar.
Ms Mariam Jaafar (Sembawang)2039 words
[+2 sentences]Mr Deputy Speaker, I first declare my interest as Managing Director and Senior Partner of a management consulting firm that does work in the space of AI. Sir, I have spoken on AI several times in this House. In the Budget 2024 debate, I proposed three principles: first, AI strategy must be driven from the centre with direct oversight from the Prime Minister; second, we should focus on high value, sector-specific deployments, at scale; and third, that trust and governance will be our differentiator in a world racing ahead with AI. I am encouraged to see these principles reflected in Budget 2026: in the National AI Council chaired by the Prime Minister; in the AI Missions across advanced manufacturing, connectivity, healthcare and finance; and in the stronger enterprise incentives including the Champions of AI and SME grants, and the emphasis on deeper AI literacy, governance and responsible deployment.[+32 sentences] This shows that rigorous debate in this House matters. But Sir, the context has shifted – again. Two shifts now demand our attention. The first is a technological shift. The second, an organisational shift. The technological shift, from tool to operator. Three years ago, the world was captivated by generative AI (GenAI). Today, the frontier is agentic AI. Agentic systems do not just predict or generate content. They reason. They break down goals into tasks. They execute multi-step tasks. They collaborate with other agents. They act with bounded autonomy and they improve through iteration. In other words, agents will not just assist work. They will organise it. They will not just recommend decisions. They will execute them. AI is moving from tool to operator. For Singapore, this matters. We are a small, open economy with no natural resources and limited land. Our resident labour force is already declining. Productivity growth, therefore, must come from expanding capability. We cannot compete on scale or spend, but we compete on coordination, trust, governance and execution. We may not build the largest frontier models or global AI platforms. But we can build the most trusted agentic systems and applications – AI that is safe, accountable and designed for real industries. With agentic AI, we can multiply cognitive capacity at national scale. This is not hypothetical. A leading bank in Singapore is already deploying Agentic AI to deliver what it calls "bionic" wealth management. AI Agents now conduct real time portfolio assessments, recommend personalised offerings and send tailored outreach material, all in seconds. This frees the Relationship Manager to focus on judgement, relationships and strategy. That is the opportunity: AI handling complexity at speed, while humans exercise wisdom. By 2028, my firm estimates that Agentic AI will double its share of AI-driven value creation, from 17% today to 29%, outpacing traditional AI and GenAI.[+2 sentences] So, the question is not whether Singapore will use AI – we will. The question is where the value will sit? If the core systems are all designed elsewhere, the standards are all written elsewhere, we may use AI extensively, but see much of the value be captured elsewhere.[+9 sentences] We will optimise workflows, but not own the intellectual property. We will upgrade processes, but remain dependent on other people's roadmaps. Our workers may use AI, but the highest value jobs will sit elsewhere. But if we build capability here, design systems here, govern standards here, then higher value work, higher productivity and higher wages will sit here. Sir, this is the real cost-of-living strategy. Every Budget, we discuss vouchers, rebates and support packages. These measures matter. They make a real difference to my Woodlands residents and to other Singaporeans. But they are temporary reliefs. They help families cope with this year's prices. But what determines whether families truly get ahead, in the years ahead, is not vouchers, but jobs and wages.[+15 sentences] And this is about ensuring that our Singaporean families' incomes rise faster than prices. Small states do not get many opportunities to lead and to shape global frameworks. This may be one of those moments. True strategic advantage requires building sovereign capability. Leadership in the core systems that AI runs on; interoperability and audit standards; governance frameworks that are trusted internationally. We can do more than deploy. We can create. We can disrupt. Our AI Missions must, therefore, be more than transformation roadmaps. They must be innovation engines – living laboratories for multi-agent systems, safety standards and human-in-the-loop designs. We should have open R&D agendas, cross sector labs and build cross border innovation models, partnering with global AI platforms, AI startups and talent. Where might this matter most? I would look to sectors where, one, we already have strong data infrastructure; two, trust and regulation matter; and three, coordination complexity is high and the value of intelligent coordination is high. These sectors present opportunities to design, govern, deploy and export agentic AI solutions and governance frameworks. In finance, think autonomous compliance agents, real-time regulatory reporting and cross-border risk management. Exportable "RegTech agents" that embed Singapore's regulatory philosophy – transparent, rules based, trusted – cementing our position as a global finance hub.[+12 sentences] In healthcare, hospital workflow optimisation, preventive health monitoring, care-coordination agents. With one of the fastest-ageing populations in Asia, we can become a testbed for systems that reduce administrative burden on clinicians and support community nurses and caregivers and export these solutions to other ageing societies. In logistics and connectivity, orchestration agents that dynamically optimise supply chains, predict congestion or autonomous trade documentation agents. It will make the world's busiest port also the world's most intelligent port. In urban systems and sustainability, our Smart Nation Infrastructure provides rich datasets. If we can demonstrate an AI-managed city that is safe, efficient and trusted, Singapore becomes a living export showroom. These are not tools. They are sector-wide operating systems – generating intellectual property, productivity gains and exportable capability. But this requires ambition and capital. AI transformation, agentic or not, is costly and capital intensive. It requires compute, system integration, workflow redesign, cybersecurity, governance infrastructure and workforce re-training. It will take years, not months, and it cannot run on annual budgeting cycles. If we expect our Champions of AI to redesign operating models over multiple years, then support and financial backing must also be structured and multi-year, tied to measurable productivity outcomes and anchored by accountable leadership at the chief executive officer (CEO) and Board level.[+21 sentences] Champions of AI must not just be showcases that inspire. They must be multipliers. They should publish playbooks, host cross-sector learning, mentor SMEs and bring along their supply chains and share implementation frameworks. Because the true measure of a Champion is not how far ahead it moves but how many others it pulls forward. I talk now about the organisational shift – from pyramid to diamond. Sir, the most disruptive shift is not technological. It is organisational. For over a century, organisations have been shaped like pyramids. Few decision-makers at the top; a broad based of individual contributors, executing day to day operations; and layers of middle management, coordinating work. Agentic AI collapses layers of execution. What emerges is a diamond-shaped organisation. A narrower base, where AI agents handle routine work; a strong, skilled middle, responsible for supervising, designing and orchestrating of fleets of intelligent systems; and a strategic apex focused on judgement and direction. Not every sector will move at the same pace. Construction or patient-facing healthcare roles will evolve more slowly. But in fields, like software development, marketing and customer service, the change will come sooner than you know it. This has serious workforce implications. First, we must prepare Singaporeans for the middle of that diamond. In a diamond-shaped organisation, the middle layer becomes more important, not less. They must not only demonstrate AI literacy; they must master AI supervision and orchestration. They must be able to frame problems, direct AI agents, curate inputs, validate outputs, apply domain judgement and ethical reasoning. Tool access is necessary, but not enough. So, we must teach Singaporeans not just how to use AI but how to think with AI, to challenge it and to govern it. This means serious investments in mid-career reskilling and professional certifications in AI supervision and AI operations, mentorship and applied learning and building a culture of collaboration with AI.[+3 sentences] Not humans versus AI; but humans with AI. At the same time, entry-level jobs may narrow in sectors adopting the diamond-shaped organisation. We must act early and create meaningful pathways into work for graduates and tertiary students. Mandatory AI literacy modules across Institutes of Technical Education, polytechnics and universities, structured apprenticeships and externships when they are still in school, when they work directly alongside seasoned professionals and AI systems and curricula that develop critical thinking, problem-solving, functional skills, ethics, systems thinking and domain knowledge necessary to progress quickly into mid-level roles.[+25 sentences] This flows down into lower education. If we train our children to memorise, AI will outpace them. If we train our children to question, to synthesise, to exercise judgement, AI will be their multiplier. Exams must reward reasoning – not recall. Because in the age of agentic AI, the scarce resource is not information. It is wisdom. Second, we must modernise our human resources (HR) in career frameworks. In a diamond-shaped organisation, progression may no longer mean managing ever larger teams of people, but larger and more complex fleets of AI agents. Performance systems must recognise those who deploy AI effectively to increase output, accuracy and quality or to create new value. If we fail to modernise our institutional frameworks, we risk stagnation – not because Singaporeans cannot adapt, but because our institutions did not. Inclusion – multiplication without division. There is a risk we must confront directly. AI is a national multiplier. But multipliers widen gaps unless access is equal. If higher-income households deploy AI to accelerate learning, entrepreneurship and career progression while lower-income households lack access, capability and confidence, inequality will compound. Inclusion cannot be an afterthought. AI literacy cannot stop at universities, polytechnics, schools or corporate reskilling. It must reach my most vulnerable Woodlands residents and across Singapore, who are already navigating multiple stressors in life. We must recognise the effort and responsibility our residents already show in working, learning and caregiving. AI must amplify that effort. Here ComLink+ provides a blueprint. The model includes case workers, customised action plans, milestone-based incentives and long-term engagement. That architecture is actually what AI inclusion requires. AI literacy cannot be delivered as a one-off workshops. It must be coached, contextualised and sustained. Today, ComLink+ supports families with goals around employment and education. We can introduce AI Capability Milestones, such as when the parent completes foundational AI literacy module; when a child demonstrates safe and effective use of AI for schoolwork; or when a family sets up supervised AI tools for job search or for their home-based business.[+4 sentences] Supported by AI coaches, we ensure every Singaporean has the skills to supervise AI; the tools to deploy AI; the confidence to question AI; and ultimately, equal access to opportunities in AI. That is the type of inclusion that ensures national multiplication, not division. From ambition to outcomes. Sir, this AI agenda is ambitious. As we pursue this agenda, will the Government commit to tracking and releasing annual value creation, productivity and wage uplift outcomes attributable to AI adoption across key sectors alongside data on jobs displaced by AI?[+6 sentences] And if our AI strategy does not translate into higher wages and better opportunities for all Singaporeans, will we recalibrate our approach to ensure the value created by AI accrues meaningfully to Singaporean workers and families? In conclusion, Mr Deputy Speaker, Singapore has always thrived by thinking ahead, moving decisively and building trust. Agentic AI is another defining moment. It is not simply a new technology. It is a redesign of how value is created and how organisations function. We must build a nation that does not merely use AI but orchestrates it. If we get this right, agentic AI will not replace Singaporeans.[+1 sentence] It will multiply our capabilities. For a small nation, multiplication is not optional. It is how we remain sovereign, how we remain competitive, how we remain extraordinary. In the age of agentic AI, those who orchestrate will shape the future.[+3 sentences] Those who merely operate will follow it. Singapore must orchestrate. I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Dennis Tan.
Mr Dennis Tan Lip Fong (Hougang)2678 words
[+5 sentences]Mr Deputy Speaker, Budget 2026 sets an ambitious AI trajectory. But we must ensure our green transition is not sidelined by its energy demands. Resilience requires addressing the inherent trade-offs of such growth. Building on my previous Budget speeches, I will also be speaking on other pertinent aspects of green transition and healthcare issues. AI push. The Prime Minister's announcement of the formation of a National AI Council and the launch of sector-specific AI missions signal a clear intent to move toward Government-supported application of AI in sectors that are key to Singapore's economy and society.[+3 sentences] However, as we double down on this AI push with tax deductions and the new One North AI Park, we must not lose sight of the unseen costs. During the Committee of Supply debate for the Prime Minister's Office last year, I raised a cut specifically on the staggering increase in energy and carbon use that comes with generative AI. I cautioned then that an indiscriminate rush to integrate large-scale models for every minor task is a luxury our carbon-constrained nation cannot afford. While the Government has introduced the Green Data Centre Road Map, the current pace of AI adoption may risk outstripping our efficiency gains.[+2 sentences] We are seeing a rebound effect, where more efficient hardware is being used as a rationale for allowing exponentially higher usage. It is not enough to have green data centres if the AI models running within them are fundamentally wasteful. Alongside infrastructure, efficiency standards, like the power usage effectiveness (PUE) target of 1.25 in the Infocomm Media Development Authority's (IMDA's) latest Data Centre – Call for Application (DC-CFA2), which will also require software level accountability ensuring that the AI Solutions receiving Government funding, including those under the enhanced Enterprise Innovation Scheme prioritise small AI and task-specific models that require a fraction of the energy of general purpose large language models (LLMs).[+6 sentences] We must not be the target for the migration of inefficient workloads to regions with fewer software level environmental regulations. We must also mandate transparency for the software that consumes energy. Just as importantly, I am concerned that recent move to allow more data centre construction will enable data centres to outcompete households and smaller businesses in Singapore in electricity purchases with the majority of our low carbon electricity import projects still in early development. Green electrons continue to be in short supply in Singapore, over the next few years. On one hand, households and small businesses may not benefit from the greening of the grid remaining exposed to the virality of the global gas market at a time of geopolitical unrest. On the other hand, Singapore's latest data centre requirements are relatively lax compared to other advanced states. While Ireland requires data centres to be active partners in grid reliability through 100% on-site, backup capacity and 80% renewable matching, our current DC-CFA2 framework only targets 50% green energy, leaving a significant gap that our national grid and, by extension, the ordinary taxpayer must bridge.[+3 sentences] If data centre developers want to benefit from Singapore's strategic location, they should also play their part in supporting grid reliability and the development of further renewable electricity capacity. And while I do accept that the Government has taken steps to accelerate the expansion of renewable electricity availability in Singapore, setting up the Future Energy Fund and the Singapore Energy Interconnections, the roadmap still needs to be clearer. True leadership in AI is not about the number of AI champions we can produce but about how sustainably we can grow this sector. If we are to achieve our net-zero 2050 commitments, the National AI Council must bridge the gap between digital ambition and environmental reality.[+1 sentence] We need more than just incentives. We need a clear regulatory framework that mandates energy disclosures for large-scale AI developers, like the European Union (EU) which will begin mandating energy disclosures for large AI developers by August this year.[+26 sentences] As I stated in my Prime Minister's Office cut last year, by being an early adopter of carbon-conscious AI regulations, Singapore can turn our resource constraints into a competitive advantage, exporting sustainable AI expertise to a world that is increasingly waking up to the ecological cause of the global AI race. Mr Deputy Speaker, like in my Budget debate speeches over the last few years, I next touch on green transition. I have consistently argued that Singapore's green transition must be more than a collection of ambitious targets. It must be transparent, inclusive and socially just process. Mr Deputy Speaker, I welcome the Prime Minister's focus on chartering a sustainable future and his candid assessment of the climate challenges that Singapore faces. I am particularly heartened by his firm commitment that despite global trends, retreating from climate action is not an option for our own nation. Last month, I asked the Minister for Sustainability and the Environment about our plans to submit a National Adaptation Plan (NAP) to the United Nation's Framework Convention on Climate Change. I thank the Minister for her reply, noting that the inaugural NAP will be published in 2027 and will incorporate the Belem adaption indicators adopted at COP30. The Belem outcome was a pivotal moment, highlighting that that adaption is not just about engineering. It is about people. While our current strategy addresses coastal and heat resilience, I urge the Government to more explicitly integrate the Belem pillars of biodiversity and poverty and livelihoods into our national climate framework. Our current focus on infrastructure must be matched by a commitment to the social and ecological dimensions of the climate crisis. In Belem, the Mutirao Decision emphasised that climate action must be people-centred. We need a plan that tracks not just the height of our sea walls, but the resilience of our homes against the urban heat island effect, including but not limited to challenges of rising cooling costs. This leads me to the urgent need to protect our biodiversity. As I argued in my Adjournment Motion last month, we must fundamentally rethink how we justify the trade-offs between development and the preservation of our existing green spaces. We must plan for the resilience of our homes against the urban heat island effect, including rising cooling costs. This requires us to value existing green forested sites as strategic green belts, even if they are not original primary forests and have been subject to previous development. This requires a more transparent approach to land use that recognises the inherent climate value of our natural ecosystems. It is strategically superior to preserve existing green belts for heat mitigation, such as the Serangoon River Forest, than to rely on artificial parks. I call on Ministry of National Development (MND) to institutionalise mandatory functional assessment for all forested sites before any developments to protect these vital assets and will elaborate on this at the COS. Two, adjust transition for Singapore's petrochemical industry. A balanced transition must also be just. Mr Deputy Speaker, the sale of Shell's assets now known as the Aster Energy and Chemicals Park raises serious long-term questions regarding our serious transition plans. We need clarity on whether the current owners' lease includes mandatory decarbonisation milestones to prevent Bukom from becoming a carbon haven where emissions are simply offloaded to new entities rather than reduced. Beyond infrastructure, we must also address the human costs. In October 2025, ExxonMobil announced it would retrench up to 500 workers in Singapore by 2027. What specific retraining support is being provided to these hundreds of workers affected by such structural shifts? If we can find $500 million to finance regional green infrastructure via the Financing Asia's Transition Partnership fund, I am sure we can also find the resources to ensure no Singaporean worker is left behind. I call for the establishment of a dedicated just transition fund to assist, not just the 500 workers laid off, but to help all workers in the petrochemical industry in the coming years who may be affected as we transition away from fossil fuels, including providing specific guidance in transiting to different industry or jobs.[+2 sentences] Three, electrification of land transport. Next, we must apply this same rigour to land transport. Prime Minister announced in his Budget speech that Preferential Additional Registration Fee (PARF) rebates have now been lowered by 45% across the board and the maximum rebate has been reduced from $60,000 to $30,000.[+8 sentences] Industry observers have said that this is likely to dampen industry demand for non-electric vehicles (non-EVs), as this will increase the depreciation of non-EV cars while EVs are unlikely to be affected. Mr Deputy Speaker, while the change in PARF rebates may help to nudge car sales for EVs, the EY 2025 Mobility Consumer Index found that 42% of Singaporean buyers cite battery replacement cost as a primary reason they are shifting back to petrol or hybrid vehicles. Prior to the recent PARF announcement, the resale cliff has been a growing risk. As of 1 January 2026, the Early Adoption Incentive rebate cap has dropped to $7,500 and used EVs are taking longer to sell than internal combustion engine cars, resulting in the decline of EVs' resale value. I urge the Government to study consumer concerns about EV battery longevity and replacement costs and consider how to strengthen consumer confidence in this area. Mr Deputy Speaker, our 2040 goal for 100% cleaner energy vehicle is at-risk of becoming a two-speed transition. While electric cars have increased despite having their own issues, motorcycle adoption remains stuck at a mere 0.2%. Will the Ministry consider upfront purchase incentive for motorcycles to bridge this gap? Furthermore, the $40,000 incentive under the Heavy Vehicles Zero Emissions Scheme, launched on 1 January 2026 may remain under-utilised unless we can move faster on shortlisted hydrogen pilots or permanent battery swap licences to support our delivery community and logistics sector.[+20 sentences] Mr Deputy Speaker, we cannot hit 2040 targets with a slow charged mindset. A transition is only green if it does not leave our workers or our residents in the raid. Our people need a transition that is fair, funded and fundamentally just. Mr Deputy Speaker, I need speak on healthcare. I spoke about the overlooked issue of dental care in our healthcare system in my Budget debate speech last year and I welcomed the announcement during the Ministry of Health's (MOH's) COS debate for higher dental subsidies and flexi-Medisave use for patients aged 60 and above for root canal treatments and permanent crowns at Community Health Assist Scheme (CHAS) clinics and public healthcare institutions last year. But I still hope more can be done. A recent longitudinal study by the Centre for Ageing, Research and Education at Duke-NUS Medical School revealed that nearly one-third of our seniors have not seen a dentist in over five years. Assoc Prof Rahul Malhotra noted, many visit only when they have a problem but missing the window for prevention. Poor oral health, such as untreated tooth decay, gum disease, ill-fitting dentures or tooth loss, has important consequences. Dr Eugene Tang, President of Singapore Dental Association opined in a recent letter to The Straits Times that it can affect chewing ability and nutrition, leading to unintended weight loss, reduce muscle strength and increased frailty. According to NHG Health, the proportion at-risk of malnutrition among hospital patients aged 65 and above rose from three in 10 in 2022 to four in 10 in 2024. Preventive care is the heart of healthy ageing. Yet, dental care remains excluded from our national preventive scheme – Healthier SG. For the third time in this House, I call for dental care to be integrated into Healthier SG. We must treat oral health as a basic pillar of well-being, not an optional extra. Healthier SG connects us to a family doctor clinic. They will help manage our chronic diseases and monitors our health habits and carries out preventive care that can help us stay healthy and active. The same is needed for preventive care for good oral health. And to better care for our seniors, we must also prioritise improving affordability and accessibility of preventive care for oral health. Affordability of dental care remains an issue for many Singaporeans. Notwithstanding the higher subsidies and MediSave use for tooth saving treatments, we must address the subsidy gap for complex cases. Currently, patients referred to tertiary institutions, like the National Dental Centre for complicated procedures, often due to pre-existing frailty, find themselves ineligible for the same Pioneer Generation CHAS subsidies they will receive at the polyclinic.[+2 sentences] My hon friend, Aljunied Group Representation Constituency (GRC) Member, Kenneth Leong's recent Parliamentary Question, asked about extending subsidies for complex denture cases that had to be referred to a tertiary institution. A letter to The Straits Times' Forum Page by Mr Stephen Tan described a similar situation where his 83-year-old mother's teeth extraction had to be done at the National Dental Centre satellite clinic at Changi General Hospital due to fear of complications. But she was denied PG or CHAS subsidies for the procedure. I urge the Ministry to harmonise these subsidies so that our seniors are not financially, penalised because their dental-related medical needs require a hospital setting.[+1 sentence] Finally, we must address the rising anxiety over Integrated Shield plan premiums. From April 2026, new Integrated Plan (IP) riders will no longer cover deductibles and co-payment caps will rise $6,000.[+5 sentences] While intended to curb over consumption and rightly so, this shift, combined with rising premiums may drive many to abandon private healthcare, potentially overwhelming our public search capacity. For many seniors with pre-existing conditions, retaining an IP is not a luxury. It is a necessity for timely treatment. Yet, many find it frustrating that their hard-earned MediSave savings are locked once they hit the basic healthcare sum. At age 65, any excess is moved by \default to the Retirement Account. While this boosts monthly payout, it does not help with the lump sum nature of annual insurance premiums which can reach several thousand dollars. Therefore, will the CPF Board consider allowing CPF members who have me their Basic Healthcare Sum to retain a portion of excess funds in their Ordinary Account or a dedicated insurance sub-account.[+16 sentences] This will allow them to withdraw funds specifically for IP premiums. By helping Singaporeans maintain their private insurance, we moderate the demand on our public system, ensuring national healthcare delivery remains sustainable for all. Mr Deputy Speaker, in Mandarin, please. (In Mandarin): Mr Deputy Speaker, the Budget proposes to accelerate the development of AI, establish a national AI Council and launch multiple industry AI programmes. I support this direction of technological development. However, I already raised during the Committee of Supply debate for the Prime Minister's Office last year that the energy consumption and carbon emission of generative AI are growing very rapidly. Can we talk about green transition on one hand whilst underestimating the urgency of this programme on the other? Although the Government has launched a Green Data Centre Roadmap and set energy saving targets, if overall usage continues to expand, the so-called efficiency improvements may very well be offset by rebound effects. Therefore, in terms of enterprise innovation grants, we should encourage the development of more energy-efficient, "Small AI" and task-specific models rather than uniformly using large general-purpose models across the board. We cannot become a destination for high energy workload transfers. We should require large AI companies to disclose energy data to protect the interests of the national grid and taxpayers. Whilst promoting digital transformation, we must also care for seniors with lower digital capabilities to ensure that they are not left behind in this wave of AI development. (In English): Mr Deputy Speaker, let me round up my speech. We cannot achieve our 2040 and 2050 targets with a slow-charged mindset that ignores the practical realities of our people, whether we are discussing the carbon footprints of AI, the hurdles of EV adoption or the fundamental right to affordable dental care, the common thread is clear. A transition is only green if it is also just. Notwithstanding my concerns and clarifications, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Prof Kenneth Poon.
Prof Kenneth Poon (Nominated Member)1030 words
[+20 sentences]Mr Deputy Speaker, I would like to begin by expressing my appreciation for the measures announced in this year’s Budget. Important steps have been taken to support Singaporeans through ongoing global uncertainties while continuing to invest in our long-term economic resilience and social well-being. I support this Budget and its emphasis on strengthening opportunities, supporting families and enabling Singaporeans at different life stages to progress with confidence. My remarks today are, therefore, offered in the spirit of constructive support. As we consider the spirit of a “we first” society, it may be useful to examine not only what support is provided but how policy initiatives shape the capacity of Singaporeans to participate meaningfully in shared institutions, such as schools, workplaces and community networks across the life course. Research in human development suggests that positive long-term outcomes are influenced not only by access to programmes, but by the extent to which individuals remain embedded in common social institutions through key transitions in life, such as entry into post-secondary education and employment. From this perspective, I would like to offer four questions that may serve as a lens for considering how initiatives within this Budget strengthen Singapore’s social foundations over time. First, does the initiative enable participation in common social life or does it primarily deliver services within specialised settings? While specialised supports are often necessary for competence-building and protection, their long-term effectiveness depends on whether they ultimately scaffold participation in everyday life. The question, therefore, is not whether specialised supports are needed, but how they connect individuals back into common settings over time. Second, do our institutional arrangements connect people across life domains or do they channel them into separate tracks? Life course research suggests that systems which bridge education, employment, healthcare and family life are more often able to sustain continuity in developmental pathways. In contrast, fragmented or categorised service structures may inadvertently introduce discontinuities that may constrain participation or mobility across transitions. Third, how is responsibility distributed across society? Many policies provide valuable programmes, but the coordination of care, the navigation of services and the sustaining of participation are often undertaken by families or professionals. An approach that places disproportionate reliance on a single individual increases the likelihood of cumulative strain and, over time, heightens the risk of stress and burn-out. Correspondingly, it is important to consider whether those involved are adequately supported. Finally, are communities enabled to act as responsible partners with a meaningful voice in shaping the institutions in which they participate in or are they positioned mainly as beneficiaries? Evidence from co-production and community development suggests that outcomes are strengthened when families and communities are engaged, not only as recipients of services but as partners in institutional design and delivery, thereby supporting sustained engagement and reducing risks of disengagement over time. Taken together, these questions invite us to consider how policy investments can influence participation trajectories over life stages and particularly at transition points. So, I will consider this across four areas: firstly, persons with disabilities and their caregivers; secondly, vulnerable young children; thirdly, youth development and fourthly, families navigating complex needs.[+1 sentence] First, people with disabilities. I welcome the continued support in this Budget for persons with disabilities and their caregivers, including the top-up to the Long-Term Care Support Fund and the planned expansion of Day Activity Centre (DAC) capacity. For many families, one of the most significant transitions occurs when their child exits the formal education system at about 18 years of age. This transition often entails a loss of structured routines, peer networks and community participation, while families navigate a new landscape of adult services.[+3 sentences] As the capacity of DACs expands, it may be helpful to consider how transition pathways connect individuals across education, employment and community life. Anchoring transition supports within community-based employment partnerships, shared-use facilities or neighbourhood organisations can help ensure that the specialised supports continue to scaffold participation in everyday institutional life over time. Next, vulnerable young children. The Budget continues to strengthen affordability and access to the preschool sector, and these are important steps at ensuring no child is left behind.[+3 sentences] At the same time, developmental vulnerability is often closely intertwined with family stressors, such as housing instability or caregiver fatigue. In this regard, we may wish to consider how our resourcing for programmes in early childhood connects families across domains of daily life. Strengthening linkages between preschools and services that support families may enable caregivers, not only to access programmes, but to sustain the support of their child or children's development within the home and community environments in which the children spend most of their time. On youth development, this Budget makes important investments in traineeships, skills development and employment pathways.[+4 sentences] From a developmental perspective, youth transitions are not only about access to opportunity but about participation in the institutions and communities they will inherit. Platforms, such as Youth Panels, may therefore be understood not only as consultative mechanisms but as opportunities for co-production that can strengthen engagement, persistence and alignment between institutions and the developmental needs of young persons. Finally, on strengthening families. Recent enhancements in parental leave, housing support and healthcare initiatives are significant steps towards reducing financial strain and enabling family stability. Families often serve as primary coordinators across education, employment, healthcare and community systems, particularly during transitions, such as school-to-work or caregiving. Policies that empower families, not only as recipients of services, but as partners in navigating institutional supports can help sustain participation and reduce discontinuities between transitions.[+1 sentence] Mr Deputy Speaker, this Budget helps to shape the conditions under which Singaporeans remain connected to one another across schools, workplaces, families and neighbourhoods. When our investments enable individuals to remain embedded in shared institutions across life stages, they strengthen not only individual outcomes but our collective capacity to act in times of uncertainty and change. In that sense, the effectiveness of this Budget lies not only in terms of the opportunities it creates but in the extent to which it enables Singaporeans to participate, contribute and remain connected over time.[+2 sentences] This way, it lays the foundation for a "we first" society grounded in shared responsibility and common purpose. And for these reasons, I support the Budget.
Mr Speaker3 words
[+1 sentence]Dr Charlene Chen.
Dr Charlene Chen (Tampines)1310 words
[+11 sentences]Mr Speaker, as I reflected on this year’s Budget, I asked myself a simple question. If our goal is not just to get through the next year, but to thrive for the long term, what should an ideal Budget prioritise? One word came to mind – productivity. But not productivity in the narrow sense of GDP or output. True productivity is about enabling people to realise their full potential – our young, our mid-career workers, our seniors who continue to contribute and our persons with disabilities who deserve full opportunity to do so. Singapore has no natural resources. We rely entirely on our people – their skills, resilience, values and unity. If we want to stay competitive and cohesive, we must invest in enabling every Singaporean to reach their potential. Productivity is not about squeezing more from people. It is about helping people grow. Even in a more uncertain world, we are fortunate to discuss this from a position of fiscal strength. With surpluses last year and this year, we have the capacity to invest prudently and strategically in our people.[+8 sentences] In every Budget, there are two responsibilities: to provide support and to invest. Support reduces inequality and ensures no one is left behind. Investment unlocks potential, because if people cannot reach their potential, the economy cannot either. Let me begin with young Singaporeans. They have clear aspirations: good jobs, affordable housing, meaningful careers, stable paths to marriage and family and lives with purpose. At my Meet-the-People Sessions, housing concerns often surface. Decisions about flats are tied to life decisions – marriage, career stability and family planning. This was also reflected in the PAP Policy Forum’s Pre-Budget Survey. About 60% of over 1,000 respondents cited daily costs as their top concern and nearly one in five highlighted housing pressures.[+2 sentences] Many also flagged family-raising as a major worry. When cost pressures weigh heavily, aspirations become cautious. On employment, nearly half of 433 respondents cited lack of career progression as their biggest challenge and more than one in four mentioned underemployment.[+11 sentences] This shows that the issue is not simply job creation but whether jobs enable growth. For long-term productivity, young people must see credible and coordinated pathways ahead. This means continued investment in strong school-to-work transitions, better skills-job matching, predictable housing supply, mid-career mobility support, and accessible lifelong learning frameworks. Structure matters. When aspirations are supported by stable pathways in jobs, housing and skills, people can plan confidently. And when they plan confidently, they commit to families, careers and to Singapore. But our youth are not just beneficiaries of policy, they want to contribute. When they feel trusted and supported, they step forward. Supporting aspirations is just part of the equation. We are raising a generation that is capable but also under pressure. They face academic competition, social comparison fueled by technology, economic uncertainties and rapid AI-driven change. Over 100,000 Singaporeans took AI-related courses last year – a positive sign.[+1 sentence] But readiness remains uneven. One in five survey respondents felt unprepared for AI-related shifts in their industry and nearly half said they lacked sufficient training due to time constraints or difficulty finding relevant programmes.[+34 sentences] The focus group's discussions reinforced this, highlighting weak training-to-job linkages and skills mismatches as persistent concerns. Access to courses is not the same as confidence, training enrolment is not the same as career stability. As we embrace artificial intelligence, we must also not neglect another "AI" – actual intelligence. Technology is a tool. Our people must know how to use it, but also how to question it. We must nurture judgment, empathy, critical thinking and moral reasoning. In my maiden speech, I spoke about the paradoxes of technology: tools that can connect can also isolate; convenience can erode capability. AI presents a similar paradox. If we let machines think for us without strengthening our own thinking, we risk weakening the qualities that make us adaptable and innovative. In my classrooms, I see bright young students already worried about burnout before their careers begin. They are not lacking ambition. They are asking whether they can keep up without losing themselves. If productivity depends on human capacity, resilience must be part of our economic strategy. We must invest in school-based mental health support, workplace mental wellness frameworks, community sports and physical activity, curriculum that builds emotional regulation and bounce-back ability, soft skills that help navigate setbacks. These measures matter for students, mid-career workers adapting to change and seniors staying engaged. A burnt-out population cannot be a productive one. Resilience is not a side issue; it is the foundation of sustainable growth. Managing pressure is not only about coping, it is also about shaping social norms. If success is defined narrowly by grades, pay or title, we risk creating pressure and weakening cohesion. We need a broader, healthier definition. Success is living up to your potential. Success is purposeful contribution. Success is knowing your work – whether in business, arts, sports or service – matters to your community. Our identity as Singaporeans must embrace the diversity of talent through culture and arts, sports and teamwork, academic and technical excellence, entrepreneurship and service. When young people see that there are many legitimate ways to contribute, they feel seen; and when they feel seen, they step forward. This is why continued investment in youth engagement, culture, arts, sports and community initiatives matter. These are not peripheral. They build belonging, shape identity and strengthen a "we first" mindset. Inclusive progress must be designed. Ability exists across society. Opportunity must too. When people feel included, they contribute with confidence. And when they feel part of something larger, they act differently. I have seen this spirit of agency in Tampines. Vareck Ng, a young resident, co-founded a volunteer initiative to improve safety for active mobility users, both walkers and cyclists.[+1 sentence] After residents raised concerns about near-misses, I brought these to him and a group of advocates. Together, we identified problem spots and worked with the Land Transport Authority's (LTA's) Active Mobility Team to improve safety.[+7 sentences] He did not wait for someone else. He stepped forward, organised others and worked constructively with the authorities. That is youth agency in action. That is Team Singapore. Mr Deputy Speaker, in Mandarin, please. (In Mandarin): An ideal budget does not just help us to get through this year but lays the foundation of Singapore's long-term development. Singapore has no natural resources; our greatest resource is our people. When young people have stable jobs and affordable housing, they can plan their lives with peace of mind and start families and careers.[+17 sentences] When middle-aged workers receive support during transitions, they can continue to contribute their experience and skills. When seniors feel respected and needed, they can remain active and continue participating in society. If a society makes its people feel that they are not being left behind, they will be more confident and willing to dedicate themselves to the country. This is what we call "Team Singapore." Investing in people is investing in Singapore's future. (In English): Mr Deputy Speaker, AI can multiply our advantage but only if it strengthens people, not sidelines them. If we invest only in machines, we may grow output. But if we invest in people, we grow a nation. When people feel supported in their aspirations, equipped to manage pressure and confident that success is defined fairly, they do not disengage. They step forward. They start families. They build businesses. They lead community projects. They improve neighbourhoods. They carry forward the values that built Singapore. Sustainability is not only about fiscal discipline. It is about ensuring the next generation is resilient, capable, inclusive and united. The most important investment in this Budget is not in technology alone. It is in our people across every generation, especially those who will carry Singapore forward.[+1 sentence] Because when our people realise their potential, Singapore realises hers.
Mr Deputy Speaker5 words
[+1 sentence]Minister of State Jasmin Lau.
The Minister of State for Digital Development and Information, and Education (Ms Jasmin Lau)2303 words
[+22 sentences]Mr Deputy Speaker, first I want to wish everybody "新年快乐" and Happy Ramadan to everybody who is celebrating. Many of us find it hard to picture what the world will look like in the years to come. There is the geopolitics, a world that feels less stable, less predictable and less governed by rules that we can rely on. And then there is AI, which, in some ways, feels even more unsettling because it is not happening out there in some distant theatre, it is happening all around us. In the classrooms that our children will enter, in the industries that Singapore has spent decades building. My husband and I wanted to protect our two children from online content. They are still very young, so we decided to try and stop giving them screentime sometime last year. I told them that Prime Minister Lawrence Wong said "Screentime is bad." They looked a little bit confused, and it was tough for us for two weeks, but since then, they hardly ask for screens anymore. But I know that this artificial safety will not last. They will grow older. They will become curious. They will have friends or classmates who will tell them about the fun and exciting AI content online. They may learn about the companion AI tools. They will need to differentiate between content generated by humans versus AI and they may ask: "What is the point of striving to learn and becoming good at something if AI can do it so much faster?" All of this can feel very frightening whether we have kids or not. My speech today has no new announcements. My fellow colleagues may share some of them during the Committee of Supply debates, but there is no new list of programmes that you will hear from me. Instead, I wanted to try to address three hard questions. What is really changing, what will not change and what must we do together? So, first, what is really changing? Let me not sugarcoat this. AI is here, AI is not arriving, AI is not five years away, but it is already reshaping industries, changing how some tasks are being done and it is moving faster than most forecasts predicted even three years ago. What AI does best today and will get better at doing tomorrow is work that is repetitive, rule-based or data heavy.[+21 sentences] Processing, summarising, triaging. These are not special tasks. Machines can now do these tasks faster at lower cost and often with greater consistency than humans and this performance gap will continue to widen and not narrow. So, when young Singaporeans tell me that they worry that what they are learning today in school will be obsolete by the time they graduate, I do not brush that aside. They are reading the situation clearly. Many are already encountering this as they start to apply for jobs. And when workers in their 40s and 50s tell me they have spent twenty years building expertise in a domain but now worry that AI is helping junior colleagues close that gap much faster. I do not tell them that their concern is misplaced because all of their anxieties are rational. But what matters more is what we do with it. I asked AI to give me an analogy of itself. It suggested the following with very nice elaborations for each suggestion. Bicycle, electricity, calculator, turbo engine, all of these sound very useful. Then I asked it, give me the scary analogies. AI suggested fire, pandoras box, trojan horse, puppet master, among others. The range of answers in itself is telling, because that is exactly the question we have not yet settled as a society. What is AI to us? What is our relationship with AI and who gets to decide? We know that AI can give us significant economic edge and amplifies the abilities of our people, but we have to carefully define our relationship with AI as individuals and as a society and we can only do so if we first get to know AI. We need to first understand what it is, what it is capable of. We must understand the motivations of the people behind it. We must understand the risks and the invisible dangers that it can come with, and understand how vulnerable you can be to it, even if you think you are the most educated person in the room. Singapore's job and this includes my job, is to make sure that we as humans remain in control of how AI is used and not let it dictate our values.[+12 sentences] Now, what will not change? A world where everything is changing feels unsettling. But there are some things that will not change. What will not change, is the value of genuine relationships. Relationships that build trust and deep human connection. In my dialogues with young Singaporeans, many can see clearly how AI makes their lives more convenient. But when I ask them, "What you do with the time freed up?", they pause. Some will murmur, "Sleep", some say, "League of Legends", and a few say they will spend more time with their families. But the pause is telling. Convenience is not the same as connection. The things that make a life feel worth living – being known and loved by a real human, building something and celebrating achievements with other people, showing up for people when it is hard – AI cannot replicate these. And the more automated our world becomes, the more these human connections and capacities will define what differentiates us from the machines. What will also not change is the need for human accountability. And accountability means developing AI governance frameworks that are robust and ethical.[+1 sentence] It means being more transparent with citizens about how AI is being used in Government services and allowing them to still connect with human Public Service officers, if they need to. Accountability also means recognising the risks and dangers of AI, developing regulatory frameworks on what AI content should be disallowed for certain audiences and making sure there is a clear chain of accountability.[+8 sentences] AI can process, but it cannot be held responsible on its own. AI can generate lots of options, but it cannot own the consequences. We will still need humans: for ethics; for creativity and imagination; and for the ability to look someone else in the eye and say, "I take responsibility for this." So, what do we do? We are not starting from scratch. Our education system has consistently produced people who can learn and relearn, not just people who know things. We have a population that takes education seriously, that invests in their children. Our people are discerning and curious about the latest technologies available. More than half a million Singaporeans used their SkillsFuture credits last year.[+12 sentences] Mid-career workers are reskilling, not just because they are told to, but because the system makes it practical and financially accessible. We will build on this and guide Singaporeans towards the capabilities and qualities that AI cannot replicate. And tripartism. In Singapore, we have a labour union that is aware of the impact of AI on workers and already putting together plans to make sure that we are ready for the workforce disruptions. So, we are starting from a good position. But we need more people to learn about AI and learn how to use AI, and not just observe to see which way things settle. Moving, building and doing, does not mean rushing or speeding. It means getting started and moving at a pace most suitable for ourselves. And whether you are an employer, a worker, a student, a teacher or a parent, the mission is to turn your anxiety into action. And over time, into confidence and mastery. For our businesses, especially our SMEs, who form the backbone of our economy, you do not need to have all the answers before you begin. We heard in our Economic Strategy Review committee consultations that many SMEs feel they cannot afford to be guinea pigs. They tell me: "Jasmin, you want us to be early adopters, but we do not want to be the first movers." They have personal experiences of trying out new technologies and then realising that the technologies became outdated too fast.[+1 sentence] And they are right to be cautious. We will create lower risk, structured ways for our SMEs to experiment.[+6 sentences] The hackathons and collaborations between students, SMEs and business leaders over the past year were not just photo opportunities. In those sessions, our SMEs got access to low-cost AI prototyping. The students gained domain experience and learnt about real problems that businesses deal with on a daily basis. Business leaders spotted talent they then went on to hire. We will systematise this, to ensure that more SMEs and students benefit. We are also refining our funding schemes. When IT adoption was the main challenge, the barrier was set-up cost, so we subsidised set-up costs. Today, an early-stage AI prototype can be built in just a few hours. So, the barrier now is capability and workflow redesign. Our funding support will shift accordingly towards implementation, business process redesign, reskilling and the much harder work of changing how an organisation actually operates.[+29 sentences] We will make sure we are accountable. But we must also make sure that our SMEs, most of whom are genuine and often already tight on resources, we must make sure they do not get turned away too early by onerous and cumbersome paperwork. These are all ideas that our Economic Strategy Review Committee 2 on Technology and Innovation will continue to work on in the months ahead. I would like to take this chance to thank my co-chair, Senior Parliamentary Secretary Goh Hanyan, and all our committee Members for their time and thoughtful contributions. And we are encouraged that the Prime Minister had mention many of our recommendations in his Budget Speech. For our young people, economic resilience begins long before workforce entry. It begins in how children and students learn to think. As a parent, I am often tempted to help my children find the answers instantly, when they begin to struggle. Sometimes, we see this as our way of protecting and teaching our children. But when answers become instant, the more deliberate we must be in protecting the struggle. Because it is in the struggle of making mistakes, trying again, finally breaking through – that real learning happens and confidence grows. We want more young Singaporeans to learn about AI. Not just learn how to use it, but learn about it. Not just to do their homework in routine and repetitive ways, but to create new value for themselves and others. And to actively decide when not to use AI. A student asked me recently, whether I use AI. I said yes, often, especially for research, summarising articles or preparing speeches. But recently, I tried to build my first web app. It is called "Family Fun Time", and it is designed to give me one activity a night to do with my kids. The activity must be dinosaur-themed; take less than 15 minutes; and should not require any equipment. Over time, based on my rating for every activity, it will give me customised suggestions. Yesterday's activity was about dinosaurs' feelings and letting the kids suggest what to do when their favourite dinosaurs are scared, hungry, lonely, happy or angry. Unfortunately, I only get to try it with them tonight, because I had to work on this speech last night. The real fun and the real learning does not come from the app or from AI. It comes from the minutes we share as a family, the conversations and laughter, and correcting each other's silly responses to our dinosaur's feelings. I did not know it was now so easy to build an app, until I had tried it myself. Only in doing, trying and experimenting, will we find out the value of AI and shape our own relationship with it. And only in doing, trying and experimenting, will we find out the real value of ourselves as humans and understand what AI cannot and should not replace. In the years ahead, as AI continues to evolve, we will need to review what education means for our children. AI will force us to sharpen the focus of education on what truly matters – judgement, values and the ability to work with AI rather than compete with it.[+4 sentences] How do we teach our children about AI, in particular its limits, biases and blind spots? How do we balance the weightage of our education to emphasise character and social development? Beyond content recall, what higher order thinking do we want to equip our children with? How do we help them understand the value of problem definition and design? How do we help them sharpen their judgement skills, especially in uncertain situations? These are all areas that we will be working on, so that our children grow up confident that they remain the master of AI – and not the other way around.[+5 sentences] In closing, let me be direct about what I believe. AI is here and its possibilities are endless. This matters, because it means AI can improve the lives of our people. But this journey, no doubt, will cause much disruption. Because we feel the fears, because we feel the anxieties, we must find a way forward that keeps our people together. Most importantly, we must always be in control of AI.[+1 sentence] Not the other way around. We must intentionally decide what AI should be used for, even if it nudges us to think otherwise. This is how we can build not just a smarter economy, but a wiser and a more confident society, ready for the journey ahead.
Mr Deputy Speaker3 words
[+1 sentence]Ms Valerie Lee.
Ms Valerie Lee (Pasir Ris-Changi)1709 words
[+13 sentences]Mr Deputy Speaker, Sir, before I begin, I would like to declare that I am employed by a Singapore-listed energy company. Mr Deputy Speaker, Sir, I rise in support of this Budget. Much has been said about huge surpluses and some have asked whether we may have set aside more than was necessary and that we aimed poorly and overshot. These perspectives are understandable, particularly when many needs remain pressing. However, I would suggest that the surplus can also be seen in another light. To me, it reflects prudence and discipline. When the world is becoming more contested, when supply chains fracture and the guardrails that once managed international disputes and tensions are eroding, it is better to discover we have more than expected than to discover that we have too little. In uncertain times, a surplus is not a mistake; it is a buffer. Hence, for those who disagree – we were perhaps not looking at the same target; as our bullseye will never be pure numerical accuracy, but rather, overall fiscal and social resilience. But I think what we all agree on is that a surplus should not sit idle. It must be deployed deliberately to improve the lives of our people today and to fortify Singapore against the uncertainties of tomorrow. With that, Sir, allow me to frame my speech around three "S": first, supporting the "Sandwich Generation"; second, securing a sustainable future; and standing with every Singaporean. Sir, the middle-income Singaporean, especially those caring for both children and ageing parents, working and paying the bills at the same time, they carry a unique burden that is worsened by smaller family sizes, fewer siblings share the load, and longer life expectancies. As far back as 2019, NTUC Income research reported that 94% of parents surveyed revealed that they were currently pressured between having to financially support their growing children and their ageing parents.[+2 sentences] The majority of these parents also believed that their children and grandchildren would continue to be caught in this "sandwich generation" trap. These working caregivers are already stretched and require more support. The Government has provided broad-based support and I welcome measures, such as the additional $500 in Child LifeSG Credits in this year's Budget. However, many of our structural family schemes are still designed to provide additional benefits only from the third child onwards.[+28 sentences] For example, the Large Families Scheme focuses its enhanced support on the third child and beyond. While these schemes are valuable, we should also be mindful that the pressures of raising a family do not increase in neat steps, as the first two children already place significant demands on household resources. As such, we should consider stepping up our support even for smaller families especially for middle-income families who do not qualify for the highest tiers of assistance, but who feel the squeeze most acutely. Support must also extend to eldercare. As the Prime Minister has rightly acknowledged, we must help our seniors age with dignity, security and peace of mind. We should remember that caregiving is not only about subsidies and CPF top-ups, important as they may be. It is also about setting aside time and nurturing a supportive ecosystem of care. A perfect example of this would be the work done by the Agency for Integrated Care (AIC). In just under a year of serving my Pasir Ris-Changi residents, I have had many great experiences with partnering them in solving some of my elderly residents' challenges with healthcare and daily living, which always brings much relief to their family members. Many families have had complex cases resolved, from navigating care placement to assessing subsidies. We should continue strengthening AIC and find ways to make their good work even better. In this regard, eldercare leave also deserves further study. Just as we recognise childcare responsibilities, we must acknowledge that accompanying an elderly parent to a specialist appointment or arranging post-hospital care, is not discretionary – for many, it is duty. On the childcare front, I will speak more extensively during the Committee of Supply debates. But I wish to express concern, especially with regard to the cost of outpatient paediatric care. Even for relatively routine visits, expenses do add up quickly for families with young children. There may be room to review fee benchmarks or expand support frameworks. Last but not least, support can also come in ways that seem unrelated at first glance – such as transport. When we enhance bus frequencies, add more bus services, extend Mass Rapid Transit (MRT) lines and build sheltered walkways, we are not just improving infrastructure. We are returning time. Ten minutes saved on a commute is 10 minutes with a child before bedtime or 10 minutes more to check in on an elderly parent. For the sandwiched generation, time is the scarcest resource and they will need all the support they can get. Sir, on climate policy, I agree with the Government's position. Retreating from action is not an option. It is tempting – especially amid global backsliding – to slow down. But climate risks will not slow down for us. Rising sea levels will not pause while we debate in this Chamber. The investments we make today may not be fully appreciated now, but decades from today, our children will understand why we made them. On carbon pricing, Singapore already has the highest carbon tax in Asia. So, I welcome the Prime Minister's pragmatic stance that the rate will likely settle at the lower end of the $50 to $80 per tonne band by 2030.[+5 sentences] This reflects realism – balancing competitiveness with climate responsibility. But beyond pricing, perhaps more can be done. Instead of viewing it merely as tax, we can perhaps more explicitly ringfence or mandate that a meaningful portion be reinvested by companies into low-carbon technologies, energy efficiency and innovation, and not have all these funds be centrally managed. This ensures the price mechanism translates directly into transformation. This will also help boost survival rates of energy intensive sectors which are also critical to our economy and yet reduce the carbon emission intensity of their operations. On solar energy, we achieved our two gigawatts peak target ahead of time – an impressive feat. The revised targets to three gigawatts peak by 2030 are welcome.[+9 sentences] But it is also time we pivot to examine the broader ecosystem. These include examining whether our grid connection timelines are fast enough, whether we have skilled manpower in solar engineering and maintenance and how we progress our transition into a green workforce. Regional power imports are also critical and more government-to-government arrangements and government-to-business arrangements may be necessary. The Government must ensure that imports are sustainable, reliable and defendable. And for this reason, the Government must not leave long-term energy security to the whims of market forces. I also welcome diversification of our energy mix in geothermal, hydrogen systems and even advanced nuclear technology. But public acceptance for these will be key. Public education must begin early and be transparent. Conviction must accompany ambition. Diversifying our energy mix – through natural gas, solar, regional power imports, low-carbon solutions and potentially nuclear energy – is paramount to the survival and resilience of Singapore.[+1 sentence] Yet this transformation cannot be driven by market forces alone. It requires a deeper and more deliberate partnership between Government and industry. We must establish enabling regulations, dedicated funding mechanisms and a robust ecosystem of technology providers, project developers and reliable baseload off takers.[+13 sentences] These foundational elements are essential to give investors and operators the confidence to commit to long-term energy infrastructure. Given the significant development risks and long gestation periods associated with such infrastructure projects, the Government could also work closely with industry from the outset to address potential barriers and mitigate critical risks before they become insurmountable obstacles. When the stability of our economy and the daily lives of our citizens depend on the future of our energy system, we cannot rely solely on commercial market dynamics. To secure a sustainable future is no simple feat. We will need to work on aligning policy, workforce, infrastructure, businesses and public trust. A coordinated national effort is not optional – it is imperative. Finally, Sir, we must stand with every Singaporean – including those whose numbers are small, whose voices are quieter, but whose needs are real. There are residents in areas with limited bus services, such as parts of Flora estate and Upper Changi – the last residential estate in the north-eastern part of the country. Connectivity shapes opportunity and so, we should continue refining route design to better serve such pockets. There are families with special needs children who face a cliff at age 18, when school-based structures fall away. Transitions must be smoother. As our population greys, there are seniors asking for safer pedestrian paths and more pedestrian-only zones. We should consider designing walkability and safety not for the average 30-year-old, but for the 75-year-old with slower reflexes. There are private property owners subject to a 15-month wait-out period before purchasing resale HDB flats even when they may have legitimate reasons for needing to right-size quickly. There are the SMEs that employ 70% of our workforce yet struggle even as we push ahead with AI adoption and digital transformation.[+10 sentences] Individually small, collectively, they form the backbone of our economy. Mr Deputy Speaker, Sir, allow me some lines in Mandarin. (In Mandarin): Similarly, the residents and businesses on Pulau Ubin pay electricity bills that are far higher than ordinary household users on the mainland. They may be few in number, but they are Singaporeans just like us and their problems equally deserve our attention and concern. (In English): Each group may not represent a majority. But together, they represent Singapore. Mr Deputy Speaker, Sir, a surplus gives us strength, but strength must be channelled with purpose. It is my hope that in this Budget and beyond, we will commit to supporting the sandwich generation – those holding up both the past and the future; securing a sustainable future – for ourselves and our children; standing with every Singaporean – especially those whose voices are softer. And that is what this Budget must ultimately build. Thank you, Sir, and I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Ms Denise Phua.
Ms Denise Phua Lay Peng (Jalan Besar)2279 words
[+31 sentences]Mr Deputy Speaker, Sir, I support Budget 2026. What stood out most to me in Budget 2026 is this: AI is no longer peripheral to Singapore's plans. It is central to our economic strategy and our future competitiveness. AI is here and now. It is reshaping industries, redefining work and influencing the resilience of nations. Singapore must move decisively, but we must also move wisely. Today, I wish to speak on AI adoption without regret, about bringing everyone along, about AI's profound implications – especially for our SMEs, our workers, particularly those who are vulnerable and ultimately, our social compact. Because AI is not just a technology story. It is a societal one. If we are not careful, AI transformation could become a story of the few who benefit, while the many may absorb the disruption. Our task, therefore, is clear. How do we pursue AI adoption without regret and bring everyone along? AI is reshaping the real economy, not just the digital one. By the real economy, I mean the industries that make, move and deliver goods and services, where most Singaporeans work. This is not just another wave of automation. Singapore has automated before – in factories, ports and back offices. But this time is different. Machines are no longer just executing instructions. They are sensing, they are learning, they are adapting and making decisions. AI is becoming embodied. We are already seeing AI-driven "lights-out" or what they call dark factories operating 24/7 with minimal human presence. These systems optimise production in real time, detect faults, predict breakdowns and adjust workflows autonomously. In some sectors, robots are even assembling other robots. Beyond manufacturing, AI-powered machines are entering everyday services – cooking and serving food, packing goods, moving inventory, assisting nurses, guiding seniors, even conducting therapeutic and counselling functions. This is automation with cognition. Across Japan, South Korea, China, Denmark, Germany and many others, such systems are being deployed at scale in logistics, healthcare, food services and manufacturing – precisely the sectors where many of our Singapore SMEs operate and where many of our older and lower-wage workers – Singaporeans – earn their living. That is why this shift is more consequential than past mechanisation. Singapore is a high-cost, labour-scarce economy. Automation was already necessary. But AI-driven automation accelerates change because it does not just replace muscle – it begins to learn and replicate judgment. So, the question is not whether AI reshapes Singapore. The question is whether we will shape this transformation deliberately – upgrading our firms, our companies, our businesses and uplifting our workers – or risk allowing intelligent systems to outpace our preparedness.[+2 sentences] Let me turn to our SMEs. Sir, if we are serious about bringing everyone along, then SMEs cannot be an afterthought. They make up 99% of our enterprises and employ 70% of our workforce.[+1 sentence] They are the economy. Budget 2026 places AI at the centre of our strategy.[+2 sentences] But on the ground, many business owners are still unsure what this means for survival – not just growth. The numbers are sobering. In 2024, only 14.5% of SMEs adopted AI – up from 4.2% the year before. Now, that is progress, but still fewer than one in six. Meanwhile, adoption amongst the larger firms surged from 44% to 62.5%.[+95 sentences] Some firms are sprinting. Many are walking. Too many have not even started. And the SMEs are already under strain we know. They quoted – we had many talks – our GPC for Finance and GPC for Trade and Industry – with our resource panel, the Singapore Business Federation, PAP Public Policy Forum and many business associations. We know that the SMEs are already under strain: rising costs, manpower shortages, thin margins, rapid technological shifts and intensifying regional competition. AI is not arriving gently for them. It is arriving on top of these pressures. These sentiments are common from the conversations we heard. But let us be clear. For many SMEs, and I am not talking about those who are in that quadrant, where they are unwilling and unable, but for many of the rest, the issue is not willingness. Surveys consistently show SMEs want to adopt AI. But they adopt AI when three things are clear: "What works for my sector and me? Who can help me implement? And how do I pay for it?" AI, as we know, is not plug-and-play. It does require clean data, disciplined processes, systems integration and leadership commitment. It requires job redesign, worker re-training. Without these foundations, adoption becomes cosmetic – chatbots at the front desk, dashboards in the office – but no real productivity gain. If that happens, we will digitise inefficiency. And if we do not intervene properly, the risk is not just slower adoption. The risk is structural divergence. Large firms with capital and technical depth will accelerate. Smaller firms will struggle. Productivity gaps will widen and wage growth will stagnate for many. Some SMEs will exit but let us be honest: not every SME exit is a failure of policy. In a high-cost, AI-driven economy, some business models will no longer be viable. But firms should not fail because support was too generic, too fragmented or too distant from operational reality. Government must enable. SMEs must step up. Transformation requires effort on both sides. AI adoption demands leadership focus, workflow discipline and real investment. It is difficult, but standing still is harder. That is why broad encouragement and broad grants waiting to be taken up are no longer enough. We need precision support, not broad measures. Let me propose three moves for a start. Move one, a national SME AI readiness scan. Many SMEs do not know where they stand, so let us introduce a credible, simple national diagnostic tool that classifies firms into foundational, emerging or advanced stages of AI-readiness. Support must be tailored to readiness. Foundational firms need help in cleaning up data, fixing workflows. Advanced firms need integration and scaling support. So let us stop this one-size-fit-all grants. Start targeted transformation pathways. Move two, Government-funded AI coaches for the SMEs. SMEs do not need some more webinars or seminars. They need embedded, time-bound advisors who can help to clean and structure data, redesign workflows, implement AI properly, measure productivity gains. Hands-on implementation support, not just funding, will separate the serious adopters from superficial users. Move three, strengthen the intermediaries. Many SMEs rely on trusted intermediaries: the Singapore Business Federation, NTUC, SME Centres, Enterprise Singapore, trade associations and chambers, academia with practical experiences. If we expect these intermediaries to guide thousands of firms through AI transformation, then we must also equip them with deeper technical capabilities, diagnostic tools and specialist talent and funding. Empower the multipliers and impact scales across the ecosystem. The goal is not to push every SME into complex AI systems overnight. The goal is disciplined, intentional transformation. If we get this right, AI becomes a renewal engine for SMEs. If we get it wrong, then we create a two-speed economy, not because help was absent but because execution lacked precision. Execution determines survival and survival determines jobs. Next, on jobs. If SMEs must transform to survive, then workers must also transform to survive, to remain relevant. And we know that not all workers begin from the same starting point. Sir, at the heart of this AI transition is one deeply human question: what happens to our people’s jobs? Because technology may move at digital speed. But families move at human speed. And the disruption we face is not one-dimensional. It is two-front. On the first front: operational and blue-collar roles, warehousing, logistics, F&B kitchens, security, cleaning, basic inspection work. AI-driven optimisation and robotics are already reducing repetitive tasks. Scheduling is automated, we know. Inventory is predicted. Machines inspect defect sometimes faster, in fact a lot of times faster than humans. The risk is not only displacement, it is also intensification – tighter monitoring, algorithmic targets, more precarious contracts. That is on the first front, the blue-collar jobs. On the second front: white-collar and cognitive work. GenAI already now drafts reports, writes speeches, prepares marketing copies and plans, business plans, summarises legal documents, produces financial models and writes code. Entry-level roles – internships, junior analysts, first-rung executive jobs – are increasingly augmented or partially absorbed. The doomsday scenario is not robots overnight. It is a broken ladder. If entry-level roles shrink, then fewer young people will get their first break. If mid-career workers are benchmarked against software, then wage growth stagnates. And if the gains concentrate among those who own and control AI, while others bear the disruption, then productivity gains will not feel like shared progress. Next, on the vulnerable. Sir, not everyone pivots at the same speed. For seniors, lower-wage workers, persons with disabilities, the risks are sharper. Lower-wage workers often perform routine-intensive tasks, the easiest to automate. Older workers, many of them struggle with rapid digital transitions, especially if training is overly theoretical or classroom-based. Persons with disabilities face a dual risk: one, displacement in routine roles, and exclusion if new systems are not accessible by design. Without deliberate intervention, these groups will fall behind first and inequality will widen. At the same time, of course, we must not jump – I think the Prime Minister always advices me at the lunch table – we must not jump to doomsday conclusions. AI can create more jobs and expand work. Nvidia’s CEO founder Jensen Huang has pointed out that in areas like radiology, AI did not replace doctors, it helped them read scans faster, which meant more patients could be treated and demand actually grew. We see similar effects in other sectors. As AI systems expand, we need engineers, technicians and operators to build and run data centres. As companies automate, they also need people to maintain robotics systems and supervise AI tools. The lesson is clear: AI can remove routine tasks and expand human capacity, but only if we design AI adoption intentionally. And that requires policy discipline. The discipline to protect workers before displacement happens. Budget 2026 already strengthens wage support, raising the Local Qualifying Salary, enhancing the Progressive Wage Credit Scheme and continuing the Progressive Wage approach.[+5 sentences] We must now apply similar discipline to AI transition. Some of the solutions lie upstream in education reform and serious mid-career upgrading. I will return to that during the Committee of Supply. But even as we strengthen the pipeline, we must also confront the immediate labour-market transitions already underway. Let me suggest five moves to do this. Move number one, a national early warning and mobility system.[+5 sentences] Let us shift from reactive retraining to proactive planning. Using job-task analytics and sector data, we should try to identify roles with high automation risk, identify them early, and try to intervene before displacement occurs. This means advance job redesign before automation, training that begins before tasks disappear, clear pathways into adjacent or emerging roles. Transitions are painful when sudden, but they are more manageable when anticipated. So, a national early warning and mobility system. Move number two, make workforce plans mandatory for major AI support.[+10 sentences] Sir, if a firm receives significant AI incentives or intermediary agency support, there should be a workforce transition roadmap. What tasks will be automated? What human roles remain accountable? Which workers will be redeployed or upgraded? And how will wages be supported during transition? Productivity gains must not come at the expense of worker displacement without a plan. Enterprise transformation and worker transition must be linked. Move three, redesign entry-level pathways. Where AI threatens junior roles, we must redesign and not remove entry points. Support structured apprenticeships, meaningful internships and supervised AI-assisted roles. Programmes such as Enterprise Singapore’s Global Ready Talent scheme show how structured internships can build capability.[+4 sentences] But internships and these other schemes must evolve. Young workers should learn to supervise AI systems, validate AI outputs, interpret analytics, exercise judgment beyond machine outputs. AI should become a co-pilot, not a substitute. Protecting the first rung of a job ladder protects mobility. Move four, on building concrete job pathways for seniors and persons with disabilities.[+1 sentence] Sir, we must move beyond general statements about inclusion or plans or declarations. For seniors, physical AI can reduce strain and extend employability. Robotic lifting aids in logistics, autonomous carts in healthcare, AI-assisted scheduling to reduce cognitive load.[+1 sentence] Pair this with modular, bite-sized digital training delivered at workplaces, not just classrooms, and wage support during transition for seniors. For persons with disabilities, we should expand supported employment into AI-adjacent roles: AI system monitoring and quality assurance, data labelling and validation with assistive tools, accessibility testing of AI systems, digital customer service roles using adaptive interfaces.[+9 sentences] And to make this real, NTUC, for example, should intensify outreach to unionised sectors undergoing automation. SG Enable and the National Council of Social Service should develop AI-readiness toolkits specifically for disability-inclusive employers and job clusters. Disability organisations and charities should be funded to train job coaches in AI-augmented workflows. Enterprise grants should include accessibility compliance requirements. Inclusion cannot rely on goodwill alone. It must be systemically built-in. And finally, move five: on strengthening intermediaries and social service agencies (SSAs). Sir, if AI is to be whole-of-society, then SSAs cannot be left behind. Many SSAs supporting low-income families, seniors, elderly residents and persons with disabilities face rising demand and manpower strain yet they also often lack AI capability: the technical capacity, the budget and the data governance expertise needed for that. Budget 2026 should create an “AI for good fund” to build an “SSA AI Backbone” comprising centralised AI tools for SSAs, shared data governance frameworks, volunteer AI professionals embedded in agencies, a vetted AI solutions marketplace.
Mr Speaker7 words
[+1 sentence]Ms Phua, you have a minute left.
Ms Denise Phua Lay Peng109 words
When SSAs become AI-enabled, the most vulnerable of us benefit.[+1 sentence] In conclusion Sir, Budget 2026 sets an ambitious direction: AI ecosystems, SkillsFuture strengthening, innovation hubs such as Lorong AI and the future AI Park at one-north. Ambition is necessary, but it is execution that determines whether progress is shared. AI adoption must be deep not cosmetic, worker-centred, inclusive by design, accessible to SMEs and supportive of the vulnerable.[+1 sentence] If we get this right, Singapore will not merely adopt AI. We will prove that a nation can move fast in this space and still move together.[+2 sentences] That, is AI adoption without regret, bringing everyone along. Sir, I support the Budget.
Mr Speaker19 words
[+2 sentences]And you just made it with 10 seconds; do not cut it so fine next time. Ms Jessica Tan.
Ms Jessica Tan Soon Neo (East Coast)971 words
[+7 sentences]Mr Speaker, Budget 2026 comes at a time when Singaporeans are navigating a world that is more competitive, more digital and more uncertain. In moments like this, what matters most is whether our people feel they can keep moving forward to find good jobs, support their families and plan confidently for the future. Budget 2026 refreshes our economic strategy with ambition and discipline. We cannot compete on size, but we can lead in trust, excellence and speed. The Budget rightly zeroes in on our global growth clusters where Singapore can lead in semiconductors and advanced manufacturing; biomedical sciences; green energy and the hydrogen economy; digital trust, cybersecurity and AI; and future finance and logistics. These are not new bets. They build on years of capability development. Singapore today produces 10% of chips globally and 20% of semiconductor equipment. We are a regional leader in enabling green transition, with Southeast Asia’s first carbon tax and a national hydrogen strategy. In AI governance and digital trust, frameworks, like the AI Verify and our Digital Economy Agreements, place us as a global reference point.[+23 sentences] The Budget strengthens this foundation by encouraging high value segments of global value chains, sustaining long term R&D through RIE2030 and supporting growth capital. These moves ensure that Singapore remains relevant in a volatile world. But strategies must translate into outcomes, especially for SMEs. Many may still struggle to navigate schemes or put together a growth plan. A “human in the loop” advisory model for SMEs scaling overseas or entering deep tech could complement GoBusiness, helping firms access support quickly and confidently. On AI, acceleration must go hand in hand with clear governance, integration support, change management help and strong cybersecurity. I will speak more on enterprise AI readiness during the Ministry of Digital Development and Information (MDDI) Committee of Supply debate. On workforce Readiness. Economic ambition only matters when it translates into better jobs and livelihood for Singaporeans. The Budget’s National AI Missions, the National AI Council and the Champions of AI programme signal Singapore’s commitment to being a trusted global hub for AI. But to ensure workers benefit from this transformation, we must align AI missions with workforce pathways, scale employer led training and apprenticeships, expand modular, employer recognised micro credentials that enable quicker redeployment, and strengthen HR capabilities so enterprises can manage workforce transformation. I will speak more about the critical role of HR in accelerating enterprise transformation during the MOM Committee of Supply debate. For our mid‑career and senior workers, the measures in the Budget will help workers through the disruption and changes. With rapid shifts in the job market, many of my residents have expressed anxiety about finding new employment after their short-term employment contracts end or following retrenchment. Matured PMEs worry about staying employable. Tripartite partners and Enterprise Singapore have stressed the importance of faster, dignified support when workers are displaced. But we can still do more to shorten unemployment transitions further by providing earlier notifications to placement hubs; sector specific placement packs with skills mapping, bridging courses and job fairs; as well as streamlined access to training and employment support. I will dive deeper into the topic of career health and employability of matured PMEs in the MOM Committee of Supply debate. We must ensure that our refreshed economic strategy is matched by a workforce that is resilient, ready and able to seize the opportunities ahead, and this matters whether they are just starting out or making a mid-career transition. Let me talk about families. Growth alone is not enough. For the sandwiched class, the question is: can my family cope? Will my children and parents be cared for? Budget 2026 takes meaningful steps in providing for higher preschool subsidies, expanded student care support and enhanced long-term care subsidies.[+3 sentences] These will definitely ease cost pressures temporarily, but gaps remain for families who are asset rich but cash poor, especially with the rising caregiving costs. A more nuanced means testing approach for eldercare, one that recognises liquidity constraints, will prevent families from being priced out of essential care. Why is this important? Because by 2030, one in four Singaporeans will be aged 65 or above.[+11 sentences] Care needs are rising and so is the emotional and financial load on mid career caregivers who must work, upskill and care for both young and the elderly in their families. While real progress has been made in building up our care ecosystem – and I must stress this, there has been a lot of progress in our care ecosystem – but families still experience the system as fragmented. Information sits across multiple portals and agencies. And we should consider piloting integrated family support hubs that coordinate childcare, eldercare, respite services and employment assistance, providing a one stop touchpoint for families for case management, streamlining subsidy applications and help in navigating complex systems. Caregiving is not only a financial load. It is a time load and a well-being load. Employers have a role to play as well. Incentives for caregiving friendly workplace policies, such as caregiving leave, flexible hours and phased return-to-work schemes, would encourage more companies to adopt practices that keep caregivers employed and productive. Expanding daycare and short notice respite capacity will give caregivers the breathing space they need to work, train, rest or respond to emergencies. Mr Speaker, a common thread runs through my speech – strategy only matters when implementation delivers impact. Budget 2026 charts the right course with focused investments, responsible AI adoption, a responsive skills system and deeper support for families. Our next task is to make these measures simple to access, aligned with employer needs and meaningful for Singaporeans on the ground. I support Budget 2026 for the clarity of the strategies to take Singapore forward. I call for continued focus on simplifying access, strengthening partnerships and building community level support ecosystems.
Mr Speaker4 words
[+1 sentence]Mr Lee Hong Chuang.
Mr Lee Hong Chuang (Jurong East-Bukit Batok)1846 words
[+43 sentences]Mr Speaker, I rise to support Budget 2026. Before I begin my speech in Mandarin, I would like to express my sincere appreciation to several groups and platforms that provided valuable opportunities for me, and our MOF and MTI GPCs Members, led by Chairman Mr Saktiandi Supaat and Vice Chairman Mr Edward Chia, together with Mr Shawn Loh, Ms Tin Pei Ling, Ms Denise Phua, Mr Victor Lye and Mr Ng Shi Xuan and myself to better understand ground sentiment ahead of the announcements of the FY2026 Budget by Prime Minister and Finance Minister, Mr Lawrence Wong, and during this ongoing Budget debate since this morning and for the next few days. These are not in any particular order. One, our very own GPC resource panel comprise almost 20 to 30 businessmen running their own business. Two, Singapore Business Federation. Three, Singapore Malay Chamber Communities and Industry. Four, the Institution of Singapore Chartered Accountants Roundtable. Five, PAP Policy Forum Group. Six, SkillsFrontier Solutions under Human Capital Singapore. Seven, the Society of Modern Management of Singapore. Eight, tour guides and representatives from the tourism sector, among others. This engagement brought together business leader, professionals, trade associations and frontline practitioners, enabling us to gain a more comprehensive understanding of the challenges faced by enterprise and businesses. We had candid discussions on cost pressures, manpower constraints, digital transformation, skills upgrading and strengthening Singapore's competitiveness in an increasingly uncertain global environment. Such open and constructive dialogues are critical in ensuring that our policy remain grounded, responsive and forward looking. The insights and feedback shared have been invaluable in shaping our perspectives as we consider measures that support businesses, uplift workers and position Singapore for sustainable and inclusive growth. Mr Speaker, in Mandarin, please. (In Mandarin): Mr Speaker, this year's Budget was not formulated in a stable environment. Recently, the global economy has been unstable, relations between countries remain complex, supply chain is restructuring and technological advancement is reshaping many industries. For an open economy like Singapore, these developments are realities we face everyday. As the old saying goes, "prepare ahead for a rainy day." When the environment is uncertain, it is even more important to secure our foundations. In an uncertain world, Singapore's most important assets are not its size, but our capability and our credibility. The focus of this Budget is not only to provide immediate support but also to ensure that we preserve national stability, capabilities and long-term sustainability amidst changes. I would like to touch on five areas. First, the dual pressures on businesses, survival and upgrading. I have regular engagements with businesses. Yesterday morning, I had a discussion with them. They did not talk about macroeconomic figures but very concrete realities. Some SME owners have told me that the pressure of doing business today does not come from a single direction but from multiple fronts at once and they feel overwhelmed. On one hand, they must control operating costs and safeguard cash flow. On the other hand, they must invest in system upgrades and capability building or risk gradually losing competitiveness. One SME owner describes it as "repairing the road while running". Business cannot stop. Yet, the road must still be fixed. Everyday, they must make difficult decisions. They often ask, interest rates are so elevated, should they invest now? Manpower is already tight. If employees go for training, who will do the work? With the market conditions still unclear, if they switch systems or adopt AI and the results are unsatisfactory, what then? What if the staff do not know how to use, and work becomes slower? Too many questions. These concerns do not reflect an unwillingness to upgrade. Rather, there have been many businesses that cannot afford the cost of trial and error. The Budget proposes corporate income tax rebate, enhancements to Enterprise Financing Schemes and higher support levels for overseas expansion.[+1 sentence] These measures can alleviate stress for businesses. But the important thing is that businesses must have the confidence to take the first step.[+8 sentences] If policies are clear and consistent, businesses will be willing to upgrade with peace of mind. Secondly, AI, hype and prudence. Everybody is talking about AI nowadays. During the New Year, many people use AI to make New Year's greetings and short videos, and people find it very interesting. Society's acceptance of new technology has also clearly increased. However, when businesses seriously consider adopting AI solutions, the situation becomes more complex. There are now many AI service providers in the market, but the price can be very high. Some businesses worry that there may be a case of using AI for the sake of using AI. The goal of our policy is to raise productivity and not to inflate business cost.[+6 sentences] As the saying goes, "haste makes waste". AI development is a long-term trend and will not see immediate effect. The key is whether technology can truly help companies' daily operation. Businesses are most concerned about whether AI can reduce repetitive administrative processes, improve customer response efficiency, optimise inventory and data management and enhance training effectiveness. For SMEs, the true value of technology is not for display but in actual integration. Therefore, in promoting AI adoption, I think there are three things that we have to focus on. First, let businesses understand clearly the cost and effect, increasing transparency; Second, tiered support to prevent SMEs from bearing excessive cost burdens.[+1 sentence] Third, ensure that subsidy structures encourage capability building rather than simply stimulating procurement. Third, subsidies are to encourage capacity building, not just to buy systems.[+11 sentences] The third area. Enterprise upgrading is not the result of a single policy but of an entire system. Investment direction, enterprise capability building, skills transformation, financing support and the institutional environment are different gears within it. If one gear turns too quickly while others cannot move in sync, then friction arises. For example, if industries upgrade rapidly but local enterprises are unprepared, opportunities cannot be translated into value. If technological adoption advances quickly but workforce skills do not keep pace, productivity may suffer. If policy support exists but the process is too complicated, deterring companies from applying, then the tools will fail to achieve their purpose. Thus, the key lies not in the strength of individual policies, but in the depth of coordination and the pace of implementation. Only when the system operates smoothly can upgrading be steady and sustainable. Fourthly, I want to talk about fiscal space and long-term responsibility. Although we have surplus now, but we cannot just look at one year. A fiscal surplus provides a buffer for the nation, but fiscal planning has never been merely about annual balance. Population ageing, rising healthcare expenditure, climate adaptation investments and technological transformation require long-term spending.[+26 sentences] Supporting enterprise upgrading and safeguarding social stability also requires resources. Hence, fiscal discipline is very important. We have to provide for today, as well as tomorrow. As a saying goes, "Store grain against famine". This is not conservatism, it is preserving choices for the future. Fiscal prudence is a commitment across generations. Fifthly, helping our enterprises to go overseas. In today's international environment, overseas expansion presents both opportunity and risk. Different regulations, market volatility and geopolitical factors can influence our businesses. A stable diplomatic network provides businesses with predictability and trust. ASEAN remains an important region. Links with Europe and other major economies create diversified market opportunities for our enterprises. When our local enterprises create jobs and provide professional services abroad, they also strengthen Singapore's reputation. Diplomacy creates space; businesses create value. The two reinforce each other. Mr Speaker, in uncertain times, the essence of governance lies not in speed but in direction. The direction must be correct. Businesses are under pressures. Workers must upgrade. Our fiscal policy must balance present needs and future responsibilities. Diplomacy must safeguard stability and space. "Steady steps carry us far." So long as we maintain a long-term perspective and continuously refine implementation, Singapore will remain stable and competitive in a complex environment. (In English): Mr Speaker, artificial intelligence presents real opportunities, but adoption must remain disciplined, transparent and grounded in productivity gains rather than short-term momentum or inflated solution pricing. The focus should be on measurable business value, clear evaluation and tiered support so that SMEs can adopt effectively without excessive burden. Recently, I have received feedback from several SME owners. They acknowledged that AI is the way forward and recognise the need to embrace it in order to remain competitive. However, one SME shared with me that when he approached an AI vendor to explore solutions for his business, he was quoted a six-figure sum, a significant investment that many smaller enterprises would understandably find daunting.[+1 sentence] Interestingly, when he was later invited to serve as a judge for the AI for All Hackathon organised by Manus AI in collaboration with the Nanyang Technological University, he took the opportunity to present the same problem statements to participant students. To his surprise, the students were able to propose multiple variable solutions that address about 70% of his business needs.[+2 sentences] This experience demonstrated not only the capability of our students but also the untapped potential for cost-effective and collaborative approaches on AI adoption. This raised an important question. Beyond providing grants for SMEs to engage IT vendors, can we also foster stronger partnership between SMEs and our universities and polytechnics?[+15 sentences] Perhaps, there is scope to support structural collaboration platforms where students can work on real-world business challenges as part of their coursework or innovation programmes. Such partnerships could lower adoption costs for SMEs, provide practical learning opportunities for students and accelerate AI diffusion across our economics in a more inclusive and sustainable manner. Perhaps this could be a meaningful starting point for both SMEs and students. SMEs would not need to shoulder the full burden of high AI implementation costs upfront while students would gain valuable exposure to real-world business challenges even before graduation. Such collaborations would allow students to apply their knowledge in practical settings, sharpen their problem-solving skills and better understand industry needs. At the same time, SMEs could benefit from fresh perspectives, innovative ideas and prototype solutions that can be further refined and skilled. This creates a win-win ecosystem, one that supports enterprise transformation while strengthening workforce readiness. After all, most students will one day become an employee or a worker, and we know every worker matters. In this regard, could we also encourage NTUC to explore playing a facilitated role in building such bridge or linkages. NTUC's strong networks with companies and workers and their AI strategy could help bridge SMEs with Institutions of Higher Learning, ensuring that training, innovation and job readiness efforts are better aligned with industry transformation needs. Mr Speaker, fiscal prudence remains essential to preserve long-term policy space, especially amid demographic shifts, healthcare pressures and climate adaptation needs. International connectivity also remains critical. Stable external networks create opportunity space for our enterprises to expand overseas and create value. With steady direction and disciplined implementation, Singapore will remain resilient and competitive in an uncertain world. Mr Speaker, I support Budget 2026.
Mr Speaker3 words
[+1 sentence]Mr Shawn Loh.
Mr Shawn Loh (Jalan Besar)2281 words
[+13 sentences]Mr Speaker, notwithstanding the speaking time budget of 20 minutes, I endeavour to utilise less time and, therefore, run a speaking time budget surplus. Mr Speaker, I support the Budget. Before I begin, I declare my interest as Group Managing Director of Commonwealth Capital Group. We are a Singapore global enterprise operating a conglomerate of businesses. Like all other companies, our business decisions are influenced by the Government's strategies and its policies. My views today are shaped by the numerous interactions I have had during this Budget season. My colleague, Mr Lee Hong Chuang, spoke about this in quite a lot of detail. The GPC for Finance, led by Mr Saktiandi Supaat, engaged widely, far more than in previous terms. We are grateful for the time taken by more than 1,000 PAP activists to participate in the PAP Policy Forum's surveys and focus group discussions. The business community, including the Singapore Business Federation and other trade associations, also shared their perspectives with us. We even had a resource panel of experts across industries that provided more insights. I particularly enjoyed the candid conversations on the Budget with our residents from Jalan Besar and Whampoa, during house visits and through policy dialogue. Mr Speaker, I will share my views on three matters: one, the extra money the Government has; two, the critical problems that remain unsolved for Singapore; and three, how we can use this extra money to address these problems before they become even more difficult to resolve. The elephant in the room, which many Members have spoken about, is our fiscal surplus.[+1 sentence] It is a large elephant! It is the all-time-largest in absolute terms, at $15 billion for the past financial year.[+2 sentences] Mr Pritam Singh also noted this. But because our economy keeps growing, it is more appropriate to look at the fiscal surplus as a percentage of GDP. Even by this measure, at 1.9%, it is substantial.[+1 sentence] But it is not the largest in recent years. Around 10 years ago in 2017, our surplus was at 2.3% of GDP.[+2 sentences] The fact that we have a surplus is not surprising. But what is surprising is how large the surplus is and why it is so. Zooming out, the multi-year picture is that corporate income tax collections have been far higher after COVID-19.[+13 sentences] A pleasant surprise was the surge in business profitability, leading to a windfall budget surplus from corporate taxes. A rule of thumb that fiscal planners used to have is that corporate income tax would be around 3% of GDP. But it has now gone above 4%. That is a significant sum, around $10 billion more. I am sure that MOF is already updating this planning assumption for future years. This is a reflection of an increase in the "Singapore premium", the premium of stability and security that Singapore offers in a more unpredictable and dangerous world, a premium from trust, to borrow Mr Victor Lye's words. It is a direct result of past Budgets, which invested in economic infrastructure as well as long-term security infrastructure, from national defence to cybersecurity. In the past, then-Deputy Prime Minister Tharman used to say that economic policy is part of social policy. Well, in this changed world, it is increasingly clear that security policy is part of economic policy. Our defence spending is consistently around 3% of GDP, more than many North Atlantic Treaty Organization (NATO) countries and more than South Korea. We do not say this enough. But credit should be given to all Singaporeans who supported a Government that spent a consistently large sum on defence during peacetime. Mr Vikram Nair also pointed this out. A short-termist and insecure Government would have taken a more popular approach to redirect security spending to more direct social benefits. That said, fiscal planning will enter a period of higher uncertainty next year as the impact of the domestic top-up tax and other Base Erosion and Profit Shifting (BEPS)-related measures kick in.[+34 sentences] Once the domestic top-up tax commences next year, we should probably see a short-term bump in revenues. But how long this lasts will be incredibly uncertain, as these measures will impair our competitiveness over time. To that end, I take a different view from Mr Gerald Giam on being less conservative with fiscal projections. As it gets harder to predict revenues, it is better to find ourselves in a budget surplus position than struggling to reduce budget deficits, which many other countries are facing. With the large surplus this year and potentially over the next few years, we should then ask ourselves: how should we use this extra money to improve the lives of Singaporeans and address long-term problems before they become more intractable? A good way to think of our problems that remain unsolved is to consider what Singapore would look like, if Government policies stayed the same and if current trends continued. Mr Speaker, there are three that I see. In the next five years, there will be fewer Singaporeans feeling the direct benefit of economic growth. In the next 10 years, there will be fewer Singaporeans feeling that they are part of one cohesive society, if wealth inequality continues to worsen. And in the next 20 years, there will simply be fewer Singaporeans, if we do not address our declining birth rates. Today, many Singaporeans already feel that the headline economic numbers do not gel with their lived experiences. I see this in Jalan Besar and Whampoa, especially amongst our seniors who have retired many years ago. And increasingly, with our younger residents who are looking for jobs. As well as those who are retrenched, some of whom are under 40. The economy grew by 5% last year. Inflation was below one percent. So, by all measures of the hard data, Singapore has done really well. But the question is: do you feel that your standard of living has improved by 5% compared to the year before? Do businesses feel that they have done 5% better? I reckon that many would say no. These economic figures seem theoretical, and the trickle-down effect that we had hoped for, has for some indeed, been just a trickle. The likely reason is that the direct benefits of economic growth are captured by a decreasing proportion of Singaporeans who are earning higher wages in sectors that are globally competitive. For the growing number of retirees who do not earn salaries, economic growth may only mean higher prices. For workers who are used to working in the same company for a long time, economic growth may only mean a greater sense of job risk amidst technological disruptions. To make matters more complicated for this generation, wealth inequality will also be an issue. A modest level of wealth inequality is not in itself a bad thing. It incentivises and rewards capability and effort. This is the meritocratic approach that has made Singapore successful and uplifted generations of Singaporeans. However, there are concerns that birth circumstances are increasingly determining life outcomes. It is of course natural for parents to want the best for their children, and to spend time, money and effort to give their children advantages in an increasingly competitive world. But this parental help must not be determinative. All Singaporeans must continue to be able to aspire to success and to a better life, regardless of the situation they were born into. I see a need to systematically lean against the natural tendency in any economy for wealth inequality to become entrenched across generations – so that Singapore remains home for all, hope for all. We are not too late to address this. And finally, beyond our current generation, our falling birth rates are the existential crisis that we will face. At current levels of fertility and without immigration, the number of Singaporeans will more than halve in each generation. By SG100, without immigration, our citizen population could even revert to the same size as when we first became independent.[+3 sentences] So, how should we use this extra money to address these problems? First, we can strengthen our redistribution schemes. We can do better to uplift Singaporeans today and assure them that any unexpected fiscal surpluses will be shared with all. Elderly poverty should be eradicated, especially for the generations that grew up in a less developed Singapore and without the lifelong support of retirement policies that are in place today. I continue to advocate for Silver Support payouts to be increased and for the highest tier of Silver Support to be given to seniors above the age of 80 or 85 who live in HDB flats.[+3 sentences] Our Government policies should embody the value of taking care of our most elderly such as the oldest five percent of Singaporeans. We should assure Singaporeans that when Singapore does well, all Singaporeans will benefit. This can be achieved through a longer-term commitment from the Government on a surplus sharing mechanism. For example, any fiscal surpluses above 2% of GDP should be given back to all Singaporeans in the following year through extra CDC vouchers.[+11 sentences] Or if there are concerns that CDC vouchers may increase inflation, we could do so through universal CPF top-ups or other rebates for Government services such as transport and utilities. This is similar to the social dividend mentioned by Prof Terence Ho. And to provide more assurance, some of our temporary support measures can be made more permanent, or at least longer-term. After all, as Milton Friedman famously said, “Nothing is more permanent than a temporary government programme”. Second, companies should be the conduit to provide a greater sense of assurance to workers, amidst greater disruption. No amount of Government hand-outs is as good as giving a leg-up through jobs. Companies are the platforms and partners for the Government to achieve its policy goals. Support given to employers to do so should be greater and for longer. The Progressive Wage Credit Scheme and other short-term support measures are but band-aids for companies, many of whom have been taking the hit year after year after year with escalating manpower costs, in part driven by Government policy. And in the words of another famous person, Taylor Swift: "band-aids don’t fix bullet holes". We should now give Singaporean workers the confidence that the Government has their back and anyone who is earnestly looking for a job for a while will be strongly supported by the Government through a more ambitious jobseeker place-then-train programme. For example, the Government could give all employers time-limited salary support to hire any jobseeker who has been actively looking for a job for at least six months, regardless of age.[+12 sentences] Third, we should decisively address our existential issue of low birth rates. Parenthood is a deeply personal decision and the joys of bringing up children can never be quantified in dollar terms. But that should not mean that the Government stops trying to remove economic barriers to having children. This remains part of the enabling environment that Ms Eileen Chong and Mr David Hoe mentioned. I believe that we can promise Singaporeans that the basic costs of child raising should never be a barrier to having children. The LifeSG credits for families are a small move in the right direction, but with the fiscal resources at our disposal, we can do more. First, basic childcare, infant care and student care should be free. Period. This is conceptually no different to how we provide all Singaporeans with basic education today. I urge the Government to think of childcare and preschool as a public good. Second, LifeSG credits can be systematically given to all parents with children up to 16 years old and should be sized to cover more of the basic out-of-pocket costs of child raising. Although my own four children have outgrown their toddler phase, parents in our Whampoa community often remind me about the costs of milk powder, diapers and doctor visits. Fourth and finally, amidst continued cost of living anxieties, the fiscal surplus should give the Government more confidence to assure Singaporeans that it would not take major revenue raising moves up to 2035, barring any material adverse circumstances. Thus far, it has only said that it would not raise GST until 2030.[+3 sentences] Surely the Government can do better than that. That is not to say that the Government’s tax policy should be constrained. Taxes are not only for raising revenues, but for reflecting our values and for signalling what is important for society. We should continue to use tax policies to achieve other objectives, such as reducing wealth inequality. This can be achieved by making our property tax system more progressive, by being more aggressive with taxes for investment properties and by imposing progressive stamp duties on properties at the point of inheritance.[+3 sentences] But that is another speech for another day. In conclusion, Mr Speaker, I urge the Government to continue working towards two complementary objectives. One, being fiscally prudent and conservative. Ensuring that we do not tax more than we need to spend. And if there are surprises in our fiscal projections, it is better to be surprised by a surplus and never by a deficit.[+4 sentences] Two, spending wisely and decisively to improve the inclusive Singapore that we know and that we love, and that all of us in this House fight for. This means doing right by our seniors, our families and our workers. And keeping the Singapore dream alive, not just for this generation but for future generations to come. Mr Speaker, I have run a slight budget surplus on the time budget, and I support the National Budget and thank the civil servants in MOF and other Ministries for their hard work that always continues.
Mr Speaker10 words
[+2 sentences]Mr Giam, you have a clarification to ask? Go ahead.
Mr Gerald Giam Yean Song54 words
[+3 sentences]Sir, I thank Mr Loh for listening to my speech. I think I heard him say that he takes a different view about my approach to conservative estimates and suggested that it is better to have a surplus than a deficit. Is he suggesting that I was asking for Singapore to run budget deficits?
Mr Speaker2 words
[+1 sentence]Mr Loh.
Mr Shawn Loh75 words
[+1 sentence]I thank Mr Giam for the clarification. My takeaway from his speech was that Mr Giam was suggesting that we run less conservative fiscal projections. My suggestion and my view is that we should still be conservative with our fiscal projections. And twined with my idea that if we run unexpected budget surpluses, we should have that as a systematic surplus sharing mechanism in the next year with all Singaporeans.[+1 sentence] Thank you to the Member.
Mr Speaker2 words
[+1 sentence]Mr Giam.
Mr Gerald Giam Yean Song105 words
[+1 sentence]I thank Mr Loh for clarifying. Actually, I think we are on the same page. I do believe that we should run a small surplus whenever possible, but that is different from running a surplus that is $8.29 billion more than what was estimated.[+5 sentences] And I think he himself suggested that surpluses over 2% should be given back the following year. I have no disagreement with that, as long as it is put to good use. What I was focusing more on was our budget marksmanship. Or perhaps, the lack thereof. I think overly conservative budgeting is actually inaccurate budgeting and something we should avoid.
Mr Speaker8 words
[+2 sentences]Mr Loh, you wish to respond? Go ahead.
Mr Shawn Loh57 words
[+1 sentence]I thank Mr Giam for the clarification. In fact, in the last financial year we did not run a budget surplus of more than 2%.[+2 sentences] So, it was only 1.9%. But I think we agree that if it is above 2%, he agrees with my suggestion that we can redistribute that to all Singaporeans, so thank you.
Mr Speaker3 words
[+1 sentence]Ms Cassandra Lee.
Ms Cassandra Lee (West Coast-Jurong West)1846 words
[+4 sentences]Mr Speaker, I first declare my interest as a legal counsel with an accounting firm. Sir, I support this Budget because it recognises the present realities and prepares Singaporeans for the next wave of transformation. In my speech, I want to focus on two areas: our efforts to support Singaporean workers and businesses in embracing and thriving in an AI-enabled economy; and our efforts to support Singaporeans to build not just careers, but also families, to be able to care for their families so that Singapore is Made For Families. First, on an AI-enabled economy. According to MOM's report on the Labour Force in Singapore 2025, 64% of our employed residents are in PMET roles.[+2 sentences] Many of these roles are knowledge-intensive and involve analysis, coordination and decision-making – areas where AI is increasingly being deployed to augment how work is done. AI is already reshaping white-collar jobs, with greater emphasis being placed on judgement, adaptability and higher-order skills. Singapore’s workforce is highly exposed to AI due to the large share of such roles in our economy.[+13 sentences] This means that a significant proportion of our workforce will be impacted by AI in the form of job redesign, changing skill requirements and evolving career pathways. I hope we can look into the following three areas as we try to stay ahead of the AI curve. First, on youth and the alignment between AI education and enterprise AI adoption. In the recent AI Festival Asia 2026, and a pre-Budget dialogue organised by young PAP, the youths have called for greater alignment between AI education and enterprise AI adoption. Singapore has made strong investments in AI education and skills development. At the same time, the pace of AI adoption across enterprises, especially SMEs, remains uneven. SMEs may find it harder to attract and retain young talent if they are unable to offer comparable opportunities. If this gap persists, young Singaporeans entering the workforce may gravitate towards firms that can offer AI-enabled roles, many of which are better-resourced global companies. We would not want this to create a structural pull of talent away from local enterprises over time. SMEs form the backbone of Singapore’s economy. I hope that we can look into aligning career pathways across how we train our youths for the AI economy and how our enterprises adopt AI, so that working in Singapore remains competitive and accessible across firms of different sizes. Second, mid-career workers, particularly PMETs and professionals, face a different set of challenges. AI will reshape professions by changing how work is performed, how roles are defined and how value is created. In particular, the expansion of the TechSkills Accelerator to the accountancy and legal professions presents opportunities by strengthening capability-building in these sectors, which are facing ongoing talent and retention challenges.[+7 sentences] The core value of lawyers and accountants lies in judgement, contextual understanding and accountability. These capabilities underpin trust in these professions and remain central even as AI tools are introduced and implemented. They cannot be replaced by AI. In a more fragmented global environment, where partnerships are increasingly strategic and selective, the ability of Singaporean lawyers and accountants to build trust, navigate cultural contexts and sustain relationships remains critical. This is especially given the nature of these professions, which are cross-jurisdictional in many respects, and which must account for different regulatory regimes and cultural practices and norms in different countries. These are inherently human skills which cannot be replaced by AI. But AI can assist lawyers and accountants in their tasks. I hope that we direct the assistance to help lawyers and accountants to work more efficiently and improve their overall work output, so that they can focus on honing the core skills of the profession. That said, we must recognise and be cognisant of the fact that mid-career lawyers and accountants are not AI-natives.[+12 sentences] They did not grow up with AI and using AI effectively may not come naturally to them. We must, therefore, be cautious about the impact of AI on our mid-career professionals. When we consider job redesigns, we should ensure that the redesigned jobs are suitable and allow the professional to maximise their strengths and value. As roles evolve, we also need to guide transitions in a way that preserves the professional standards and identity. In adopting and implementing AI, we must not lose sight of the core functions of the professions. And when we consider AI training and reskilling, we need to approach this in a way which is accessible and which works for these mid-career professionals. I suggest that we do not stop at encouraging firms to take up AI technology and for employees to train themselves on AI technology. Firms and employees will adopt this at different speeds, and will vary in how they perceive the necessity, the convenience and the reliability of AI implementation and training. There needs to be thought at a sector level on how to redesign jobs, so the industry can be uplifted together. At the same time, a not insignificant group also warrants attention: accountants and lawyers embedded within enterprises – that is, in-house accountants and legal counsel. These in-house professionals are central to governance, compliance and strategic decision-making within companies. Their ability to work effectively with AI will directly influence how enterprises adopt AI across functions. Supporting them in their adoption of AI will also strengthen Singapore's attractiveness to foreign companies looking to hire Singaporeans or to set up headquarters in Singapore.[+5 sentences] These in-house legal counsels and accountants may not be fully reached by initiatives targeted at law firms and accounting practices. It is, therefore, important that AI training, tools and support frameworks extend to such in-house professionals. Supporting this group will strengthen enterprise capabilities more broadly and enable the profession to better capture the opportunities presented by AI. Third, in supporting our local SMEs in their adoption of AI, we may need to reassess the current method of support. Without the deep pockets and resources of larger firms, how can micro- and small SMEs also ride on the train of transformation? The newly announced Champions of AI programme will go some way to support this by tailoring support to each company, including enterprise transformation and workforce training. I hope that the Government will consider the Champions of AI programme alongside the more established schemes, such as the Enterprise Innovation Scheme and the Productivity Solutions Grant to marry the two for micro- and small SMEs, who often face their own unique sets of constraints on cashflows, cost, implementation expertise and change management.[+11 sentences] AI adoption for micro- and small SMEs at scales and speeds comfortable for them, will give them the confidence needed for sustainable and more permanent adoption of AI. Sir, AI will be the defining driver of economic transformation. Our task is to ensure that education, workforce transitions and enterprise adoption move in step, so that opportunities are more broadly shared and our economy remains cohesive and competitive. But at the core, our economy is about families – every job supports a home. I support the Government's investment in Singapore families. I have previously spoken about what I called the "Singapore Puzzle" – Singapore's challenge lies in figuring out how we might remain competitive in a fast-changing world, while staying anchored to the values, our communities and the aspirations of our people. This is reflected in whether Singaporeans feel able to build their careers while, at the same time, starting and/or supporting their families. For many, these aspirations are clear: a meaningful job, a stable family life and a confidence that effort will lead to progress. One area that warrants closer attention is how workplaces support Singaporeans in managing family responsibilities alongside work. These needs arise across different life stages: parents raising young children; working adults caring for ageing parents; and families navigating periods where additional time and flexibility are needed. These are part of everyday life for many Singaporeans. Despite stronger policies, take-up of family related workplace support across employers and employees remain uneven, reflecting the continued influence of workplace expectations and culture on employees' confidence to take time for family responsibilities.[+1 sentence] Many continue to navigate tensions between career demands and caregiving. MOM and NTUC have been working with their partners on this front to set clearer norms for flexible work arrangements, to help enterprises understand how to structure return-to-work pathways and job design that accommodates caregiving responsibilities, through tripartite guidelines and programmes with industry partners.[+5 sentences] Alongside these structural measures, day-to-day workplace HR practices are also critical. How managers respond when an employee announces pregnancy, how performance is assessed for employees returning from maternity or paternity leave and how urgent caregiving needs are handled – these are practical decisions that determine whether employees can remain engaged at work. When these situations are handled well, employees are more likely to remain in their roles, continue progressing in their careers and contribute consistently over time. When they are not, the outcome may be that employers lose talent, with employees leaving and exiting the workforce or disengaging at key stages of their careers to fulfill caregiving responsibilities. Young Singaporeans who otherwise desire to start their own families may also be discouraged from doing so in fear that their careers will suffer. The difference lies in how workplaces interpret and respond to these moments, and how managers are equipped to communicate with care, make balanced decisions and plan for continuity without placing undue strain on teams. I hope that the Government can work with the industry partners, such as the tripartite Institute for Human Resource Professionals, to shape HR practices and standards across industries to place greater emphasis on consistent and fair implementation of family-friendly workplace practices.[+12 sentences] These are operational and human considerations that sit alongside policy. How they are addressed will shape whether workplace support translates into sustained participation, stronger teams and continued productivity. In conclusion, Mr Speaker, young Singaporeans have grown up in a different Singapore – one with more opportunities, greater exposure and higher expectations of what a good life can be. They seek to build meaningful careers, achieve stability and have the confidence to plan for their future. Our policies should support these aspirations. At the same time, sustaining these outcomes requires a careful balancing of choices. Economic growth, workforce strength and social cohesion are shaped by how we participate in the economy, how responsibilities are shared and how we respond to changing demographic realities. As a society, we must continue to make adjustments, whether in the way we organise work, support families or remain open and connected to the world. These adjustments require collective understanding and shared responsibility. Young Singaporeans are part of this. Many are already stepping forward, building their careers, supporting their families and contributing in different ways. As expectations evolve, so, too, will the ways in which individuals, employers and the Government respond. A system that is aligned across education, workplaces and support structures, gives individuals the space to make decisions with confidence and to contribute meaningfully over time. This is how we can strengthen both opportunity and resilience in Singapore.[+1 sentence] I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)1295 words
[+3 sentences]Mr Speaker, Sir, at the risk of stating the obvious, AI is reshaping the world at a mind-blowing pace. Our young people will graduate into a workforce where AI is embedded across industries and everyday tasks – from the workplaces they will enter, to the problems they will solve, the challenges they will face and the opportunities that they will seize. For them, AI will not be optional; it will be the new normal. The World Economic Forum estimates that by 2030, AI and related technologies could displace 92 million jobs, while creating 170 million new roles, reflecting a profound structural shift in how work is done.[+5 sentences] This will certainly have an impact on the older workers too. This context, AI is not merely a technological shift; it will define the economic and social landscape of the future. However, as the Prime Minister said in his Budget speech, and I quote: "AI is a powerful tool; but it is still a tool." Tools do not determine outcomes – people do. The question before us is not whether AI will transform our economy, but whether Singaporeans are equipped to harness it confidently, responsibly and effectively. Research commissioned by Amazon Web Services (AWS) on AI adoption and skills in Singapore found that nearly 94% of employers expect their employees to be AI-driven by 2028, yet, 74% report difficulty finding the AI talent they need, highlighting a clear skills gap between demand and supply.[+2 sentences] So, used well, AI can amplify human capability and creativity; used uncritically, it can weaken judgement and erode independent thinking. Our responsibility is to ensure that Singaporeans, especially our youths, are equipped not only to access AI, but to understand it, question it and use it responsibly. The same AWS research also showed that 91% of Generation Z in Singapore want to acquire AI skills, underscoring both the urgency and willingness of our youths to embrace this transformation.[+9 sentences] Sir, Budget 2026 rightly emphasises harnessing AI as a strategic advantage to build a resilient and skilled workforce. Such efforts must begin early in schools where habits are formed and competencies are developed and I will speak more on education and AI during the Committee of Supply debate. Today, I would like to focus on a more foundational, more fundamental enabler with regard to the whole issue of AI – ensuring that every student has equitable access to the digital hardware and competencies required before they can even begin to start understanding AI and how to meaningfully leverage it. Sir, before we can talk about mastering AI software and advanced tools, we must ensure that every student starts from the same baseline. AI readiness depends on digital readiness. Without reliable access to personal computing devices, for example, students cannot build foundational skills or experiment with digital tools in ways that will allow them to engage meaningfully with AI later. Sir, digital inequality today will translate into opportunity gaps tomorrow. Students who lack access to devices risk falling behind in learning, developing fewer self-directed learning habits and having reduced confidence in tackling technology-based tasks. But conversely, equitable access to devices provides every student with the ability to explore, learn and innovate. Singapore has already taken a decisive step by providing Personal Learning Devices (PLDs) to all secondary students. Introduced progressively from 2020 and fully implemented by the end of 2021, these devices were integrated with the national e-learning platform, the Student Learning Space and was supported by financial assistance schemes to ensure that no student – no secondary school student – was left behind.[+24 sentences] Sir, in previous speeches, including the one I made during the Budget debate in 2024, I advocated extending PLDs to primary school students on the basis that early access cultivates digital fluency and supports equitable learning opportunities. Today, as Singapore increasingly positions itself as an AI-ready nation, this principle remains essential. I wish to repeat my call to explore providing similar opportunities for our younger learners. Extending PLDs to primary school students would equip them with the tools to access digital content, develop computational skills and build confidence in navigating technology from an early age. Such access would lay the groundwork for future AI literacy, ensuring that all students – all students – regardless of background, can engage fully with digital and AI-enabled learning. I am unsure of the progress MOE has made in introducing PLDs at the primary school level since my last advocacy and would, therefore, like to request for an update on any developments on how we can best equip our younger learners for the demands of a digital and AI-driven future. In the meantime, Sir, let me reiterate again how providing PLDs to primary school students would bring multiple benefits. By ensuring that every child has access to a common device, we prevent unequal access to technology and strengthen social mobility. No student would be disadvantaged by relying on shared or outdated devices, reinforcing meritocracy in a digital age. Early exposure to personal devices also allows schools to guide students in responsible use, cyber wellness and structured engagement with digital platforms. Habits formed in primary school are enduring and introducing these practices early can set the stage for lifelong literacy. The ownership of a PLD encourages students to take greater responsibility for their own learning. It fosters curiosity, self-directed exploration and the confidence to engage with online educational resources. With AI increasingly embedded in learning platforms, these early habits will prepare students to adapt and thrive as technology becomes a key part of their education. Aligning this initiative with the objectives of Budget 2026, providing standardised PLDs to primary students is not merely an educational reform. It is a strategic investment in Singapore's future human capital. It strengthens the foundation for a digitally fluent, AI-ready workforce that will support our nation's long-term competitiveness. The framework for secondary school PLDs, including procurement and financial assistance mechanisms, provides a blueprint for extending this policy to primary students. A phased rollout, like the approach used for secondary schools, would allow careful implementation and adjustment, ensuring that all primary school students can benefit from this opportunity. In short, Mr Speaker, MOE has done it before. They had done it very well – the secondary school students. I see no reason why we cannot extend this scheme further upstream to our primary school learners. It can only bring about benefits. In conclusion, Sir, I like to say that providing every primary student with a PLD is not an end, but a step to prepare Singaporeans for a future in which AI is increasingly integrated into workplaces and daily life. As Singapore's EdTech Masterplan 2030 reflects, strengthening students' digital literacy and technological skills is a national priority to, "prepare students for a technology transformed world". So, access to appropriate hardware ensures that all students – all students – regardless of background, can engage effectively with emerging digital tools. This aligns with Budget 2026, which highlights harnessing AI as a strategic advantage to build a resilient and skilled workforce.[+2 sentences] True resilience begins in our classrooms, long before students enter the workforce. Equipping them therefore with the tools – the hardware tools – and competencies to navigate technology confidently nurtures a generation capable of leveraging AI responsibly and creatively, rather than simply using it passively. In this way, equitable access to PLDs in primary schools is not merely an educational measure, but a strategic investment in Singapore's long-term human capital and technological competitiveness. On this note, I would like to renew my call to the Government to make that decision to extend PLDs to primary school students.[+3 sentences] By taking this step, we are not only strengthening the foundation for AI literacy but also preparing our youth for an AI-driven future. Thank you, Sir. I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Lee Hui Ying.
Ms Lee Hui Ying (Nee Soon)1363 words
[+13 sentences]Mr Speaker, Sir, ending 2025 with a 5% growth despite global headwinds is a significant achievement. Yet, for many, this feels less like a triumph but more like a collective sigh of relief. Amidst such uncertainty, Singaporeans often feel torn between the safety of the conventional route and the risk of forging their own path. However, in this age of disruption, we cannot afford to choose one over the other. Success today requires a marriage of intentional strategy and individual passion. AI-ready, job-ready, future-ready, but are Singaporeans ready? How can we support every Singaporean to not just survive the waves but navigate them with purpose? First, navigating the job market. In the labour market, it remains uncertain. Our young graduates have always been viewed as a highly employable group, due to their ability to perform quickly as they learn on-the-job. However, the ground is shifting as companies hire for highest productivity at lower cost, experience becomes the differentiator from day one. While most students complete internships, many find that these stints lack the technical depth or clear conversion pathways needed to secure a full-time role in a competitive market. How can the Ministry of Manpower and the Ministry of Trade and Industry actively create and recreate job opportunities in response to these shifts? The Government introduced the Graduate Industry Traineeships Programme last year. In addition to financial services and information and communications, traineeships should be expanded to include the newly announced focus sectors in Singapore's AI strategy – advanced manufacturing, connectivity and even healthcare – as well as people-centric industries, such as social services sectors and retail.[+3 sentences] Supporting start-ups to hire local graduates would also enable these workers to take ownership while providing start-ups with the much-needed pairs of hands, while aligning with the strategic focus on supporting high-growth companies. Also on jobs, our construction sector continues to face significant cost and manpower pressures. Policies must be carefully calibrated to support both workforce transformation and business sustainability. With the increase in minimum qualifying salaries for S Pass holders, a more sector-based and skills-focused approach may be needed for construction, where structural manpower shortages persist and margins are unhealthily eroded. Salary benchmarks should better reflect skills, experience and job responsibilities, rather than relying heavily on age tiers alone.[+26 sentences] This will help firms manage workforce costs responsibly, while continuing to support fair wages. I will speak more on this during the Committee of Supply debate. Second, navigating the AI world. Given the prevalence of GenAI, teaching our students to fluently converse with these models has become a non-negotiable for the future. However, students risk letting ChatGPT fill in the blanks for them at the expense of their own development and losing critical thinking. AI cannot just be a buzzword. How do we create an environment where students are innovators and creators of AI and use GenAI as a tool and not a crutch? I suggest we look to current initiatives tackling general technology use for inspiration. Recently, the National University of Singapore college held its first "Touch Grass Week", named after an online term for disconnecting from technology and stepping into the outside world. During that one week, students used pen and paper or went 24 hours screen-free without using technology to complete their assignments. Similarly, students should be required to submit initial drafts or brainstorms on pen and paper for peer, teacher review, which encourages them to think critically before using GenAI as a sounding board or editor. Let our young be innovators, be creators, not users, of AI. Harnessing AI to facilitate students' education looks different at every stage. In pre-tertiary education, AI's best use case might be critiquing a PSLE composition; in tertiary education, it might be supporting a literature review; in internships, it might be turning an admin task from a day's work to an hour's work through automation. While MOE has already provided parents and students with general resources on GenAI and EdTech, students would also benefit from a guideline on specific GenAI use cases across educational levels and subjects. Our youth are and have always rose to the challenges of this generation. We need to provide platforms, define pathways and envision possibilities in partnership with them, giving them room to become our future changemakers. Third, navigating back to the workforce for returning parents, many of whom are our senior youths. Whether due to personal circumstances or a desire to focus on their children's early years, some parents choose to take a break from work. When these parents return, they face an uphill battle to re-integrate themselves back into the workforce, especially if they have taken a long break due to multiple children or even waiting to help their children prepare for the PSLE. They re-enter a workplace with new tools and skills needed, their networks having moved on and a short runway to prove themselves again. This could be daunting enough to put them off returning altogether and we lose out to their valuable experience and productivity. As we push forward with our plans to build leadership in growth sectors, falling behind for these parents is even more likely. We can help them find balance. To make the best choice between time for their children and the ability to return to their careers. Trade-offs will exist, but it will be a waste if parents feel the door is closed once they slow down for a few years. One starting point is to double down on SkillsFuture for these parents.[+1 sentence] Having a dedicated set of courses targeted at returning parents, with course requirements and schedules built around those with caregiving responsibilities. Flexi-work arrangements should become a mainstream feature of good jobs – not an exception, but an integral part of how we attract, retain and empower workers across every life stage.[+3 sentences] This includes encouraging employers to offer flexible hours, part-time professional roles and phased return-to-work options, so parents can rebuild their careers while meeting caregiving roles. When we enable parents to return with confidence and dignity, we not only strengthen families – we also retain valuable skills, experience and talent in our workforce. Mr Speaker, in Mandarin, please. (In Mandarin): Fourth, to assist our seniors in employment, Singapore is set to become a super-aged society this year.[+4 sentences] Our seniors are not only a group that needs support, but have also become an important pillar of the workforce. The life experience and seasoned wisdom that our seniors have are difficult for AI to replicate. They are the most reliable defence against the AI hallucinations. Young employees may rely on models' output, but our seniors who have lived through decades of trials possess the intuition to spot errors and this is their unique advantage. Last year, the Alliance for Action on Empowering Multi-Stage Careers for Mature Workers (AfA-EMW) launched a pilot programme, collaborating with various parties to jointly create solutions for re-skilling, alternative employment models and progressive retirement. While this is a positive start, we should also care for those seniors who prefer a low commitment but high impact work. I suggest establishing a matching service, such as connecting industry veterans with SMEs to serve as consultants, subject matter experts or trainers.[+8 sentences] The Japanese refer to the marginalised senior employees as Madogiwa-zoku. But I see it as a more positive vision. These senior professionals can sit by the window and provide guidance and mentorship to the younger generation. Quality ageing is not only about financial security but also about providing our seniors with a space where they can live with dignity and purpose for years to come. (In English): Mr Speaker, Sir, as Singapore stands at the edge of these historic inflection points, from the AI disruption to the transition into a super-aged society, we must remember, above all, our people are here to stay. And it is only in a place that feels like home, which offers both the stability of purpose and the promise of progress, that we bring out the best in our people. When Singaporeans feel they have found their place, they will, in return, bring the best of themselves to shape the future of this country. With that, I support the Budget.
Mr Edward Chia Bing Hui (Holland-Bukit Timah)1387 words
[+8 sentences]Mr Speaker, in my speech today, I will focus on three areas: first, strengthening support for our seniors and young families; second, addressing workers' and employers' anxieties amid economic transformation; and third, positioning preventive and precision healthcare as a strategic pillar for our next phase of growth. As an MP for Holland-Bukit Timah GRC in Zhenghua division, I speak on behalf of my residents. Over recent months, many have approached me during my Meet-the-People Sessions and community engagements to share their concerns. I would like to bring their voices into this debate. Young families in Zhenghua are not only raising children. They are also caring for ageing parents. The so-called "sandwiched generation" is feeling pressure from both ends. While this Budget provides important support measures, I would like to highlight one area where residents have experienced unintended consequences – the Silver Support Scheme. The scheme is well-intentioned and has benefited many seniors. However, I have received appeals from residents whose Silver Support payments were reduced or ceased due to changes in per capita household income.[+1 sentence] Two scenarios arise frequently. First, when adult children begin working, even in modest-paying jobs, their parents' Silver Support may be reduced despite no improvement in the seniors' own retirement adequacy. Second, when elderly parents move in with their children, the household per capita income (HPCI) rises, potentially reducing eligibility.[+28 sentences] In effect, families sometimes feel unintentionally discouraged from living together. Seniors worry about becoming a burden, while younger families struggle to balance caregiving responsibilities. I respectfully suggest reviewing whether HPCI remains the most appropriate metric and whether greater emphasis could be placed on assessing seniors' individual retirement adequacy. Supporting seniors ultimately strengthens young families by easing intergenerational pressures. Mr Speaker, beyond household concerns, I would like to address worker and employer anxieties amid rapid economic transformation. AI and digitalisation are reshaping industries. Workers want to stay relevant but must also maintain income stability for their families. At the same time, businesses want to transform but struggle to find skilled manpower. This is a gap we must bridge. Employers, especially SMEs, continue to face significant cost pressures, particularly manpower costs and, for businesses located in dense areas, rising rents. Recent announcements, such as increases in S Pass qualifying salary and Local Qualifying Salary, while aligned with broader workforce objectives, have direct cost implications for SMEs that rely on foreign workers to complement their local workforce. Importantly, such cost increases do not remain isolated at the firm level. They flow through the wider enterprise ecosystem. Many manpower-intensive services, such as cleaning, stewarding, security and facilities management, operate as outsourced functions supporting larger enterprises. As labour costs rise, these service providers inevitably pass through higher costs, leading to increased operating expenses across the value chain. Larger enterprises may therefore face higher facilities management or operational costs even when they are not directly affected by manpower policy adjustments. The impact is systemic and felt across the broader business environment. Many SME employers recognise the need to transform, leverage AI to improve productivity and seize new opportunities. However, some feel that they are currently treading water, needing to keep their heads above water before they are in a position to fully pursue transformation. SMEs employ seven out of 10 workers in Singapore. When SMEs transform, the entire economy transforms. Supporting SMEs is therefore not only about helping individual firms. It is about accelerating nationwide productivity growth. I welcome the merger of SSG and WSG. Integrated workforce transformation is essential. The Career Conversion Programme (CCP) has been an effective bridge. For the man on the street, this means a worker can switch into a new role while still receiving a fair wage to pay bills and support their family. Employers are supported through wage subsidies while the worker undergoes training and is still building productivity. Today, wage support can reach up to 70%, and up to 90% for eligible workers aged 40 and above.[+8 sentences] Given that the MOM's budget has increased this year, there is an opportunity to further strengthen such schemes. As technological disruption accelerates, the duration and flexibility of CCP support may warrant review. Digital and AI-related roles often require longer adaptation periods. I suggest reviewing overall budget allocation, support duration flexibility and awareness among employers, particularly SMEs, many of whom may not fully understand the available support. Mr Speaker, AI is a key theme of this Budget. I am heartened that the Government has introduced the Champions of AI programmme and tax deductions on AI expenditures. However, many SMEs need support not just in funding but in literacy and practical adoption. There needs to be faster diffusion of relevant AI tools, clear use cases that SMEs can realistically implement. SME Centres play a pivotal role in building awareness and guiding adoption. So, may I ask the Prime Minister what expanded role SME Centres will play in accelerating AI adoption?[+9 sentences] How are advisors being upskilled to guide businesses effectively? Mr Speaker, I now turn to preventive and precision healthcare as a strategic growth pillar. Healthcare represents both a social imperative and an economic opportunity. Historically, healthcare systems have focused on treating illness after it occurs. Today, advances in AI, genomics and precision diagnostics allow us to shift upstream, toward prevention, early detection and health optimisation. Singapore is uniquely positioned to lead this transition. We already possess a strategic advantage in high-quality longitudinal population health data, supported by trusted governance frameworks and secure platforms such as TRUST. Importantly, our multi-ethnic population provides nuanced genomic and health insights across diverse Asian ancestries, creating datasets that are both scientifically rich and regionally relevant. This differentiates Singapore from Western-centric datasets and positions us to develop preventive health innovations tailored for Asia. Building on these strengths, we could consider establishing a dedicated Preventive Health Data Sandbox, a secure environment where approved enterprises and research institutions validate AI-driven diagnostic and risk prediction models using structured national datasets.[+1 sentence] Such a platform would move beyond research into regulatory-grade validation, positioning Singapore as a trusted global hub for testing, certification and scaling preventive health technologies. In tandem, a national certification framework for preventive AI algorithms could strengthen international credibility, enabling solutions validated here to be deployed across the region. Singapore is already taking important steps through research, innovation and enterprise investments and initiatives such as subsidised Familial Hypercholesterolaemia genetic screening with MediSave support.[+7 sentences] These efforts demonstrate how precision medicine can shift healthcare toward earlier intervention. Preventive approaches can also address demographic challenges. For example, earlier fertility screening and intervention could help individuals make informed decisions sooner, potentially improving fertility outcomes and contributing positively to our total fertility rate. Population-level data and AI analytics will be foundational to this shift. With advances in AI, we can analyse complex health data more quickly and affordably, significantly expanding diagnostic capability. To fully harness this potential, we must also strengthen diagnostic infrastructure, increasing access to testing facilities, genomic screening and AI-assisted diagnostics. Beyond healthcare delivery, preventive and precision medicine present a new economic frontier. Singapore is well-positioned to mobilise blended capital, as foundations, philanthropies and family offices increasingly prioritise investments in wellness, longevity and population health.[+9 sentences] By aligning public investment, private capital with scientific innovation, we can scale new enterprises while improving societal outcomes. The global wellness and preventive health economy is expanding rapidly. Rather than viewing wellness as a lifestyle sector, Singapore can develop exportable intellectual property and scalable health optimisation solutions. By combining our strengths in biomedical science, AI and diagnostics, local enterprises can create globally deployable preventive health platforms, personalised analytics tools and healthspan solutions. This approach creates new business opportunities, generates good jobs for Singaporeans and positions Singapore as a global hub for healthspan optimisation. Mr Speaker, at its heart, this Budget is about assurance in a time of change. For seniors, we must ensure support schemes reflect individual realities and preserve family unity. For young families, we must ease caregiving pressures. For workers and employers, we must provide practical pathways that enable confident transformation. By investing in preventive and precision healthcare powered by AI and strengthened through blended capital, we can build an economy that improves lives while creating new job opportunities for Singaporeans.[+3 sentences] Budget 2026 lays strong foundations. With thoughtful refinements and bold execution, we can ensure that the next phase of our development benefits every Singaporean. Mr Speaker, Sir, I support this Budget.
Mr Speaker4 words
[+1 sentence]Mr Ang Wei Neng.
Mr Ang Wei Neng (West Coast-Jurong West)1213 words
[+1 sentence]Mr Speaker, Sir, in Mandarin, please. (In Mandarin): Mr Speaker, a Budget surplus of $15.1 billion is likely the largest in absolute terms since 1965.[+9 sentences] However, it is not a failure of marksmanship. It is a testament to fiscal discipline, strong revenue performance and a resilient economy. It is, in fact, a happy problem. Some argue that every dollar of surplus should be locked away in reserves. Prudence is important. But prudence must serve people and solve their current problems. Even if we were to place the entire $15.1 billion into the reserves, it would still not fully offset the roughly $40 billion drawn during COVID-19 to protect jobs and livelihoods. We built our economy by drawing on past reserves during the pandemic and that was the right decision. Now, with a surplus early in the term, we have both the responsibility and the opportunity to calibrate wisely. Given the global geopolitical tensions and economic volatility, I support setting aside about half of the surplus as strategic reserves, in the event that there might be economic crisis in the next few three or four years, so that it can be used to stimulate the economy and support Singaporeans.[+16 sentences] But the remaining half should be used in a targeted manner to enhance our people's welfare, particularly the vulnerable groups. Hence, I have the following suggestions: First, invest in AI. Artificial Intelligence will reshape industries and the speed will be faster than many workers can adapt. We should provide heavy subsidy to AI and digital training for Singaporeans earning below the median wage or blue CHAS card holders to avoid the digital divide from becoming an income divide. If we do not uplift them now, the digital divide will become an income divide. For students, I recommend that the Government provide free or heavily subsidised access to paid AI tools for all students from upper primary to university levels. This would enable students to learn AI knowledge more deeply and systematically. More importantly, narrow the gap between low-income and high-income families in accessing these expensive paid AI tools, thereby creating a level playing field. Such investment is not merely expenditure, but economic defence. Second, improve ageing estates that is more than 30 years old. These flats require more than cosmetic upgrades. Residents need practical improvements: covered linkways, water leakage solutions, wheelchair-friendly access, safer walkways and better first- and last-mile connectivity. I suggest that we significantly enhance funding for Community Improvement Projects Committee, the Neighbourhood Renewal Programme and Estate Upgrading Programme under the Ministry of National Development as well as first and last mile infrastructure scheme under LTA. These are not luxuries, they are dignity-enhancing investments for seniors and families. Third is to ease the cost-of-living pressures. Many families have benefitted from the CDC vouchers. The two-percentage points GST increase will yield an estimated $3 billion to $4 billion annually.[+6 sentences] This will help to offset the effect of higher cost-of-living after the COVID-19 pandemic, as well as the GST increases. Prime Minister Wong announced that the Government will continue to distribute $500 CDC vouchers to Singaporean households in January 2026. The distribution of CDC vouchers not only help households deal with daily cost increases but also support heartland businesses. There is feedback that the public are concerned with the issue of fairness. Currently, a single household and household with 8 members will get the same amount of CDC vouchers. Although it embodies the universal principle, families with more members will have higher daily expenses in food, transport and childcare. Hence, the same amount does not mean equality here. I will like to suggest that the Government distribute an extra $200 CDC vouchers to Singaporeans over 21 years old.[+4 sentences] This will more accurately reflect the needs of families, especially for middle and low-income families. At the same time, this measure will continue to promote local consumption and support neighbourhood business development. Through such arrangements, we affirm a simple yet important principle, where the nation achieves development success, the people of Singapore must tangibly feel these results in their daily lives. Fourthly, we should thoroughly resolve the issue of residents being unable to access lifts on the same floor. Currently, approximately 100 HDB blocks still do not have direct lift access to every floor due to high costs.[+13 sentences] Many residents were still mobile and valued privacy when they purchased their flats over 30 years ago. As they age and have mobility issues, they still need to climb stairs daily to access lifts, which is very arduous. I hope the Government will address this issue seriously and even if the costs are higher, we should still consider building additional lifts so that all HDB blocks can have lift access on the same floor. The civilisation of a society is reflected in how we treat our elderly. Fifth, better care for persons with special needs. Over the past decade, we have made significant progress in strengthening our special education system. With the Ministry of Education's continued investment, many students with special needs are able to receive structured support, life skills education and vocational training before the age of 18. These efforts have brought hope and dignity to many families. However, when these young people graduate and are unable to find or maintain employment, many quietly disappear from the system. They remain at home, gradually becoming isolated from society. Overtime, their social skills decline, their confidence weakens and their life goals gradually become unclear. Behind them are their caregivers, often aging parents. And these parents bear increasingly heavy emotional, physical and financial burdens. Currently, support for adults with special needs remains limited. Opportunities for continuous vocational training, skills retraining, or reintegrating into the workforce after experiencing setbacks are still insufficient.[+5 sentences] I witnessed this firsthand when working with family of Purple Heart in Nanyang. This is a grassroots organisation that supports persons with special needs and their caregivers. Their struggles are real. Their love is unwavering, but their resources are increasingly strained. For those who cannot work and require long term sheltered care, day activity centres or structured support, the challenges are even more severe. For these families, the issue is no longer about opportunities, but about dignity, stability and peace of mind for the future. Therefore, I hereby call upon the Government to consider allocating dedicated resources to establish a special needs foundation. This foundation could fund long-term projects, research and community support to, where possible, help adults with special needs, maintain employability and stay connected with society and provide empathetic and structured care for those with special needs who cannot work.[+1 sentence] The value of a society lies not in how it treats the strong, but in how it supports the vulnerable. Let us walk along persons with special needs, not only during their childhood but throughout their entire lives.[+1 sentence] Mr Speaker, a surplus is not merely a number on a balance sheet. It represents the collective sacrifices made by workers, businesses and families during difficult times through paying taxes, adapting to GST increases and tightening their belts.[+4 sentences] Let us save prudently. Let us also spend purposefully to enhance resilience, support vulnerable groups and build a more inclusive Singapore. Fiscal strength should translate into social strength. Only in this way can the surplus truly benefit Singaporeans.
[+2 sentences]Mr Speaker, I rise in support of the Budget. We are living in a disrupted age, marked by greater geopolitical and economic fragmentation and uncertainty; technological disruption; and a rapidly ageing population. As the Secretary-General of the National Trades Union Congress (NTUC), I am keenly aware that for many of our workers and families, these disruptive forces are not distant issues but daily lived experiences. This is reflected in NTUC's Survey on Economic Sentiments, which was conducted in 2025 polling 2,000 workers. Cost of living remains a key concern – 37%. Job security was the top concern for nearly 20% of them too, due to factors, such as economic uncertainties and technological changes. Close to 20% were anxious about artificial intelligence (AI)-related job displacement or had already experienced some negative impact due to AI.[+29 sentences] Professionals, managers and executives (PMEs) and younger workers were the most concerned about the impact of technological disruption on their job security. This Budget is, therefore, critical to lay a strong foundation for this disrupted age. The choices we make today will shape the course of our future and the lives of our workers and families. I thank fellow Members of Parliament (MPs) from both sides of the Chamber, who have spoken up for our workers. NTUC and the Labour Movement will study your suggestions carefully. Mr Speaker, the Labour Movement supports this year's Budget, which will help secure the future of our workers and their families in a changing world. Yet, as President Tharman recently reminded us at Davos, in a changing world, we must do more to strengthen trust internally. And that is done by acting pre-emptively to address people's hopes and fears. This is why the Labour Movement is calling on the Government to re-double efforts on three fronts. First, empower every worker to be AI-ready. Second, strengthen support for workers who are vulnerable to disruption at the individual level. And third, strengthen the Labour Movement's ability to protect and uplift our PMEs. I will outline these calls in my speech today. My fellow labour MPs will build on them in their speeches across different worker segments. Mr Speaker, in my Motion of Thanks speech, I spoke about how many workers, especially our young graduates and PMEs, feel uncertain about what they need to do to prepare for AI-driven disruption. They ask good practical questions: what core skills must they build up so that they can keep up with AI? How can they use AI to become more productive in their specific job roles and industries? And how can they keep pace with rapid AI developments to future-proof their careers? Singapore, indeed, has built a comprehensive skills and training ecosystem. There are more than 1,600 AI courses listed on the SkillsFuture course catalogue. These range from basic to highly specialised courses, costing anywhere from a few hundred dollars to a few thousand dollars after funding. But for the average worker, it is not easy to know which course or pathway that will genuinely help them to become AI‑ready. At the same time, many businesses recognise the value of AI but struggle to translate that recognition into clear, implementable strategies that will deliver productivity gains and a competitive advantage. That is why I support the establishment of the National AI Council to be chaired by Prime Minister Wong. I look forward to a comprehensive and cogent national AI strategy, one that will chart clear implementation roadmaps for industries and provide practical guidance so that every Singaporean can benefit in the AI era. The Labour Movement calls on the Government to ensure that every worker, regardless of their background, experience or current skill level, will know practically how to equip themselves to be AI-ready. Every worker will have the support they need to access AI-related training, including those who have used up their SkillsFuture Credits or wish to take up more specialised courses that cost more. And, Mr Speaker, the Labour Movement will play our part too. NTUC has launched "AI-Ready SG", a one-stop platform that will help train and upskill workers to be AI-ready; support firms in business transformation and job redesign, towards better jobs with better wages and work prospects; and improve, also, job-matching so workers can access better job opportunities. Concretely, through AI-Ready SG, union members will get NTUC funding support to offset up to 50% of unfunded subscription costs for eligible AI tools.[+14 sentences] This will encourage our members to experiment and adopt AI more confidently. For workers who may not know where to begin, NTUC LearningHub will roll out AI training pathways tailored to different skill levels, job roles and sectors; and also, a career mentorship programme for PMEs to receive guidance from certified and experienced mentors. NTUC's Employment and Employability Institute (e2i) will strengthen job matching with AI-augmented career coaching and offer personalised guidance and placement support for workers navigating career transitions. Our NTUC Company Training Committees (CTCs) will assist employers to embark on practical AI transformation by identifying the best business case for AI adoption through the AI Transformation Blueprints and Sectoral AI transformation playbooks developed together with industry partners, connecting them also with relevant training so that their workers can adopt AI more effectively and quicker. And of course, accessing CTC Grant funding to fuel these efforts. In sum, AI-Ready SG aims to harness AI to fuel business growth in ways that translate into good jobs with better wages and better work prospects for our workers – win-win outcome. These objectives are aligned with the national-level efforts, such as the National AI Council and the AI Missions in key sectors. We call on the Government and employers to partner the Labour Movement in our efforts through AI-Ready SG, so NTUC can do our part to support our businesses and workers to be AI‑ready. Mr Speaker, this brings me to my second point. Even as we prepare every worker to be AI-ready, some will still face disruption at the individual level. To be clear, I think we are in a relatively strong position overall today. Our economy performed well last year and overall employment remains healthy. Around nine in 10 graduates secured employment within six months of graduation. Nonetheless, there emerging headwinds and signs of strain that we should pay attention to and should not ignore. Among the employers polled in a survey by the Singapore National Employers' Federation (SNEF), nearly three in five, or 60%, planned to freeze headcount this year. NTUC's own survey found that almost 40% of PMEs were anxious about whether they could still keep their jobs beyond the next six months.[+5 sentences] Around 900 respondents in NTUC's survey were caregivers and close to one in two of them considered leaving their job at least once a month due to the stress from caregiving. We must therefore strengthen support for our workers so that they navigate transitions confidently and where needed, bounce back stronger. First, we must continue to support our young graduates to secure good job opportunities. Tripartite partners must be ready to step in building on existing measures, like the GRaduate Industry Traineeships (GRIT) Programme. Second, we must do more to support our PMEs who face retrenchment. Today, only workers earning $5,000 or less monthly are eligible for the SkillsFuture Jobseeker Support Scheme (JSS). As of September 2025, exceeding this income cap was one of the reasons for 60% of applications to be rejected.[+1 sentence] As more PMEs may experience churn, it is timely for the Government to review this income threshold, so that the JSS can provide baseline assurance to our middle-income PMEs during retrenchment. One possible approach is to peg the income threshold to the professional, manager, executive and technician (PMET) median monthly income, which was around $7,600 in 2025.[+37 sentences] And third, we must refresh our Caregiver Support Action Plan to help our caregivers remain at work, return to work when ready and safeguard their financial resilience and retirement adequacy during periods of career disruption. And this brings me to my final point – strengthening the Labour Movement's ability to protect and uplift our PMEs. Tripartism has been the bedrock of our success. With strong tripartite partnership undergirded by a representative Labour Movement, we have been able to weather many storms, including COVID-19, and emerge even stronger. In this disrupted age, we need to reinforce the ability of our Labour Movement to stand alongside our workers, especially our PMEs as they navigate transitions. First, let us move towards advance retrenchment notifications. In the last few years, there have been a few high-profile retrenchments which made the news. These cost quite a stir. Many times, these incidents could have been avoided if companies worked with the union involved and if NTUC were informed and notified earlier. Advance retrenchment notifications support our ability to work together with companies to provide timely and tangible support of our affected workers. Before retrenchment, and not five days after retrenchment, when many of the workers may have already left the company and are no longer contactable. In fact, in many major economies, like the United States (US), the European Union (EU), Switzerland, Australia, Japan and China, these countries already have some form of laws or policies requiring advance retrenchment notifications. The intent of the Labour Movement is not to constrain companies' flexibilities. It is to put out tripartism to work, in upholding responsible retrenchment and delivering more coordinated support for workers, including PMEs amid this disrupted age. Second, let us strengthen the ability of our unions to represent more PMEs. We all know that our workforce is becoming increasingly PME-centric. Over the years, the Labour Movement has been innovating to improve our relevance to PMEs, including by rolling out programmes that PMEs want, such as mentorship, and we will do more. I urge the Government, together with tripartite partners, to continue working with the Labour Movement to support and enable our PMEs in the AI-disrupted era for win-win outcomes. Mr Speaker, in Mandarin, please. (In Mandarin): The world is changing rapidly. Economic outlook is uncertain. AI is advancing quickly and the population is ageing. A top concern among many workers is whether they can keep their jobs. According to NTUC's survey conducted last year, about 40% of white-collar workers were worried that they might lose their jobs beyond the next six months. Many are asking: "Will AI replace my job?" Many workers are also struggling to manage both work and family responsibilities. We must take their concerns seriously. We can address these challenges in three areas. First, help every worker turn AI into an advantage. Just as we learned to use computers and smartphones in the past – we need to clearly guide workers on what to learn and how to learn it so that AI becomes a helper, not a competitor. Second, review the income ceiling of the SkillsFuture Jobseeker Support Scheme. The current income ceiling is $5,000. As of September last year, about 60% of applicants were rejected, with one reason being that they exceeded the income ceiling. In 2025, the median income for PMETs was about $7,600. NTUC proposes linking the income ceiling to the PMET median income so that more jobseekers can receive timely support during their transition. Third, strengthen support for caregivers. One possible approach is to update the Caregiver Support Action Plan to help them remain in the workforce while caring for their families, maintaining stable incomes and continue building up their retirement savings. NTUC will continue to work with the Government and employers to ensure that every worker can stand on firm footing during the transitions, with peace of mind at work and at home.[+1 sentence] (In English): Mr Speaker, the challenges of this disrupted age require us to do more to strengthen ourselves from within. Let us empower every worker be AI-ready, strengthen support to those vulnerable to disruption and strengthen the Labour Movement's ability to protect and uplift our PMEs in this age where it is no longer just the blue-collar workers that may face technological disruption, but with AI disrupting the white-collar space as well. The Labour Movement will continue advocating for measures that support workers today and improve their prospects for tomorrow, whether it is helping young graduates into good first jobs, supporting PMEs to navigate career transitions or ensuring caregivers can stay employed while caring for their families. Notwithstanding the points I have raised on behalf of the Labour Movement, I stand in support of this Budget.
Mr Speaker4 words
[+1 sentence]Ms Nadia Ahmad Samdin.
Ms Nadia Ahmad Samdin (Ang Mo Kio)1969 words
[+7 sentences]Mr Speaker, Sir, I rise in support of Budget 2026. Over the past week, many have moved between reunion, Ramadan and reflection – with meals shared around the table. Some tables are full, while others have empty seats. Elders with their time-honoured recipes, children pulled up close with baby chairs and extra seats pulled out at the last minute. We make space for each other, instinctively. Budget 2026 is delivered at this festive and reflective moment, set against a backdrop of profound structural change. The global order is fracturing, job augmentations facilitated by technology are accelerating and economic competition is intensifying. The World Economic Forum's Future of Jobs Report projects that nearly 40% of skills being used in today's workforce will change by 2030. Global trade tensions continue to intensify, with the value of goods hit by new tariffs quadrupling in the past year to the highest level in over 15 years.[+1 sentence] But there is another transformation, which is equally consequential that we must confront. As of this year, we are now an officially super-aged society, with more than 21% of our resident population 65 or above. At the same time, our resident total fertility rate (TFR) stands at less than half the replacement rate.[+24 sentences] The issue is personal, existential and urgent. An ageing society is not simply about older persons. It reshapes childhood, work, caregiving, retirement and community life for everyone. If we prepare late and view ageing as a burden, we will have to manage decline. But if we prepare early, perhaps we can design longevity with meaning through our years. Today, I will speak about how we must respond across the life course, so that every Singaporean continues to have a place at our national table. Sir, in an ageing society, every cohort of children grows smaller. This means fewer classmates, siblings, workers and caregivers. In 2024, 29,237 new Dragon babies were born – one of whom was our son Mizan. Every child is not just precious, but pivotal in securing Singapore's place in the world. When couples consider parenthood, they are not just calculating financial costs across their children's lifetime; they are assessing confidence – be it in childcare access, sufficient housing, quality of life, our climate, the way the world is going in what the stakes are like to raise a child. Before we were fortunate to have Mizan in our sixth year of marriage, my husband and I would often talk about the kind of parents that we hope to be, the kind of Singapore that he might grow up in. Budget 2026 includes financial measures, such as Child LifeSG Credits and Community Development Council (CDC) vouchers, and for some parents, this means a few months of milk powder covered, which is much appreciated. Over the past two years, Prime Minister Lawrence Wong highlighted the Government's support for a Singapore Made For Families. One substantial policy shift has been the expansion of paternity and additional 10 weeks of shared parental leave during that precious first few months. Beyond monetary support, these are the kind of changes that help to make family "feel" possible in Singapore. We must build on this momentum, through changing mindsets about shared responsibilities and consider adjusting childcare leave proportionately to the number of children a couple has; enhancing flexible working arrangements which are crucial for many modern, dual-income households; normalising career pauses and supporting re-entry for both men and women; improving opportunities for access to housing with more space or that are nearer other family members for support. This is the invisible infrastructure of fertility – when parents trust the system, there is less anxiety about parenthood and there may be a greater willingness to give it a go. As every child is precious, we must also make sure that every child is safe. Preschool and student care oversight needs to be strengthened, so parents have peace of mind when leaving their children for the day. Our systems must also hold the most vulnerable of children with care and competence. Whether under child protection, in residential care homes or in the juvenile justice system, we must strengthen safeguarding standards and empower officers working with these children, through adequate resourcing and coordinated support across agencies to intervene and tackle the root of the issue. The system must fight for them, not fail them, as these children are part of our national family too. Demographic change also reshapes our workforce. The number of citizens aged 80 and older have increased by approximately 60% over the past decade.[+15 sentences] Budget 2026 strengthens workforce support, such as the expansion of AI training under the TechSkills Accelerator. But disruption is already here – long-term unemployment of those under 30 is higher than pre-pandemic norms and mid-career transitions are lengthening. For youths, I hope to see more structured, meaningful internships for learning, not as proving ground, to become the norm. Today, some stack internships out of pressure, not purpose. Students from lower-income families sometimes feel torn about pursuing an internship they are passionate about versus the opportunity to work for their households. And when some graduates turn to internships instead of full-time roles, we must ask how else we can support the school-to-work transition. Organisations like The Astronaut's Collective, Access Singapore and Halogen run programmes that help facilitate exposure to career opportunities for, among others, disadvantaged students to broaden their horizons to the possibilities they may not even know of. I hope that such important work can further be scaled. Work-study pathways should be integrated into curriculum, not peripheral as just stand-alone programmes and industry co-development of curricula should deepen. For mid-career workers, reinvention must be normalised. In a potential hundred-year life, this may translate to multiple careers across our lifetime. Conversion programmes should be strengthened with concrete employment outcomes, so that these transitions feel like renewal, not regression. It is clear that our Government takes an active stance on ensuring that: one, there are high quality jobs for Singaporeans; and two, that Singaporeans are well equipped with the skills to take on these jobs. Having said the above, we should also consider the social and emotional dimensions of how an older workforce responds to such rapid change and support them. Sir, in Malay, please. (In Malay): Sir, family is the bedrock of our society's strength. However, the reality we must face is that the TFR of Malays is now below the population replacement rate, at 1.58 in 2024.[+12 sentences] Among young people, marriage plans are increasingly being postponed because they need to prioritise building their careers and financial stability to cope with challenging living costs. For young couples who fall into the “sandwich generation”, pressure and time constraints lead to decisions to have one or two children, something that requires significant consideration. Therefore, we need to rebuild the “kampong” for our families and strengthen support networks. Whether these are families transitioning from rental flats to their own flats, single mothers or fathers raising children or caregivers who sacrifice their careers to care for elderly parents, all Singaporeans need to feel that support is always available, and systems are easily accessible for them to get help. Some families in our community still depend on a single source of income. This makes them more vulnerable to economic uncertainty. When their source of income is affected, they worry whether their daily needs can be met. Whatever choices families make in childcare arrangements, women who take career breaks should always feel that the door remains open for them to return to work and fulfil their aspirations if they choose to do so. I applaud initiatives, such as MARA Mentoring by MENDAKI and the SkillsFuture Job Seeker Support Scheme by WSG. However, in an era of rapid change, more support is needed. I would like to call for opportunities for mid-career workers continue to be strengthened, including mentor programmes and buddy systems for those going through transition phases. I hope that every family in Singapore will continue to have faith – that we will stand together through thick and thin and remain confident that the prosperity we build will be inclusive and benefit every family. (In English): By 2030, around 100,000 seniors are expected to require assistance with daily living.[+4 sentences] While many rely on foreign domestic workers or care services for the day to day, caregiving does not end at the door. Sons and daughters from the sandwiched generation continue to carry the quiet responsibilities with love – the emotional vigilance, decision-making, unexpected hospital appointments and the guilt of not being able to be there. Enhancements to the Home Caregiving Grant (HCG) are very welcome. But we should also encourage structured parental care leave frameworks and employers who go the extra mile to support employees. Today, many rely on annual leave and career often competes with caregiving responsibilities until a point where one feels like they have to tap out of the workforce, especially for women who tend to disproportionately carry the caregiving load; having stronger caregiver support frameworks, including hospital post-discharge protocols, as well as helping caregivers begin again after their loved ones are no longer around. I hope we broaden the qualifying criteria of the HCG to include those who are unable to work due to mental health conditions, instead of only assessing by activities of daily living.[+3 sentences] And finally, we must keep an eye out for particularly vulnerable double ageing segments, such as the persons with disabilities and caregiver dyad. An ageing society with changing family structures requires caregiving language and norms to evolve – we cannot keep stressing family systems until they break. Finally, the generation of seniors today, is more digitally savvy and living longer than before. By 2050, nearly half of Singaporeans are projected to be over 65.[+2 sentences] That represents valuable wisdom and experience which should be tapped on. Ageing is also about dignity and purpose. In Ang Mo Kio, 40% of our residents are over 60 years old.[+9 sentences] Their life stories and gentle resilience, inspire me deeply. While efforts, such as the Enhancement for Active Seniors (EASE) 2.0 and the Silver Upgrading Programme make ageing in place more possible, we must continue to design empowering upgrades and inclusive spaces so they feel confident to participate in community life instead of taking a deficit-based approach to thinking about what they cannot do. And in the midst of all the upgrading and construction to do so, we must also be mindful in the process, how even changes in pedestrian walkways, lack of lifts or escalators at overhead bridges, can result in our seniors being fearful of leaving their house to do their favourite market run and end up staying isolated home alone. I hope that over time, public spaces and Active Ageing Centres can evolve into intergenerational hubs, where grandparenting sessions are a norm, seniors mentor youths and take on micro-work opportunities, even as some recover in community. Mr Speaker, Sir, at reunion dinners and at iftar, we instinctively make space for one another. It may be slightly jarring going between lohei and terawih in this period, but this is also, what it is, as the beauty of a multi-religious and multiracial society. This Budget challenges us to do the same at a national level. It is the first Budget of our super-aged phase. We must think structurally, not incrementally and across life stages from childhood confidence, to workforce resilience, to ageing with purpose as one congruent Singapore story. If we design intentionally and strengthen the compact between generations, then longevity will not feel lonely and will not weaken Singapore. And whether one comes home to a large reunion, bringing the next generation along, or a small gathering, or a community who becomes family – every generation of Singaporeans should know, that they always have a place at our national table.
Mr Speaker3 words
[+1 sentence]Mr Louis Chua.
Mr Chua Kheng Wee Louis (Sengkang)2937 words
[+4 sentences]Mr Speaker, as I was preparing my speech for the Budget debates for this year, I cannot help but feel a sense of déjà vu as I revisited the speech I made last year. Our national coffers are fuller than ever, yet the structural burdens on the average Singaporean household remain stubbornly heavy. There are many recurring themes and issues that continue to be not just relevant but also increasingly pressing for Singapore and Singaporeans, and I sincerely hope that the Prime Minister and Minister for Finance can seriously consider my suggestions for the current term. Mr Speaker, the recent revelation regarding our fiscal position for FY2025 warrants serious scrutiny. The projected surplus of $15 billion, more than double the earlier estimate of $7 billion, is a stark reminder of a recurring pattern.[+7 sentences] This is not an isolated incident and as I highlighted in my Budget 2025 speech, higher-than-expected surpluses have been a consistent feature of our public finances since at least 2021, often following initial estimates of deficits. This persistent issue of fiscal marksmanship raises fundamental questions. Is the Government consistently taking more from the economy than it truly needs? And what are the implications of this for our private sector? When a government persistently runs a budget surplus, it is effectively withdrawing liquidity from the economy and reducing the net savings of households and businesses. Persistent government surpluses are, by definition, private sector deficits. While the Government may argue that these surpluses are necessary for long-term planning and unforeseen contingencies, the sheer magnitude and regularity of these upward revisions suggest a systemic issue. It begs the question of whether the urgency behind tax increases, such as the Goods and Services Tax (GST) hike, was truly justified when the state consistently finds itself with more resources than initially projected. And also, based on my checks, when announced in 2022, the GST hike was projected to bring about $3.5 billion annually when the full hike is in place by 2024. GST revenue was initially estimated at $12.8 billion in Budget 2022. This year, GST revenue is estimated at $22.3 billion, an almost $10 billion increase.[+1 sentence] And let us also not forget that Singapore's way of accounting differs from international norms, such as that of the International Monetary Fund. The most notable of which is the exclusion of land sale proceeds, amounting to $21 billion in 2025 and estimated at $21 billion in 2026.[+22 sentences] Including these receipts would reveal a much larger fiscal surplus, reinforcing the argument that the Government is extracting more resources from the economy than is necessary at the time. In the face of these record surpluses, the Government's primary response remains a reliance on one-off handouts and ad hoc vouchers. As I have argued previously, we need better structural levers that automatically adjust to reflect the economic realities Singaporeans face, instead of uncertain one-off handouts that may or may not be renewed each year. Let me briefly recap the measures that I have proposed in my Finance Bill speech from November 2025. The personal income tax brackets in Singapore have not been updated for over 24 years. Since 2001, nominal wages and the cost of living have risen significantly, leading to "bracket creep," where taxpayers are pushed into higher marginal tax brackets, even if their real purchasing power has stagnated. The Earned Income Relief is another example of a structural feature that is long overdue for adjustment. The relief for workers under 55 years old has remained at S$1,000 for many, many years. And worse still, the personal income tax rebates from the last two years were discontinued in Budget 2026. Prime Minister Lawrence Wong spoke at length about AI in his Budget speech, where AI is recognised as a critical driver of economic transformation. It is incongruous that personal expenditure on AI-related tools and education does not receive the same tax relief consideration as corporate AI investments. If we are serious about fostering a future-ready workforce, we must incentivise individual upskilling and adoption of new technologies through our tax policies. As I shared last year, it would be wise for us to introduce a broad-based "Skills Investment Relief", allowing individuals to claim a capped deduction for out-of-pocket training expenses. This would be an expansion of the existing Course Fees Relief, which only provides relief for specific approved academic, professional or vocational qualification. Similarly, for businesses, particularly small and medium enterprises (SMEs), the current system of fluctuating corporate income tax rebates, varying from 20% to 50% over the last decade, lacks the certainty and predictability needed for a long-term planning. To underscore my point, the corporate income tax rebate for Budget 2026 was reduced to 40%, compared to 50% for 2024 and 2025. Ironically, in the face of the Base Erosion Profit Shifting (BEPS) 2.0, the concessionary corporate income tax rates for approved global trading companies of as low as 5% on income from qualifying transactions in qualifying commodities, was extended from 2016 to 2031. We should embed the same level, if not higher level of stability into our personal and corporate income tax regime, moving away from discretionary rebates towards a more transparent and consistent framework that truly supports our Singaporean base. Next, let me touch on two issues, which I believe were missing from the strategic focus of Budget 2026. The first of which is the issue of wealth inequality. As I have shared in my Budget speech last year, I believe the deepest divisions in our society today are not based on race, language or religion, but based on socio-economic status which is closely tied to wealth inequality. If we do not take a concerted effort to address this issue head on, as we have done with race and religion, these divisions will only deepen. I was initially hopeful, when the recently released the Ministry of Finance's (MOF's) Occasional Paper on "Income Growth, Inequality and Social Mobility Trends in Singapore" was published on 9 February, ahead of Prime Minister Wong's Budget Statement. This paper provided the first-ever public release of Singapore's wealth data, which revealed that Singapore's wealth inequality, with a Gini coefficient of 0.55, exceeds that of income inequality.[+6 sentences] Unsurprisingly, to the extent that wealth at the top of the distribution is under-reported, measured wealth inequality is likely to be underestimated. While the paper notes broad-based improvements in income mobility, it is also highlighting a "gradual moderation" in social mobility as our economy matures. This data underscores the urgency of implementing robust measures to address wealth disparities. I reiterate my proposal from my Budget 2023 for a Net Annual Value (NAV) tax on properties to be reinstated, particularly targeting high-end properties such as Good Class Bungalows or those who own secondary residences. Property is already a preferred means by the Government to tax wealth, such as via progressive property taxes and stamp duties. Bringing back the NAV tax would serve as an effective complement to our system of taxing wealth, ensuring that those who benefit most from our economic growth contribute proportionally to our collective well-being. Furthermore, we must seriously consider bringing back estate duty, which was abolished in 2008.[+9 sentences] As with the estate duty pre-2008, exemption thresholds can be set such that only those who are truly wealthy will be affected. For example, the exemption threshold for dwelling houses was set at S$9 million from 1996 to 2008 and an updated threshold adjusted for inflation can be determined as with other asset classes. The Organisation for Economic Cooperation and Development's (OECD) 2021 report titled "Inheritance Taxation in OECD Countries", states that, and I quote, "an inheritance tax, particularly one that targets relatively high levels of wealth transfers, can be an important tool to enhance equality of opportunity and reduce wealth concentration. The case for inheritance taxes might be strongest where the effective taxation of personal capital income and wealth tends to be low". As we all know, there is no capital gains nor dividend taxes in Singapore. The challenge with taxing wealth via property tax, stamp duty and motor vehicle-related taxes is that the middle-income and upper-middle-income groups end up suffering too. Consider the recent changes to the Preferential Additional Registration Fee (PARF) rebates in Budget 2026, which saw a 45-percentage point cut and a cap reduction. I had welcomed the Government's move in 2023 to further adjust the Additional Registration Fee (ARF) and cap the PARF rebates at $60,000. This time round however, while ostensibly aimed at luxury cars, the impact of the PARF changes is felt across the spectrum. A BMW 5-series, listed for around $370,000 will see its PARF rebate slashed from around $40,000 to $4,000. But even an entry level Suzuki Swift, which is one of the cheapest cars in Singapore at a so-called mere $152,000, we will see its PARF rebate slash from $6,600 to $660, resulting in an increase to its annual depreciation to about $15,000.[+12 sentences] This demonstrates how policies intended to target the affluent can also impact the middle-income segment while the truly wealthy, like those who rent high-end properties, remain largely unaffected. We must ensure our tax policies are truly progressive and do not inadvertently burden the middle class. We should therefore also study wealth tax issues in other nations, such as Norway and Switzerland, where they are present. The Government might point to Norway as a cautionary tale, claiming that the increase in the rate of wealth taxes had resulted in an exodus of wealth. Ironically, many of the wealthy turn to Switzerland, which has a wealth tax, instead of other jurisdictions without the wealth tax. The Swiss model which, with its "forfait fiscal" or lump sum taxation based on lifestyle expenditure or multiple of living expenses, offers an interesting alternative to traditional wealth taxes based solely on asset valuation. This approach could be explored to ensure that those who benefit most from Singapore's security and conducive environment contribute their fair share even if their declared income or assets are difficult to fully ascertain. Some may argue against wealth taxes, citing fears of capital flights. However, Singapore's unique value proposition, similar to Switzerland, remains a powerful draw for global talent and capital. Many wealthy individuals would still prefer to reside and operate here, especially in the context of what Prime Minister Wong said about the weakening of the multilateral system, where countries everywhere have less confidence that common rules will protect their interests. Finally, let me touch on the second major issue which I believe is missing from the strategic focus of Budget 2026 – that is our record low TFR. If we can establish an AI Council to provide strategic direction and to drive Singapore's AI agenda, where is the equivalent council or dedicated high level focus to act with clarity and resolve on our existential demographic challenge? Our TFR fell below 1.0 in 2023 and remained there in 2024, a trajectory that poses a profound threat to our long-term sustainability.[+7 sentences] The truth we must confront is whether the Government is genuinely committed to structural solutions for our fertility crisis, or whether it is increasingly leaning on immigration as an easier way out. At the recent Institute of Policy Studies (IPS) Singapore Perspectives 2026 conference, Acting Minister Jeffrey Siow described our TFR of 0.97 as abysmal, but simultaneously argued that we need to do more integration so that we can do more immigration. Mr Speaker, there is no denying that the vibrant fabric of Singaporean society is largely woven by immigrants, and this is something we must cherish and continue to uphold. However, I also believe that the Government must do more to nurture fertile environment for parents to grow their families. Instead of taking the path of least resistance, we must be bold and innovative in our approach to raising our TFR. I wish to draw attention to Hungary's aggressive pro-nationalist policies, which offer a case study in comprehensive, albeit sometimes controversial interventions, where its TFR rose meaningfully from around 1.2 in 2011 to 1.6 in 2020. While some may point out that Hungary's TFR declined to 1.39 in 2024, arguably macro economic factors may also have a significant role to play. The point here is this, that Hungary is fully exempting mothers with three children from paying personal income tax regardless of age and starting this year, even mothers under 30 with at least one child will be fully exempt.[+3 sentences] Are we willing to be this bold in our approach and exempt mothers from personal income taxes? For sure, money is not the be all and end all when it comes to having children, but according to a 2024 Nanyang Technological University survey of 230 young Singaporeans, financial considerations were raised by 70% of respondents as a reason why they do not wish to have children. This reason was also mentioned by the majority of married respondents to 2021's Marriage and Parenthood Survey as the biggest hurdle that prevents them from having children. As part of this year's Budget package, the household income ceiling for childcare subsidies was increased from $12,000 to $15,000, while families with children below 12 years old will receive $500 in LifeSG Credits.[+7 sentences] However, given that parenthood is a massive undertaking that lasts decades, I believe that more can be done across the spectrum. As of the 2020 census, 53% of married couples were dual income. While not all dual income couples have children, those who have often need to balance their parenting and work duties. Hence, I have previously suggested that the Government implement the statutory right to request for flexible work arrangements as well as increase statutory childcare leave. Moreover, the caregiving burden is often unequally shared as the odds are usually stacked against the mother's favour. Recent Nobel Prize winning economist Claudia Golden observed that this motherhood penalty usually arises from mothers halting their careers right after childbirth and as their child gets older, they would turn to jobs that offer greater flexibility, but lesser pay. Hence, our policy should aim to recalibrate this imbalance, such as via tax incentives. Even if the Government does not wish to take the Hungarian approach, the least we can do is not make mothers pay more taxes. And I have shared on many occasions in this House, I hope the Government would revert back to the previous iteration of the Working Mother's Child Relief (WMCR), which is applicable only to mothers with children born before 2024.[+9 sentences] While there could be a small group of lower-income working mothers who would benefit from this change, the majority of would be working mothers will be worse off with the change in methodology. For lower-income working mothers, a tax rebate can be given, and even if the tax rebates granted exceeds the tax payable, tax credits can be paid out in cash to ensure the reliefs are not lost. Moreover, single mothers are not eligible for the WMCR, and even if we cannot raise their children on their behalf, the least we can do is to ensure that our tax policies do not discriminate against them. The bottom line is that structural issues to our low TFR such as work life balance, societal expectations and the high cost of raising children must be comprehensively addressed. We must learn from international experiences and our own experiences to further tailor our policies to our unique context, ensuring that we create an environment where Singaporeans truly feel supported and confident in starting and raising families. Mr Speaker, in Mandarin, please. (In Mandarin): Mr Speaker, my speech today focuses on four areas requiring urgent attention in the 2026 Budget. Firstly, the persistent problem of fiscal marksmanship. The Government's continuous over-collection of taxes compels us to question the necessity of raising tax rates and their impact on Singaporeans. The projected surplus for 2025 stands at $15.1 billion, more than double the initial estimate of $6.8 billion.[+2 sentences] This pattern of "annual over-collection" has become the norm rather than an exception. Looking back at 2022, the Government predicted that the comprehensive GST increase would generate approximately $3.5 billion in additional revenue annually. The estimated total GST revenue then was $12.8 billion, whilst this year, this figure is projected to soar to $22.3 billion, an increase of nearly $10 billion.[+6 sentences] Secondly, we must prioritise structural tax reforms rather than relying year after year on one-off measures. This includes adjusting personal income tax brackets according to inflation and updating various tax reliefs. Thirdly, addressing wealth inequality has become urgent, as emphasised by the MOF’s recent Occasional Paper on this challenge. We need to adopt bold measures, such as re-introducing NAV tax, reconsidering estate tax and exploring innovative wealth tax models like those in Switzerland. We cannot allow the middle class, who are "rooted here and cannot flee" to bear a disproportionate burden due to fears that "the ultra-wealthy might withdraw their capital and leave", making them casualties of the wealth divide. Finally, we must address the challenge of extremely low fertility rates with the same urgency as we approach economic challenges like artificial intelligence. Drawing from international experience, we must formulate comprehensive and structural solutions that give Singaporeans the confidence and capability to start families.[+2 sentences] The Government may argue that these measures are too risky or that we must maintain a conservative approach. But I ask: what constitutes the greater risk? Is it collecting a few percentage points less in taxes from our record-breaking surplus or allowing the nation's demographic foundation to wither whilst wealth concentrates in the hands of a select few, leaving middle-class Singaporeans to foot the bill? Let us build a more equitable, resilient and sustainable social contract.
Mr Speaker3 words
[+1 sentence]Mr Patrick Tay.
Mr Patrick Tay Teck Guan (Pioneer)2624 words
[+24 sentences]Mr Speaker Sir, I rise in support of Budget 2026. It is a careful Budget. A responsible Budget. But more importantly, it must be a Budget that reassures Singaporeans workers who are anxious about their place in a changing economy. We are living through an in-between moment. Technology is moving faster than jobs. AI is advancing faster than wages. Foreign investments are creating much fewer jobs than before. Economic growth is not always translating into worker confidence. Workers tell us this very plainly. They worry about job security. They worry about cost-of-living. They worry about whether the next disruption will be theirs. If we ask workers to work hard, upgrade, adapt, we must also ask the economy to deliver real outcomes for them. “When workers do everything right but still feel left behind, the problem is not their effort, it is the system.” This is why, in this Budget, I will speak for five groups of workers. I call them the "5 U's" – the unemployed, the underemployed, the under-represented, the untrained and the under-served. My first "U" worker group is the unemployed, specifically the involuntarily unemployed. To be candid, last year we saw many retrenchments and many "bad retrenchments" as well. Employers who did not abide by the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) made headlines. Each time, NTUC and their unions stepped in, fought for members and workers including securing payouts, and escalated the issue to the Ministry of Manpower (MOM). Drivers of retrenchments like business restructuring and uncertainties will persist this year. NTUC and unions stand ready to support impacted workers, including PMEs who may not be covered under collective agreements. I ask the Government to give NTUC and the unions more time, strength and information to do so. First, introducing advanced Mandatory Retrenchment Notifications (MRNs) to unions and the Government can provide more timely and early intervention.[+4 sentences] Currently, employers with at least 10 employees are required to notify MOM within five working days after notifying employees. The Government can consider all MRNs to be made prior to retrenchments. I say again, prior to retrenchments. Second, there should be stronger penalties for employers who do not comply with this requirement and not just a slap on the wrist. Third, the Government can consider sharing information with NTUC and unions on sectors and companies that might be disrupted due to economic restructuring, including expected scale of impact and timeline, past retrenchment incidence, and past retrenchment benefit levels. I am heartened that after a decade of lobbying, involuntarily unemployed workers facing temporary financial strain can now benefit from transitional support for up to six months while they undergo training or look for better-fitting jobs through the SkillsFuture Jobseeker Support Scheme (JSS).[+1 sentence] According to NTUC’s most recent Survey on Economic Sentiments, about 40% of almost 1,000 workers expressed concerns about losing their jobs. In fact, from April to August last year, MOM also shared that 60% of the 7,200 JSS applications received were rejected, of which one of the top three reasons for unsuccessful applications was exceeding the income threshold of $5,000 per month.[+1 sentence] I therefore opine that more can be done to support the broad middle of involuntarily unemployed workers. The Government can consider raising the income threshold from $5,000 to $7,600 to better cover PMEs.[+14 sentences] By easing financial pressures, JSS helps workers avoid rushing into poor job matches that lead to underemployment. Sir, this brings me to my second "U" worker group, the under-employed, which can be broadly defined as those who are under-utilised in the workforce in terms of availability, qualifications, skills, or experience. Time-related underemployment, such as when an individual who has the capacity to work a full-time position works part-time, is measured by MOM and widely studied. However, non-time-related underemployment, such as when a highly qualified, skilled or experienced expert holds a junior-level position, is more difficult to determine. This is why NTUC has collaborated with the Singapore University of Technology and Design (SUTD) to study this issue since 2023. There is also voluntary and involuntary underemployment. Voluntary underemployment, where workers opt to work fewer hours or in a less demanding role to pursue better work-life balance, personal interests, or a less stressful career, can represent diverse aspirations and values. It is the involuntary underemployed group that warrants our attention. These are workers who stay in contract or gig work because they cannot secure a full-time position. They are also over-qualified workers who seek to move up the career but are stuck in junior level positions and pay. Over time, underemployed workers can become trapped in a vicious cycle of low-paid and insecure work, limiting opportunities for upward mobility. Women and caregivers, in particular, are at a higher risk of underemployment and consequently, unequal pay, as they take more time out of the workforce and seek flexible work arrangements to balance caregiving commitments. I therefore submit that the Government broaden its definition of underemployment and collaborate closely with our tripartite partners to monitor this issue and maximise the productivity and earning potential of every worker, especially after NTUC and SUTD's underemployment study findings are released in the coming months. Fixed Term Contract (FTC) workers are one group acutely vulnerable to job insecurity. The Government can encourage employers to emplace FTC workers into permanent roles after two cycles of contract renewals, and regard successive contracts renewed within two months of the previous contract as continuous service, instead of the current one-month window stipulated in the Tripartite Advisory on the Employment of Term Contract Employees.[+1 sentence] Another group vulnerable to involuntary underemployment that has been concerning of late is young workers and fresh graduates. According to the most recent Graduate Employment Surveys from autonomous universities, private education institutions and polytechnics, fewer graduates secured permanent full-time positions within six months of graduation across the board, even as starting salaries continued to rise.[+9 sentences] While this is in part due to the younger generation's propensity to explore diverse and flexible career paths, many also face external challenges like the shrinking of entry-level roles accelerated by AI and increasing saturation of diploma and degree-holders. Earlier this month, NTUC hosted a dialogue with students at the Singapore Management University on the subject. I was there as well. Students spoke frankly about sending out dozens, even hundreds, of job applications without even a single reply. Even "internship-stacking" may not be deemed as sufficient as employers increasingly preferred to hire applicants with at least minimum one to two years of full-time work experience. Early career professionals impacted by retrenchments are also met with stiff competition as "job-hugging" or resignation rates hit a historic 20-year low. Labour market transitions can eliminate existing opportunities but also yield new ones, such as new sectors and more flexible or meaningful forms of work. For example, Singapore is constantly ranked as one of the most AI-exposed countries in the world, but also one of the most AI-ready. Young people will need to know how to reach these new opportunities and our institutions must be equipped to support them. The Government launched the GRIT Programme last year to absorb recruitment and training risk for employers while helping fresh graduates gain industry experience and relevant skills.[+2 sentences] This is a good start. To avoid skills-jobs mismatches or youths getting stuck in gig, contract or part-time work after long and unfruitful job searches, a more concerted effort must be made to invest in human capital and skills, broaden the range of good jobs with good prospects and growing local companies and startups, many of which are aligned with recommendations outlined by the Economic Strategic Review. The Government can consider launching an extended and higher-value iteration of GRIT in high-growth and high-demand sectors with opportunities ranging from one to two years and with monthly traineeship allowances on-par with starting salaries. Host organisations must convert trainees into permanent full-time employees unless a valid reason and supporting evidence are submitted.[+6 sentences] The Government can also set aside more resources to groom early-career professionals by sending them for overseas work postings. This is opportune as the Market Readiness Assistance grant and a host of other schemes are enhanced to support local companies to internationalise. The Economic Development Board (EDB) recently announced a 20-year-low number of jobs expected to be created, despite attracting more investments. This is a global problem in the age of automation and AI but in Singapore, we cannot accept an economic model where growth advances while workers are left behind. Structured career pathways and raised wages should continue to be encouraged in traditionally undervalued fields with unmet demand like the skilled trades, education and care services. My third "U" worker group is the under-represented, referring to local PMEs who make up about almost half of the workforce and disproportionately impacted by economic restructuring and technological disruptions, but who may lack representation and protection benefits. Lower-income PMEs, sometimes disguised, for example, are not covered under Part IV of the Employment Act which provides for rest days, hours of work and overtime pay. I therefore call on the Government to increase the Employment Act Part IV income thresholds, something that I raised in this House before, for non-workmen to at least $3,000, which will better reflect today's workforce demographics and help curb overworking norms.[+11 sentences] To ensure protections in the Employment Act keep pace with wage growth and workforce changes, the Government can commit to reviewing the Employment Act every five years or when salaries reach a particular threshold, with a mid-term review of income thresholds to ensure legislation does not lag economic shifts. The Government can also consider reviewing the Industrial Relations Act, which stipulates that PMEs cannot be represented by unions if they are in senior management and executives with duties involving hiring, firing or confidential information that present a conflict of interest. I suggest there be greater clarity about exclusions, other than what is provided in the Tripartite Guidelines, as there are employers and human resource (HR) professionals who are still riding on this exclusion, to disallow unions to extend their scope of representation, especially for purposes of collective bargaining. Currently rank-and-file unions can represent eligible executives on a limited individual basis for specific industrial matters including retrenchment benefits, dismissal, breach of individual contract, victimisation and re-employment disputes. I ask that the Government broaden this scope to also include grievance handling. For over a decade, I have advocated for a compendium of measures to level the playing field and strengthen the Singaporean Core for our local PMEs, including legislation against errant employers who discriminate against Singaporeans, a foreign-PME dependency ratio, stricter Employment Pass (EP) application conditions and many others. Yet, local PMEs, especially those who work in multinational corporations (MNCs), tell me that they still sometimes feel under-represented in numbers and rank at their workplaces. We can say time and again that it is not a zero-sum game, but when MNCs retrench equally knowledgeable, skilled and experienced local PMEs to retain cheaper foreign manpower, or when local PMEs are disproportionately underrepresented in senior and leadership positions and paid less, it can feel like this. To be clear, foreign PMEs remain essential to complement Singapore's workforce. They fill critical skill and labour gaps, bring global expertise and networks and help keep companies growing rather than relocating. Many are friends and neighbours in our communities. The key is to create policy that encourages foreign PMEs to complement rather than displace the local workforce, encourage skill transfer and local-foreign integration and position local PMEs for senior and leadership positions as well as high-paying and high-value jobs. I therefore welcome the Government's decision to raise the qualifying salaries for and S Pass holders to maintain the quality of EP and S Pass holders as wages rise.[+7 sentences] But Government also needs to watch for parity of Singaporeans who do the same work and are paid similarly, and work alongside some these of S Pass and EP holders. I will also continue to call on the Government to monitor, previously coined as the "triple weak" companies and sectors and encourage them to improve their workforce profiles by removing preferential tax or not awarding public sector contracts for recalcitrant companies. The Government can also consider awarding bonus points under the Complementarity Assessment Framework (COMPASS), based on the proportion of Singaporeans in management positions. My fourth "U" worker group is the "untrained". Unlike other countries, where unions often must lobby for uneven training and upskilling opportunities, Singapore continuously doles out funding and promotes continuing education and training (CET) as a national priority. Today, we enjoy a wide range of courses and schemes like SkillsFuture Credits to improve accessibility. However, there remains a minority of workers who have not accessed these resources we can work to reach. During SkillsFuture's 10th anniversary last year, I suggested to consolidate efforts and streamline offerings across different arms of the CET ecosystem including NTUC's e2i, WSG, SSG, training providers and the various Institutes of Higher Learning (IHLs), to control quality and prevent overlap. I am glad that the Government considered the recommendation and are going to create now a one-stop-shop new agency for skills training, career guidance and job matching services by merging WSG and SSG.[+2 sentences] A next step is to enhance Career Conversion Programmes (CCP) to cover even more sectors and increase offerings. As the transition to an AI-driven economy approaches, NTUC has launched its AI-ready Singapore initiative to strengthen workers' long-term employability through learning and applying AI skills to daily work. NTUC will roll out AI training pathways and subsidise up to 50% of subscription costs of eligible AI tools for members, for an initial period of two years.[+5 sentences] Notwithstanding, a tripartite standard on ethical and non-discriminatory use of AI in recruitment, performance, promotion and termination can boost the AI-readiness of Singapore's workforce. The Government can also encourage employers to partner unions to start upskilling and/or redeploying impacted staff early on. Together, we will move AI-literacy to AI-fluency for every worker, every department, every company and every industry, so that no worker is left behind. My fifth and final "U" worker group is the underserved, referring to persons with disabilities and ex-offenders. The Uplifting Employment Credit (UEC) for ex-offenders and the Enabling Employment Credit (EEC) for persons with disabilities, which provide employers with wage offsets to enhance employment support for disconnected individuals and widen our labour pool, are commendable initiatives. I hope that the Government continues to embed inclusive hiring into mainstream workforce policy to unlock under-utilised potential and ensure all workers can contribute fully and justly, as well as to boost the employment and employability of ex-offenders and persons with disabilities. I note that the UEC scheme ended on December 2025, and I ask that an extension be considered.[+2 sentences] I contend that Diversity, Equity and Inclusion in workplaces should not be a compliance obligation but treated as workforce infrastructure. This means equipping managers and HR with the skills to productively operate a team with different needs, entrenching flexible work arrangements as a norm and avoiding cliff effects in policy support. As persons with disabilities and ex-offenders are more likely to be concentrated in lower wage and lower-skilled jobs and sectors that have higher rates of unemployment and/or underemployment, a more concerted effort can also be made to prevent reproducing inequalities for these two groups.[+4 sentences] Sir, in conclusion, in this era of AI, ageing and global uncertainty, Singaporeans are not asking for guarantees. They are asking for fairness. They are asking for opportunity. They are asking that effort be rewarded. This is why this Budget must work for the "5 U's": the unemployed, the underemployed, the under-represented, the untrained and the underserved.[+2 sentences] In a time of transition, we will only succeed if "U" and "Me" move forward in Unity. Mr Speaker, Sir, I support the Budget.
Mr Speaker8 words
[+1 sentence]Mr Singh, you have a clarification to make.
Mr Pritam Singh80 words
[+1 sentence]Mr Speaker, I refer to the point made by the hon Member on advanced retrenchment notifications. The intention to pursue this point was made by NTUC before the Budget debate. Shortly thereafter, the chief executive officer (CEO) of SNEF wrote to The Straits Times to share that, I think the words were: "they have strong reservations about this call." Can I ask the Member, in view of the tripartite framework, has there been agreement with SNEF on this particular point?
Mr Speaker3 words
[+1 sentence]Mr Patrick Tay.
Mr Patrick Tay Teck Guan61 words
On the Member's question, there are tripartite negotiations on this point. We have formed a Tripartite Workgroup on the review of the Employment Act which I am a member, we are looking at this carefully to balance the interests of the respective tripartite partners. But what I shared earlier is our NTUC's standpoint, which both Secretary-General and myself have shared earlier.
Mr Speaker3 words
[+1 sentence]Ms Joan Perera.
Ms Joan Pereira (Tanjong Pagar)1487 words
[+3 sentences]Mr Speaker, Sir, home is where our heart is and therefore, I am starting my speech on the Budget speech talking about our homes. It is so important to come home to a space where one can feel safe and rested. Our Housing and Development Board (HDB) projects are the pride of our nation. But more and more of our HDB blocks are also crossing the 50-year mark. It is good news indeed that we had managed to achieve a Budget surplus of over $15 billion for 2025. The surplus will be added to our reserves, where we can generate investment income streams that will contribute to our future Budgets.[+11 sentences] This money gives us the ability to plan for and secure our future with greater certainty. I will like to start with an appeal to the Government to invest more expeditiously in the rejuvenation of our older HDB estates. We have to ensure that our maintenance and replacement works can continue to uphold the standard and quality of our HDB housing. Buildings do not age uniformly. Some may suffer from more issues than others. When one has to deal with unexpected and recurring problems, such as water ingress, mould and spalling concrete, our homes can become sources of stress and anxiety instead. Take for example my residents at Henderson Crescent estate. Life at home can be stressful because they constantly have to watch out for leakages and check their ceilings and walls. They worry about the effect the persistent mould have on their health, especially the children and the elderly. The repairs also put a strain on their finances, especially for the elderly and families with lower incomes. As the HDB Home Improvement Programme (HIP) takes place only twice during the span of the 99 years, residents are left waiting and are appealing for a more lasting and sustained solution to the myriad of problems affecting their blocks. To deal with the systemic deterioration of such HDB blocks, could the HDB review its HIP policy and consider an additional round of HIP which is more flexible in scope to take into account the specific issues faced by a particular HDB estate?[+1 sentence] It is important to rejuvenate problematic HDB blocks so that they remain good homes for our people and remain attractive enough for prospective buyers. If that cannot be done, I would like to call upon the Government, on behalf of my residents, such as our residents from Henderson Crescent, to grant their request for Selective En bloc Redevelopment Scheme (SERS).[+10 sentences] If there are no plans for SERS, can the Ministry review the criteria for Voluntary Early Redevelopment Scheme (VERS) on a case-by-case basis, depending on the particular condition of the blocks? This is not a request to help residents enjoy a windfall, but a request for every Singaporean to go home to a pleasant and liveable environment. Sometimes, homes become a source of distress because of disamenities. Most Singaporeans live in a compact environment, in close proximity with our neighbours. Hence, being part of a “we first” society, it is important to be considerate and be aware of our actions and behaviours on our neighbours and fellow Singaporeans. This next issue that I would like to raise is almost ad nauseam – the disamenities suffered by my residents of Skyville at Dawson. Unfortunately, some of the problems continue to persist and it is a reality that my residents continue to face, day in and day out. Many years have passed and I hope that time has allowed the Ministry of National Development (MND) to observe thoroughly the problems and possibly have a fresh perspective on possible solutions. Residents of Skyville at Dawson continue to suffer disturbances and nuisance caused by inconsiderate visitors to the roof and sky gardens at their HDB blocks, especially during the weekends, eve of festive seasons and public holidays. Excessive noise disturbances, smoking and drinking, urinating at staircase landings, litter and rubbish, obscene activities. These problems have not abated, even with the concerted efforts of our grassroots volunteers, the HDB, Town Council, the National Environment Agency (NEA) and the police, disamenities still persist. Hence, I appeal to MND once again, to reconsider my previous suggestions: install gantries for registration, install more closed circuit televisions (CCTVs) to monitor visitors and their activities, limit the number of visitors and require payment of a small fee to support the operations and cleaning of the sky gardens.[+9 sentences] Again, this is because every resident deserves to go home to a pleasant living environment. I understand that requests, if taken onboard, do take time. For example, the Government has confirmed that the EASE programme will be offered to seniors living in private estates from this April. I myself first raised this in Parliament back in 2016, nearly 10 years ago, and my fellow PAP MPs had also continued to raise this request over the years. You can imagine our great relief and joy that it has been taken up by the Government and is finally coming to fruition. Still on the topic of housing, I would like to talk a little about property taxes. In the lead-up to the Budget Statement, some of my residents have shared their concerns that property taxes may rise again, even though they are relieved by the one-off property tax rebate for 2026 for owner-occupied homes. As Singapore has enjoyed a healthy Budget surplus with property taxes as one of the contributors, perhaps more can be done to calibrate this carefully or to consider longer-term support for owner-occupied properties. This is especially needed by private estate residents who are elderly and no longer working but are living in their own homes. The anxiety is real, especially as they are no longer earning an income and yet face increasingly higher property taxes that they are paying for out of their own savings. I hope that the Government can consider granting a longer-term rebate for such cases.[+4 sentences] This will also help our seniors age well and age in-place. Other than homes, Singaporeans are very much concerned about jobs and the impact of AI on them. I am very heartened by the Prime Minister's commitment that no Singaporean would be left behind in our push for AI and in this spirit, I salute our NTUC stepping up to this call in rolling out the AI-Ready SG initiative. There are also sectoral AI playbooks for workers and businesses in the sectors that face the most disruption from AI. My concern, however, is that the take-up rate for such initiatives will not be as high as desired, given what we have seen with the SkillsFuture credits where many people left it to the final months, and even then, it was not fully taken up.[+3 sentences] What the NTUC is offering is very much needed, but we need to ensure that it reaches the workers who need it. Are there ways we can ensure that access to these AI resources is as easy and seamless as possible? Our seniors also do not wish to be left behind. Can the Infocomm Media Development Authority's (IMDA’s) SG Digital Community Hubs be expanded to help seniors and more Singaporeans gain AI skills and pick up safety tips?[+7 sentences] In addition, AI training and tools have already been made widely available, but the real fear of disruption from AI tells us that what our people need most, is the support and career guidance to journey together with them as they navigate these changes. I would like to call upon the Government to consider dedicating even more resources in order to expand the scope of the AI Missions to develop detailed sectoral playbooks for more sectors beyond the four chosen. We should also support the redesign of workflows and job scopes to enable greater productivity, while helping to alleviate the labour shortage in some of these industries. Sir, in Mandarin. (In Mandarin): Singaporeans worry about jobs and AI's impact. I am reassured by the Prime Minister's commitment that no one will be left behind in our push for AI. I commend NTUC's AI-Ready SG Initiative. However, I am concerned about the potential low take-up as with SkillsFuture. I urge the Government to make AI resources more easily accessible, expand SG Digital Community Hubs to help seniors and providing stronger career guidance.[+4 sentences] More resources to extend AI Missions to additional sectors and to redesign workflows and job scopes will raise productivity and ease labour shortages. (In English): Sir, for all our hard work to achieve success, as individuals, as a nation, we need the support and assurance of safe and comfortable homes and estates for our families and secure the future of our economy and jobs in the AI age. I urge the Government to deploy them to ensure a conducive living environment for all Singaporeans and to transform Singapore into the most AI-enabled nation in the world. I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Xie Yao Quan.
Mr Xie Yao Quan (Jurong Central)2352 words
[+2 sentences]Sir, some say our recent Budget surpluses indicate a failure in fiscal marksmanship. But what truly matters is not our fiscal marksmanship year to year, but rather, our fiscal marksmanship for the long term, our fiscal marksmanship 10 years down the road, in 2030 and beyond. MOF's Occasional Paper on Medium-Term Fiscal Projections in 2023 sends a very clear signal – our total spending will go up to around 19.5% of gross domestic product (GDP) by 2030, driven by healthcare for an ageing population.[+8 sentences] This is basically two full percentage points of GDP higher than the spending of around 17.5% of GDP 10 years ago. In FY2025, we are spending 17.9% of GDP. For FY2026, we are budgeting 18.4%. So, we are spending more structurally. The trend is clear. And so, our fundamental challenge, the fundamental mission when it comes to fiscal marksmanship is really about raising revenues structurally to around 19.5% of GDP by 2030 to meet our spending needs in the long term. It is fiscal marksmanship not year-to-year, but over many years, on the revenue side, to make sure we cover our needs many years out. So, where are we at today? Budget 2026 is a milestone in the sense that it is the first Budget since the Occasional Paper to hit that 19.5% of GDP in total revenues.[+5 sentences] The key question however is, looking at the revenue mix in Budget 2026, can the mix be sustained? Can it become a reliable blueprint for our fiscal security in subsequent Budgets? That is the key question for our fiscal marksmanship for the long term. And to answer this question, I will focus on GST, corporate income tax and asset-related taxes. First, GST. With the increase in headline GST rate from 7% to 9%, GST collection has gone up from around 2% of GDP to 2.6% in Budget 2026.[+23 sentences] And unless consumption contracts suddenly, we can expect GST revenues as a percentage of GDP to continue at this level. This makes a big difference. In other words, raising GST has been essential in helping us achieve fiscal marksmanship for the long term. The real failure in fiscal marksmanship would have been if we dropped the ball, or lost the gumption to raise GST to secure our long-term fiscal future – because it was too difficult. Second, on corporate income tax. Budget 2026 estimates corporate income tax revenues to come in at 4.5% of GDP. This is quite remarkable. It has gone up to 4% of GDP in FY2023 and FY2024, and then gone up further to 4.5% in FY2025. Coming out of the COVID-19 years, who could have seen this sharp uptick coming? But the key question going forward is: can we confidently assume that this will continue? How much of it is a secular increase in corporate profitability? How much of it is cyclical? I think we should be conservative and we should also be sanguine about the revenue upside of BEPS Pillars 1 and 2 combined. Indeed, a real failure of long-term fiscal marksmanship will be if we bet on something as new and uncertain as BEPS for our long-term fiscal future. So, taken together, we can probably revise our long-term assumption for corporate income tax revenues upwards to 4% of GDP, not 4.5% as in Budget 2026, but 4%. That in turn means a difference of 0.5 percentage point of GDP. And so, where do we raise another 0.5% of GDP, reliably, structurally, from other revenue sources? Which brings me to the third point, asset-related taxes. To my mind, we need to look at taxing assets more, much more. In effect, increasing wealth taxes significantly. In this regard, I agree very much with hon Member Mr Shawn Loh. Property taxes are estimated at 0.9% of GDP in Budget 2026. Actually, property tax collections went down to 0.6% in FY2020 and has gradually come back up to 0.9%. But not too long ago, in the early 2000s, property tax collections were as high as 1% to 1.1% of GDP. I think we should aim to raise property tax collections to 1.2% of GDP in the long term and focus on the top tier of residential properties. Stamp duty collections stand at 0.8% of GDP in Budget 2026 and have largely been so for the past 10 years. I think we should make stamp duty much more progressive in the long term with, for example, a new tier for residential properties above $5 million, at marginal rate of 15%, 2.5 times the current top marginal rate.[+21 sentences] In short, for me, the real story coming out of Budget 2026 in terms of long-term fiscal marksmanship is that we can and should raise asset-related taxes quite a bit more, to meet our long-term future spending needs. Sir, some also say our recent budget surpluses show that the Government is over-collecting now, in advance of spending needs later. Let me make a few points on this. First, while we can say that the Government may be over-collecting in certain areas, for example, in asset-related revenues which have been revised upwards by $4.5 billion in FY2025, and this is not so much by design, but due to cyclical factors, we absolutely cannot say that the Government has been over-collecting in GST. In GST, by design, the Government is absolutely not over-collecting. Because by design, the GST increase has effectively not started yet for most families and will effectively start only in 2028, five years after the increase in headline rate. By design, the GST increase for families below median income will effectively start only in 2033, 10 years after the headline increase. And by design, there is effectively zero GST increase, permanently, for families in the bottom 30% by income. Why? Because alongside GST collection, we have also a system of GST offsets – the GST Voucher Scheme and Assurance Package. GST in itself is regressive, but our GST system of taxation combined with offsets is net-net highly progressive. The only people paying effectively more GST now are the most well-off Singaporeans, expatriates and tourists. So, we cannot say that because of the recent surpluses, the Government has been over-collecting GST in the past few years and not even for the next few years. But beyond GST, it is simply not very meaningful to draw conclusions and pass judgement on over-collections based on fiscal surpluses year-to-year. What is meaningful to look at is whether a term of Government balances its collections against spending, over its entire term in office. A year of surplus can well be followed by crisis, and a budget surplus can swing very quickly into a deficit to overcome crisis the next year. We have swung from surplus to crisis, many times, in the past decades. In FYs 2016 to 2019, we had a pretty good run – Budget surpluses of 1.4%, 2.3% and 0.7% of GDP, successively. Then what happened? COVID-19 happened. And in FY2020, we swung to the greatest fiscal deficit any PAP Government has seen, ever. A deficit of $51.6 billion, 10.8% of GDP, to fight the crisis of a generation.[+30 sentences] It feels like a bad dream now, but this was just a few years back. We do not quite talk about that in this debate. Or look at the severe acute respiratory syndrome (SARS) – the deficit for FY2003 was 1% of GDP. In other instances, the crisis was not pandemic, but economic. And economic crises have usually been preceded by very good years – an exuberant economy, strong growth, larger-than-expected fiscal surpluses. But precisely because of over-exuberance, markets eventually corrected and we swung from surplus to crisis overnight. Just look at FY2007. A fiscal surplus of 2.8% of GDP on the back of 7.9% growth in 2006. And then what happened? The Great Financial Crisis. Growth disappeared completely in 2008 and so did our fiscal surplus. Looking at FY2025 and this year with AI investments on an absolute tear and boosting the economy, can we say with certainty that this time will be different? Or might a sharp pullback in AI investments, coupled with a secular slump in external demand due to even sharper tariff uncertainties, not be a real risk? Precisely when we get a larger-than-expected fiscal surplus because of stronger-than-expected growth, I think we should be quietly worried. Not about short-term fiscal marksmanship but about the risks of economic and fiscal correction that are being signalled. And when a crisis does hit, we should not expect the Government to turn to the President, turn to our Past Reserves, in the first instance, to fight the crisis. Each term of Government should be looking, in the first instance, at using its own fiscal resources, within its term in Government to fight crises and protect Singapore and Singaporeans. That is why surpluses in some years within each term of Government is important. Surpluses within a term of Government are a design feature, not a bug, in the PAP system of Government. And these surpluses protect current generations of Singaporeans against shocks. Rather than benefit future generations, they benefit the current generation of Singaporeans. And sometimes, the actual surpluses do turn out larger than expected. But there will be times when they turn out smaller than expected too. It is normal to get a surprise, either on the upside or on the downside. It is part of the real world. It is par for the course. In fact, the surpluses for FY2025 and FY2026 are not unusually large at all in GDP terms. Mr Shawn Loh made the same point yesterday. Going back to FY2007, our fiscal surplus was 2.8% of GDP, I mentioned that. Although it was just $7.7 billion in dollar terms. And further back, in FY2000, we had a surplus of 2.4% of GDP, although it was just $4 billion in dollar terms. And so, in my view, the surplus for FY2025 at 1.9% of GDP is somewhat modest, hardly the greatest fiscal surplus any PAP Government has seen in decades; and the surplus for FY2026 at 1% of GDP is decidedly modest. The accumulated surplus over the last term of Government, including the surplus for FY2025, is at around 0.6% of cumulative GDP, again, decidedly modest in my view.[+5 sentences] But in dollar terms, the surpluses of $15.1 billion and $8.6 billion can create a sticker shock. Understandably so. But we should be clear that this is not so much an indication of over-collection by the Government as it is simply a reflection of how much our GDP base has grown in nominal dollar terms over the last 26 years. The final point I will make, over the last 26 years, since FY2000, we have had surpluses in only 11 years. Let me say that again. Over the last 26 years, we have had surpluses in only 11 years, including FY2024 and FY2025.[+14 sentences] Our Budgets were essentially balanced in another 11 years, and we ran deficits in four. So, the bottom line really is: budget surpluses are actually not so common in our fiscal history. Large surpluses in GDP terms, even less so. We have been largely balanced over each past term of Government, and it is really not very meaningful to pass judgement on fiscal marksmanship on a year-to-year basis. When we do have fiscal surpluses, we should count our blessings. Across the OECD countries, the average fiscal position in 2023 is a deficit of 4.6% of GDP. We are in a special position to have surpluses. So, let us not talk of surpluses as if they are a failure in planning or something to be frowned upon. Let us not give surpluses a bad name. We should make surpluses great again. Make "surpluses again" great again. But it does beg the question, what should we do with the surpluses? And I will make just one suggestion today. I say, let us plough back part of the surpluses. Plough back part of the surpluses to extend our transitional GST offsets by one more year for the vast majority of Singaporeans.[+11 sentences] This will cost the Government probably $1.5 billion – well within what our surpluses can afford. Sir, I am a fan of Malay pantuns. So, I thought to conclude this speech with a pantun. And in the spirit of this Budget, and in line with the zeitgeist, I asked generative AI (GenAI) for help. I prompted for a pantun about balance amid abundance, using a fruit tree as a metaphor. And in one second, literally, GenAI gave me this, "Rimbun dahan pohon bermutu, buah manis lebat di dahan; harta melimpah syukur bersatu, sudi berkongsi tanda iman." Mr Zhulkarnain is smiling. Translated loosely into, "Lush are the branches of a quality tree, sweet fruits hang heavy and thick. When wealth overflows, let it be joined with gratitude; to share willingly is a sign of faith." And then AI asked me if I would like another version, with a more specific fruit metaphor, like the durian tree. I said, "No, no, no. My idea of balance that I prompted you on was not so much about keeping versus sharing at the individual level, but about spending and saving at the societal level.[+3 sentences] So, you refine the output?" So, in another one second, GenAI gave me this, "Pohon rimbun emas citranya, gugur sebiji di celah dahan; ambil sekadar perlu sahaja, selebihnya rezeki alam tuhan." Or "The lush tree has a golden aura; a single fruit falls between the branches. Take only what is needed, leave the rest as sustenance for God's nature". But I really liked the second line from the first version, so responding to the Minister of State Jasmin Lau's exhortation yesterday, I exercised my human agency and critical thinking, and I combined the two versions.[+4 sentences] And so, in conclusion, Mr Speaker, Sir, "Pohon rimbun emas citranya, buah manis lebat di dahan; ambil sekadar perlu sahaja, selebihnya rezeki alam tuhan." (In English): The lush tree has a golden aura; sweet fruits hang heavy and thick. Take only what is needed, leave the rest as sustenance for God's nature. Sir, I support the Budget.
Mr Speaker8 words
[+1 sentence]Mr Giam, you have a clarification to ask?
Mr Gerald Giam Yean Song (Aljunied)51 words
[+5 sentences]Thank you, Mr Speaker. I would like to seek clarification from Mr Xie. I recall him saying that, effectively, long-term fiscal marksmanship is what matters. Is he saying that the year-to-year fiscal marksmanship does not matter? And does he agree that there is an opportunity cost to inaccurate year-to-year fiscal marksmanship?
Mr Xie Yao Quan157 words
[+5 sentences]Thank you, Mr Speaker. I will just reiterate two points that I have made in my speech. First, I think it is more meaningful to look at how a term of government balances its collection against spending over its entire term in government. Second, if we look at the statistics, Table 3.1(b) of the statistical annex to the analysis of revenue and expenditure for Budget 2026, the figures are all there. I referred to that; the Member can refer to that. The surplus that we had for FY2021 was just 0.3% of GDP.[+1 sentence] In FY2022, it was 0.2%. In FY2023, we had a deficit of 0.4% of GDP – and I took those to be largely balanced.[+1 sentence] The point is, large surpluses are not that common in our history at all, over the last 26 years; and to zoom in on those large surpluses in GDP terms and draw conclusions about overcollection, I think, is an overstatement.
Mr Speaker2 words
[+1 sentence]Mr Giam.
Mr Gerald Giam Yean Song154 words
[+7 sentences]Thank you, Sir. I have another clarification for him. Mr Xie mentioned that we could plan for corporate income tax contributing up to 4% of GDP and he also proposed more asset related taxes, including higher property taxes and making stamp duty more progressive by introducing a new tier for residential properties above $5 million. Does he agree then, that if all these new taxes and duties are included, there will be less need in the future for increasing regressive taxes like the GST to balance the Budget and meet our future expenditure needs? Secondly, Mr Xie also said that our system of GST and offsets is "highly progressive". Can I ask him what is the basis for that statement and does he know the percentage of people who do not pay any net GST because of GST vouchers? I am not talking about net GST increases but just the net GST in total.
Mr Xie Yao Quan260 words
[+1 sentence]Sir, I thank the Member for both clarifications. For the first, I would say, let us go back to the MOF Occasional Paper published in 2023. And it is stated very clearly in that paper that our total spending needs will hit 19% to 20% of GDP by 2030; the midpoint is 19.5%.[+1 sentence] So, the real question is, how do we get there, from 17.5% 10 years ago? If the Member had listened to my speech and looked at the data, GST even with the increase from 7% to 9% headline rate, is yielding 0.6% of GDP more revenues – from 2% to 2.6% in this Budget. GST alone hardly covers us up to the 19.5% target.[+6 sentences] And so, the point is, we do need a whole mix of revenue strategies to raise revenues structurally to meet our long-term spending needs. And this Government, the PAP Government, has been taking steps well ahead of time and having the courage to do that so that a future government can have the wherewithal to meet our future needs. So, that is the response to the first question. On the second question, it was about GST progressivity. On that, I think it has been mentioned many times in this House and outside, I think Prime Minister put up a chart two years ago during the round-up speech, on the net GST rate, net of transfers, that Singaporean households at different income deciles will be paying because of our system of collection and offsets. So, I would encourage the Member to refer to that.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)114 words
[+4 sentences]Thank you, Speaker. I have two clarification questions. I am wondering if the Member would accept that the constitutional requirement that governments run balanced budgets over their full term necessitates that a balanced budget would occur at the end of this five-year term even when there may be surpluses, simply by transferring any additional surpluses to reserves to ensure that the constraint is respected. My second question: I ask if the Member will not accept that, even if a surplus need not be detrimental under all conditions, which is unobjectionable on its face, it nevertheless imposes a disproportionate cost on our households when they are already struggling with high prices and cost of living.
Mr Speaker2 words
[+1 sentence]Mr Xie.
Mr Xie Yao Quan132 words
[+6 sentences]Sir, I thank the Member for both clarifications. My basic response to both clarifications is yes. I accept that surpluses can be transferred into Past Reserves at the end of a term of government. But surpluses within a term of government serves two purposes: first, it buffers Singapore and Singaporeans against shocks and crises within the term of government, and then at the end of the term of government, if we pass through that term without crisis and we have accumulated surpluses, then that could be transferred out, or that could be transferred into Past Reserves. That is our system of government, and it is, I think, the envy of many countries around the world. It is something that is precious that we should really cherish; something that we should really cherish.
Mr Speaker4 words
[+1 sentence]Ms He Ting Ru.
Ms He Ting Ru (Sengkang)2893 words
[+2 sentences]Mr Speaker, this Budget comes at a time of extraordinary monetary wealth in our country. Singaporeans have seen much progress in the material aspects of their lives, yet some continue to face significant economic changes from blue collar workers, whose wages like PMETs, far more than in comparable countries, to young graduates who struggle to land first jobs due to offshoring and tightened MNC passes, and employees who care for loved ones. During the opening of Parliament, I spoke about the importance of us together and the role I hope to see us take as we move forward beyond early nationhood.[+2 sentences] I would like to expand on this today. Health is wealth. We must make Singapore a healthier society to live in, rather than simply a wealthier one.[+10 sentences] In previous Budgets, I called for moving beyond GDP as our measure of success through dashboards of social development indicators of our social and sustainability goals to ensuring that we also measure our resources beyond economic data, which can take the form of how we quantify our resilience and societal well-being. Today, I will focus on what I see as three pillars of a healthier Singapore society: first, measuring our demographics; second, ensuring well-being in the time of the smartphone; third, supporting environmental well-being. These are issues that underlie our day-to-day feelings of being in crowded trains and roads, as well as the happiness and flourishing of our children in a time of change. They are the lived reality of our fellow residents on this island, for whom the optimisation of their humanity will mean little if it cannot lead to a healthier society. Mr Speaker, in Chinese. (In Malay): To understand Singapore's population limit is quite simple. You just need to take the North East Line during peak hours and experience the feeling of being packed like sardines on the train. When squeezed between other passengers, it is easy to imagine that our Mass Rapid Transit (MRT) lines and indeed, our entire public transport system, was designed to serve a population far smaller than the living reality we see today. Under such circumstances, it is not difficult to understand why many Singaporeans ask: "Are we on the verge of crossing our population limit?" A crowded train versus an unbearable train is not just about the number of passengers but whether passengers believe the train has a timetable and operational plan. Since the ruling party uses 6.9 million as a population planning parameter, they should at least give Singaporeans an explanation – what exactly is the limit in the population plan?[+5 sentences] What are the population plans for various towns nationwide and what are the measures to mitigate the impact of population changes? Large-scale population changes are not merely abstract data, macroeconomic effects or word games. They also have concrete impacts on ordinary people's lives. (In English): On any weekday on the North East Line, the question about Singapore's population limits answers itself. And it is only human for people to ask, are we on the verge of crossing our population and demographic limits? The Government last month said in response to Aljunied MP Fadli Fawzi's question that, while the oft quoted number of 6.9 million is still a relevant planning parameter for the 2030s, our population size, not limits, depend on demographic trends and social and economic needs.[+9 sentences] If 6.9 million is just a planning parameter, then the question Singaporeans living in high density communities like Sengkang need to see answered is this: at that parameter, what precisely does our infrastructure plan to provide and at what point does this provision start to cause discomfort? The Government has said many times that we do not have a population target. Yet when we say that we will "be significantly below 6.9 million by 2030", it fails to assuage concerns that residents have about what they can expect their daily lives would be like in five, 10, or even more years from now. The instinct to avoid having conversations about our population limits may backfire. It is a visible uncertainty that may cause anxiety and actively dampen positive emotions. It is thus fair for Singaporeans to ask for greater clarity. The difference between a crowded train and an intolerable one is not just the number of passengers in it, but whether the passengers believe that the train they are on has a timetable and a plan. During January's Singapore Perspectives Conference, there was much talk about how immigration will keep our economy dynamic amid persistently record low TFR. We must learn from the mistakes of our past and be clear eyed about the question of infrastructure sufficiency. To relieve concerns, would the Government consider releasing population projections for each region as part of the Urban Redevelopment Authority's plans? Research on perceived control in high density environments finds that stress responses are less affected by the actual density of the environment, but more on whether people believe that the crowding itself is being managed.[+14 sentences] By releasing granular projections, the Government has an opportunity to show our efforts to tackle crowding. This matters deeply to how we, as residents of Singapore, experience our daily lives. This will provide a clear picture of whether our region's infrastructure is or will be sufficient for comfort and also help us advocate more meaningfully about urban related well-being issues, such as access to nature and blue spaces. Next, population and demographics are intertwined with our rising dependency ratio, megatrend and its implications for care work. And what care has always required, whether within families, between bosses and workers, and across communities, is presence, trust and reciprocity. It is not merely a resource to be allocated, but a relationship to be sustained. Yet our response is often to optimise, to identify the gap, design a handy scheme and roll out a niftily named subsidy. Perhaps this works for transactional problems, but care is not transactional. When policy treats it as though it were, we risk ending up with technically correct solutions that quietly missed the point. We close every quantifiable gap in our care support initiatives but still may widen what I would call a humanity gap, and this gap shows up in the distance between what our schemes try to provide and what the actual hole is that we humans feel. It shows up in the daughter whose disabled parents receive the Home Caregiving Grant but still feels completely alone. It shows up in the parent who receives new LifeSG credits but still feels really burnt out, trying to keep up with class WhatsApp chats and Parent Gateway notifications. It shows up in the employer who checks the flexible work arrangements box but judges the employee for using it. Efficient policies may have unintended consequences on society. For instance, research published in the Journal of Development Economics in 2018 found that the Beijing vehicle licence plate lottery system was associated with a 35% reduction in births in households of lottery participants and a 6% reduction in births across the entire city.[+7 sentences] I cite this to draw attention to how a society can respond to a policy because people are more complex than we can simulate. None of this takes away from the progress made on our caregiver support. The enhancement of parental leave last year was a meaningful step to recognise that caregiving is shared. But we still have work to do for an economy that supports employees who also do unpaid care work. The Government must foster workplaces where workers do not feel like taking this leave would limit their careers or made them feel like difficult workers with scheduling problems. We must see workers as whole persons with obligations that extend beyond work. Given that many Singaporeans turn to hired living help to run our households and families, we must be responsible for their welfare, not just because treating them better will pragmatically improve their ability to perform their jobs, but because it is the right thing to do. In 2021, a rule was introduced, requiring employers to provide domestic workers at least one rest day a month that cannot be compensated away. Has the Government more recently assessed if it is enough?[+2 sentences] What are the other options available to us, particularly when in the long run, workers from our rapidly development region may not be willing to leave their own loved ones behind to do care work in Singapore? Secondly, while the Household Services Scheme (HSS) has seen increasing participation, I hope that we make greater progress on having more non-live-in part-time domestic workers under the HSS. With basic childminding services no longer being supported with manpower concessions under the HSS pilot from next month, is the Government working with providers to raise awareness of more general HSS services under the scheme?[+5 sentences] By understanding this humanity behind the choices that we make in care work, we can open ourselves up to responding more creatively to the demographic challenges. I spoke earlier of the Beijing Vehicle Lottery System as an example of how policies that are highly effective on one problem could be inadvertently shaping decisions, like whether one should have children. The lesson from this is that we should be less fixated on pure optimisation and be more willing to accommodate the quarts of society. For example, when Sengkang MP Assoc Prof Jamus Lim called for a more needs-based Certificate of Entitlement (COE) system for parents with multiple young children with care needs and with care needs, it drew criticism for being subjective, divisive and benefiting too few. Surely, there is room to take into account lived experiences, as those of us with multiple young children and loved ones with care needs will attest to. In fact, it appears that some Government policies already take similar concerns into account, such as HDB's free parking scheme on Sundays and public holidays, which aims to promote social integration and stronger family ties.[+12 sentences] Next, societal health in the smartphone era. This Budget takes place in the context of widening scrutiny of social media platforms, online games, digital tools like AI. Many of us have raised concerns on digital safety. However, despite passing legislation that deal with discrete harms, we must also have interventions on the harms caused by the digital environments themselves. While we may not be interested in and can admirably resist all the myriad offerings big tech has for us, this does not mean that big tech ceases to be interested or invested in us. And the dangers of digital harms extend beyond our youths. A recent article in The Economist warned that older people too are seeing increases in smartphone addiction. Scientific evidence has emerged and tells us that children's brains and, in particular, are not developed enough to handle these digital environments. As social psychologist Jonathan Haid argues, unsupervised in person, that is, offline play, has seen a huge decline, replaced by near limitless virtual social interaction. This is concerning as in-person play develops critical social and coping skills. There has also been increasing concern about the plateauing of or even reversal of the Flynn effect, which states that younger generations score higher on IQ test compared with the previous ones. And while the jury is out and there is criticism of Haid's argument that digital childhood is the overwhelming cause for the youth mental illness epidemic, other jurisdictions are already proposing social media bands for children. Australia's laws came into effect in December last year, with countries like Spain, India, Denmark, Norway, Malaysia and the UK announcing similar intentions. It is time for Singapore to take clearer scientifically informed interventions to address these concerns. This should include setting up a Select Committee to study whether a ban is appropriate in par in parallel to the Government's ongoing study and engagement with counterparts.[+5 sentences] While I will raise this issue in more detail in my Ministry of Digital Development and Information's (MDDI's) Committee of Supply (COS) cut, I believe this development has to be studied with public participation and visibility through Select Committee hearings like we did with fake news. Next, the impact of GenAI. This Budget has seen the Government announced wide- ranging support. However, while many Singaporean see it as a way to replace mundane tasks, others worry about GenAI that risks taking away our culture and yes, work and what it means to be human, and not because AI is seen to be better than a human hand, coming up with pantuns in a second, but because it is cheaper, faster and often ruled by models and scripts that we have no access to and thus, have no say in. Many also worry about the impact of AI on our society's valuation of human creativity and consciousness. Forty-three percent of respondents to a Millennials Insights Survey from last year were concerned that the extensive use of AI in their daily lives might result in a loss of human touch.[+8 sentences] The Government has a clear responsibility in technology regulation, financial backing and its own adoption of such tools. And I raise two suggestions of how to mediate the societal impact of AI. First, at the top level, the new National AI Council must include representatives from the societal sectors that are at high risk for adverse effects from AI, rather than only boosting adoption via industrial AI Missions. What seems to be absent are the input of social scientists and psychologists; also, representatives from Ministry of Culture, Community and Youth (MCCY), given AI shaping of the arts and influence on culture, as well as Ministry of Education (MOE), as AI rapidly changes the way that students learn and develop or not. Even as we harness AI for industrial transformation and economic progress, we should take a leave from the UK's AI Council, which sat from 2019 to 2023. That Council included members from industry, public sector and academia, and focused on diverse areas from developing public confidence in AI to developing frameworks to deploy safe, fair, legal and ethical data sharing. For our own AI Council, ensuring formalised input from Ministries dealing with diverse groups also means that the conversation will also include the important factors of what our shared humanity means in the true spirit of us together. Second, our education system must be constantly incorporate the latest findings on the impact that AI has on learning. While various MOE frameworks are in place, a study last year by MIT Media Lab found that over reliance on AI may reduce functional brain connectivity and memory recall.[+8 sentences] This will be even more marked in the developing child's brain, characterised by higher neuroplasticity and its still undeveloped prefrontal cortex. The skills degradation argument was also cited in the safe and responsible use of AI in classrooms manual recently introduced in the United Arab Emirates (UAE), which includes provisions for GenAI use only in settings where direct teacher oversight is available. Sir, my final area today is the need for us to be committed to environmental well-being. It is commendable that we have set an ambitious goal of ensuring that all households are within a 10-minute walk from a park by 2030. But as a small city-state with an ever-growing population and few places to go, we should also be extending this goal to ensure greater access to blue spaces, such as seas and lakes. Aside from widely accepted benefits of being in contact with nature in the form of greenery, numerous studies have also found that living near blue spaces positively influence mental restoration among adults and is something which we should work on. We must increase the quality of engagement with nature conservation groups. While such groups are now sometimes consulted ahead of development work, feedback is that this engagement can sometimes feel like a one-way information process, rather than a deep consultation or even a negotiation where concessions are made. As called for in a 2024 Singapore Terrestrial Conservation Plan, the Government should establish clear legal boundaries for protected nature areas and protect the few remaining habitats that we have, which are absolutely key for both planetary and societal health.[+7 sentences] To conclude, as we move on in our society's continued evolution, we have to be more willing to relook our previous reflexes, which cite costs or economic reasons as trade-offs that we cannot accept, when the alternative is a deterioration in the health of our society. And we must confront not just fiscal costs, but also human costs. They are the costs borne by the caregiver with no one to relieve her, the costs for the child plagued by intrusive thoughts and heart palpitations, because the digital world does not switch off, the costs borne by the resident who helplessly watches as the last wild space in their neighbourhood disappears. These are real costs, but they simply do not appear on any balance sheet nor measure of GDP. Mr Speaker, I thus hope that as we chart our path as we are together, we continue to work to make Singapore a healthier society, a healthier home and not simply a wealthier one. Wealth without health is a house that is not a home. The choices that we make are ultimately a clear indication of what we as a society value – and I believe that we are ready to make them.
Mr Speaker4 words
[+1 sentence]Ms Poh Li San.
Ms Poh Li San (Sembawang West)2512 words
[+3 sentences]Mr Speaker, $155 billion is a big sum of money and this is a generous Budget. But numbers can get lost without benchmarks. Is $155 billion a lot to spend for a country of our size? In Southeast Asia, on a per capita basis, we are number two in 2024, at about US$22,000 per capita, behind Brunei. We are ahead of Malaysia which is about US$10,000; Thailand, about US$5,500; and the Southeast Asia average of about US$3,500 and we are close to the OECD average of about US$23,000. Compared to OECD countries, Singapore sits around the mid-pack, 24th out of 41 entries.[+29 sentences] The highest per capita spenders are Luxembourg, about US$69,000; Norway, about US$65,000; and Denmark, about US$40,000. The global top rankings are mainly small countries and very well-resourced ones, with relatively high tax rates. Within the OECD, Singapore is just behind the spending of US, which is about US$26,000; and the UK, which is about US$24,000; and ahead of Korea and Japan, both at about US$19,000. So, when I say this is a generous Budget, I say it with the confidence of these benchmarks. At the same time, there is some disconnect with the feelings on the ground. The ordinary man in the street will see the big numbers, including those set aside for AI and technology, but feel that very little of the money is actually trickling down to them. It is like a rich towkay who spends a lot of money to buy the best equipment and house them in gleaming big factories, but his employees do not feel that their bonuses are getting bigger or that their training is helping them. Instead, they feel like life is squeezing them dry, their commute getting longer, their food prices increasing and their lives a little more precarious. Mr Speaker, I will focus my speech squarely on those nearing retirement, the young seniors, because I feel the coming changes that the Prime Minister has predicted in his Budget will hit this group the most. Here, there are two groups of Singaporeans in the young seniors demographics, the well-prepared and well-resourced, mainly the upper- and upper middle-income group, and those who are struggling and worrying about making ends meet. To be honest, this second group appears to be increasing in numbers. Whether warranted or not, many of us are worried. My concern is that these mega shifts have caused or will cause more to slip into the lower middle-income group. Once there, they may be unable to rise above this employment black hole on their own. Hence, deep Government intervention may be needed. I argue that we need to fundamentally review our strategy to keep our workforce relevant. Otherwise, we may end up with deeper structural unemployment. There is a growing number of a generation of displaced and frustrated young seniors. They become unemployable in their 50s and 60s, giving rise to deep discontent. In the marketplace, companies are unable to grow or even to stay above water, due to unfilled job roles. Also, longer life expectancy means that we have to make our retirement funds last longer. So, it will be a two-step reinforcing cycle. First, shorter economic cycles especially with AI, means higher chance of displacement. Second, higher property prices. With more Ordinary Account locked up in property, our Central Provident Fund (CPF) Retirement Account is no longer sufficient for retirement. So, it is understandable that sometimes, even with $155 billion spent, there could still be pockets of discontent and despair among those who feel the money is not reaching them. How can we break this cycle of discontent and bring in hope and optimism? There are three things we can work on: skills, health and money. In Singapore, people are our only asset and every worker matters. The Government must keep our people fit to work, acquire relevant skills and grow their retirement nest egg. So, we need to do three things: one, compulsory retraining and skill upgrade every 10 years; two, staying physically and mentally fit to work; and three, increase forced savings rate or CPF contribution rates.[+7 sentences] Businesses and employees must be responsive to changes in market trends and new job demands. IHLs and Institutes of Technical Education (ITEs) must also be more aware of job market requirements and are nimble to offer short courses and skills certification. Mr Speaker, in my mind, SkillsFuture will be the key policy instrument which will help us ensure that we remain relevant and skilled. But we cannot just fund courses willy-nilly. No number of Japanese pastry lessons or scented candle classes will get us where we need to be to compete against a world which is AI-enabled and technology-powered. We need discipline and expertise, not just “busy work” in retraining. We need to offer the courses back in IHLs and ITEs with market-recognised certification. MOM, the Ministry of Trade and Industry (MTI) and MOE must collaborate more closely to close the gap between industry needs in high-growth sectors, jobs projections and retraining or re-education courses, for example in sustainability, healthcare and information technology (IT). I ask for the Government to consider funding workers for retraining or reskilling for every worker reaching 40, 50 and 60 for six months.[+24 sentences] The Progressive Wage Model can be more aggressive with higher salaries for frontline or high-touch jobs so that Singaporeans will be keen to join them. To do this and still keep ourselves cost-competitive, we need to look at productivity. In this we can look at the use of AI and robotics especially for the “dull, dangerous and dirty” jobs and upskill our young seniors to operate and supervise the robots. For example, we have seen how senior cashiers in supermarkets, are now helping with self-checkouts. The self-checkout kiosks are reducing the need for manpower and offering each person a platform to increase their productivity. Government, businesses and people must work closely together to help this group of young seniors stay employable and prepare them well for retirement. In fact, the "back to school every 10 years" should start from 30 years old and be a Government co-funded programme as an investment in our people. From where we stand, going back to school at 30 years old when we have left school barely six or seven years ago seems extravagant. But this is the pace of new knowledge creation nowadays. We no longer can count on our initial degrees bearing us through our careers without supplements. Continuous education is a way of life, no matter our professions. This leads me to my second point about mental and physical health. Why do we work? This sounds like a philosophical question so let me ask it in a more practical way. Is the Singaporean Dream about building a million-dollar nest egg and retiring early? Do we start our working life with the aim that it will be a short one and our life thereafter be a life of ease, comfort and plenty? The chance of a life of ease without labour may be true for the very few lucky enough to be born into wealth or marry into one, or with a magic touch at the races. But for the majority of us, life is a journey of work, meaning and growth, with most of our average 85 years of life spent accumulating judgement, skill and knowledge. But work, like life, is a long marathon and not a sprint to get rich quickly. Many who think about retiring young and may sacrifice their health with long and intense work hours in their 20s, 30s and 40s, only to find they end up with poor health in their 50s and 60s and are unable to live, let alone retire well. One often does not factor in the economic and psychological cost of poor health and often poor health is less a matter of genetic endowment or bad luck, than it is an accumulation of bad decisions relating to diet, lifestyle and sleep. Health is wealth may sound empty until one ends up on the wrong end of the hospital bed. So, in relation to work, I would suggest for us to think of healthy work as the key policy goal. I suggest three points. First, we ought to press on with Healthy SG for those aged 40 and above.[+1 sentence] The rules for healthy working life are quite simple – have enough sleep, make friends and observe some simple health guidelines relating to diet and exercise. Second, consider going back to school every 10 years, which is also a sabbatical from work. Last and most importantly, view working as a way of staying relevant, engage with community rather than retiring early.[+16 sentences] And to me, this is truly a life well-lived. Quite aside from dry policy issues of planning, providing and financing, there are personal decisions and convictions about meaning and connections. There is dignity and value in work. It is part of health and a good life. As a national conversation, we should include these important considerations in our planning and policies about working life. Many low- and lower-middle income groups cannot even meet the minimum retirement sum and yet we know that it has to keep increasing so as to keep pace with inflation and longer life spans. Many in these groups also do not have savings and may have to downgrade their flats or opt for Lease Buybacks. Over the years, I have assisted numerous residents in their 50s and 60s who struggled to repay their monthly housing instalments due to ill health or job losses or both in some cases. Eventually, many of them had to reluctantly downgrade into smaller two-room Flexi flats. One example is Mr N, who suffered from a chronic heart condition which rendered him unemployable. He and his wife do not have sufficient CPF funds to pay off their two-room Flexi Build-To-Order (BTO). After many rounds of appeals, they finally received special approval to use their limited funds in the Retirement Account for their BTO. But they had to pledge their flat to CPF Board because the funds in their Retirement Account were below the Basic Retirement Sum. While they now have a roof over their heads, they still worry constantly about their ability to cope with rising living and medical expenses for their retirement. This is a fact, a pressure point, for young seniors who are beginning to see the importance of their CPF in their retirement journey. How do we fix this shortfall? First, with more use of the funds in the Ordinary Account for property purchases, we may need to consider higher CPF contribution rate from employer and employees. Second, can the CPF Board consider increasing the interest rate of 2.8% for the Ordinary Account and 4% for the Special Account?[+21 sentences] This may be considered for such a long-term investment horizon and the large funds quantum. Giving better returns will help reduce the calls for increased employer contributions to CPF, which risks making our workforce less competitive. Mr Speaker, I would like to speak in Malay. (In Malay): Mr Speaker, my speech underlines the difficulties faced by two groups within the young senior citizen demographic. First, those who are ready and financially capable, compared to the increasing number of those who are struggling to make ends meet. I am also concerned that more and more people are falling into the lower middle-income bracket and facing structural unemployment. A fundamental review of workforce strategy is urgently needed. This includes implementing mandatory retraining every 10 years, aligning the education system with job market requirements as well as co-financing of retraining programmes by the Government to maintain workforce employability amid rapid technological change, particularly in the era of AI. (In English): Mr Speaker, there are two sides to this issue and changes need to be made both on an individual level and the Government level. The first is, I think, the more radical. We need for Singaporeans to think of a meaningful working life as a fit companion for their adult life and not just a stage before the bliss of retirement. We need for all of us to consider work differently, to see it as a long running endeavour and one that is important and meaningful in itself, rather than something we have to do in order to make enough money for retirement. With this mindset change, we have two important implications. First, we need to continually get better at work, and to become not just relevant but skilled and accomplished at our jobs. We should be confident in our abilities that we are better than and are more than machines, that we can stay ahead and abreast of new technologies, and we can continually master new skills. Secondly, even as we work, we must not lose sight of the need to continually invest in our mental and physical health. We must think of health as a key asset in our lives, not just our properties and other economic assets. If there is one thing that money cannot buy, it is good health. It is a better asset not just of national healthcare financing, but of personal quality of life. Mr Speaker, I would like to speak in Mandarin. (In Mandarin): Mr Speaker, in the face of rapid technological transformation, particularly in the age of AI, we need to conduct a fundamental review of our overall workforce strategy. Every employee is an important link in the chain. We should seriously consider institutionalising retraining arrangement, for example, allowing an employee to undergo training every 10 years, promoting closer alignment between the education system and market demands with appropriate Government subsidies to establish a more comprehensive retraining system, thereby maintaining employees' employability.[+3 sentences] I also encourage Singaporeans to view work as a lifelong meaningful endeavour rather than merely as a means to retire early. I also advocate for continuous skills upgrading and regarding health as a key asset, so as to ensure our employability and competitiveness in the long term. (In English): Mr Speaker, there is great urgency and courage required of us to carry out this revamp. Urgency because otherwise, the young seniors will become a "lost generation", which the Singapore Government will need to support for the long term.[+1 sentence] Courage because this will require hard mettle and tough choices. No amount of CDC vouchers and subsidies would help us tackle this problem. The tide of discontent is borne out of uncertainty and fear about the changes that await us.[+3 sentences] Against this, we have a strong track record of collective action, strong policy-making and a united, cohesive framework between the private and public sector. Our country is small enough and nimble enough to find a living even in a turbulent world economy. We already have the financial foundation. Let us find within us the political will, the courage and the great urgency to transform discontent into hope and ability to remake our country and our people to meet the challenges ahead.[+1 sentence] Mr Speaker, Sir, notwithstanding my comments, I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Sanjeev Kumar Tiwari.
Mr Sanjeev Kumar Tiwari (Nominated Member)1745 words
[+16 sentences]Mr Speaker, I speak on behalf of the various segments of the Singaporean workforce – the low-income, PMEs, mature workers and many others across the Labour Movement, including public officers. In a Budget, workers look forward to two things most: assurance today and confidence for tomorrow, especially in an age shaped by rapid technological shifts, demographic change and workplace transformation. Their aspiration is simple and shared: stable jobs, sustainable wage growth and dignified progression over longer working lives. And they want to know that even as industries transform, they will not be left behind. I am heartened by the many of the hon Members' speeches who shared similar concerns that our workers must be at the heart of this transformation. I thank them for the care. Budget 2026 gives assurance to households while laying long-term foundations for a more resilient workforce and brighter economy. Mr Speaker, the pressure to keep up and the risks of falling behind is real. On the ground, workers, especially PMEs, tell us candidly that they want to keep up. Workflows are being digitalised, re-designed and more AI-enabled. Tasks evolve faster; skills expire sooner. So, many workers do the responsible thing, they try to upgrade, learn new tools, adapt to new work. However, challenges remain – fear of failure, insufficient time to upskill or reskill and not knowing what to upskill or reskill for sometimes, and at times, there is no change after all that upskilling and reskilling. Here, I urge the Government to encourage companies, small and big, to partner the NTUC and the unions to leverage on the CTCs to prepare for the future of work and to grow both the organisation and its workers as part of the transformation journey. The earlier we prepare, the better the chances of workers being upskilled and to be more efficiently deployed. Budget 2026 also takes a decisive structural step. SSG and WSG will merge into a single agency, jointly overseen by MOM and MOE.[+3 sentences] This will tighten the link between training and jobs, offering more seamless career guidance, upskilling, job matching and transitions for workers and integrated support for employers. This move recognises the faster cadence of technology and job transitions, and the need for a single "Jobs-Skills" backbone. The merger builds on a decade of SkillsFuture. In 2025 alone, 606,000 individuals participated in SSG-supported training, and 123,000 enrolled in courses with direct employability outcomes.[+5 sentences] This signals a workforce investing in its relevance and wanting to stay relevant for the future. We therefore should make the merger count for outcomes: track and publish conversion metrics, such as time to placement; wage growth post training; and employer adoption; co-design more CTC-like Jobs-Skills pathways, so training is planned with job redesign and hiring from the start; extend mid-career training support in ways that do not penalise caregivers or SMEs with lean staffing. Mr Speaker, when disruption happens, the consequences for workers are painful. For some, the fear is not abstract. They have seen colleagues retrenched after restructuring, roles outsourced, functions automated. Retrenchments rose to 14,400 in 2025, on the back of a choppy global outlook.[+9 sentences] We are looking forward for AI transformation. The fear continues to be real. In these moments, unions step in to ensure fair process, negotiate fair benefits and facilitate placement support through the e2i. Early notification to unions is not a procedural nicety; it is the difference between proactive help and reactive damage control. Many unionised companies recognise this. They give unions advanced notice of upcoming retrenchment exercises, sometimes even months ahead. We should institutionalise advance retrenchment notifications across all firms, including for PMEs, so that affected workers can be rendered meaningful assistance early and with dignity. Another structural concern is the year-to-year contracts where is there ongoing work, but a whole lot of ongoing uncertainty and insecurity. The continued prevalence of fixed term contracts, especially annual renewals, put pressure on workers. While the share declined slightly in 2025, with over 90% of resident employees now in permanent jobs, around 7% remain on fixed term contracts and older workers are disproportionately represented among one-year contracts.[+11 sentences] For them, renewal uncertainty makes long-term planning and upskilling harder, which puts them at risk of falling behind. This issue is felt acutely by mature workers who already face longer job searches. Their reality should push us beyond administratively convenient renewals, towards clearer pathways to permanency where work is ongoing. The Public Service is one of our largest employers. It can lead by example. Public sector data show nearly 24% of officers are 50 and above. We should be more transparent about contract tenure patterns, renewal outcomes and pathways to permanency where roles persist, so officers can contribute with confidence and plan for retirement with clarity. I urge for regular employer reviews of fixed term contracting, particularly for workers and for the Public Service to publish more granular indicators on a contract-to-permanent pathways, where functions continue beyond a cycle. Mr Speaker, longer working lives need sustainable work intensity, not just more training. PMEs today operate at sustained high intensity, long hours for some, but more often, it is the constant connectivity, with limited mental space to recover. Officially, average weekly hours for employed residents have moderated to about 41 to 43 hours, and MOM has encouraged flexibility through the Tripartite Guidelines on Flexible Work Arrangement Requests, but the intensity outside formal hours matter too. Surveys show over 90% of employees have worked beyond official hours, with 71% fearing negative repercussions if they do not respond after hours.[+7 sentences] Rest is not about doing less, it is about sustaining efforts and well-being. Without sustainable norms, even the best upskilling will under deliver. Burn-out erodes adaptability and retention. Here, I would like to encourage employers to set organisational norms around after-hours responsiveness, escalation rules and protected focus time. I also call on the Government to monitor hours and intensity indicators and spotlight firms that redesign work to raise productivity and protect recovery. Budget 2026 strengthens retirement adequacy and security. I thank the Government for a one-time CPF top-up of up to $1,500 in December 2026, targeted at seniors with lower retirement savings based on their CPF balances and property Annual Value. The next step of planned CPF contribution increases for senior workers will proceed from January 2027, with a transition offset to help employers. CPF will also pilot a new simplified, low cost, life-cycle investment scheme by 2028 to give members more diversified options above the base interest rates.[+14 sentences] This broadens pathways for workers who can take modest market risk across a long horizon. These measures matter, because not all workers reach retirement with the same trajectory. Some face mid-career retrenchment, illnesses or years on rolling contracts that depress CPF accumulation. We should continue targeted CPF support for workers with disrupted careers, tracking cohorts with extended unemployment or caregiving breaks and calibrating top-ups to close adequacy gaps over time. Mr Speaker, mature workers want to contribute – matching experience with opportunity is important. NTUC's own survey showed strong willingness among older workers to remain economically active beyond the current retirement and even re-employment ages. They are motivated by purpose, health and some as much as by income. But access to career guidance training remains uneven. Many who tap on these opportunities find them helpful, yet others have shared that they feel disadvantaged or overlooked in being considered for them. We must close this access gap. We already see credible models in healthcare, age inclusive job redesign and assistive tech to help older staff to keep contributing productively, with unions partnering management and tapping on the CTC support to scale solutions. This is precisely the kind of redesign we need to mainstream. We should embed career guidance as a default in mid-career pathways under the new jobs-skills agency and to scale union employer pilots that pair job redesign with structured upskilling for older teams, across sectors. SMEs often tell us their challenge is not only funding, but time and manpower to release staff for training. Where unions are present, we have negotiated training leave into collective agreements; this must be spread by example into non-union and SME settings, with redesigned shifts, modular stackable courses and just-in-time learning aligned to job redesign. The Public Service can catalyse norms through transparent dashboards on contract renewal patterns and clearer pathways from fixed term contracts to permanent posts when work is ongoing.[+2 sentences] That signal will ripple to the wider labour market. What Budget 2026 means for families today and for our future workforce is that there were expectations on the ground for more support, given the surplus and there are many uncertainties still looming. Families will still feel Budget 2026's tangible support: cash Cost-of-Living Special Payments, enhanced U-Save rebates and CDC vouchers for all households in January 2027.[+13 sentences] These measures cushion near-term pressures while structural changes mature but, ultimately, confidence comes when a worker sees three things clearly: "If I learn, there is a job at the end"; "If my role changes, there is fair process and early help"; and "If I work longer, the work is sustainable and my retirement is secure". Our task is to translate policy into predictable pathways at the firm and at the worker level through initiatives like the CTCs, the new jobs-skills agency and tripartite norms that protect both adaptability and well-being. Mr Speaker, behind every statistic is a worker who wants to provide for family, stay self-reliant and contribute with dignity. Workers are not stopgaps; they are partners in transformation and productivity. When we invest in their skills, support them responsibly through change and give them time and space to adapt, workers repay that trust with commitment and employers benefit from a qualified workforce that will boost productivity and bring about growth. The Budget sets direction. But direction must become delivery, and delivery depends on all of us. Let us Government, employers, unions and every worker, move decisively together, build new jobs and skills backbone so every Singaporean can see a pathway forward. Let us redesign work so that transformation uplifts and not exhausts. Let us strengthen fairness and security, from early retrenchment notifications to clearer contract to permanency pathways. And let us ensure retirement adequacy, especially for those whose careers have been disrupted. Mr Speaker, the future of work must not be something that workers endure, it must be something they can look forward to, having that assurance that their future will be better. With that, notwithstanding my thoughts, I support Budget 2026.
Mr Speaker4 words
[+1 sentence]Ms Hazlina Abdul Halim.
Ms Hazlina Abdul Halim (East Coast)2516 words
[+8 sentences]Mr Speaker, if this is the sign that a Member of this House use instead of this to signal "Call me", chances are, you will remember the OG Singapore Dream, the "5Cs": Cash, Car, Credit Card, Condominium and Country Club. But of course, I had to ask AI, what are the new "5Cs". According to Gemini, it is Choice, Convenience, Contentment, CPF, as well as Care or Community. From the OG 5Cs in 1990s to the post-pandemic 2020s, tangible goals have seemingly morphed and evolved into intangible ideals. So, how do we keep the Singapore Dream, as the hon Member had earlier mentioned, alive and kicking? The strong closing to the financial year should motivate the Government to invest more where it matters most – our people, our businesses and our economy. The question we must keep in mind: how can and what should Budget 2026 do to trampoline Singaporeans towards this Dream? Today, I will contribute "3Cs" to our 2026 Budget debate – Cost of living; Caring for families; and Core of our Workforce. On the cost of living, I appreciate that this year's Budget is for the long game, long term, long run – intentional commitments to levelling up how we harness AI as a strategic advantage, supporting our local companies to manage business costs and build a regional and global footprint, as well as strengthening our enterprise ecosystem to support public listings and to develop the equity market.[+2 sentences] But short- and mid-term anxieties remain. My Fengshan families, both living in landed homes and HDB rental flats, have different lifestyles but share the same concerns on rising costs. Some sought clarification – why a healthy surplus to the tune of 1.9% of GDP has not already translated to more support measures.[+2 sentences] Yesterday, my neighbour in this House, the hon Member Shawn Loh, of Jalan Besar Group Representation Constituency (GRC), proposed surplus sharing if Budget surplus exceed 2% of the GDP. I hear of similar aspirations from the ground even as many appreciated Singapore's fiscal prudence. My question is, would the Government consider re-timing or reviewing planned revenue generating measures or taxes in the next few years, especially ones which may directly lead to alleviating cost-of-living pressures?[+24 sentences] A decline in inflation from 5% to 2% does not reverse cumulative increases over the past few years. It means prices are rising slowly from an already increased base. Households experience this most acutely in everyday expenses – groceries, meals and utilities. In response to a Parliamentary question I filed earlier this month on the impact of the Assurance Package, the hon Member Finance Senior Minister of State Jeffrey Siow said combining structural measures and additional one-off support allows to provide for more responsive and targeted support, while remaining fiscally prudent. And that in the longer term, the most sustainable way to help Singaporeans cope with cost pressures is through broad-based wage growth that outpaces inflation. This reminds me of the Chinese saying, "授人以鱼, 不如授人以渔", similar to the English saying: "Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime." While I am aligned with the wisdom behind the design and appreciate the new Cost-of-Living Special Payment, perhaps future iterations can have a tiered structure for a range of income with larger payouts concentrated at the lower spectrum of the income range. For example, the bottom 10% of the range could potentially receive a higher payout than the next 20% income group. Such a structure would redistribute more direct fiscal support to Singaporeans that experience intense cost pressures the most. Mr Speaker, is it really a Budget debate if the CDC voucher does not get a mention? The additional $500 in CDC vouchers remain on course to fulfil its mission of supporting Singaporean households with daily expenses, as well as support heartland merchants and hawkers. Since January 2023, 50% of any tranche of vouchers could be used at participating supermarkets, a welcomed move by Singaporeans. That said, there are opportunities to refine the scheme to enhance its impact. Greater flexibility on how and where they can be used may increase its value to households and support more local businesses. For example, in private residential estates or new neighbourhoods where a market or food centre are a few precincts or zones away, allowing the CDC vouchers to be used at locally owned enterprises in privately-owned buildings or malls, will expand help for families. Alternatively, aligned with my earlier suggestion for Cost-of-Living Special Payment, the CDC vouchers could take on a similar tiered approach. Plus, distributing CDC vouchers on a per person versus a household basis, may more accurately tackle the cost-of-living pressures in multi-generational, multi-family households. My next "C" is Caring for Families. Mr Speaker, I declare interest, as the head of a homegrown community fund with an Institution of a Public Character (IPC) status, whose mission is to nurture youths and children. Sir, children are our future. The future is young and everything begins at home. A strong family foundation changes lives. I welcome the move to support families, especially in the early years of a child's development. Upstream efforts to keep preschool and student care affordable are the right steps towards a thriving Singapore society. The upwards review of monthly household income threshold to $15,000 for preschool subsidies means help reaches more lower- and middle-income households. Similarly, the household income revision for Student Care Fee Assistance to $6,500 enhances access to after-school care, where students get the guidance they need and working parents get the support they deserve.[+4 sentences] While making preschool and student care more affordable is the right move, we must also guard against unintended consequences, such as driving up costs in the long term or placing undue strain on teachers and resources. Maintaining the quality of education and care while expanding access is key to sustaining these initiatives over time. Alongside the timely assistance, how will the Government ensure that increased subsidies not lead to upward pressure on preschool and aftercare fees over time? Would the Government also be studying to what extent childcare affordability remains a barrier to workforce participation among mothers, particularly in lower- to middle-income households? Speaker, Sir, I welcome Prime Minister Wong's announcement that strengthening support for persons with disabilities is a key priority of the Government and I look forward to the recommendations from the task force that will be reviewing how Singapore can provide more meaningful support at different life stages for persons with disabilities and their families.[+9 sentences] A critical consideration on these efforts include developing the expertise and professionals who form our care economy. I call on the Government to be intentional in expanding the capacity of the sector – partnering social service agencies and community-based partnerships is key. I carry the hopes of Singaporeans who have personally shared with me the lived realities of caring for a special child. A dedicated Fengshan father once shared, how a simple bus or MRT ride can be a complex mission. He is a uniformed officer, protecting our shores. I urge the task force to expand the support and relief for families and caregivers to alleviate the added pressures across several domains, including transport, therapy and medical assistive devices, among others. I stand guided by the Prime Minister that it is a shared responsibility for all of us. Speaker, Sir, each family is different with unique circumstances. We cannot choose the family we are born in to, but the system should equip families to shape the future they aspire to have. The recent Occasional Paper on Income Growth, Inequality and Mobility Trends in Singapore revealed that while Singapore has done relatively well in sustaining social mobility compared to other advanced economies, our social mobility has shown signs of gradual moderation as Singapore's economy continue to mature and develop. One of Singapore's efforts to tackle social mobility is the ComLink+ programme, which will see an additional $500 payout for families working towards their milestone goals in this year's Budget. As the scheme was first launched in 2023 it is timely for the Government to share meaningful interim findings on how ComLink+ is beginning to translate into better educational and social outcomes for the children.[+23 sentences] It is in all our interest to ensure that as many Singaporean children have a fair go. Speaker, Sir, I spoke on cost of living and caring for families before my final "C", that is, Core, I will speak in Malay, please, Sir. (In Malay): Mr Speaker, Budget 2026, like previous Budgets, underlines the importance of preparing for a rainy day. The additional investments and funds channeled are meant to build and strengthen, so that future generations can create opportunities – for progress, income and success. Although Budget 2026 focuses on the long term to ensure a strong future, many residents of Fengshan and, indeed, East Coast as well as throughout Singapore whom I have met, shared their concerns about the challenges they face in dealing with rising costs of living. Regardless of whether they live in HDB flats or terrace houses, among other things, the price of daily meals, the expenses incurred when raising their children and caring for ageing parents often linger in their minds. The assistance measures announced in the Budget will enable our people to continue being self-reliant and progress. However, the Budget must also help strengthen the resilience and competitiveness of the community now, as I mentioned earlier in English. Additionally, Singapore also needs to enhance support that is localised and centred on the community as well as the organisations that offer it. For example, the Malay/Muslim organisations and Indian/Muslim organisations that offer services to seniors, support families in need, obtain jobs as well as skills upgrading. Essentially, Singapore must facilitate and diversify support networks comprehensively in the neighbourhoods. I will elaborate further, Mr Speaker, during the COS debate on the Malay and Muslim community affairs later. Mr Speaker, well-being is not only measured through economic growth figures but also through the quality of life experienced by every family in Singapore, although a family's financial stability is certainly linked to social mobility. As someone who cares deeply about our community's well-being, progress and sustainability, I also wish to underline the importance of opening up more opportunities for our youths to compete and fly the Singapore flag high. The Singapore we build must be secure, where every individual feels that they have opportunities to succeed and contribute to the nation. It is our shared responsibility. We need to collectively improve the quality of life for our people across all areas – strengthening financial assistance, generating opportunities, offering support and building hope for the future. Mr Speaker, by supporting this Budget, I hope Singapore will continue to strengthen policies which will give confidence to our people that Singapore's future will remain bright for all. (In English): And now, Speaker, Sir, my final "C", Core of a resilient workforce. I will summarise this section by going back to basics, the "ABCs". "A" for AI access, ethics and governance. Much has been said about AI – from AI fatigue to how it must a friend and never made a foe. AI is also fast becoming a core tool of our workforce. To level the playing field and access, AI intervention has to come upstream.[+5 sentences] By starting in schools, we can mitigate widening the AI divide, where only some will thrive in an AI-driven future. Enhancing AI literacy across all Institutions of Higher Learning is a good start, but earlier is better. Emphasising strong foundations will help students to learn how to use AI in a responsible manner and not as a shortcut. The Budget also highlights initiatives to help workers leverage AI to automate routine tasks. I welcome the move and ask how the Government plans to assess how AI complements human intelligence, HI, and not replace critical thought at work and in life. What safeguards are in place to ensure AI does not inadvertently replace individuals or widen skill and income gaps in the workforce? Perhaps the Government could consider collaborating with various key industries to create sector-specific AI toolkits, so talents can effectively conquer AI in their domains.[+4 sentences] Additionally, the Government should prioritise ethics and governance in the AI agenda, because only then we can build a strong and resilient workforce that is skilled in using AI competitively and responsibly. Next is "B" for builders. Mr Speaker, in my maiden speech I dedicated time to our seniors and pioneers who built Singapore and how Singapore should now ensure the third age is with dignity and security. But we must note, the needs of a senior at 55, 65, 75, 85 and 95 is vastly different. For the young seniors, the planned increase in CPF contribution rates for senior workers in 2027 is helpful for retirement savings. Providing more investment options for CPF members also offers seniors the opportunity to grow assets, enabling them to age without worry. But this must come with guardrails and capital preservation at the front and center. However, for older seniors who may face re-employment difficulties or are medically unfit, how will the Government support meaning contributions to their CPF accounts, so that the policy achieves its intended effect?[+14 sentences] It is crucial to ensure initiatives aimed at enabling our seniors to age well are practical in improving seniors' financial security and quality of life. Finally, "C" for companies. Mr Speaker, Singapore should level-up efforts to diversify partnerships with middle powers and emerging markets to develop pathways for young Singaporeans to have regional and global experience, so they can come back as leaders in the Singapore workforce. Singapore's young have a strong sense of purpose and social justice and aspires for their employer to be on the right side, play a part in building a community of good and drive social impact. This is an aspiration many young talents carry. By better understanding our young talents, their world view on meaningful work and their desire to be multifaceted, I am hopeful of a generation of Singaporeans who is committed to building a better future for the next one in time to come. I intend to touch more on supporting our youths during the MCCY COS debate. Mr Speaker, today, we recap the OG 5Cs, thought about the new 5Cs and focused on three Cs – cost of living, caring for families and core of our workforce. Budget 2026 demonstrates a thoughtful and prudent approach to building a forward-looking Singapore with a keen eye on current affairs. While Singapore is less than 750 square kilometres, the region and the world is a shared space and we must protect ours. I plan to elaborate more during the Ministry of Foreign Affairs and Ministry of Defence's COS debates. Sir, Singaporeans are hopeful that the Budget reforms the economy now for the future. Singaporeans across generations and backgrounds must have the feels for the Budget, so every Singaporean can feel secure and optimistic about what lies ahead. All being said, Mr Speaker, Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Yeo Wan Ling.
Ms Yeo Wan Ling (Punggol)1680 words
[+3 sentences]Mr Speaker, this Budget debate carries special significance for me. It is my first Budget debate in this new term of Government and my first Budget debate in my second term in Parliament. In writing this speech, I spent time reflecting on the work we had done in our previous term and the legislative moves we had made which will have long-term impact to our Singaporean workforce. In the last term, we strengthened protections for platform workers, advanced progressive wages and made Flexible Work Arrangements a legitimate workplace conversation.[+15 sentences] These were not abstract policies. They changed daily lives, both at work and at home. With a healthy fiscal position, we now have the opportunity not only to cushion immediate pressures, but to build thoughtfully and boldly for the decade ahead. Today, I will speak on three areas: inclusive workplaces for women in every season of their lives; a kinder workplace for persons with disabilities; responsible preparation for AI transformation. Mr Speaker, if we want to talk about inclusive workplaces, we must talk honestly about women. Because women do not experience work in a linear fashion. We experience work in seasons: the season for early ambition, the season for caregiving, the season of returning, the season of mid-life change. And sometimes, these seasons overlap. When we speak of inclusive workplaces for women, it cannot mean just guidelines. It cannot mean just legislation. It must mean cultural adjustment. Policies create permission. Culture creates safety. And policies must move so that new safe progressive cultures can take root. We see this clearly in flexible work arrangements (FWAs). The Tripartite Guidelines on Flexible Work Arrangement Requests have been in place for more than a year.[+1 sentence] Awareness is high. Yet in our NTUC Women and Families surveys, more than half of workers have never made a request.[+21 sentences] Not because they do not need flexibility. But because they fear being seen as less committed. They fear slower progression. They fear subtle discrimination. Indeed, we have created permission. But we have not fully created safety. And this gap is especially felt in the season of caregiving. Women returning to work tell us that flexibility is top-most in their consideration to stay or return to the workplace. But what worries them more is whether in asking for FWAs, they would be “marked” by their organisations, and even if they managed to get their FWAs approved, whether their bosses and teammates will genuinely support them. Because the lived reality is that even with FWAs, caregiving does not go away. Children fall sick. Parents require ongoing care. Caregiving is not a short interruption. It is part of life. Ms N, a resident I met, knew about the guidelines. She wanted to ask for flexibility because her childcare does not operate on weekends and closes at 7.00 pm sharp daily. But she did not dare to ask. In her small company, she feared being labelled as the one who inconvenienced everyone and she feared being replaced in her job, by a boss who does not understand her needs. This not a policy gap. It is a workplace culture gap. We must recognise that workplace flexibility alone cannot solve caregiving strain. Childcare operating hours, especially in estates with shift workers, must better reflect workforce realities. I therefore call for support to expand flexible and extended childcare options, including weekend and after-hours pilots in selected communities.[+13 sentences] We must also speak about women in mid-life. As Singapore ages, women experience ageing differently. Perimenopause brings fatigue and physical changes that are rarely discussed at work. Some might even consider these topics taboo. Yet progressive employers are showing that this conversation can be normalised. I was encouraged to learn from our Education Services Union Leader, Sister Brenda, that her organisation openly engages employees on how to better support women through menopause. Managers have respectful conversations. Adjustments are made without embarrassment. These may seem like small changes, but they signal respect. Indeed, small tweaks like more comfortable uniforms can make all the difference as women go through the different seasons in their lives. That is what cultural maturity looks like in the workplace. Similarly, breastfeeding mothers tell us that workplace lactation rooms may exist, but culture matters more. If lactation rooms become storerooms or moms feel rushed, the message is clear: support is conditional. The NTUC Women and Family unit will continue to promote lactational spaces in workplaces and we will continue to expand our NTUC Better Workplaces programme this year to support more companies with their lactation room set-ups.[+1 sentence] Mr Speaker, if inclusion is to be real for women in every season, policy must be matched by practical action. I call on the Government to: scale job redesign funding and build expertise, especially in non-office based, frontline and shift-based sectors; recognise and benchmark progressive workplaces so inclusivity becomes part of Singapore’s competitive edge; publish sectoral benchmarks on FWA utilisation and career progression outcomes; expand flexible and extended childcare options; provide clearer tripartite guidance on supporting women through perimenopause and menopause as legitimate workplace health matters.[+13 sentences] Mr Speaker, we must continue to move policy intentionally to shape culture – so that inclusive workplace norms do not remain aspirational but become standard practice. Inclusion must extend beyond gender. A kinder workplace for persons with disabilities and their caregivers means removing barriers, not lowering standards. Like all Singaporeans, our persons with disabilities and their caregivers have career aspirations and dreams. But limited caregiving resources and rigid employment structures – fixed hours, inflexible expectations, lack of assistive tools – unintentionally exclude them. My Punggol resident, B, who has hearing impairment, struggled to secure a host company for his ITE Work-Study Diploma and he and his family suspect that it was due to his impairment. As with many of our youths, B is a bright-eyed, curious and hardworking young man. His family is supportive, and understandably worried about his future. With a secured place in the ITE Work-Study Diploma, they will be more assured of his future independence. I have since reached out to several employer contacts as well as SG Enable for assistance but stories like this remind us that talents do exist, but access is uneven. We must strengthen upstream support in placement and upskilling even in our schools. I support initiatives such as the SG Enable Enabling Mark, which recognises disability-inclusive employers. But the Enabling Mark must go beyond just being an award. It must not remain something that companies aspire to do just once a year. It must be normalised as a workplace standard with adequate funding and resourcing, embedded into hiring practices, job design, leadership key performance indicators and organisational culture.[+7 sentences] Inclusion cannot be ceremonial. It must be operational. We must also strengthen the Singapore Opportunity Index as a national signal that inclusive hiring is part of business growth strategy and not charity. Employers who invest in inclusive employment should see it reflected in how we assess opportunities and competitiveness. And importantly, we should build a national database of inclusive employers, a live resource base for job seekers with disabilities and their families. This will not only improve job matching but also make inclusion visible and measurable. NTUC will continue to do our part. Apart from FWAs, NTUC has secured stronger protections against workplace discrimination and I am glad that this helps to level the playing field for our working persons with disabilities. We are also working with tripartite partners on a Tripartite Advisory on Reasonable Accommodations to provide guidance on good practices that employers can adopt to make their workplaces more inclusive for persons with disabilities. I call for clear guidance and appropriate funding under the upcoming tripartite advisory, so that our employers can implement inclusive practices confidently.[+12 sentences] Mr Speaker, in Mandarin, please. (In Mandarin): AI will affect our nation's future development, but this transformation must be responsible. New technology should make people's lives and livelihoods better and brighter, not bring anxiety. The impact of autonomous driving technology on the bus industry is a concrete example. To this end, the National Transport Workers Union (NTWU) has already begun training on electric buses and autonomous driving with public bus operators. The tripartite partners have also started discussions to understand the impact of autonomous driving on bus captains and maintenance personnel as well as future career development and renumeration arrangements. But when engaging with bus captains, I saw one thing more clearly. One captain told me that driving only accounts for 20% of her work. The remaining 80% involves serving passengers, assisting elderly and mobility-impaired individuals and handling emergency situations. This reminds us that when discussing this transformation, we cannot only look at the surface aspect of driving; you must truly understand what that job entails in real life. There are now also proposals for new positions, such as remote drivers. Upon further study, we discovered that these positions require skills like data analysis, which current captains may not immediately be able to handle. If we do not understand the true content of job roles, we may make the wrong judgement. Therefore, I call upon the Government to invest more resources in analysing job structures of various industries, clearly identify which functions can be assisted by AI and which must be completed by humans. Then, based on real circumstances, design training and transformation pathways.[+10 sentences] Technology can advance but transformation must be planned and have safeguards. (In English): Mr Speaker, today I have spoken about three priorities: inclusive workplaces for women in every season, a kinder workplace and responsible transformation. Inclusive workplaces for women mean moving policies for workplace culture shifts to take root. A kinder workplace means barriers must be redesigned away. Responsible transformation means understanding before replacing. These are not incremental tweaks. These are big hairy audacious goals. They require courage to change policies, faith to shift cultures, commitment to redesign systems and discipline to transform responsibly. If we are serious about building a Singapore that is not only competitive, but fair, kind and humane, then these must be the collective Singaporean ambitions that we have. Sir, I support the Budget.
Mr Speaker5 words
[+1 sentence]Minister of State Desmond Choo.
The Minister of State for Defence (Mr Desmond Choo)2504 words
[+30 sentences]Mr Speaker, Sir, I would like to begin by thanking the Prime Minister and Minister for Finance for setting up a clear plan for Singapore in an uncertain world. The Budget speaks not only to today's pressures, the costs of living, which is the immediate anxieties of our constituents, but also to tomorrow's transitions. Over the years, I have had the privilege of working closely for youths and young workers in my various roles. Their hopes, their aspirations and their quiet concerns have always stayed through to my heart. Today, our young Singaporeans are entering the workforce at the moment of profound historical inflection. It is a time of rapid change. AI is shaping the very definition of a job or a good job. Economic restructuring is creating pockets of uncertainty, and the traditional pathway from school to work, once a relatively straight, well-lit expressway, might no longer be so straightforward. If we look at the macro data, the picture is indeed reassuring. In Singapore, education, employment outcomes for youths remain strong. Our students continue to excel consistently in international assessments, such as the Programme for International Student Assessment (PISA). Youth unemployment has remained stable in recent years. But, Sir, numbers alone might not always tell the full story. We hear on the ground worries for the pathways into the workforce. We hear of concerns over entry level opportunities and career progression. Their reservations about whether hard work would still translate into advancement in a fast moving economy shaped by technological changes, cost pressures and global volatility. As a case in point, this year's Lunar New Year conversations took on a different texture. We saw the modern touches, of course. There were the Nanobanana-generated Lunar New Year family portraits and video greetings. We joked about how AI could never replace the traditional "lohei", the human spirit of tossing to prosperity. But there were also conversations that were far more serious. We talked about the impact of AI on work, especially on entry level jobs. I heard concerned parents speak about how much harder it was for the children to get jobs after school. I heard of some young Singaporeans admit quietly, often with a sense of frustration about sending out hundreds of job applications before they got an interview and I heard the other side too. I heard bosses steering about how they could deploy AI faster in their companies to overcome the manpower crunch. I heard supervisors wondering how to get how they could get their juniors to compliment and supervise AI in the daily work. Everyone is trying to grapple with how AI should work for them. Our fresh graduates are capable. They are hungry, but yet, many are not fully confident they are equipped for this new job market. This is not just anecdotal. Last year, a quarter of our youths from our IHLs, polled in NTUC's Youth Employment Outlook, expressed worries about finding a job within six months of graduation.[+4 sentences] They asked: would there be enough entry level jobs for me? When these youths enter the workforce, they do face competition and a narrowing of good entry level jobs. They asked: will the skills that I have acquired be relevant, especially in this age of AI? Their concern is also sharpened by technological change. From the NTUC Survey on Economic Sentiments in 2025, the perception that technology or AI will be the greatest risk to their jobs in the next year was highest among younger workers – 19% compared to the average of 16%. And 53% of younger workers, more than any other age group, recognise the need to upskill to stay relevant even if they could keep their job.[+20 sentences] For them, AI is not just a tool, it is an immediate disruptor that is already reshaping some entry level jobs. What they are worried about is the focus of my speech today. It is a critical structural challenge facing our workforce. It is a challenge that might threaten to change the social compact for an entire generation of Singaporeans in the years to come. I call it the broken rung. In the past, a fresh graduate enter the workforce and learn by doing. The junior accountant drafted working papers. The junior lawyer review documents. The junior coder does code maintenance, fixes some minor bugs. These were not glamorous tasks. They were routine. We have all done it before in our careers. They were formative. They were the training ground. Today, GenAI performs or could perform many of these routine cognitive task in seconds. What once took a week now takes an hour. What once required many juniors to do, require a somewhat a more senior person armed with some AI tools. But let us be clear, AI does not spell the end of work as we know them today. Many jobs would not be adversely impacted. In fact, many might still be boosted by AI. Research from a 2023/2024 National Bureau of Economic Research, studying 5,000 customer support agents found that AI assistance significantly boosted productivity, especially for less experienced workers.[+16 sentences] In some cases, a two-month old employee perform like someone with six months of experience. This means the learning curve has been shortened. The barrier to competence has been lowered. The AI did not replace the entry level worker, buy it empowered them. It allowed them to punch above their weight almost immediately. This is not replacement. This is augmentation. It may be what economists called a rebound effect too. If AI allows us to build software faster, we may build more software; if it lowers the cost of service delivery, demand may expand. This expands the economic pie. But here is also the uncomfortable truth. Even if AI raises overall productivity, it can still shrink traditional entry level roles. Why? Because of incentives. Entry level workers have historically been hired not because they were immediately productive, but because firms invested in their future productivity. Companies paid a premium today to build capability tomorrow. If AI can perform the training task, the learning task faster and cheaper, the short-term economic incentive to hire juniors weakens.[+6 sentences] This can be a market failure. Left entirely to market forces, firms may rationally choose fewer juniors and more AIs in the short term that boost margins. In the long term, it can hollow out the pipeline of middle-level Singaporean talent. Compounding this, our higher cost structure and manpower tightness in Singapore have prompted some companies to site teams of knowledge, entry level workers in the region; while retaining the quality control and supervisory roles here. This is understandable as companies seek to control cost while retaining quality. In isolation, this is not a bad situation for Singapore as we retain higher value work. However, this also means that entry level jobs might not be available in the same number over time and this might worsen the hollowing out of the Singaporean middle management. We risk, what I call a missing middle. Powerful algorithms, a thin layer of senior experts and too few local managers and specialists in between.[+19 sentences] This will not just be an economic problem. This would be a social one too. Our youths are looking at this landscape and asking, if the AI can do the junior entry level work. How can it ever progress further? The crux is not whether the job exists, but whether the human can adopt and adapt to AI in his or her work. As Secretary-General Ng Chee Meng had shared earlier and Senior Minister of State Desmond Tan in his early public speeches. The nature of work is changing, but the need for the human work remains and can be enhanced by AI. Our economy continues to attract new investments. However, each dollar of new investment now generates fewer jobs than before. This is different from earlier decades when industrial growth naturally produced many manufacturing jobs and clear entry points. But this is natural and to be expected as the global economic structure changes. According to economist Dani Rodrik, the future of jobs will rely largely in services. Last year, job creation in Singapore was driven mainly by investment in services, particularly in financial, health and social services. However, as globalisation has made outsourcing of services increasingly pervasive, this is also the sector where it is increasingly difficult to keep entry level roles in the same numbers and scope. So, Mr Speaker, Sir, the question is not how do we stop the AI disruption? The questions are: how do we keep the entry pathways open while we transform; how do we prepare for this possible new future of entry level work? We cannot save the old rung. It is probably gone in some industries or going through overtime in others. We should not try to preserve the routine work in the age of AI. Instead, the solution to the broken rung is not to repair the old one, it is to create a new one. We need a new industrial policy for entry level jobs.[+21 sentences] We must fundamentally redefine what it means to be entry level in the Singaporean economy of the future. In the past, workers value was production – write this memo, draft this code, compile this report. In the future, entry level workers value must be increasingly supervision, integration and judgement: audit the AI's output for truth and bias, integrate system securely and provide context, empathy and machines that machines cannot replicate. This is a higher value role, but it is also a harder role because it assumes a level of maturity and skill early in one's career. And here is why we need a new industrial policy for entry level jobs to prepare for the new frontier. Singapore has never been passive in the face of structural change. When we industrialised, we did not wait for jobs to appear. We built the ecosystem. When computerisation emerge, we trained workers. When low wage stagnation threatens dignity, we implemented the Progressive Wage Model to redesign jobs. We have similar conviction for the AI era as expounded by many of our Members today. We can put in place a policy framework ahead of the potential change. Allow me now to outline a possible three-pronged approach. We often admire the apprenticeship systems of Germany and Switzerland. Apprenticeships there are not confined to trades. They expand into banking, insurance and advance services. The state and industry partner are to standardise training, so that apprentices contribute proactively from the start. Why should we not adopt this approach to our economy on a larger scale? We can incentivise some to convert traditional execution roles into structured apprenticeships with core elements of AI oversight or AI integration. For example, if a law firm hires a graduate to audit AI-generated contracts or just draft from scratch, that firm may face an initial efficiency gap. The AI is just faster. Government can co-fund part of that gap for a defined period, de-risking the hiring decision while building national capability.[+13 sentences] Over time, we can also formalise AI's oversight as a recognised skill within industry frameworks, portable, certified and valued across employers. It is an investment in the next generation of Singaporean middle managers. We will also need to identify queen bees industry leaders to lead such transformation in the workforce. Denmark offers a promising initiative to its National AI Skills Pact. It is committed to strengthen AI capabilities among one million citizens by 2028, positioning itself as a leading human-centred AI nation. The approach is deliberate – joint flagship projects, employer led commitment and coordinated capability building across sectors. The state sets direction. Industry and unions lead execution. We can think about this as an investment for future generation of middle managers. Second, equip our students for semi senior entry responsibilities from day one of their working lives. We must accept that routine tasks might no longer be guaranteed training grounds. AI literacy cannot be optional. It must be foundational. Every graduate should be proficient, not only in theory, but in practical AI usage.[+12 sentences] Prompt Engineering could be a thing of the past now, but output verification, ethical evaluation and knowing when human judgement must override machine recommendations. But technical skill is not enough. As machines take on routine tasks, uniquely human capabilities become more valuable – communication, partnership, leadership and ethical reasoning. Initiatives, such as NTUC's Youth Excel programme, one of the few programmes out there and youth-led policy platforms are important, because they do more than train for employment. They cultivate agency. They signal to young Singaporeans that they are not passive recipients of change, but participants in shaping it. Allow me to share an example. I look at our latest cohort of NTUC Starter Awards participants. The winning team presented on the idea of cross sector internships. One of the core team members and a student at Temasek Polytechnic, Valerie, shared that the experience showed her how youth-led insights can meaningfully contribute to broader policy discussions and hopefully, industry changes. Our young people have the ideas; we need to give them the platform. Third, accelerate reskilling timelines. Under current arrangements, SkillsFuture credits are accessible later in a worker's career, but AI compresses learning and skill cycles.[+1 sentence] A diploma holder entering the workforce at, say, 21 years old, may find within a few years that additional credentials are necessary. In fact, many of our current graduates might already need to complement their academic training while in school to be ready for the new workforce demands. We should examine whether early access to training support might be needed in this new environment. At the same time, we must expand Place and Train opportunities and career bridges models.[+10 sentences] Reskilling is hardest when there are bills to pay. Structured pathways that combine employment and training reduce risk and increase participation. Mr Speaker, Sir, some may ask, can Singapore manage the sweeping changes AI will bring? Our history says yes. Each time our economy evolved, we did not retreat. We responded with policy creativity and tripartite partnership. The question before us is not whether AI will transform work. It will. The question is whether transformation strengthens or weakens the Singaporean promise. The broken rung is a structural shift, but it need not be a structural failure. If we do not innovate ahead of time, we risk a missing middle crisis, a hollowed out workforce.[+7 sentences] We risk discouraging our youths and weakening our social compact. But if we act now to recreate the entry level job, we can turn this disruption into opportunity. We can build a workforce where every entry level worker is an architect of their own future, supported by technology, rather than by being replaced by it. We ensure that the Singaporean promise remains unbroken for the next generation – that if you work hard and master your craft, there is a ladder for you to climb. And NTUC will do its utmost to support our workers. Let us build this new ladder together. Mr Speaker, Sir, I support the Budget.
Mr Speaker45 words
[+6 sentences]Order. I propose to take a break now. I suspend the Sitting and will take the chair at 2.50 pm. Order, order. Sitting accordingly suspended at 2.29 pm until 2.50 pm. Sitting resumed at 2.50 PM
Mr Deputy Speaker5 words
[+1 sentence]Mr Abdul Muhaimin Abdul Malik.
Mr Abdul Muhaimin Abdul Malik (Sengkang)2332 words
[+12 sentences]Mr Deputy Speaker, Singapore's families have heard the announcements. They know what has been promised. What they are watching this debate for is something different, whether the design behind those promises is sound enough to actually deliver, whether the support will reach the families who needed it and whether it will do so in time and with the certainty required to make the most consequential decisions of their lives. That is the lens through which I wish to examine the family support measures before this Chamber today. Stepping in the right direction, enclosing the distance are two different things. The question is whether the way these schemes are built, who gets what, when they get it, how much and whether families can count on it, is working as well as it should. For a family trying to meet ends meet every month, these details are not small things. It is the difference between support that reaches them and support that is promised but falls short in practice. I will raise three specific points on that gap. First, on equity across childhood, the missing equivalent for older children. Mr Deputy Speaker, the Prime Minister stated at the start of this year that the Government's goal is to give every child a good start in life and to support families at every stage of their journey. I want to test that aspiration against a structural feature of Budget 2026 that I do not think has received sufficient attention. Budget 2026 provides $500 in Childhood LifeSG Credits for every Singaporean child aged 12 and below.[+1 sentence] These Credits are flexible, usable at a wider range of physical and online merchants for groceries, pharmacy items, transport and daily household expenses. They are meaningful and a welcomed form of support. But Budget 2026 contains no equivalent measures for families with children who have moved beyond primary school.[+14 sentences] There is no corresponding credit, no top-up and no new flexible support for household costs that continue to accumulate as children grow older. The $500 in flexible relief is available for the 12-year-old. For the same child, one year later, there is nothing new in the Budget. I want to be careful about what I am and am not saying. I am not suggesting that older children receive no support from the Government at all. Edusave contributions continue annually and families with children in secondary school can draw on those funds for approved educational expenses. But Edusave funds are ringfenced for educational uses – school fees, enrichment programmes and approved school-related expenses. They cannot be used for transport, groceries, utilities or the broader household cost of living pressures that do not disappear once a child moves beyond primary school. The Childhood LifeSG Credits address precisely those costs. Their absence in Budget 2026 for families with older children is a gap worth examining. I anticipate the Government may say that the Childhood LifeSG Credits is designed for the early childhood stage, where developmental evidence supports concentrated investment and that the Edusave system addresses older children's education needs adequately. I accept that developmental argument, but the question I am raising is not about developmental priority. It is about household affordability. A family with a secondary school-going child faces transport costs, utility bills and grocery expenses that are undiminished by the age of their child. Budget 2026 provides flexible relief for one cohort of families.[+1 sentence] It does not for another. I invite the Ministry to clarify whether it was a conscious decision to limit flexible support to children aged 12 and below, leaving families with older children without an equivalent, or whether this gap has simply not been revisited as family expenses have evolved.[+10 sentences] If it is the former, I will appreciate clarity on the rationale. If the latter, I urge the Ministry to review whether some form of flexible household support for older children should be introduced in future budgets. In this regard, I echo hon Member Shawn Loh's suggestion that LifeSG Credits be extended systematically to all parents with children up to 16 years old. Second, on scale, ComLink+ coverage ceiling must be named and addressed. Mr Deputy Speaker, the Ministry has reported that ComLink+ is now supporting around 10,000 families in public rental housing. ComLink+ represent a serious and thoughtful attempt to tackle inter-generational disadvantage in a more structured way. The family coach model of proactive outreach, co-created action plans and multi-agency coordination represents a meaningful shift from passive assistance to an active empowerment. I have no concern with the model but with the scale. I am not comparing ComLink+ 10,000 families to the total public rental housing population. I am asking about families in public rental housing with children who meet the programme's own eligibility criteria, specifically households with at least one child under the age of 21 and assessed as requiring sustained support. That population is smaller than the total rental housing stock, but it is significantly larger than 10,000. I would ask the Minister to share what is the Ministry's estimates as the total number of families eligible for ComLink+ under its current criteria.[+9 sentences] The reason that number matters is this. Budget 2026 enhances the progress packages for families already in this programme – high quarterly payouts, better milestone incentives and more flexible disbursements. These are meaningful improvements, but only for families who already have a family coach. They do not reach families who are eligible but not yet served. They deepen the well without widening it. I recognise that scaling and intensive coaching relationship cannot be done overnight. Training effective family coaches takes time and the Ministry is right not to compromise quality over speed. But that argument, while valid, does not explain the absence of any stated coverage target in Budget 2026. I am therefore asking the Minister three things. First, to state the current number of eligible families not yet served by ComLink+.[+10 sentences] Second, to state the Government's coverage target, expressed as a proportion of eligible families and the year by which it intends to achieve it. And third, to confirm what investment in coach recruitment and training is included in this Budget to move toward that target. These are not an unreasonable ask for our flagship empowerment programme entering its third year. The stakes of this coverage gap extend beyond the families themselves. ComLink+ design is premised on early intervention, reaching families before their difficulties compound, before school attendance deteriorates and before debt accumulates beyond manageability. Every year, a family is eligible, but unserved, is a year in which the programme's own preventative logic is not applied. Enhancing payouts for those already inside the programme is valuable but it does not recover the ground lost while eligible families wait. A coverage target will allow the Government to hold itself accountable to the programme's objectives. Third, on implementation, closing the gap between announcement and delivery. Mr Deputy Speaker, the Prime Minister announced two expansions taking effect from January 2027. The monthly household income ceiling for preschool subsidies will rise from $12,000 to $15,000, benefiting more than 60,000 additional families and the student care fee assistance ceiling will rise from $4,500 to $6,500.[+1 sentence] I support both measures fully. I also note that the reduction in fee caps for both anchor operator and partner operator preschools, which took effect in January 2026, already provides some interim relief to middle-income families. But even accounting for that, a family earning $13,500 a month above today's subsidy ceiling and below the incoming one is still paying more than they should be for another nine months.[+25 sentences] The principle of their entitlement to support has been conceded by this Budget. A household with two young children that spends $1,200 to $1,800 monthly on childcare fees would have to continue paying this amount for nine more months. That expense is significant. I will ask the Minister whether a transitional budget measure, targeted specifically at families between the old and new thresholds could be introduced for the interim period. The January 2027 date is also worth pressing on. Singapore's financial year begins on 1 April 2026, and many budget measures take effect on that date, and this is not a new subsidy category being built from scratch. MOE and the Early Childhood Development Agency (ECDA) already have the means-testing infrastructure, the disbursement systems and operator reimbursement processes in place. So, what specifically requires this expansion to wait until January 2027 rather than taking effect at the start of the financial year in April 2026? If this is a deliberate policy decision rather than one driven by operational constraints, we must recognise that the families who were promised this relief will continue to bear a significant financial burden for an additional nine months. A bridging measure will also be welcome; it is not unusual. When GST went up, the Government did not simply announce the increase and leave the lower-income households to absorb the gap until the next Budget. Offset packages were timed deliberately to cushion the transition. CDC vouchers have been deployed at short notices because cost of living pressures do not wait for administrative calendars. That same instinct, targeted, time-limited, with a clear end-date once the new thresholds kick in is exactly what I am asking for here. The instrument already exists, it has been used before and it can be applied here again. Mr Deputy Speaker, in Malay. (In Malay): I would like to summarise the three main points that I raised today. First, the gap in Budget 2026 for families with children above 12 years old. Budget 2026 allocates $500 in the form of Child LifeSG Credits to every Singaporean child aged 12 years and below. These credits are flexible and can be used for various household needs, such as groceries, transport and medical expenses. However, there is no equivalent flexible support allocated in Budget 2026 for families with children beyond the level of primary school. The cost of living for a household does not decrease as children grow older. Therefore, I hope the Government can look into this matter in future Budgets. Second, the scope of the ComLink+ programme. This programme is a serious effort that has looked at methods to address inter-generational inequality issues in a more organised and systematic manner. One method is by using a proactive family coach to help low-income families living in public rental flats. However, so far, this programme only involves approximately 10,000 families, whereas the number of eligible families is far greater. Budget 2026 increases the support package for families that are already in this programme but does not state any targets or plans to increase the number and the training of coaches.[+8 sentences] I would like to ask the relevant Ministry, what is the estimated number of families that are eligible but not yet included in this programme, as well as the targets for recruiting new coaches in this Budget. Third, the time gap between announcement and implementation of preschool subsidies. Raising the income ceiling for preschool subsidies from $12,000 to $15,000 and the student care fee assistance ceiling from $4,500 to $6,500 are appropriate steps and I fully support them. However, both these changes only take effect in January 2027. I would like to ask why these measures cannot take effect earlier, for instance, in April 2026, given that the necessary infrastructure already exists. A family earning $13,500 per month, which is above the current subsidy ceiling but below the new ceiling, still has to bear higher costs for another nine months. I ask that the relevant Ministry to consider whether interim transitional measures, such as those previously implemented through GST offset packages and CDC vouchers, can be introduced for families in this group. (In English): Mr Deputy Speaker, I want to close not with demography but with equity, because that is ultimately what each of these three points is about. Every family the Government has acknowledged as deserving support through fee cap reduction, through expanded subsidy thresholds and through ComLink+ design, should receive that support well with predictability, without arbitrary age cut-offs, without a nine-month gap between announcement and delivery, and not only if they happen to be among the 10,000 families with a coach already assigned to them, The three asks I have made today are specific and proportionate, a published review of whether the structure of support for families with post-primary school age children is well matched to the cost they actually bear; a stated coverage target and coach investment plan for ComLink+; and for the last point, an explanation on why April 2026 is not feasible as a start date, and if the gap cannot be closed, a transitional bridging measure from families who are caught waiting using instruments that the Government has deployed before.[+2 sentences] Sir, these are not only questions about families already in the system. The same conditions, cost uncertainty and the gap between announcement and delivery are shaping whether the next generation of families forms at all. Just this week, The Straits Times reported that 2025 recorded the lowest number of marriages in Singapore since 2020, a third consecutive year of decline. Researchers point to longer-term shifts in how Singaporeans perceive marriage, but also to concerns that policy can more directly speak to – uncertain economic future, a higher cost of living and the need to be financially stable before starting a family.[+2 sentences] They are signals that the conditions for forming a family do not yet feel sufficiently stable or attainable to many. If Budget 2026 is serious about strengthening families, the support it offers must speak not only to households already formed but also to those still deciding whether they can afford to form one. Flexible support that falls off at age cut-offs, programmes whose reach falls short of eligible need and subsidy expansions that arrive later than necessary may each appear defensible in isolation, but taken together, they risk reinforcing the very hesitation that policy design should be working to reduce, not entrench.[+1 sentence] Nonetheless, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Azhar Othman.
Mr Azhar Othman (Nominated Member)1526 words
[+15 sentences]Mr Deputy Speaker, first and foremost, I would like to wish Members of the House, "新年快乐", Happy Lunar New Year; and our fellow Muslim colleagues, "Selamat menyambut ibadah puasa", welcome to the holy month of Ramadan. Mr Deputy Speaker, my speech will be touching on three aspects that I hope will set the tone forward. The Singapore company, which covers business, local and international, employment and employability, Singapore family and the Singapore dream. Singapore has achieved significant success through strong and clean leadership. Pragmatic long-term economic policies, a pro-business environment and substantial investment in human capital. However, we now face unprecedented challenges. Internally, we are dealing with an ageing society, low birth rates and high cost of living. Externally, geopolitical tensions, a multipolar world and a shift from rule-based to a power-based order that are influencing our landscape. The Singapore company reflects the good work of the Government of Singapore, managing Singapore like a well-run engine. The recent Budget announced by our Prime Minister is a positive step in supporting businesses and fellow Singaporeans. Yet in this transformed environment, we must act differently and decisively. Trade remains the life blood of Singapore's economy, making it essential for the Government to support companies in maintaining strength and pursuing global growth. It is crucial for the Government to provide support to businesses at all levels, whether they are startups, SMEs or MNCs based in Singapore. We ought to build resilience, be adaptable and constantly innovate to stay competitive and be relevant. The Budget 2026 shows that the Government does listen to the ground. The Budget includes a tax rebate of 40% and the benefit of $1,500 for active companies with at least one local employee.[+2 sentences] This initiative serves as an immediate short-term support to alleviate operational costs. In addition to these, there are various forms of support by the Government, such as increased funding for grants, loans and international growth, which are highly crucial. Nevertheless, I would like to propose that the Government extends support to micro and home-based businesses. During the pandemic, the Singapore Malay Chamber of Commerce and Industry (SMCCI) engaged with 1,800 home-based businesses which embody the spirit of entrepreneurship and have shown resilience in managing their operations.[+19 sentences] Some of these businesses have successfully transitioned to formal companies. Dr Malik Hassan, whose parents started their business selling nasi lemak, I think some of you may know, from a stall at Adam Food Centre. Dr Malik, who is also the president of the SMCCI, has expanded to now having 40 branches across Singapore and has evolved to provide a variety of food and beverages. On a personal experience, Deputy Speaker, my mother ran a home-based business selling rojak initially at our kampong house and then moved to our three-room HDB flat. Sometimes, I helped make the rojak to be sold to our neighbours. Today, our engineering company has offices in seven countries – Malaysia, Indonesia, Philippines, Pakistan, Bangladesh and Uzbekistan, with our headquarters in Singapore. My mother's entrepreneurship spirit has rubbed onto her son that has allowed his company to grow regionally. Mr Deputy Speaker, it is essential to embed the DNA of entrepreneurship in as many Singaporeans as possible. This can also be achieved by having entrepreneurship as non-examination subjects introduced at the primary, secondary and high institutions. Such subjects will enhance their creative and innovative minds. We should be a country of creators and innovators that develop new businesses, thereby increasing the economic status of Singapore and Singaporeans. Mr Deputy Speaker, SME Centres@SMCCI's business advisors have provided business advisory to 3,000 businesses annually. Other forms of programmes, like Partner for Business Growth, were performed. When guided effectively, economic growth driven by these companies benefits not only the business owners, but also the employees they hire. Mr Deputy Speaker, strengthening support for Enterprise Singapore, SME Centres and trade associations and chambers will enhance the ecosystem and network of assistance available to local companies. As a small nation, our greatest asset lies in our ability to forge a powerful coalition of companies, Government bodies and trade associations and chambers working collaboratively to support one another. Next, I would like to touch on support for international growth. The enhanced Grant and Market Readiness Assistance are welcome initiatives that can significantly benefit our companies. It is crucial for our business to expand beyond our shores and establish presence in various regions, including the Association of Southeast Asia Nations (ASEAN), Africa, Middle East, Latin America and many others. Financial support plays a vital role in this expansion. I propose that enhanced grant be provided to trade associations and chambers and SMEs to facilitate regular business missions.[+3 sentences] This initiative enables companies to explore the best opportunities in their target countries. The Ministry for Foreign Affairs to look at having our passport be visa free in as many countries as possible. We are already in good position, but there are still countries we need to apply visa and these are countries we need to ensure visa free to ease travelling and business operation. Establishing more free trade agreements (FTAs) and strengthening our partnership with ASEAN partners, such as the Johor-Singapore Special Economic Zone (SEZ), and various other countries will ensure our local companies are welcome in the region and do extremely well via partnership or even merger and acquisition.[+3 sentences] In addition to the grant, it is essential that trade associations and chambers, and the Enterprise Singapore, which has an international network, aid our local companies. I am pleased to note that the Singapore Business Federation (SBF) has established an office in Dubai. I had the privilege of speaking with Miss Anita, the lead manager of SBF in Dubai, and discussed ways to grow business effectively and understand the landscape and culture of the local country. I have also participated and at times led numerous business missions organised by SMCCI, SBF, Enterprise Singapore and the UAE Singapore Business Council. These missions are crucial for companies to receive support, minimise errors in establishing their business in foreign markets and gain access to the robust network developed by Enterprise Singapore and trade associations and chambers.[+3 sentences] The ecosystem will empower Singapore companies to set up their operation overseas in the most effective manner possible and be very successful. Mr Deputy Speaker, I will next touch on employment and employability, which is crucial in today's evolving landscape. The support provided by the Government through initiatives like SkillsFuture has been very encouraging. New industries such as space technology, advanced manufacturing, utilisation, data centres and renewable energy are emerging, offering a wide range of employment opportunities.[+13 sentences] As with every sector, AI will play a significant role in enhancing productivity within these fields. Singaporeans are navigating the transition from sunset industries to these new sectors and the ability to learn quickly is essential, especially as AI becomes integrated into these industries. Therefore, the support from both the Government and employers is invaluable. Training and transition to these new industries to be made easily accessible. A strong foundation for any worker lies in the attitude and many Singaporeans exemplify qualities such as intelligence, hard work and honesty. By enhancing their skills with AI competency, they can become valuable assets to companies. Sir, turning to the Singapore family. I often think of the Government as the greatest family of all. Just as a parent ensures each child gets the specific support they need, our Budget must reflect that same targeted compassion. The CDC vouchers are a welcoming support. If I can propose that, as other Members have done so, that this support be paired with the performance of the Singapore economy. Singaporeans can enjoy when the country does well – similar to companies who issue bonuses to their staff when their companies do well too. We can even call these the "Singapore Bonus". On providing support for Singapore families, we must also move towards a more sophisticated, data-driven model of support. We know that a family in a 3-room flat caring for a special needs child or an ailing octogenarian faces vastly different pressures than a young couple in the same block. I am confident with the data that we have, the support should be calibrated based on household dependency ratios to ensure that those who need the most help receive it regularly until they can truly fend for themselves.[+8 sentences] Finally, Mr Deputy Speaker, we must protect the Singapore Dream. This dream is a promise that every citizen, whether their passion lies in the arts, sports, business owner or the boardroom, can become the best version of themselves. But the dream is about more than just economics. It is about the spirit. We must ask ourselves: are Singaporeans proud of the country they were born in? Are they happy? Will they sacrifice for their children's children's future so that they may live with dignity? The answer will be yes, if we continue to provide that this Government is a caring, responsible partner in their success. By strengthening our economy, companies, global outreach, respected career for our workforce and refining our family support, we ensure that the Singapore Dream remains a living reality for all.[+1 sentence] Mr Deputy Speaker, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Melvin Yong.
Mr Melvin Yong Yik Chye (Radin Mas)1714 words
[+6 sentences]Mr Deputy Speaker, I rise in support of the Budget. It positions Singapore to seize opportunities in the age of AI, strengthen our engines of growth, and build a resilient and skilled workforce. In the lead-up to this Budget, MOF released an Occasional Paper on Income Growth, Inequality and Social Mobility. The findings are significant. Over the past decade, income growth has been broad-based. Lower-income workers experienced stronger gains. Real household income per member grew by 3.1% for the bottom 20th percentile, compared with 2.9% for the median.[+9 sentences] These are not abstract statistics. They reflect deliberate policy choices. The Labour Movement is heartened because these outcomes affirm the impact of the Progressive Wage Model (PWM). Unlike a blunt, across-the-board wage floor, PWM is sector-specific, covers over 40 job roles and links wages to skills and productivity. It recognises operational realities while creating structured progression pathways for our workers. Had we not adopted PWM, we may well have followed the global pattern, where median wage growth consistently outpaces that of the lowest-paid workers. I therefore thank the Government and employers for working with the Labour Movement to make PWM work. But Mr Deputy Speaker, we must not be complacent. Recent MOM data shows that median wages are beginning to outpace those at the 20th percentile. Between 2024 and 2025, real income grew by 3.6% at the 20th percentile, but 4.1% at the median.[+9 sentences] If this trend persists, the gap will widen again. Singapore also remains some distance from the OECD benchmark, where wages at the 20th percentile are around two-thirds of the median. As our economy matures and pivots towards AI-driven growth, tripartite partners must exercise leadership. Growth must not pull away from those at the bottom. To uphold a “we first” society, we must ensure that every Singaporean progresses, regardless of where they start. The Labour Movement reaffirms our commitment to work closely with the Government and the employers to ensure that the fruits of growth are shared fairly. We must maintain momentum in PWM through our tripartite institutions, especially the National Wages Council’s Progressive Wage Guidelines. Mr Deputy Speaker, the last major tripartite review on lower-wage support was in 2021. One key recommendation was that firms employing foreign workers pay at least the Local Qualifying Salary to all their local workers. Last September, I called for the Local Qualifying Salary to be raised in this term of Government. I therefore thank the Government for responding in Budget 2026 by increasing the Local Qualifying Salary from $1,600 to $1,800.[+1 sentence] But we must examine this in context. A Local Qualifying Salary of $1,800 corresponds roughly to the 10th percentile wage in nominal terms in 2023 – some three years ago.[+22 sentences] If the Local Qualifying Salary lags too far behind actual wage distributions, adjustments will become reactive and steep. I therefore urge the Government to consider three actions. First, publish the latest nominal gross monthly wage, excluding employer CPF, of the bottom 10th percentile of resident full-time workers, so that the Local Qualifying Salary adjustments are benchmarked transparently. Second, clarify what proportion of workers at or below the 10th percentile will be covered when the Local Qualifying Salary rises to $1,800. We must ensure that the policy meaningfully reaches those it is intended to protect. Third, move towards a more regular review mechanism or an advance schedule of increases. A predictable glide path will give businesses certainty while preventing the Local Qualifying Salary from falling behind wage realities. If we believe in sustained wage uplift, we must institutionalise it. Sir, I welcome also the extension of the Progressive Wage Credit Scheme (PWCS). It helps businesses adapt to higher wages as they transform and improve productivity. However, for PWM sectors where baseline wages have already crossed $3,000, and/or wage increases are below $200, support may taper off too quickly. I therefore urge the Government to review the PWCS parameters to include all sectors and occupations under PWM and the Occupational Progressive Wages. Where industries are undergoing longer-term transformation, co-funding support should be calibrated to match their transformation timelines. If we expect employers to sustain higher wages, we must align our fiscal support with operational realities. Beyond the Local Qualifying Salary and PWCS, we must strengthen PWM itself. First, I call on the Government to extend the PWM Bonus to all PWM sectors. The PWM Bonus functions very much like an Annual Wage Supplement. It provides workers with an additional payment to cope with cost-of-living pressures. Today, it applies only to cleaning, lift and escalator, waste management, and landscaping sectors. There is no principled reason to confine it to just these sectors. Second, we must address leave entitlements in outsourced service sectors. Many workers in these sectors see their leave reset when service contracts change hands. As a result, their leave stagnates at the statutory minimum of seven days, despite years of service in the same job scope. I therefore call on the Government to raise the baseline leave entitlement for PWM workers in outsourced sectors from seven days to 10 days.[+4 sentences] This is a calibrated enhancement focused only on sectors where the contracts' churn structurally limits leave progression. By setting a higher baseline within PWM, we strengthen retention, recognise accumulated service and improve workforce stability while allowing service providers and service buyers to price this transparently into contracts in a sustainable manner. Third, we should expand PWM to more sectors. Where sectors are ready, we should move decisively. For example, in the pest management sector, NTUC has engaged the Singapore Pest Management Association and industry stakeholders. We hope to implement PWM in this sector to professionalise the industry, improve retention and build local talent pipelines.[+12 sentences] As with other PWM sectors, we will make sure to bring onboard a good representation of industry players, including service buyers, to make sure ground realities are adequately addressed. Mr Deputy Speaker, for Singapore to capitalise on AI as a strategic advantage, our workforce must be AI-ready. The Prime Minister spoke about strengthening lifelong learning through SkillsFuture. I fully agree. SkillsFuture has embedded a culture of continuous learning. But in its next phase, we must address a structural weakness. Today, there are around 500 training providers offering 9,500 courses. The rush to utilise expiring credits revealed a real challenge: choice paralysis – too many options, too little guidance. We already see how AI works in everyday life. When we shop on e-commerce platforms, products are not shown to us randomly. Algorithms study our past searches, purchases, and preferences, and recommend items we are most likely to need. If AI can do this for shopping, surely, we can harness it for something far more important – our workers’ careers. SkillsFuture must therefore shift from being course-centric to worker-centric.[+1 sentence] Each worker should receive tailored training recommendations aligned to their experience, their career trajectory, aspirations, and life stage. SkillsFuture can be integrated with NTUC’s AI-powered Career Coach to deliver personalised training pathways at scale – identifying skills gaps, recommending relevant courses and mapping out progression pathways.[+10 sentences] If we are serious about AI, let us use AI to empower every worker, not just those who are already digitally fluent. I will next move on to address cost of living pressures. Budget 2026 provides important cost of living support measures. I commend the Government for these efforts. The Labour Movement will also continue to do our part. Our NTUC Survey on Economic Sentiments shows that wages keeping up with cost of living remains the top concern across all age groups and income brackets. A Consumers Association of Singapore poll of over 360 Price Kaki users found that nearly 60% of respondents felt that grocery expenses increased the most in the past year, and 82% said the Cost-of-Living Special Payment and the CDC vouchers would help their households the most. Through FairPrice Group, we benchmark more than 500 key value items and offer over 3,500 house brand products to stretch household budgets without compromising quality. Since 2015, targeted discount schemes, such as those for Community Health Assist Scheme (CHAS) Blue and Orange cardholders, have delivered over $90 million in value to consumers who shop at FairPrice. Beyond daily essentials, we stepped in when families face deeper difficulties. In 2025 alone, the NTUC Care Fund supported over 47,000 lower-income union members and their families through various Care Assistance Programmes, with close to $5.5 million disbursed.[+20 sentences] These programmes support school-going children, assist families facing sudden income loss and provide relief during periods of hardship. This year, NTUC has cast a wider net by increasing the income eligibility of our Care Assistance Programmes to $4,300, aligned to the 20th percentile of gross household income in 2024. We will also strengthen support for single caregivers as well as families with younger children with special needs. The FairPrice Foundation further complements these efforts. In 2025, its community programmes delivered close to $12 million in support to over 1.2 million beneficiaries, including more than $1.6 million in fresh groceries and hot meals delivered through "A Full Plate", Singapore's largest food donation drive. But beyond support measures, the most sustainable answer to cost of living pressures remains wage growth. And that brings us back to PWM, the Local Qualifying Salary and tripartite resolve. Mr Deputy Speaker, let me conclude with the story of Mr Hussin. Mr Hussin is a cleaner and the sole breadwinner for his family. He has three children, aged 23, 20 and 11. Every day, Mr Hussin wakes before dawn to head to work. His job is physically demanding and often unseen, but he carries it out with quiet dignity. For nearly 20 years as a union member, he has done his part – working hard, providing for his family – and believing that if he persevered, things would improve. Through NTUC's Care Assistance Programmes, he received support for his children's school expenses and essential daily needs. For Mr Hussin, structured wage progression under PWM is not just a statistic. It means opportunity. It means stability. It means dignity. His story is not unique and that is precisely the point. When tripartism works, we translate policy into possibility for families like his. So, let us ensure that as Singapore rises in the age of AI, we rise together, leaving no worker behind and carrying every family forward.[+1 sentence] Sir, I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Assoc Prof Kenneth Goh.
Assoc Prof Kenneth Goh (Nominated Member)1515 words
[+1 sentence]Mr Deputy Speaker, thank you for this opportunity. We are operating in a world that is more fragmented, less predictable, in a world where small missteps now carry larger consequences.[+7 sentences] If we misallocate capital, recovery is slower. If we delay reform, the competitive gap widens. If we neglect skills, the deficit compounds and if fractures emerge within society, they may take years, even generations, to repair. For small states, there is less room for error. Survival depends on foresight, adaptability and unity of purpose. Allow me to frame my remarks to Budget 2026 around two themes: capability and cohesion. First, on capability. Budget 2026 rightly accelerates Singapore's push in AI and other strategic capabilities.[+11 sentences] The support for business transformation through enhanced enterprise schemes and AI adoption incentives is timely and necessary. But transformation is not merely about investing in new technology. It is also about redesigning processes: how work is done, who does it, with what tools and to what effect. Redesigning processes ultimately involves people. It is people who interpret signals, exercise judgement and bear responsibility. While technology may drive new processes, it is people in the organisation determine the pace of change. If work flows evolve but mindsets do not, progress stalls and competitors move ahead. Adaptation is ultimately a human challenge. So, just as we supercharge our AI strategy to enable firms to adapt, we must ensure that we are preparing people to adapt at the same pace. If we want transformation to be fast, we must also prepare people to be adaptable. And that is why support for SkillsFuture and adult learning is critical. The merger of SkillsFuture Singapore and Workforce Singapore is significant because it brings training and job placement under one roof so that upgrading skills connects more directly to employment.[+17 sentences] Otherwise, firms will still adapt but they will do so by sourcing talent elsewhere and Singaporeans will risk being left behind. So, just as we reskill adult workers in the short term, we must also invest in the longer-term development of our youths. And that brings me to education. AI will not simply change jobs. It will change how we value skills. When information is instantly accessible and machines can generate high-quality work at scale, speed and recall no longer set individuals apart. Preparing our young for this future requires more than updating content. It requires rethinking how we teach, how we assess and even how we structure time and space for learning. We must be prepared for fundamental reforms in education. If technology can elevate baseline cognitive performance, then assessing students solely on the outputs they produce becomes less meaningful. The emphasis must shift. And in a world where information is abundant, the current focus on high-pressure exams built around memorisation risk misallocating our efforts. The competencies that will be valuable lies elsewhere – in discernment, collaboration, ethical judgement and the ability to navigate complexity. What, then, are the implications? Twenty-first century competencies must sit at the heart of our educational goals. We should bring the same intensity and focus to nurturing these capabilities as we have historically devoted to excelling in examinations. But I am not advocating that we all run out to purchase 10-year series for creativity or adaptability; please do not do that. But in doing so and placing the 21st century competencies at the heart of our national educational priorities, this will require significant change and teachers must be at the centre of this transformation. That is why I am encouraged that this Budget recognises the central role of education in securing our future, with MOE's total expenditure projected to increase by 8.8% year-on-year and operating expenditure rising by 6%, largely to recruit more educators.[+23 sentences] For a country whose only natural resource is human capital, this is not academic. It is consequential. Let me turn briefly to higher education. Universities exist to serve a societal purpose. And in an age of AI, serving that purpose requires more than incremental adjustments. It requires structural redesign. Not only in what universities teach, but how they teach. Not only in how they conduct research, but how that research connects to evolving societal and industry needs. It raises deeper questions. Who do universities serve? Primarily the young at the start of their careers or also adults returning mid-career to reskill and adapt? Must programmes remain anchored to a traditional four-year model following junior college or polytechnic pathways, or can the duration, pacing and credentialing become more modular and flexible? How should funding models evolve when knowledge cycles shorten and industries transform more rapidly? If universities are to remain relevant in an AI-led world, they must be prepared to rethink purpose, restructure and rethink how they deliver content not just in terms of their pedagogy. But transformation does not occur in a vacuum. Incentives shape behaviour. For universities, those incentives are heavily influenced by global rankings, many of which are operated by privately owned, commercial organisations. These metrics shape how institutions allocate resources and define success. As the Singapore Management University President Prof Lily Kong observed in her recent IPS lecture, rankings can become powerful drivers of institutional behaviour. Universities must guard against allowing external metrics to redefine their mission. If reforms that strengthen teaching quality or societal alignment risk affecting ranking position, institutions may hesitate. To be fair, existing rankings attempt to incorporate elements of impact and engagement. But they remain heavily weighted toward research output, citation counts and reputation surveys. If we are serious about transforming higher education for an AI-led world, then we must also align the metrics that institutions pay attention to. Singapore is well placed to catalyse the development of a complementary international framework for universities governed multilaterally by academics, policy-makers, industry and civil society.[+10 sentences] Such a framework would not replace existing rankings, but rebalance incentives toward learning outcomes, meaningful societal impact and long-term capability building. If metrics shape incentives, then shaping metrics is part of our national strategy. And doing so would empower our universities to pursue necessary reforms without being constrained by narrow indicators. My second point, Deputy Speaker, is on cohesion. If capability enables adaptation, cohesion enables resilience. As work and learning become more personalised and technologically augmented, shared spaces of belonging become more important. But cohesion cannot be left to chance. We must be intentional about cultivating it. And the sport and the arts play a central role here. They are where resilience is demonstrated, imagination expressed and identity projected. They generate both social capital and economic spillovers through events and the broader creative economy. So, it is encouraging that the MCCY budget has increased by 13.8% in Budget 2026, with much of this increase directed toward infrastructure development.[+6 sentences] Infrastructure matters. But it is only half of the equation. If we invest in facilities without strengthening the practitioners who animate them, we dilute the return on national investment. Ensuring that support for practitioners grows in step with capital investment is not imprudent. It is disciplined stewardship. Beyond public spending, we should also consider how to mobilise more private capital into this ecosystem. Budget 2026 grants up to 400% tax deductions on qualified AI spend for businesses to catalyse innovation.[+1 sentence] Sir, I think it is reasonable to ask whether our tax framework can offer similarly attractive incentives to more strongly encourage sustained giving to the arts and the sports. In 2024, arts organisations raised about $45 million in cash and in-kind donations, roughly 3.3% of total giving, while sports organisations raised about $16.7 million, or 1.2% of total giving.[+1 sentence] Sir, judging by the inspired speeches from Members of the House commending our athletes in our first Sitting for 2026, I think these are modest sums relative to the role these sectors play in shaping national identity and cohesion. Strengthening incentives for sustained giving to qualified Institutions of a Public Character in the arts and sports would deepen participation and reinforce the practitioner base without significantly increasing public expenditure.[+15 sentences] In uncertain times, cohesion becomes even more critical. Encouraging sustained giving is not charity. It is an investment in the vibrance and resilience of Singapore. Sir, in closing, Budget 2026 stands out for its emphasis on capability and cohesion. In my remarks, I have outlined how we can build capability – by reforming education for an AI-led world and aligning university incentives with societal needs. I have spoken about strengthening cohesion by investing in the people who front our sporting and cultural life. If we act decisively in both, we can ride the next wave rather than be overwhelmed by it. Yes, some may claim that AI is overhyped and we are in an AI-bubble. They may be right. I cannot predict the future. But the cost of being caught off-guard far exceeds the cost of being over-prepared. This Budget gives us that foundation. It now requires equal resolve, in both capability and cohesion. If we do so, this period of uncertainty can become one of renewal – not because the world has become easier to navigate, but because we have become stronger as one united people. Sir, I support this Budget.
Mr Deputy Speaker3 words
[+1 sentence]Dr Wan Rizal.
Dr Wan Rizal (Jalan Besar)2067 words
[+15 sentences]Mr Deputy Speaker, this is my first Budget as an MP from the Labour Movement. And in previous debates, I have spoken up on mental health, education and lifelong learning and in support of educators and our healthcare workers, causes that remain close to my heart. Stepping into this new role has made something clearer to me, it all converges. At the heart of all these issues lies work – the dignity of work, the stability that employment provides and the confidence to navigate change, whether as an educator or a healthcare worker adapting to new technologies, or a mid-career worker confronting AI-driven transformation; transitions affect everyone. And so today, I wish to focus on how we can better support workers through transitions in the age of AI. Over the past months, through my engagements at NTUC, I have observed that transitions are not "one-size-fits-all". Different workers experience transitions differently. So, let me briefly outline four groups. First, our youths. For young people entering the workforce, the transition is from education to employment. Many wonder whether the skills that they are learning today will still be relevant to them in the future. They are thinking about more than just their first job. They are thinking about independence, stability and of course, building a future. They need clearer exposure to industry realities, earlier signals of growth sectors, stronger alignment between education and employment, and of course, meaningful mentorship. Second are mid-career workers. This group has financial commitments: housing loans, caregiving responsibilities and children in school. So, when industries transform, they not only ask: "What should I learn?", but also "Do I have time to go and learn?", "Can I afford to make this move?" I therefore thank the Government for announcing increased support for aged care, preschool childcare and student care, and committing holistically to review the student care sector to better meet the caregiving needs of families with primary school-aged children.[+14 sentences] This would ease some of the burdens on our mid-career workers and help them juggle work, upskilling and caregiving more effectively. The third group, our senior workers. Many have spent a large part of their lives working and take a great pride in their jobs, careers and the knowledge they have built. They are living longer and healthier lives, and would like more options to continue contributing, such as flexible work arrangements and part-time and even community-based work. For them, it is not just about the job redesign, but also ageism and social stigma, and presumptions that they are less productive and slower to adapt. Our seniors want to feel accepted and valued in the workplace after a lifetime of contributing to Singapore's economic development. They have undergone many rounds of technological change and they believe they can adapt and acquire AI skills. The fourth group are displaced workers. When retrenchment occurs, anxiety is immediate. It can paralyse decision-making and in such moments, clarity and coordinated support matter greatly. These groups face different friction points, but whether young or senior, mid-career or displaced, their concerns converge around three pillars: clarity, early and trusted engagement, and confidence. Sir, let me begin with the first pillar. Transitions require clarity. At last year's debate, I spoke about workers' uncertainty regarding the returns from upskilling. Many were willing to learn, but unsure whether courses would translate into real employment outcomes.[+1 sentence] Sir, I am very encouraged that this year's Budget strengthens the system-level alignment by merging SkillsFuture Singapore and Workforce Singapore. This structural reform improves coordination between training, career guidance and most importantly, job matching.[+16 sentences] It begins to address the fragmentation that I raised previously. I met a mid-career worker who completed multiple courses over three years. She showed me her certificates proudly. Yet, she asked whether she had upgraded in the right direction. Her wages had not shifted significantly. Her pathway remained unclear. So, effort without direction creates frustration. Effort with direction builds confidence. Clarity must mean that workers understand what skills are in demand, which sectors are growing, what roles can they realistically move into and what progression looks like over time. This is particularly important in the age of AI, where change is faster and signals be very much blurred. For our young people, clarity must begin even before they graduate. And this is why early career exposure and structured mentorship matters. Through platforms such as NTUC Youth, young members receive career guidance and industry exposure to help them navigate this first transition with greater confidence. Clarity must also translate into action at the company level. Transformation is ultimately about process redesign, tool redesign and of course, job redesign. I therefore call on more businesses to take a worker-centred perspective when implementing transformation. NTUC's CTC Grant supports companies in doing precisely this – by funding structured transformation initiatives that directly translate into better worker outcomes.[+7 sentences] When workers see how their roles are redesigned, rather than removed, clarity becomes tangible. Clarity turns the transition from something feared into something navigable. Sir, second, transitions require early and trusted engagement. No worker should have to navigate transitions alone. Recently, I was involved in a retrenchment exercise. It gave me a deeper appreciation of how important early engagement is. Not just a concept, but as a lived, practical mechanism of support. When union leaders were engaged early, even before formal announcements, preparations could begin quietly.[+1 sentence] Career advisory support was coordinated. Alternative employment options could be identified in advance to minimise the period of uncertainty for the worker.[+7 sentences] In contrast, when information flows to the union too late, workers feel blindsided. And of course, anxiety multiplies. Support becomes reactive instead of proactive. The difference between being informed before and after an announcement can be profound. This experience reinforced something I have spoken about in previous debates. Strong industrial relations are built over time. They are built on trust, regular dialogue and mutual respect, long before disruption occurs. As transitions accelerate in the age of AI, restructuring may become more frequent across many sectors.[+32 sentences] The strength of our system will depend not only on economic agility, but on relational trust. The Prime Minister reaffirmed in his Budget speech that the Government will continue working closely with NTUC and unions to support workers through change. To strengthen this commitment, we should review and reinforce norms around early engagement and consultation where feasible. This does not mean adversarial industrial relations. It means building clearer expectations. It means earlier dialogue, greater transparency, shared responsibility in transition planning. Other jurisdictions have formalised advance notice mechanisms. Our approach need not replicate theirs, but we can continue strengthening norms that encourage responsible employer conduct and early partnership. Because trust cannot be built at the point of retrenchment. It must be built before disruption happens. This is the second pillar. Transitions require early and trusted engagement. Sir, third, transitions require confidence. This confidence comes from two sources: external assurance of clear pathways from education and training from work, and internal resilience. Sir, I thank the Prime Minister for acknowledging that anxieties surrounding AI are real. What I have observed is that this anxiety often stems not from the resistance to change, but from uncertainty about identity and value. Workers ask themselves, "Am I still relevant? Do my skills matter? Is there still space for me in this economy?" And these are deeply human questions. In one conversation, a senior professional shared that his greatest fear was not unemployment, but irrelevance. He had spent decades building expertise. As digital systems were introduced, he worried whether the expertise would still be recognised. In another case, a displaced worker delayed updating his resume for weeks, not because he lacked ability, but because he felt uncertain about how to position himself in a vastly changed market. Transitions, therefore, are not merely about skills transfer. They are about identity transition. They are about dignity. As we strengthen workforce systems, we should also be intentionally ensuring that our students and workers have the confidence to navigate. And this means that as we design transition support frameworks, whether for youths entering the workforce, mid-career switchers or displaced workers, structured activation and confidence-building components should sit alongside upgrading and job matching. Career guidance should not only provide listings of available roles, it should help workers reframe their value. Transition programmes should not only provide technical certification. They should help individuals rebuild momentum and self-belief. We have seen through structured activation and resilience interventions that when workers regain clarity and confidence, follow-through and interview rates, and transition outcomes improve.[+2 sentences] Confidence, therefore, is not abstract. It is measurable and actionable. I therefore suggest that confidence-building and structured activation support be intentionally embedded within our transition frameworks, alongside skills upgrading and job matching. This could help integrate structured coaching and activation components into career conversion programmes and transition support services, so that workers receive not only technical training but guided momentum towards re-employment.[+24 sentences] If we deliberately embed confidence-building into transition support, we strengthen not only our individual workers but also the resilience of our workforce as a whole. Resilience determines whether change feels like an opportunity or a threat that gives individuals the confidence to take decisive steps to embrace the future of work. And this is the third pillar. Transitions require confidence. Sir, I will now speak in Malay. (In Malay): Sir, in my speech earlier, I touched on job transitions and the impact of AI on our workforce. Allow me now to focus on the role of Focus Area 4 (FA4) under the MENDAKI, MUIS, MESRA initiative (M3), covering Employment and Employability. FA4 will ensure that the Malay/Muslim community is prepared and competitive in a changing economy. In this month of Ramadan and with Hari Raya approaching, I know many residents in my constituency are running home-based businesses selling cookies, clothing and various products online. AI can also be utilised by them. They can use AI tools to design more attractive posters and product images, write more effective marketing captions, automatically reply to customer queries and even manage bookings and financial records more systematically. This technology is not just for large companies. It is also for small businesses who want to grow. AI is also not merely relevant in business. As a father, I myself have seen how this technology can be used responsibly in learning. My child, who has dyslexia like me, sat for the Primary School Leaving Examination (PSLE) last year. We all know PSLE questions can sometimes be quite "interesting". Difficult, certainly, but “interesting". By using AI tools in the appropriate learning mode, called “study and learn”, it does not provide answers directly. Instead, it provides step-by-step guidance, helping to understand ways of thinking and approaches to solving questions. This makes it a support tool, not a substitute for effort. I was able to sit with him and go through those questions with more confidence, seemingly turning into a "pro dad" for a moment. That experience showed me that if used correctly, AI can build confidence and strengthen learning. If we can utilise AI wisely in education and small businesses, then we should also be bold enough to do the same in employment and skills upgrading. In the areas of Employment and Employability, FA4 can continue to strengthen relations with employers and industry partners, so that more training opportunities, internships and job placements are created in the growth sectors. On NTUC's part, through initiatives, like AI-Ready SG, we will continue to support workers and entrepreneurs in facing this change.[+5 sentences] I will provide further details in the upcoming COS debate. Finally, AI is not just about technology. It is about how we choose to use it. If we use it wisely, this change is not a threat. It is an opportunity for our community to continue progressing confidently. (In English): Sir, in closing, as transitions become more frequent in the age of AI, our responsibility is clear. We must strengthen clarity, so workers see the real pathways forward. We must deepen early, trusted engagement, so no one feels blindsided by change. And we must intentionally build confidence so that workers are equipped not only with skills but also with the self-assurance and resilience to move forward. If we get these three foundations right, transition will not weaken our workforce. It will only strengthen it and Singapore will continue to move ahead with our workers, not ahead of them.[+1 sentence] Sir, I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim2892 words
[+2 sentences]Mr Deputy Speaker, our system of public education is undeniably among the best in the world. Even if we quibble about details, the statistics speak for themselves. Our most recent ranking in the OECD PISA has us ranked first worldwide and the World Bank's Human Capital Index likewise has put us up top.[+16 sentences] Yet, this success while not undeserved, belay an important reality. We have done exceedingly well until now. But it is highly uncertain if we will continue to do so, especially in an AI age where traditional educational advantages are being rapidly upended by the advance of this technology. As Prime Minister Wong stated in his Budget address, our response to AI cannot be one of fear. This year's Budget exhibits an explicit tilt toward helping our nation confront the challenges of AI. And having spoken on the importance of AI in my Budget response two years back, I agree wholeheartedly with this stance. Hence, I support this year's Budget. But it would be foolish to be blind to the immense transformative potential of AI to not just disrupt, but also completely overturn the competitive advantages of the Singapore model. We cannot proceed with business as usual. We need change, not because our educational system is failing to deliver today, but because it is not adapted to deliver tomorrow. This is the hardest type of change, requiring foresight, wisdom and courage. After all, "If it ain't broke, why fix it?" Let us first acknowledge how far our system has come. Public mass education began in earnest a decade before Independence, following the establishment of our MOE. MOE's goal at the time was to reconcile the diverse approaches to education, given our multiracial population and to orient schooling toward the goals of nation building and workforce preparedness. This effort was immensely successful. The overall number of years of schooling in the population went from less than four years in 1960 to more than 12 by 2015, with an emphasis on science and technical education, coupled with a rigorous system of sorting and tracking, public education became the backbone of our nation's remarkable economic progress.[+3 sentences] Indeed, if you ask economists what they think was the most important factor underlying our nation's move from third world to first, many will likely point to our educational system. We must not take this success for granted, however, because the global educational landscape is rapidly changing. The advent of AI will mean an erosion of the edge in knowledge and ability that our schooling system had previously been able to confer. Emerging research already points to how AI compresses the skills gap by raising the productivity of inexperienced and lesser trained workers.[+8 sentences] This is the case even for college-educated professionals engaged in cognitive tasks. While this may fail to translate at the aggregate level, AI is nevertheless rapidly fulfilling its promise to vastly improve the efficiency of individuals. This was the thrust of my speech to the Budget Statement two years ago. In the interim, AI has advanced at a breathtaking pace. Tasks that may have eluded AI, save for some determined and curated prompting, are now routinely answered with speed and accuracy. In the courses I teach at university, I struggle with how to best obtain separation between students based on submitted assignments alone. The undeniable conclusion is that our traditional model of climbing the ladder of human capital development to become competent, reliable and trustworthy executers and operators is no longer likely to be the distinguishing factor for our workforce. The AI revolution will upend the way we approach education at all levels. In primary schools, we still have classrooms that have as many as 40 students.[+4 sentences] This was never tenable in so far as large classrooms affect not just the ability of our kids to receive sufficient teacher attention and absorb lessons, but also the ability of our teachers to adequately manage their pupils without excess stress. It has become even less acceptable today in an AI age. While some champions of technology have lauded the promise of AI to produce education customised to each learner, research in the cognitive sciences is unambiguous in concluding that children simply respond best to instruction delivered by another human rather than a device. Furthermore, while educational technology may confer some benefits, notably in language acquisition and problem solving, these are frequently offset by drawbacks, such as reduced attention spans, diminished memory and weakened critical thinking. The saving grace for such applications is that if they are applied in a thoughtful and deliberate manner, which occurs when edtech is treated as a compliment rather than a substitute for the teacher. This, in turn, calls for a better ratio of teachers to students in the classroom.[+7 sentences] I am also keenly aware that at the early ages, it is absolutely crucial that kids build a solid foundation for all that is to follow. This will set them up, not just to succeed in their subsequent academic endeavours but also in all sorts of life outcomes. It is, therefore, crucial that we do not allow our youngest learners to be left behind in their formal educational journey, reliant on supplementary tuition and parents turn teachers to make up for shortfalls in understanding that they would ideally have received directly from teachers in the classroom. Much of what primary school students learn may seem like a boring reprise of known concepts. But these ideas are new, at least to the kids that are being exposed to them for the first time. And if these kids do not grasp the basic premises that they are being taught, do not get excited about acquiring new knowledge and resort to memorising and in lieu of true understanding, we set them up to be incurious individuals, ill-prepared in an AI-centric world, where the ability to absorb and regurgitate information will no longer be sufficient to set a student apart. Rather, children need to be excited about their educational journey and approach school in a holistic way, as a place not just to be fed dry academic mater material, but a safe space to ask all sorts of questions, to challenge prevailing wisdom and assumptions and to have fun, picking up pursuits that are as varied as art and music and sport and of course, if they are so inclined, languages, along with Math and Science. Major high stakes examinations long, a mainstay of gauging student understanding and evaluating student performance, will be less relevant in an AI age.[+7 sentences] This requires us pardon, pardon the pun, to re-evaluate how we evaluate our kids, especially in secondary school. We need a mindset shift away from testing as a signal of competence and a means of streaming students to a way to check progress and identify if any particular student may have inadvertently fallen behind. This need to change mindset is not lost on our educators or learners themselves. MOE officials at the highest levels have acknowledged that examinations are the be all and end all, and students that embrace freedom from an examination-oriented curriculum often come to see that studying can be even a joyful and meaningful affair. Continual assessment has been a long-standing component of our educational system. It certainly was since I was in school, which was a long time ago. But our weightings reveal lip service paid to the notion of continual. Until recently, mid-year and final examinations could comprise as much as four-fifths of the total grade, which places an inordinate emphasis on these markers. So, even though the Ministry formally abolished mid-year examinations three years ago without an accompanying rebalancing of the weight placed on examinations and tests versus other forms of assessment, the effort will always remain half-hearted.[+8 sentences] Indeed, the continued presence of a relatively high stakes year-end examinations can leave students and parents feeling unprepared that they do not have a mid-term gauge. Anecdotal evidence even suggests that students and parents are making up for this change by simply having tuition centres administer mock mid-terms in lieu. Furthermore, the PSLE and "O" level examination remain major consequential tools for tracking students. I, along with others on both sides of the aisle of this House, have repeatedly called for a reconsideration of these examination milestones, to grant more students the chance to pursue through-train education if they so choose. In an AI age, opportunities for late bloomers to catch up will be more abundant, which also means that such flexibility becomes even more important. The fact is, until the incentives for performing well in exams are truly changed, it is hard to expect anyone to relinquish the single-minded focus on exams. Yet, here is the nub. There is substantial evidence that genuine continual assessment is even far better in bringing about learning and understanding. Frequent but low-stake quizzes, as much as once a day, can improve conceptual retention and understanding.[+2 sentences] Nor should we fear that this approach, which admittedly is commonplace across East Asia, need undermine ultimate student performance. Systems like those in Estonia and Finland, as well as the US states of New Hampshire and Vermont have relied on formative assessment and continuous feedback for years and have produced a steady stream of excellent students. Similarly, the evidence on tracking too early, by early, the literature suggests between the ages of 10 and 12, which incidentally, is precisely when we start subject-based banding and institute the PSLE, actually increases educational inequality without any clear achievement gains.[+11 sentences] While Ministry officials had assured that subject-based banding, retain mixed form classes and which is consistent with research that supports how within school tracking can help students with heterogeneous ability actually cope better and promote positive peer influence, there nevertheless remains significant sorting between schools, which can undermine the benefits of tracking in the first place, while continuing to place undue importance of exams as a sorting tool. To be clear, this call to shift attention away from exams and toward continual assessment decidedly does not mean a relaxation of standards. Rather, it calls for the sort of steady engagement that can keep standards consistently high. This change emphasis is also better aligned with fixing one of the principal challenges that educators face in the modern AI-enabled classroom – students who simply cannot sustain enough attention and interest to complete basic tasks expected of educated individuals, like reading an entire book cover to cover, to grasp what they have read accurately, to write with accuracy and originality, and to internalise mathematical skills. Sir, AI will probably have the greatest impact on the way we go about tertiary education. And I will pause here to declare that I am, indeed, a college professor. Until now, university education has had a two-fold aim: to impart the workforce with modern, value-added skills via high quality teaching; and to infuse our economy with the latest cutting edge innovation and technology through research. Both will now be upended by AI. What does it mean to transmit knowledge to undergraduates when such knowledge can be easily accessed and repurposed at the touch of a button, is rapidly devalued within years of graduation and can usually obtained at a fudge of the cost. What does it mean when answers to assignments usually arrive after extensive reflection, discussion and struggle, may be obtained within minutes with a simple prompt? There are already inklings of the tsunami of change that is about to come. GenAI can easily synthesise and deliver information that all but the very best undergraduates struggle to absorb, relieving the need for entry level positions. Agent AI can already accurately execute a wide range of tasks that new graduates used to fill, which means that firms will have a far weaker incentive for hiring them.[+8 sentences] Indeed, I believe that it will not be foundational models, which has captured so much of the public imagination and excitement with their clever answers to questions and seemingly human interactions, but rather agent-based ones that will be at the forefront of this disruption. Cognitive jobs are all the more vulnerable to replacement by such tools, which produce faster, are often more accurate and increasingly are higher quality output than humans. The best models are even able to do so with minimal guidance and instruction. The superior capabilities of AI are not limited to intellectually intensive activities either, like research or analysis. AI can perform better in just about any profession where intellect, brains and ingenuity is deployed – from vacation planning to financial planning, from video game design to building design, from data analysis to legal analysis, and from diagnosing bugs in software to diagnosing cancers in humans. The aspirational careers of Asian societies – doctors, lawyers, engineers, bankers – are now all potentially replaceable by AI. Moreover, we must not be lulled into a false sense of security by our nation's current unemployment rate, which has yet to capture the potential displacements of jobs that could result when AI and robotics become more entrenched in the economy. The future is much better inferred from the unemployment rate of new workers. Notably, while our youth unemployment rate remains considerably below those of other advanced economies, this has steadily trended up since the middle of 2024.[+11 sentences] Reports of fresh graduates struggling to secure employment are also piling up. What this means is then that the skills we teach in lecture halls and labs need to evolve away from rote learning and solving known problems to leveraging what makes humans unique. Soft skills like empathy, networking, judgement, creativity and vision. I already see this in my courses. The way to separate weaker students from stronger ones is frequently no longer what they submit in written assignments – something Singaporean undergraduates often excel at – but by their inquisitiveness, their willingness to question prevailing wisdom, their ability to think outside the proverbial box and their strength at bringing others together on a common task. Students must want to understand what they are being taught, not just cram yet more information without care for the fundamentals. It also means that our outdated approach to university entry, which is conditional on relative performance in an academically oriented high stakes exam has to be revisited. In last year's COS, I suggested that we move forward with granting entry based on satisfying absolute entry criteria. This is now even more urgent given how relative academic performance will be ever less relevant to university success. Reform must also percolate to more advanced levels of tertiary education. It is natural to ask, what is left of research when even at the PhD level, only a tiny, talented minority may still credibly lay claim to intellectual superiority and methodological sophistication? Prime Minister Wong's $37 billion funding for the Research, Innovation and Enterprise plan is undeniably a welcome step, and if resource constraints were the only limitation to research success, we would be well positioned, even though, as I previously mentioned, our national research and development spending still lacks those of comparable technologically forward economies.[+6 sentences] But the reality is that scholarship is not borne out of funding alone, as important as it is, and especially in an AI age where differences in the capacity to produce research are likely to collapse. Instead, what is relevant is the sophistication of the questions that we ask and the way that we approach problem solving. For this, we must still appeal to what is inescapably human. Our most groundbreaking innovations have always relied on humans affording their imaginations the absolute freedom to follow wherever the ideas lead. This occurs best in open, liberal, democratic societies, which offer the best conditions for the accumulation of productive human capital and the generation of world class scientific output. These conditions then contribute to productivity and in the long run, economic performance. Our autonomous universities must stop chasing global rankings for their own sake, but instead focus on the genuine nature of academic enterprise, a point that Member Kenneth Goh, a fellow academic, has just made.[+4 sentences] In doing so, I am certain, nevertheless, that recognition and reward will find their way to them. Sir, no matter how much we revamp our educational system, even if we were to adopt the seemingly radical steps proposed here, the reality of real world distributions of human ability is that there will always be a group that falls in the left tail and risk being left behind. Yet, this AI moment also offers tantalising opportunities. Teachers can tap on AI generated resources to offer education that is more interesting and more customised, a luxury that would have taken previously hours of work. Weaker students now have a more realistic chance than ever before to shine in the classroom. Not only will AI compress the talent gap, it will devalue the traditional degree, which opens the door for those who, endowed with hitherto undervalued skills, to finally stake their place in the modern economy. This includes those who may not be as book smart, but who are gifted in myriad other ways. Those who are blessed with superior hand-eye coordination, or are more innately social, or exude practical intelligence, or possess a tinker's mentality.[+1 sentence] Singapore has, since birth, been an ethnically, culturally and religiously diverse nation. Let us also embrace neurological and intellectual diversity, starting from the ground up with our educational system.[+1 sentence] And let us —
Mr Deputy Speaker7 words
[+1 sentence]Prof Lim, you have a minute left.
Assoc Prof Jamus Jerome Lim24 words
[+1 sentence]I shall end with my final sentence. Let us allow diversity to be the core strength of our educational system in this AI age.
Mr Deputy Speaker6 words
[+1 sentence]Senior Minister of State Desmond Tan.
The Senior Minister of State, Prime Minister's Office (Mr Desmond Tan)1903 words
[+10 sentences]Mr Deputy Speaker, Sir, I rise in support of this year's Budget. I think it is one that provides critical stability in the midst of uncertainty and chaos. And with this stability, it helps us to propel forward to pursue progress for Singapore and Singaporeans. Last September, I spoke about the two forces shaping Singapore's future. I named it "the two AIs". AI number 1 is "artificial intelligence", which generates information at lightning speed, changing the way we work and we live. AI number 2 is ageing individuals, experienced workers who bring their wisdom, their judgement and their perspective to the workplace. Today, I would like to build on these two AIs and on this idea. My argument is a simple one – that AI helps us find answers much faster, but it is experience in AI number 2 that helps Singapore ask better questions. Singapore's success will depend not only on how quickly we find answers, but whether we ask the right questions about our future economy, our workforce and our jobs. As Singapore becomes a super aged society, our goal is to support our seniors to age with dignity, with security and with a peace of mind.[+1 sentence] Mr Deputy Speaker, the Labour Movement and our tripartite partners have been working on this and preparing for this transition for many years. We supported raising the retirement and re-employment ages, which are on track to reach 65 and 70 by the year 2030.[+5 sentences] We support strengthening CPF contributions for senior workers and to progressively raise the ceiling to protect retirement adequacy. We backed the Workplace Fairness Act to reinforce protection against workplace discrimination, and we have consistently pushed for job redesign, lifelong learning and stronger mid-career transition support. These efforts have indeed made a difference. More seniors today are financially prepared for retirement and more are choosing to remain economically active. But as our workforce transforms, challenges remain. First, as our population ages, overall resident labour force participation, unfortunately, is gradually declining from 70.5% to 67.9% in the last five years.[+2 sentences] This is a structural challenge that will affect our economic resilience in the long term. Second, many seniors still face barriers in staying meaningfully employed, such as hiring filters or reduced benefits at re-employment. NTUC survey show that they take longer to find jobs, average of 6.2 months versus 4.9 months on average, for other workers, and 37.5% report narrowing job prospects due to age.[+8 sentences] I am sure Members here would have also heard of anecdotal experiences among our residents who face challenges in the job search. Third, many seniors worry about keeping up with technological advances and its impact on job security specifically. While many are willing to learn, they face constraints of lower familiarity with new technologies and also heavier caregiving responsibilities. Employers have also cited difficulties such as mismatched salary expectations, skills gaps and concerns about higher wages. While these are not straightforward, and also difficult issues to deal with, but I remain optimistic that Singapore can navigate these challenges through our deep tripartite cooperation, and also, especially in this time of AI. Mr Deputy Speaker, let me articulate three priorities as we navigate this change, especially for our senior workers. The first priority is to enable seniors to remain employable with choice, flexibility and inclusion. Many seniors want to continue working beyond their retirement age. NTUC’s Senior Employment Survey shows that more than 70% of senior workers are open to employment beyond the retirement age.[+12 sentences] But this is not about expecting seniors to simply stay in the workforce longer. It is about giving seniors the choice and flexibility to continue contributing meaningfully, building on their strengths, their experience and their skills. Employers should continue developing flexible career options. The Tripartite Workgroup (TWG) for senior employment, which I co-chair, is exploring ways to expand and broaden these options. Through the Alliance for Action on Empowering Multi-Stage Careers for Mature Workers (AfA-EMW), companies have piloted promising models. One example is Mandai Rainforest Resort’s hobby- or interest-based job roles, and also recruitment prototypes, where seniors are hired based on their hobbies and interests, with roles redesigned to build on these strengths and these passions. Through this approach, Mandai gave Mr Richard, a 60-year-old nature enthusiast, the opportunity to serve as a Welcome Ambassador in a role aligned with his love for nature. With support from his colleagues and employer, Richard now takes pride in bringing his guests around the resort to experience the natural surroundings he cares deeply about. Some employers have also created structured pathways that allow seniors to transition gradually into retirement while continuing to contribute meaningfully. At Schneider Electric, for example, the Senior Talent Programme offers different “personas”, one of which is the “Pivot” persona, which enables senior workers to take on roles such as coaches and mentors while remaining engaged in the organisation. These initiatives show that when employers redesign jobs thoughtfully and provide structured pathways, they can unlock the full potential of our senior workers. Senior workers must also be able to contribute with dignity and without fear of discrimination. The Tripartite Workgroup is studying whether additional support can be extended to long-term unemployed seniors seeking to re-enter the workforce.[+4 sentences] This need was actually reflected in the experience of Mr Sunil, a senior jobseeker who shared in a forum letter last week about how NTUC’s Career Festival gave him more than job advice – it restored confidence and reassurance at a critical stage of his job search when he walked into the Career Festival. His experience reminds us that beyond advice, senior jobseekers benefit from personalised guidance and support as they navigate career transitions. We should therefore continue to encourage our employers to support and to invest more in training and job redesign for mature workers and also to facilitate multi-generational workplaces. Mr Deputy Speaker, the second priority is to ensure that AI strengthens rather than replaces our workers. [restates an earlier point]As mentioned earlier, NTUC has launched the AI-Ready SG initiative, which is a one-stop platform to train and upskill workers, support firms in transformation and improve matching for workers to access better jobs. Apart from the support given to workers in areas such as training and matching, NTUC has actually launched for quite some time an AI Readiness Index (AIRI), which I think Member Denise Phua will be happy to know, an AI Transformation Blueprint and more recently, sectoral AI Playbooks that provide companies with practical guidance on business transformation and resources to support their workers' upskilling.[+4 sentences] I am pleased to share that the first three playbooks have been launched and I encourage employers to work closely with us to tap on these resources in their transformation journey. Our CTCs, including our growing network of queen bees also play a critical role in business and workforce transformation. They bring employers and workers together to co-create upskilling and job redesign plans that directly benefit their business and also upskill our workers. Let me share one example. At Tan Tock Seng Hospital, the introduction of an AI-enabled predictive patient monitoring system has helped our nurses manage fall-risk patients more effectively.[+27 sentences] I met senior enrolled nurse, Lilian Teng, who is 69 years young. She shared how the system eliminated frequent manual labour, reduced physical strain and allowed her to focus on higher-value clinical work. Importantly, her younger colleagues helped her adapt and gain confidence to handle the new technology, while Lilian contributed and shared her clinical experience with the younger colleagues. What encouraged me was not just how AI supported a senior worker in this instance, but how different generations supported each other in the work place. This example shows that the future of work is not just about choosing between technology and experience, or between younger and older workers. It is about maximising their relative strengths and making them stronger by working together. Mr Speaker, the third priority is to build a multi-stage, cross-generational workforce. The future workforce will not follow a linear, simple path of education, work and retirement. Instead, I believe it will be a journey of continuous learning, continuous upskilling and reskilling, and contributions. Senior workers will increasingly play roles as mentors and coaches while the younger ones will bring digital capabilities and new technological knowhows. AI can help bridge these generations by amplifying the strengths of both. I believe that Singapore's competitive advantage in the future can lie in combining technological answers with experience-driven questions. Mr Speaker, I will now speak in Mandarin, please. (In Mandarin): Mr Speaker, last year, during the Parliamentary debate in September, I talked about two AIs: "artificial intelligence", and the "ageing individual" whom we are concerned about. What I want to further emphasise is that these two AIs can complement each other – artificial intelligence can help improve the speed of work, whilst the wisdom of senior workers can help improve the accuracy of work. Intelligence and wisdom, speed and accuracy. Both are indispensable. AI can quickly provide answers but the wisdom, judgement, values and sense of responsibility of senior workers, as well as their years of accumulated experience, cannot be replaced by technology. Our philosophy is very clear – AI cannot replace human wisdom, but we certainly have the wisdom to master AI. As technology evolves at an accelerating pace and AI becomes more widespread, some senior workers worry that they cannot keep up with the changes and will find it difficult to master new skills. We understand and take everyone's concerns very seriously. Therefore, NTUC has launched the AI-Ready SG initiative to encourage workers to learn and use AI tools and also support enterprises in using technology to redesign work, helping to make the transformation process smoother. Entering the Year of the Horse, the global situation remains uncertain and enterprises still face numerous challenges. Workers must also do their part, prepare for rainy days and actively plan for the future. If each of our workers can make good use of AI and the wisdom accumulated over many years – AI plus wisdom, technology plus experience, having both speed and accuracy – then Singapore will certainly be able to achieve stability and progress amid chaos. (In English): Mr Speaker, looking ahead, our workforce must be defined not by age, but by capability. We must move from lifetime employment to lifelong employability. From qualifications alone to demonstrated skills and adaptability.[+3 sentences] From protecting jobs to strengthening job security. Ageing, like AI, is upon us. Standing still is not an option. I therefore call on our tripartite partners to step up support for all our senior workers to prevent premature exit from the workforce, to help them bounce back when needed and to sustain meaningful employment for as long as practicable. This Budget lays strong foundations for the transformation towards an AI-enabled economy.[+4 sentences] As a small nation whose strength lies in our people, we must press ahead with AI in ways that strengthen and not replaces our workers. We welcome the Government’s assurance that technological progress will not come at the expense of our workers. Together, we must act decisively to put in place the support needed for workers to adapt, progress and continue contributing with confidence. The Labour Movement stands ready to work closely with our tripartite partners to ensure that every worker, including our senior workers, will not just adapt to change, but will thrive in an AI-enabled economy.
Mr Speaker6 words
[+1 sentence]Minister of State Dinesh Vasu Dash.
The Minister of State for Culture, Community and Youth, and Manpower (Mr Dinesh Vasu Dash)2043 words
[+4 sentences]Mr Speaker, Sir, I rise in support of Budget 2026. This Budget strikes a balanced approach to meet the pressing needs of today, while preparing us for the challenges of tomorrow. This is also timely as we enter a new phase of Singapore’s economic journey where the global economy is increasingly fractured and uncertain. Where technologies, are advancing at unprecedented speeds, reshaping how companies operate, and how we live and work. And where we would have to do more with a slower growth in our workforce, given our ageing population and falling TFR. This is why the Government launched the Economic Strategy Review in August 2025, and I have had the privilege to lead the Committee on Entrepreneurship together with my co-chair, Minister of State Alvin Tan.[+14 sentences] Sir, entrepreneurship is in our DNA. Many of our forefathers built successful businesses and contributed to nation building, including Pioneers such as Lim Nee Soon, Seah Eu Chin, P Govindasamy Pillai, Syed Omar Aljunied and Edwin Tessensohn. Perhaps one of the most iconic pioneer entrepreneurs was Tan Tock Seng. His story started when he arrived in Singapore in 1819 as a vegetable seller to a successful shop owner in Boat Quay in 1827 and to a thriving businessman. Through his many businesses that spanned real estate, agriculture and of course healthcare, he provided thousands of jobs to Singaporeans, then and even now. Like our Pioneers, our generation has also our avant-garde entrepreneurs who have succeeded and have been able to entrench themselves here and beyond Singapore’s shores. Take Carousell for example. This company was founded by three National University of Singapore (NUS) graduates, who were inspired by their exposure to Silicon Valley through the NUS Overseas Colleges programme. Carousell began with a simple idea: to make the selling of pre-owned items as easy as taking a photograph. What started as a mobile-first classified ads app had since grown into a leading online marketplace and omnichannel re-commerce business operating across Southeast Asia, Taiwan, Hong Kong, and serving tens of millions of users across the region. I am very glad that Mr Marcus Tan, one of the founders of Carousell, and others like him are part of the Entrepreneurship Committee. They, together with venture capitalists and business leaders have added tremendous value to the committee. Mr Speaker, Sir, Singapore's entrepreneurship ecosystem is in a good place. Just like our early days, today's entrepreneurs have spurred innovation, created jobs and established themselves internationally. In fact, the Global Startup Ecosystem Index 2025 by StartupBlink ranks Singapore’s ecosystem as number four in the world.[+1 sentence] Our startup ecosystem benefits from a pro-business environment which includes our established companies, our talent pool, dedicated startup spaces such as the LaunchPad at One-North and supportive Government policies. These make Singapore a unique, competitive and trusted hub for innovation. We are also a key hub in Asia for innovative companies and investors, with over 4,500 tech startups, 220 incubators and accelerators and over 500 venture capital firms that have anchored themselves in Singapore.[+9 sentences] Many founders of startups have proudly shared with me on how the Singapore brand had helped them forge partnerships and to break into new markets. However, we cannot stand still and rest on our laurels. We need to continue to strengthen our startup ecosystem, to maintain our attractiveness to startups, talent and capital. This is because of intensifying competition from startup hubs in Asia, the Middle East and even further afield. Venture capital remains tight, particularly outside of the US. Over the last few months, Minister of State Alvin and I have spoken to more than 300 stakeholders including startup founders, business leaders, venture capitalists and our youths. This was to understand their concerns and to propose strategies to help them and future generations of entrepreneurs. We would like to thank each and every one of you for your feedback and for your support. This was only possible with the strong support of our committee members and ecosystem partners such as the Action Community for Entrepreneurship (ACE), SBF, Singapore Fintech Association and the National Youth Council. To support our startups, we will adopt a three-pronged strategy to strengthen our entrepreneurial ecosystem.[+1 sentence] First, we will strengthen our entrepreneurial culture. Second, we will help promising growth-stage startups scale and expand beyond Singapore’s shores.[+15 sentences] And third, we will facilitate investors to exit and recycle their capital and expertise into new ventures. Let me start with our entrepreneurial culture. Several years back when my son was then five years old, he told me of a "paper clip" challenge, which apparently, he chanced upon on YouTube. Starting from a paperclip, he was required to barter trade upwards until he reached a valuable item. After a couple of weeks, he presented a beautiful pen to me and tried to sell it to me for $20. What started off as a humble paper clip, after multiple trades, had been traded upwards towards a pen. I am sure my story is not unique and there are many budding young entrepreneurs with very interesting ideas. However, when I ask successful founders whether they would support their children in pursuing entrepreneurship, some of them were reluctant. They know well the risks of failure and how difficult the journey was. It is therefore important to double our efforts to sustain and grow our entrepreneurship spirit in Singapore. And we should start from a younger age. Initiatives such as the Applied Learning Programmes in schools and the Direct School Admission for Entrepreneurship are a good start. These programmes allow students to gain practical skills such as critical thinking and the resilience needed to succeed in today’s fast-paced business world. And on that note, I fully agree with Mr Azhar Othman who had indicated earlier the need to start entrepreneurship in schools at an earlier age. We should also encourage Industry-led programmes, like the "My First $1,000" programme spearheaded by one of our committee members Mr Willson Cuaca from East Ventures. In this programme, students who are between the ages of 14 and 18, will be given $250 for their business idea. After eight weeks, they would have to return the initial capital with cost and will receive a dollar for dollar matching for their profits, capped at $1,000.[+19 sentences] This allows our youths to road-test their ideas and experience the ups and downs of entrepreneurship. Some may fail, but the lessons learnt would surely stay with them for life. I am happy to report that those who are keen can continue to sign up. Registrations are still open, but they will be closing quite soon. Ultimately, we must view setbacks as a stepping stone towards eventual success. Every successful entrepreneur will tell you that their path was filled with obstacles. They will also mention that they would not have succeeded, if it was not for the lessons learnt from overcoming these challenges. The key is to learn quickly from setbacks and bounce back stronger. We can also support our entrepreneurs in more tangible ways and encourage entrepreneurship across all ages. Entrepreneurship communities and startup spaces, like LaunchPad, allow people to collaborate, learn from each other and develop their ideas in a supportive environment. This can be open to interested persons of all ages, including our mid-careerists and our seniors. These communities, alongside mentorship from experienced entrepreneurs, create a strong ecosystem of support that gives budding entrepreneurs the confidence to take that first step. While new technology, products and services are disrupting traditional industries, it is also not uncommon to see startups with the right product or idea to achieve phenomenal success. It is therefore exciting to work in a startup and perhaps, even more exciting to start one. And so, I would like to call on our aspiring entrepreneurs to believe in yourselves and to boldly take that first step. Second, let me touch on those who have taken the leap of faith, achieved some success and are ready to scale globally. To do so, they may need specialised talent, a range of financing options and access to new markets. They may need to raise funds for research and development, infrastructure, hiring and sales. But many start-ups speak of difficulties to access fundraising options at the growth and pre-Initial Public Offering stages. Particularly for deep tech startups, they need experienced and credible financing partners with the right expertise and capital structures that are suitable for long-cycle, capital-intensive innovation. Hence, the $1 billion top-up to the Startup SG Equity schme, as announced by our Prime Minister, is a welcome reprieve.[+3 sentences] Further, the expansion in scope to cover early growth-stage companies, will help our startups raise the funding they would need to then scale. In addition, the new Growth Capital Workgroup, led by Minister Chee Hong Tat, will look into measures to support the financing needs of companies across various growth stages. We will share the feedback obtained through our engagements with the Workgroup and to support in their efforts as well. The increase in the maximum loan quantum under the Enterprise Financing Scheme will also be useful. This is because the overall loan quanta had been increased from $30 to $50 million and would be beneficial for our SMEs who may be considering scaling up their businesses.[+7 sentences] As Singapore is a small market, our startups must think global from day one to succeed. But we know this could be challenging for some, especially if they do not have a strong track record or if they are unfamiliar with the new markets. The Budget measures to support Singapore companies as they venture abroad, such as the enhanced Global Innovation Alliance and the Market Readiness Assistance grants, will therefore be very useful. By strengthening the ecosystem's access to financing options and support for entering new markets, we hope to create an environment where good ideas can flourish and companies, including our SMEs, can grow and compete. Thirdly, let me speak about facilitating exits to support capital recycling. Many successful founders want the opportunity to exit and to reinvest their time, talent and capital into new ventures. Thus, if we want a sustainable and dynamic ecosystem, we must ensure that capital is available for promising companies to exit at fair valuations and for the early investors to recycle their capital. A well-functioning and vibrant capital market in Singapore is crucial for this. I am therefore heartened that our committee's recommendation for a second $1.5 billion tranche of the Anchor Fund, which will help ensure continued support for high-quality listings in Singapore, was supported.[+8 sentences] This will be especially important as more startups mature and want to seek capital for their growth plans through public markets. The committee also welcomes the $1.5 billion top-up to the Financial Sector Development Fund, to expand the Monetary Authority of Singapore's Equity Market Development Programme, which aims to develop our fund management industry and increase investor participation in Singapore equities. I look forward to seeing the positive impact of these efforts in boosting listings on the Singapore Exchange. Let me conclude, by going back to my son. Unsurprisingly, he was able to convince me to buy the $20 pen and he cashed out the venture, therefore, with tremendous bragging rights. He then recycled this princely sum into his next venture, of buying several other nicknacks and started the process all over again. If I recall correctly, most of it went to chocolates, which were quite quickly gobbled up by him. Sir, Singapore's next phase of entrepreneurs will face far more complexities than the paper clip challenge. There would be setbacks and they would have to navigate along uncharted waters. Those who are able to adapt early, move decisively and invest ahead of the curve, will succeed. The work of the Economic Strategies Review Committee on Entrepreneurship will continue and we will support our startups in this venture. We will strengthen our entrepreneurial culture, help promising growth-stage startups scale and we will facilitate investors to exit and recycle their capital into new ventures. We hope that these efforts will allow Singapore to nurture the next generation of budding entrepreneurs, such as Mr Marcus Tan and Tan Tock Seng. I am confident that Budget 2026 will provide a shot in the arm for current and future employers, as well as entrepreneurs.[+1 sentence] Thank you and I support the Budget.
Mr Speaker3 words
[+1 sentence]Miss Rachel Ong.
Miss Rachel Ong (Tanjong Pagar)1960 words
[+6 sentences]Mr Speaker, I thank Prime Minister Lawrence Wong for his Budget Statement and for the continued emphasis on honouring our people and results. Today, I speak in defence of our seniors. Many carry with them daily realities and pressures very quietly. I will highlight four areas that require our attention: nutrition vulnerability; rising cost pressures; digital anxiety; and the fast evolving threat of scams. First, nutrition vulnerability. In a food-secure city like ours, it is worrying that we are seeing signs of rising malnutrition among seniors. A National Healthcare Group Health Study found that the proportion of hospital patients aged 65 and above, are at risk of malnutrition rose from three in 10 in 2022 to four in 10 by 2025, with two-thirds still at risk, at discharge.[+37 sentences] This shows the issue is not marginal but persistent. Doctors at the National University Hospital also highlight that malnutrition is closely linked to falls and poorer recovery. Many do not see food as part of healthcare. When eating becomes painful, tiring and lonely, nutrition suffers, not from ignorance, but from circumstance. Some stop walking to hawker centres and rely instead on biscuits and instant noodles. Others shift to softer but less nutritious foods because of untreated oral health issues or chewing difficulties. Over time, protein intake drops, strength declines and frailty rises. If we are serious about healthy ageing, nutrition policy must address access and the daily realities of how our seniors eat. My first proposal is a national movement, which I will refer to, for now, as Strong Seniors SG, with a simple goal: helping seniors stay strong through better nutrition, especially adequate protein intake. Protein should not feel like a luxury. Affordable foods, such as eggs, tofu, beans and simple fish dishes are already part of everyday meals. Yet nutrition gaps among seniors often arise not from the lack of food, but from practical barriers; difficulty chewing, fatigue from cooking, eating alone, or uncertainty about what foods truly support strength. Strong Seniors SG would therefore focus on making protein intake easier, more familiar and part of the daily routines. This can be advanced through three practical pathways: where seniors eat; how seniors eat; and what seniors eat. First, where seniors eat. We can partner hawkers, food courts and Active Ageing Centres to make protein-rich meals more visible and accessible. Stalls to highlight affordable protein options or label balanced set meals, including softer choices for those with chewing difficulties. When the healthier option is easier to spot, it becomes easier to choose. Second, how seniors eat. Eating is social. Seniors eat more and eat better when they eat together. Some Active Ageing Centres already run communal meals and we can build on this. In the UK, general practitioners (GPs) go beyond medication by recommending communal dining and social activities as preventive care. We can adopt the same approach in Singapore, with GPs and polyclinics referring seniors to community meal initiatives that provide both nutrition and social connection. Third, what seniors eat. Countries like Japan and South Korea are investing in senior-friendly food innovation, including texture-adapted, high-protein meals. South Korea goes further by setting a national senior-friendly food standard, with clear nutrition and texture benchmarks. Certified foods are labelled by texture levels allowing seniors to buy ready-to-eat meals from supermarkets. In Singapore, Health Promotion Board's Nutri-Grade has shown how clear labels can guide healthier choices. Could we build on this success with a similar approach for senior-friendly foods, signalling both nutritional value and eating comfort? Our food innovation ecosystem can support this through grants, pilots and partnerships with industry and community providers. Because when seniors maintain their health, they maintain their independence, confidence and dignity. The second area that requires attention is rising cost pressures. Cost pressures for seniors are often less visible. One overlooked area is oral health, which directly affects nutrition and overall health. Many seniors assume tooth loss is simply part of ageing. Some quietly share, "I don't go to the dentist because I cannot afford it". With subsidies, full dentures can cost between $500 and $800 and require multiple visits. For seniors with limited finances and mobility challenges, this is a deterrent. I therefore ask the Government to review dental subsidies, particularly denture-related costs and to consider introducing one fully subsidised annual dental check-up for seniors aged 65 and above, on CHAS Blue or Orange.[+4 sentences] Such a measure would strengthen preventive care, while giving us a clearer national picture of our seniors' oral health needs. Transport is another burden. While Agency for Integrated Care's Medical Escort and Transport subsidies help some, many mildly frail seniors fall outside eligibility. They may be able to walk, but could be unsafe in crowded transport. Taxi fares of $20 to $40 per trip quickly adds up. About one-third of seniors live alone or with another senior; which means managing healthcare, from appointments to follow-ups, can be stressful, costly and physically demanding.[+25 sentences] To ease this burden, I propose two practical steps. First, expand the role of neighbourhood GPs under Healthier SG to handle hospital-directed routine tests and follow-ups closer to home. Second, provide broader transport subsidies for seniors with frequent medical visits. Next, digital anxiety. Singapore's Smart Nation push has brought many benefits. But for some seniors, it has also brought digital anxiety. Among seniors-only households, smartphone ownership is near 90%, but access does not equate confidence. A simple SMS that says: "Reply 1", "Click this link" can be confusing. A hospital appointment message can trigger days of worry, especially when it is to reschedule. Seniors often leave the hospital with a printed appointment slip they rely on. When an SMS later arrives with a new date, certainty disappears. For those who depend on escorts or family to arrange transport, this anxiety is compounded. Then, there is what I call the "two-minute OTP race". For a senior, it means searching for their glasses, unlocking their phone, switching screens and trying to read an English message within a time limit. For the institution, it is one notification. For our seniors, it can feel like emotional roller-coaster. Digitalisation must therefore include human fallbacks and senior-friendly design. I suggest to: include a direct phone line to a real person in automated messages; keep government apps simple, with clear mother-tongue options; offer guided "safe update" sessions so seniors can navigate their devices confidently. And for seniors with mobility challenges, I urge MOH and our healthcare institutions to proactively assess transport needs when appointments are rescheduled. When seniors feel unsure on the digital front, some withdraw, others avoid transactions and many feel embarrassed to ask for help. As one resident shared, "英语不会, 电脑不懂"; or "I do not know English, nor am I IT-savvy." When seniors feel unsafe in the digital space, these consequences are not only stressful; they can be dangerous. And this brings me to my fourth point: scams. From financial loss to trauma, scams affect people of all ages. But for our seniors, the consequences can be life-altering. Singapore recorded 51,501 scam cases in 2024 with $1.1 billion lost.[+8 sentences] Seniors may be fewer in number, but they often suffer the highest losses and the deepest emotional turmoil. For someone in their 70s and 80s, money represents years of effort and strength they can no longer earn back. The loss therefore cuts far deeper than the dollar value. Many do not tell their children. There is shame and fear of being scolded. Some suffer sleeplessness, anxiety and a loss of confidence in their own judgement. One senior in his 80s shared with me that after recognising the scam tactics and refusing a second request for money, he feared retaliation and stopped going out alone. Repeat victimisation is also not uncommon. In a Home Team survey shared in 2021, 45% of scam victims were targeted again.[+7 sentences] And I know this to be true. Some scam tactics are advancing quickly, with AI-enabled deepfakes far harder to detect. I suggest three areas where our response to victim support can be strengthened. First, faster and more coordinated support. Automatic referral pathways to ensure victims are quickly linked to counselling, guidance and family support. Second, more humane system responses. Banks and agencies can adopt protocols, including private consultations, multilingual guidance and staff trained to respond with empathy. Third, a mandatory scam resilience workshop for victims, to equip seniors and families with practical tools, confidence and safeguards before they are approached again.[+25 sentences] Mr Speaker, in Mandarin, please. (In Mandarin): Mr Speaker, I would like to say a few heartfelt words to our senior residents. Many Singaporeans have encountered scams before. If you have been deceived, please do not blame yourself too much. This is really not your fault. Scam tactics are becoming increasingly sophisticated nowadays and anyone could have a momentary lapse. What is important is not to put yourself down because of one experience. Be more self-forgiving and carry on living courageously. According to the Singapore Police Force’s data, scam cases in 2024 reached a new high. Among these, senior citizens suffered the most losses. What is even more heartbreaking is that many seniors dare not speak up after being scammed because they feel ashamed and are afraid of being blamed. As a result, they experience long-term anxiety, difficulty sleeping and even begin to doubt their own judgement. Facing such situations, I would like to offer some advice to all our seniors. First, do not be afraid but remain vigilant. You can agree on a simple "code word" with your family beforehand. This way, when you receive calls or video calls, you can confirm whether the other party is indeed your family member. Current scam tactics are very sophisticated. They can even imitate the look and voice. One lady received a video call from her "husband". The caller said his phone was lost and needed her to transfer money immediately. The person on screen looked like her husband and the voice was identical too. But in fact, her real husband was at home at the time. Hence, all seniors must remember – for any call asking for money, you must pause and confirm the caller’s identity first. Use the code word to verify. Only then can you truly protect yourself. If the caller claims to be a Singapore Government official or Police officer, you can dial 1799 ScamShield anti-scam hotline to verify.[+6 sentences] Second, if you suspect or have already encountered a scam, please immediately notify your family or bank. The earlier you seek help, the greater the chance of reducing losses. Third, actively participate in anti-scam courses. According to a 2021 Ministry of Home Affairs survey, 45% of victims have been scammed again. Therefore, learning is the most important line of defense. Currently, many communities organise anti-scam talks. For example, Telok Blangah Community Centre will hold another anti-scam education activity on 7 March.[+7 sentences] Because scam tactics constantly evolve, only by learning together and reminding each other can we better protect ourselves. Finally, I would also like to say a few words to the children of our seniors. Even smart, well-educated people can be deceived. Scammers do not choose their targets. When parents encounter scams, they often blame themselves and are more frightened than we imagine. Please give them more understanding, comfort and support and help them emerge from the shadow. (In English): Mr Speaker, across many cultures, how a society treats its seniors reflects its moral strength. Singapore has made meaningful progress, building firm foundations through Healthier SG, Age Well SG and the tireless work of everyone on the ground.[+3 sentences] I thank our Government and public officers, and recognise that every policy decision must be balanced against fiscal realities. May our Smart Nation be strong and kind for every generation. With this, I support Budget 2026.
Mr Speaker3 words
[+1 sentence]Dr Haresh Singaraju.
Dr Haresh Singaraju (Nominated Member)2083 words
[+14 sentences]Mr Speaker, Mdm Tan is 78. She has six chronic conditions, the kind of complexity that team-based care was built for. Every quarter, despite a worsening gait, she makes her way to my polyclinic with a plastic bag of medications. Down the corridor, a nurse with years of clinical experience and an advanced practice qualification waits for Mdm Tan as scheduled. The clinic briefed her on what this nurse could do, but a couple of conversations in one clinic cannot undo a lifetime of expectation. Mdm Tan has seen a doctor every quarter for years. That is not a habit. It is a relationship. We do not yet have a national framework that helps patients understand what team-based care looks like and their benefits, especially for complex chronic care. So, Mdm Tan expresses politely that she would like to only see the doctor instead. The doctor's queue grows and the nurse waits for her next patient. I am not questioning patient choice. I am questioning whether the system gave patients enough reason to choose differently. And no key performance indicator captured it. Across our public healthcare, we do not yet systematically track utilisation of advanced practice nurses or care managers and even pharmacist-led clinics.[+9 sentences] The result is predictable. Trained professionals underutilised while doctors run behind, and patients like Mdm Tan wait longer as their healthcare and social needs compound. What I saw in that corridor is not a clinical gap. It is a measurement gap. And it is not unique to healthcare. It runs quietly through the domains this Budget touches. Mr Speaker, this is a substantial Budget, substantial enough to change that. This Budget rightly bets on AI as an engine of growth. But the longer serving engine is our people. The test is whether they are better off. We measure what the system produces – wait times, enrolment rates, disbursements with extraordinary precision – but we do not yet assess whether the system changed the outcome for the person it was built to serve.[+8 sentences] The Singapore Public Sector Outcomes Review spans four themes and dozens of indicators across domains, across every domain of national life. It tracks outputs and throughput. It does not capture whether a person's health, housing, employment and social connection are collectively improving. That is the gap, not an effort in integration. Each Ministry sees its slice. No one sees the whole person, the very thing a family physician is trained to do. Every week, I see it. If there is a place where the whole person view should begin, it is Healthier SG. As of August 2025, it enrolled over 1.3 million residents into a care relationship.[+21 sentences] The most significant shift from episodic treatment to sustained health management in primary care this country has undertaken. That relationship is the foundation. My question is, what else it can carry? Beyond Active Ageing Centres and sports programmes, social prescribing pathways remain narrow. The culinary class at my community club, five minutes from my clinic, is not linked; neither is the e-sports interest group for seniors near my home. Not because it does not work. Because no one has built the bridge and that bridge is key for heartfelt social connection. In May 2025, the World Health Assembly adopted its first resolution recognising social connection as a public health priority. Singapore is a member. If we already have the infrastructure and we do, the question is not whether social prescribing works, is why the connections remain incomplete. The gap between what we measure and what matters does not stop at the clinic door. It follows families home. A couple sits at their dining table after their toddler has gone to bed. The laptop is open, the childcare fees, mortgage, career plans, caregiving help. They are doing the sums on a second child. I have met such couples a few times along their healthcare journey at their six weeks postnatal checks through their children's milestones and their own health reasons and concerns. The mothers tell me they are coping. Their affect says otherwise. On separate occasions, the fathers come in for something routine and ask, almost as an afterthought, whether it is normal to feel this overwhelmed. I empathise. These are the conversations that never reach a policy paper, and they are the conversations that shape whether a family grows. Thirty weeks of parental leave, once fully in effect this April, is among the most generous in the region. LifeSG credits, Large Families Scheme – the financial incentives are healthy, but the United Nations Population Fund's 2025 report spanning 14 countries and over a third of the global population found that financial incentives alone are largely ineffective when structural barriers remain.[+40 sentences] This couple's question is not just about money. It is whether their workplaces will make room for the life they want to build, whether a supervisor will raise an eyebrow, whether a promotion will be quietly deferred, whether flexibility is a policy on paper or a practice in the room. They close the laptop. They do not decide against the second child. They decide not yet. And that decision acquired, private and unmeasured one, is exactly what across domain well-being framework would catch. The gap between a parental leave policy that looks generous on paper and a workplace culture that quietly penalises those who use it. This is not a gap any single policy can close. No single Ministry sees both sides of that equation, which is precisely why no single Ministry has closed it. Each of them – Mdm Tan, the nurse, the couple – was counted. None was heard. A well-being framework would have seen Mdm Tan not as six diagnoses, but as a person whose trust the system had not yet earned. It would have given the nurse something the current system does not, proof that her care made a difference. And it would have seen the couple not as two incomes, but as a family doing calculations on hope. Not because it adds new programmes, because it asks a question the current architecture does not: across domains, is this person's life improving? The Prime Minister puts it well. What matters is not just the policies we announce, but the outcomes they deliver in people's lives. That standard is the right one and I am asking this House how we intend to measure ourselves against it. I believe we can, because no country has yet done what Singapore is positioned to do – link individual level administrative data across domains, organise it through a well-being framework and run it as routine Government infrastructure. The Nordics built rich individual level datasets but channelled them primarily through academic research. The OECD adopted well-being frameworks at the supra-national level but could not bridge sovereign data silos. Wales passed the Well-being of Future Generations Act but lacked the digital infrastructure to wire it to individual lives. Each solved the piece. None solved the system. Singapore can. We have the data infrastructure, the governance density and, with the Public Sector Governance Act strengthened last month, the legal authority for cross agency data sharing with appropriate safeguards. To be clear, I am not proposing open access to individual records. I am proposing linked analysis governed by the same rigour of the Public Sector Governance Act and the protections of the Personal Data Protection Act, so that outcomes across domains can be assessed without compromising the privacy this House rightly guards. Build this framework and everything else follows. Social prescribing gets data to prove what works. Team-based care gets validated by outcomes, not throughput, whether the workplaces truly support the families they depend on becomes a question we can finally answer. Let me put this in Budget terms, because this is a fiscal argument as much as a social one. If linked data show that a housing intervention reduced downstream healthcare costs for the same cohort, that is not a well-being insight. That is a budget insight. It is the difference between allocating by tradition and allocating by proof. This House asks every Ministry to justify its spending. The question is whether we have yet given them the tools to do so across the domains, and that tool must carry weight. If the data show that a cohort's well-being is declining across domains, this House should expect that finding to inform the next budget cycle, not the next study. Measurement earns its place only when it is tied to decisions. Genuine cross-domain work is already underway. ComLink+ mentioned in this Budget, too, deserves particular recognition. It now pairs lower-income families with dedicated family coaches, tracks progress across preschool, employment, debt clearance and housing, and has begun integrating health action plans in partnerships with our healthcare clusters.[+9 sentences] That is real progress and it is the closest model we have to what I am describing. But ComLink+ is programme-specific and population limited – lower-income families with children living primarily in public rental housing. It currently serves over 10,000 families. The elderly enrolled in Healthier SG with complex chronic care demands is not covered. The middle-income couple weighing a second child is not covered. The question is not whether we can do this for some families in need. We can and we are. The question is whether we are ready to build this as routine Government infrastructure across populations, across the life course. Cross-domain measurement cannot live within a single Ministry, not because any Ministry has fallen short, but because the architecture was never designed for it. That is precisely why this must sit in the Prime Minister's Office, in the Strategy Group, the only body with convening authority across domains. I ask the Government: direct the Strategy Group in the Prime Minister's Office in coordination with MOH, MOM and MSF to publish, within 18 months, a single integrated well-being report for two defined cohorts as a start. First, Healthier SG enrollees aged 65 and above; second, middle-income families with children under six. Begin with the baseline – who these people are – across every domain that touches their lives as of this Budget, organise that through a well-being framework. Then 18 months from now, measure again and tell this House whether anything changed.[+22 sentences] Not a new dashboard, not another satisfaction survey. A single report that tells us whether our elderly are living better and whether our young families are getting the support they need. One cohort at each end of the life course, one proof of concept. If the linked analysis through the well-being framework works for these two, there is no reason it cannot extend to the sandwiched generation caught between them and, in time, across life's course. If the infrastructure to do this already exists and I believe it does, then what remains is a decision on timeline. I would welcome the Minister's indication on when this might begin. The timeline itself signals how seriously we take the integration this Budget promises. If there are barriers I have not accounted for, I would welcome that candour too, because understanding what stands in the way is in itself progress. I am aware that what I am proposing is not as modest as it may sound. Cross-domain measurement means the Ministry's outcomes become partly shaped by another Ministry's performance. That is a significant shift in how we govern. I am not asking it for it to be easy. I am asking for it to begin. Mr Speaker, this is not a call to spend more. It is not a call to change direction. It is a call to see clearly whether our economic progress is reaching our people. The Prime Minister asked us to strengthen our social bonds and build a Singapore that belongs to all of us. I am asking how we will know if we have. Mdm Tan is still in the queue. The nurse still has an empty slot. The couple is still pondering at the dining table. But if this well-being framework exists a year from now, Mdm Tan walks into that clinic and an important arm of a complex chronic care is addressed by the nurse who already knows her by name and social background. The couple reopens the laptop and this time, the data tells us what their silence never could – not just whether the money was enough, but whether the workplace made room.[+1 sentence] This is what it means to see people clearly. The question is whether a year from now we will know if anything changed for them.
Mr Speaker3 words
[+1 sentence]Ms Elysa Chen.
Ms Elysa Chen (Bishan-Toa Payoh)2307 words
[+24 sentences]Mr Speaker, I have recently been wondering, how do I raise my child in the kind of world we are living in today? The Prime Minister began his Budget speech by describing the profoundly volatile, fragmented and contested world we live in. The moment I wake up, my phone pings with negative news. In various parts of our world, we have armed conflict and wars. On top of that, we have trade wars and, increasingly, we are fighting tech wars, over AI, chips, data and digital dominance. AI and digital activities have also displaced healthy social connection and mental well-being. Our young people are experiencing what The Straits Times is calling a "contagion of despair". Many are also anxious about AI displacing their jobs. And as technology and the rest of the world advance at breakneck speed, some are left behind. We used to feel much more secure in our economic connections with other nations and our social connections with other people, but that has changed now. Therefore, apart from the threat of global instability, isolation is an equally pressing threat for Singapore. Despite the challenges that we face, I am glad to hear in the Prime Minister's speech a glimmer of hope. The various strategies and support systems highlighted will take Singapore forward as one people. Not an isolated Singapore from the rest of the world. Not isolated people within a land. But a connected Singapore, a shared Singapore, a Singapore that is for all of us. To do that, we need to turn from isolation to connection. There is great temptation to give in to the dog-eat-dog mentality, in a world where it seems like we are playing a zero-sum game. If you have more, it means I have less; and we start to compete against one another. This is the economic isolation I fear. But imagine if we and our neighbours could work together and uplift one another, sharing our resources, each of us contributing our strengths to create shared prosperity and more economic opportunities within the ASEAN region. What a world that would be! To achieve this, we need to first empower Singapore workers by helping them to be economically connected to the region. Global trade is fragmenting, with tariffs and the "weaponisation" of trade impacting ASEAN supply chains and raising uncertainty. Yet in this climate, around 82% of Singapore SMEs plan to expand overseas this year, primarily targeting ASEAN markets to drive growth, diversify revenue and build stronger regional brand presence.[+8 sentences] Tangible Government support is critical for Singapore companies seeking to venture abroad and helps Singapore stay economically relevant to the region. There are encouraging success stories, such as that of Happy Fish, an indoor swimming school which now has 10 branches in Singapore and 11 in Malaysia, with its first Jakarta branch opening this quarter. They plan to open more branches in Malaysia and Jakarta and expand into Vietnam, Thailand and Japan, with support from Enterprise Singapore. Such stories inspire confidence in the Singapore brand. We are competent and dependable. But such a brand alone is insufficient. Singapore enterprises or global companies which have headquarters in Singapore often require Singaporean workers who are prepared to venture abroad to take up regional or global leadership roles. Yet many Singaporean workers are reluctant to venture overseas. An MOM report in November showed that only 3.1% of Singaporean and Permanent Resident workers have had overseas work stints of at least six months.[+1 sentence] But companies are looking for workers with global or regional experience to take on leadership roles or who are prepared to venture into the region to support growth initiatives. With the stiff competition from the global pool of talent, how can we provide this international exposure for Singaporean workers so our workers are ready and willing to take up opportunities? I will propose specific measures during the COS, including grants for companies deploying Singaporeans to regional roles and work exposure programmes for young graduates in ASEAN markets.[+6 sentences] Second, I wish to speak on the economic isolation of a group of people who have sacrificially taken time out for a noble cause. They are among the most capable people I have met. During their time out, these people have honed a range of valuable skills. They have experience in strategic planning, financial oversight, conflict resolution, multiple stakeholder management, event planning and execution and healthcare coordination. They have to manage competing priorities, optimise limited resources and lead with resilience under pressure. These super power workers I am referring to are stay-at-home parents. They have given up some of the very best years of their careers. I call on the Government to implement a scheme to support their return to the workforce.[+3 sentences] This is a crucial piece in the overall national effort to support Singaporeans to feel confident in starting families. It supports the long-term objective of arresting Singapore's local population decline and creates a pathway back for parents to be productive members of our economy. Third, as we strategise for Singapore to surge ahead and ride the AI wave to advance our economy, let us not forget that there are groups of people who may be left behind. Mr Daniel Yeow, who runs The Social Space, a social enterprise in the F&B sector, shared with me that it is becoming much harder to sustain their mission of providing dignified employment to vulnerable groups, such as single parents with caregiving burdens, at-risk youths and people with mental health conditions.[+2 sentences] These individuals are often unable to maintain long-term employment and not many employers are willing to give them even a chance. While this social enterprise is determined to help such workers, they are struggling to do more because of rising cost pressures and increasing Local Qualifying Salary thresholds. Yet it is challenging for such enterprises to fully benefit from the various AI and productivity related schemes in order to provide employment to such groups of people. I would like the Government to consider a "Take A Chance" grant for employers who hire such vulnerable persons. There are already the Senior Employment Credit for hiring seniors, Enabling Employment Credit for hiring persons with disabilities and the Uplifting Employment Credit for hiring ex-offenders. We can introduce another similar credit scheme for employers who take a chance on persons from other vulnerable and marginalised groups and offer them meaningful long-term employment.[+5 sentences] In the push towards productivity, it is important that the most vulnerable are not inadvertently made worse off or further excluded from employment opportunities. Beyond economic isolation, we must also address social isolation. Last year, I had the privilege of addressing a group of young people in the Rotaract Club of Raffles City at their 25th installation ceremony. I shared about how we were seeing quiet quitters. There are young people in China lying flat, or "躺平"; in Japan, we see hikikomori, directly translated, it means "pulling inward and being confined". In Singapore, about one-third of youths aged 15 to 35 reported severe or extremely severe symptoms of depression, anxiety or stress. Students dealing with these conditions miss about 190 hours – or 24 days – of school annually and mental health struggles cut down school performance by 63%.[+10 sentences] Research by IPS has found a direct statistical link between high screen time and greater loneliness. Yet, the young people of the Rotaract Club defied these trends. They painted rental flats, ran community projects with homes for the disabled, homes for the children, and even launched cross-border collaborations across ASEAN, including launching the inaugural Rotaract ASEAN Young Leaders' Exchange to foster cultural understanding and youth dialogue across Southeast Asia. They are amazing! I saw how confident and how purposeful they are. I left that event shivering with excitement. But I also asked myself: how might we empower more young people to be changemakers? How might we connect with young people who feel so disconnected from real life that they have retreated into their digital worlds? With an increasing reliance on AI, how might we help people build strong social skills, strong communication skills and competencies to navigate cross-cultural environments with sensitivity, respect and moral courage, qualities that AI will never be able to replicate? In an AI-saturated world, with everyone upping the game on AI to improve productivity, for Singaporeans to remain competitive, we need to have more than just AI and that must mean more social-emotional and cultural intelligence. For youths who want to do more and who are not content to be mere spectators, but want to build our nation together, I see immense potential in the Budget announcement of a $50 million SG Partnerships Fund, so we can support more ground-up community initiatives.[+24 sentences] But turning to those who are struggling, I wonder if we can recruit and train befrienders and mentors trained in psychological first aid so we can form a first line of defence for our young people. I would like to propose tapping on the schools' peer support leaders for this role, with the long-term hope that building such capacity also builds capacity for such individuals to eventually serve as community volunteers. In my community, I have seen mothers and volunteers form support networks on their own, from playground groups to a group of young widows who call themselves Hope Herd and who ensure no one journeys alone. They are resilient. But what about our youths who may be struggling on their own? While we have Centre of Excellence for Youth Mental Health (CHAT), which provides mental health assessments at *SCAPE and CREST-Youth to do outreach, we lack intermediate spaces in the heartlands. Traditional spaces like our void decks have "No Football" signs put up and malls require spending. Without free, unstructured spaces to congregate, our youths have nowhere to go. Is it any wonder they are retreating into their digital worlds? Overseas, youth-friendly spaces that combine drop-in socialising with mental health support have shown real results. I would like to propose third spaces co-located with ActiveSG gyms or libraries, where young people can socialise and access early mental health support before conditions escalate. There is also compelling evidence for the arts as a driver of health and well-being. I would therefore like to explore the power of the arts in promoting mental well-being and social connection among our young. I would like to call on the Government to commission a nation-wide study on how the arts strengthen the mental and social well-being of our students. There is an opportunity to scale up the work that arts practitioners are already doing. Some are using theatre to address bullying and build empathy in schools. I propose that MOE increase partnerships with them to build socio-emotional competencies, complementing what teachers and counsellors already do. Further, participating in arts programmes also reaps significant socio-emotional benefits. A study by the Singapore Symphony Orchestra shows that just bringing students to attend a concert together resulted in significant improvement in their well-being and sense of social connection. Therefore, I propose that we expand the Culture Pass to cover every child, rather than only applying it to citizens aged 18 and above. This provides access to the arts to every child, strengthens family ties and involves parents in the artistic development of their children. Most of all, doing so also benefits their overall health and well-being. We also have to combat the isolation of those with special needs. One particularly heartbreaking instance of social isolation that I came across was during the Walk of a Lifetime, organised by Saint Andrew's Autism Centre. During the briefing, I learnt about how some parents keep their autistic children at home for fear of the social rejection they would encounter should their children go through a meltdown in public. I am working on an initiative in Bishan Community Club to make it a comfortable and conducive space for those with special needs, so they know they are welcome at our events. We are doing this by setting aside calm corners, training volunteers to know how to engage such families and designing wayfinding features. I also started an initiative to promote bonding between parents, grandparents and children.[+1 sentence] It is called Play Date. It is an indoor space with loose parts free play, which is going to expand to serve children with special needs.[+6 sentences] Our efforts are modest. Punggol Regional Library and the National Gallery have far more beautiful and well-equipped rooms for those with special needs. But wherever we can, let us provide more of such spaces across our country. I would like to issue a call to every operator of a public space, to be like the National Gallery and the National Library Board and to consider making accommodations to make their spaces more welcoming to persons with autism and special needs. Let us break down the barriers that have kept those with special needs apart from us. Mr Speaker, I started this speech with a question: how do I raise my child in this complex world we are living in? I found an answer in a volunteer in my community.[+1 sentence] Her name is Ain. She is a young mother of an eight-year-old boy with hearing disabilities, and she lives with her family in a rental flat.[+7 sentences] After work, Ain finds time to serve her neighbours. She attends wakes, visits those who have been hospitalised and organises activities with fellow volunteers and even accompanies single mothers to my Meet-the-People Sessions to advocate for them. This is a Singaporean who refuses to let others fall into isolation. She demonstrates empathy, shows kindness and pulls her community together. Ain is an ordinary woman doing something truly extraordinary. And I think the way Ain lives, the way she is a role model for her child as she presses on with hope and love, is a wonderful, powerful way to take Singapore forward. Mr Speaker, I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Liang Eng Hwa.
Mr Liang Eng Hwa (Bukit Panjang)2049 words
[+7 sentences]Mr Speaker, I will speak on internationalisation and Budget surplus. With a small and mature domestic market, Singapore companies seeking sustained growth must look beyond our shores. External markets are essential, not only for revenue expansions but also for diversification and resilience. Encouraging and supporting enterprises to internationalise has long been a cornerstone of Singapore's economic strategic. Successive economic reviews and budgets have consistently emphasised overseas expansions as one of the key growth drivers. Over the years, many Singapore companies have ventured abroad, both regionally and globally. And one market where our companies have internationalised particularly successively is China. Despite our small domestic economy, Singapore has, for several years, been China's largest foreign investors.[+1 sentence] Today, iconic brands, such as Raffles City, Breadtalk, Charles and Keith, Jumbo Seafood, TWG Tea and others, operate extensively in China. In Shanghai alone, there are approximately 4,000 Singapore companies there.[+4 sentences] China is also one of Singapore's top markets, particularly for electronics, machinery and related equipment. Why has Singapore companies been successful in China? There are several factors that explain this. Firstly, credit to the Government, it is the strong government-to-government relationships. Over decades, bilateral ties between Singapore and China have deepened and expanded significantly. We have a comprehensive China-Singapore Free Trade Agreement (CSFTA) which allows the majority of our export to China to enter tariff-free.[+24 sentences] Importantly, the CSFTA is not static. It has been reviewed and upgraded periodically to remain relevant. There are also the key flagship government-to-government projects that further anchors relationship, including the Singapore-Suzhou Industrial Park, Sino-Singapore Tianjin Eco-City, China-Singapore (Chongqing) initiatives. And there are also regular high-level engagements, such as the annual Joint Council for Bilateral Cooperation meetings and the various Provincial Ministerial platforms that continually review and expand areas of cooperations. Indeed, many meaningful commercial opportunities have emerged from these engagements. In the most recent Joint Council for Bilateral Cooperation meeting, Singapore's role as the major offshore renminbi clearing centre is further enhanced. The bilateral relationship between Singapore and China was often described in official communication as "all round, high-quality, future-oriented partnership". "全方位、高质量、 前瞻性、 伙伴关系". It sounds a mouthful, but it reflects the shared commitment and willingness to continually explore new areas of cooperation. And this special relationship has provided is supportive environment for Singapore companies operating in China. Secondly, I suppose is our bilingual and bicultural advantage. Singapore's bilingual and bicultural strengths provide a natural edge, the ability to communicate effectively and understand cultural nuances, build trust and facilitates businesses. At the same time, Singapore is regarded in China as a trusted and well-governed business partner known for strong institutions and strong governance standards. Thirdly, it is the timing. Our companies internationalised into China during a period of market liberalisation and rapid economic reform. China then was both growth hungry and capital hungry and Singapore businesses were well-positioned to ride on that wave for expansion. So, in Chinese, this alignment may be described as "天时地利人和"; that is, favourable timing, geographical proximity and strong relationship. The question is: can this success be replicated elsewhere? Well, we must strive to replicate this success in other markets. It is neither prudent nor sustainable to rely excessively on a single external market for growth. And there have been pockets of success in other markets like India, Vietnam, Malaysia and Indonesia, although these have not reached the scale achieved in China. The Government can help identify and signal markets with strong long-term potential, particularly those where Singapore enjoys strong bilateral ties. And beyond China, the Government has encouraged expansion into India, Vietnam, Indonesia and more recently, emerging markets in Latin America and Africa. The establishment of new embassies support this diversification strategy. The Government is also pushing for businesses to consider stepping up at the Singapore-Johore Special Economic Zone, which is a natural and logical move, given our proximity, our familiarity, as well as our complementarity. Singapore now has 28 implemental FTAs, including multilateral agreements, such as the ASEAN FTA, the Regional Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.[+14 sentences] We have also signed digital economy agreements, green economy agreements, as well as the investments agreements. I suggest that government-to-government engagement be extended further to regulator-to-regulator platforms. Such dialogues could help align regulatory frameworks to reduce market entry barriers and facilitate licensing approvals in regulated industries. And this will be helpful to significantly ease market assessors for our companies. Next, trade associations and chambers, such as SBF, the Association of Small and Medium Enterprises, the Singapore Chinese Chamber of Commerce and Industry, play a critical role in supporting SMEs overseas. It makes sense for Singapore companies to internationalise collectively where feasible. Sharing market intelligence, pooling resources, learning from each other can shorten the learning curves and reduce costly missteps. Larger Singapore firms with established overseas network can act as queen bees, anchoring smaller companies with their ecosystem. We have seen that in retail malls, industrial parks and integrated developments, but led by major Singapore players. Banks, healthcare groups, investment holding companies could seemingly play a catalytic role. In this regard, the Market Readiness Assistance scheme could be further enhanced to provide higher support for consortium-based applications and recognition could be given to firms that play anchor roles overseas. Finally, internationalisation must be built on a strong home base. As in previous Budgets, Budget 2026 continued to provide a whole set of support measures, including supporting building leadership in key clusters, strengthening our enterprise ecosystem productivity enhancements. Companies also require sound financials, strong balance sheets and access to growth capital when they internationalise. Overseas expansions carry significant risks and often demand patient capital. So, I welcome the $1.5 billion Anchor Fund and $1.5 billion Financial Sector Development Fund announced in Budget 2026.[+5 sentences] These initiatives will strengthen enterprise financing and support risk-sharing investments. Sir, in an increasingly fragmented global economy where trade relationships now come under scrutiny, persistent trade surpluses may invite pressures. Increasingly, countries expect quick brokerage on trade and investments, and a balanced trade relationship. Supporting companies to invest abroad while maintaining a strong core in Singapore, helps to mitigate such risk and enhances our overall economic resilience. Sir, turning to the second topic: budget surplus. As the Budget debate is about financial policy of the Government, the elephant in the room question is of course how is it that despite rising expenditures over the years, Singapore recorded significant surplus of $15.1 billion in FY2025, with a projected $8.5 billion surplus in FY2026?[+4 sentences] What contributed to the $15.1 billion dollar surpluses for FY2025? Essentially, three major components, in my view. Similar to last Budget, there is a $5 billion capitalisation of the nationally significant infrastructure, which in essence is a non-cash item and will need to be depreciated over the lifespan of the infrastructure. Not to mention, there is also the interest cost because this involved borrowing which needs to be serviced. The second component comes from the significant increase in the Net Investment Returns Contribution (NIRC) – a hefty $3.4 billion from FY2024.[+3 sentences] Being investment returns, it can of course be subjected to the vagaries of the markets. And the third component, the remaining $6.7 billion of the $15.1 billion surplus, comes from the increase in tax revenue, primarily the corporate income tax. Of course, there is also the personal income tax, GST and vehicle premiums. Corporate income tax rose from $30.1 billion from FY2024 to $35.2 billion in FY2025 – the revised figures. And it is projected to rise to $37.8 billion in FY2026, an increase of roughly one-third over three years, driven by stronger-than-expected growth and the implementation of the BEPS Pillar 2 top-up taxes.[+24 sentences] And of course, the other taxes like personal income tax, GST and vehicle-related revenue also increased. According to MOF's 2023 Occasional Paper, Government expenditure is projected to reach 19% to 20% of GDP between FY2026 and FY2030, and may exceed 20% by 2030. Meanwhile, the total revenue including NIRC is approaching 20% of GDP in FY2025. Given that corporate income tax revenue is expected to remain elevated, I would like to seek clarification from the Prime Minister and the Minister of Finance whether we are likely to see continued high surpluses for the remainder of this five-year term or should we expect greater volatility going forward? Sir, while fiscal prudence is essential, sustained surpluses provide room to ease cost pressure where necessary. And here I want to propose three areas for consideration. Firstly, my favourite topic, the public transport subsidies. I will hope that the Government can consider additional median-term top-ups to public transport subsidies, beyond the baseline annual $2 billion to moderate fare increases. In the two previous Budgets, the Government provided additional subsidies of $250 million and $200 million respectively. This continued calibrated support would help households manage cost of living pressures. Secondly, I hope that the Government can also increase medium-term co-funding support under the Progressive Wage Credit Scheme to help businesses manage raising rising wage costs associated with the uplifting of the low-wage workers. We are already observing higher tender prices on the ground from, for example, cleaning contractors, because they have to price in the higher wages for their low-wage workers, and that is putting pressure on the Service and Conservancy Charges as well. So, greater transitional support would ease these adjustments for businesses to pay low-wage workers better salaries. Thirdly, I will hope that the Government can also provide enhanced grants for the upkeep of ageing estates, including problems that we face frequently for older towns – repairs for water seepages and structural deteriorations. I also hope that the Government can provide higher subsidies for flats that are still without lift access. There is something like 100 blocks of flats that are still without lift access and I hope the Ministry of National Development can look at that as well. And thirdly, to have expanded grants for barrier-free accessibility improvements – something that is much needed in older estates. Sir, as our housing stocks mature, proactive maintenance support would increasingly be needed to upkeep the estate and to sustain quality liveability. Mr Speaker, Sir, I have listened to a couple of speeches from the Members of the Workers' Party and the point about linking GST to Budget surpluses were raised again. That is not a fully accurate picture. As I have outlined earlier, while the increase in GST has added to our revenue, the bulk of the surplus comes from increase in corporate income tax, as well as the capitalisation item and the increase in NIRC. So, it is worth reminding Members again that in our unique construct, a substantial portion of our GST revenue, approximately 60% is borne by higher-income earners or foreigners, foreign visitors who are here, whether to attend a convention or to attend Formula One. These are the ones who pay the main bulk, the 60%. And the remaining 40%, which is contributed by the broader base of the lower- to middle-income households, is mitigated through the permanent GST Voucher Scheme and related offsets. Taken together, the lower- and the middle-income families effectively pays a GST rate that is 7% or below. So, I ask myself why would we not want to tax more from the rich or the foreigners who are here to spend more, and then use the financial resources to distribute it to the lower- and the middle-income households.[+1 sentence] Sir, in closing, I am encouraged that in recent Budgets, the Prime Minister has directed significant measures towards strengthening our social compact and in addressing inequality alongside efforts to reinforce our economic resilience and national security. It is precisely because we remained in the position of physical strength that we are able to allocate meaningful resources across these three pillars: social development, economic growth and security in support of our long-term nation building. Prudent stewardship over the years has provided the Government with the capacity not only to respond to immediate challenges but also to invest strategically in our collective future.[+1 sentence] While we operate in an increasingly complex and uncertain global environment, I am confident that the renewed leadership team possesses both the resolve and capability to navigate what lies ahead. Our strong fiscal position put us in good stead to confront emerging risks, seize new opportunities, safeguard Singapore's continued progress for generations to come.[+1 sentence] Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Foo Cexaing.
Mr Foo Cexiang (Tanjong Pagar)2727 words
[+12 sentences]Mr Speaker, I rise in support of the Budget. However, I would like to speak on how we can do better to support Singaporeans and families with children. Sir, our TFR has remained below one for a couple of years now. This is well below the replacement rate of 2.1. What does this mean for Singapore? On the one hand, it means we must do much more to support parenthood. But to me, a low TFR means that each child born to or adopted by a Singaporean, is precious. Not just to their parents but to all of us as a society. And our policies and structures must reflect the full weight of society's support, regardless of the circumstances of their parents. While the Government has done much to support each child, I would like to highlight four groups of children that we can do much more for today. First, children of unmarried parents. Our policies across the Government systematically disadvantage this group of children today right from birth, as it penalises their unmarried parents who look after them. One, their unmarried parent does not receive the Baby Bonus Cash Gift of $11,000. Two, they are not recognised as part of a "family nucleus" for HDB schemes, they receive lower subsidies than the family grants.[+1 sentence] They are not eligible for schemes like the Parenthood Provisional Housing Scheme. Three, their unmarried parent is excluded from the most substantive tax benefits we provide for families. They cannot claim the Parenthood Tax Rebate of up to $20,000.[+20 sentences] They are not eligible for Working Mother’s Child Relief, even if the unmarried mother has to work doubly hard to bring up her child. Neither are they eligible for the Qualifying Child Relief. Sir, I believe strongly in the family nucleus, where the parents are able to bring up children in a loving and nurturing home. But I do not believe that any Singaporean that will wake up one day and decide to have a child without getting married, just because we change our policy stance and allow them to be benefit from all the above benefits as provided to married parents. Even married parents are not incentivised to do so, as evidenced by the low TFR. Mr Speaker, nobody makes the decision to have a child without getting married on a whim. If given a choice, I believe that not a single one of us in this House or in this country will want to be an unmarried parent. Behind every child born to an unmarried parent is a story of tears, agony, confusion, uncertainty, but overcome by only a burning desire to bring up the child. I have met a couple of residents who are single and unmarried. They have burnt the candle at both ends because they tell me they want their child to grow up feeling like they are the same, like any other child in school. Many succeed but many others do not. Have our policies inadvertently tipped the balance against them? This is not how a society where each child is precious should be or can be. We must do better. It is time to stop the policy differentiation between married and unmarried parents who take care of their children. This is not an abandonment or de-prioritisation of the family nucleus. This is not an encouragement of people to have children out of wedlock. And this is not going to lead to a sudden spike in the number of children born out of wedlock. All it is is a reflection of a society that cares for each child and that does its best to alleviate the challenging circumstances they face at birth and give them a better chance in life. Mr Speaker, the second group are children of non-working mothers. Currently, non-working mothers do not qualify for the additional subsidies for childcare as well as after-school care.[+20 sentences] So, they will have to pay several hundred dollars more each month if they would like to place their children on these programmes. Here again, there is clear policy logic. We want to incentivise dual-income households. Moreover, there will be some of us that think, since the mother is not working, well, she can care for the child, no need to place in childcare or student care. Sir, in 2018, about eight years ago, there was a young Deputy Director in MOE. He came across many students from complex, disadvantaged family backgrounds who would have benefited from the structured environment after school, but who were deprived from doing so because their families decided they could not afford it. In some cases, the parents had many children. In other cases, they had a child with special needs amid siblings. So, the mother had to stay at home to take care of the children, but as you can understand, she could not take care of each of them adequately well. There were also other mothers he encountered who were absent. They are not working but nor are they taking care of the child. The Deputy Director and his team were determined not to let the working mother criterion hold back these children from the most disadvantaged backgrounds from accessing structured after school care. From the ground up, they worked hard with school educators and the Ministry of Social and Family Development, and devised a protocol where the school educators would identify the children from the most disadvantaged backgrounds, facilitate their registration in the school-based Student Care Centre, highly subsidised. This meant much more work for the school educators, but they all supported the initiative, and dedicated their time and energy to identifying and engaging these students because they knew that having a structured after school environment could be so helpful for these children. Today, the Deputy Director has grown a little older, has some white hair, stands here in Parliament. But he still has the same dream and the same fire burning in him. We should support all our children to have affordable childcare and after school care, regardless of whether their mother is employed. There are many more children beyond those currently identified in the schools that will benefit from this. And our school educators and teachers will also save time from having to make the case for each of these children. So, Mr Speaker, my plea to the Government is, "Come on, let's get this done". Let us grant the additional subsidies for childcare and afterschool care to all students and drop the working mother criteria. Again, I do not believe that this will overnight make all of our working mothers wake up and decide to stop work, or this encourage those who are looking for work to not continue to do so.[+2 sentences] Mr Speaker, the third group are our children with special needs. I would like to call for the removal of means-testing for subsidies associated with children with special needs. And this will include additional subsidy for the Early Intervention Programme for Infants and Children, subsidies for Special Student Care Centres, subsidies for children who need assistive technology and devices, like hearing aids.[+21 sentences] We should also extend free frequency modulation systems for all children in preschools, just as we do today for those in primary schools. Sir, the emotional, health and financial impact of raising a child with special needs, after school and through life, is much more than the cost associated with bringing them up in their early developmental years. It is not something that every parent or any parent or child would wish upon themselves. And therefore, as a society, we should give them our fullest support in their developmental years, because each child is special and precious. Mr Speaker, my fourth and final group are our adopted children. Sir, for most couples, adopting a child is not the first resort. Many have invested significant amounts of time and energy, including going for in-vitro fertilisation to have children of their own. Adopting a child is not a decision that any couple takes lightly. They know it is for life. They are fully committed. There is no backing out, just like the rest of us who have children of our own. I spoke to a resident recently, who also happens to be a childhood friend of mine. She and her husband came to my Meet-the-People Sessions and shared with me their adoption journey. First, they had to attend a pre-adoption briefing and a disclosure briefing and then obtain a favourable adoption suitability assessment (ASA). The ASA took several months, whereby they had to undergo, and they had to complete copious documentation, identify several referees and go through multiple intrusive interviews. But they, however, understood the need for this, because we do want to ensure that parents who adopt are ready and equipped to do so. After they cleared the ASA, they signed up to be on the waiting list of an accredited agency, so that they could identify a child for adoption and this was a very long waiting list, so there are many among us who would like to adopt a child as well. After matching with the identified child, they had to apply for a Dependent's Pass for the child to be able to come to Singapore, because they need the child to be in Singapore for them to apply to the Court for the adoption order. But the Court process takes several more months as well, because as part of the review, the Judge requires a report from the Guardian-in-Adoption, who is an officer appointed by the Ministry of Social and Family Development, and she interviewed them again, made home visits, similar questions as the ASA. And it was only after she had completed her report, then could the couple request for a final hearing for the Judge to issue the adoption order. After receiving the adoption order, they then need to apply to the Immigration and Checkpoints Authority, finally, to get citizenship for their son. At the point where theycame to me, they had spent more than one and a half years since they started the ASA process.[+11 sentences] Their son had been in Singapore for close to a year and, at that point, were they able to apply for citizenship. During the entire period, when their child, their son, was in Singapore, they had to pay foreigner fees for all the medicals associated with him, because he was not a Singapore Citizen, at least not yet. They shared with me that they felt like second-class parents. But to top it all off, they wanted to adopt a second child so that their first child has a sibling. Well, just like all of us. However, the Ministry of Social and Family Development has informed them that they are strongly encouraged to start the process at least nine months from the date of their first child's adoption order, so that they can bond adequately with the first child. And thereafter, they need to go through the entire process again – registering for a new ASA, going for all the interviews and putting up all the documentation. Sir, I can understand the Government's desire to ensure that each adoption goes well. We all do. But this is surely too much. Their first child has already been with them for close to a year. Why the need to wait another nine more months to start the process, and why then the need to reassess them for adoption suitability, when things are going well with the first child? And to compound the situation, compared to maternity leave of 16 weeks, adoption leave for parents is only 12 weeks.[+5 sentences] So, on the one hand, we want them to bond longer with the child, but on the other hand, the leave period is shorter. Sir, if our fellow Singaporeans are made to feel like second-class parents during the process, something is not right. These are Singaporeans who have put in great resolve to care for the child just as their own. They are no second-class parents. They are special-class parents. So, I urge all the relevant Government agencies and there are many involved in the process as I have described, to come together, work towards streamlining the process for parents significantly. And may I suggest that during the period where the child is in Singapore on a Dependent's Pass, let us extend the Singapore Citizenship subsidies for infant care, for childcare, for medicals to the child, because it is a matter of time that they will become a citizen, and these are critical developmental years. Let us not lose time and also let us align the adoption leave with maternity leave at 16 weeks.[+7 sentences] Sir, the changes I have suggested above may be seen as an attempt to slay several sacred cows, but to me, it really is not. To me, a strong family nucleus means testing, these remain critical, but equally important is that we take care of each and every child, regardless of their parents' circumstances. Let us not let the heartbreak or the regrets of one generation affect the chances of success of the next. Mr Speaker, I will now change gears and turn to the final segment of my speech – our national exams. I was very heartened when Minister Desmond Lee announced that the Government and MOE are reviewing high stakes exams, especially the PSLE. Let me share my views on why I think this is timely and much needed. At the last Parliament Sitting, I asked MOE for a detailed breakdown by grade across several national exams – what proportions scored what grade – for the PSLE and the "O" level. MOE replied that for PSLE, at least nine in 10 students achieved AL6 or better in English, Mother Tongue, Math and Science; and for the "O" levels, about nine in 10 obtain a C6 or better in English, Mother Tongue and Math.[+2 sentences] That is obviously not what I asked for, because I asked for a detailed breakdown of each grade. But let me explain why I asked for this. In the latest PISA 2022 assessment of 15-year-olds, 41% of our students were classified as top performers for Math, 24% for Science, and 23% for reading. In comparison, for the OECD, it was 9% classified top performers for Math, 7% each for Science and reading.[+8 sentences] But if we ask any general 15-year-old in Singapore, I believe a very small percentage will tell us that they are top performers in any of these subjects. Why? Because their lived experience going through the exam system in Singapore has told them that they are not top performers. Again, MOE did not release the data, but I believe that way less than 40% of each cohort, PSLE or "O" levels, will have received the top or top two grades for Math, for example. And this is because, while our grades for both the exams are no longer assigned on a bell curve base, they are now based on the objective scores of the students – the philosophy behind how the exams are set has not changed. It is set to be able to segregate the children by ability very finely. So, you have X% of very challenging questions, Y% of challenging questions, so in and of itself, the exam will be able to differentiate the students and by that, affect their grades, thereby school selection – which is the key cause of the education arms race. But I do not think that this needs to be or should be the case. If 40% of our cohort are considered top performers in Math globally, then the performance on the national exams should reflect as such – 40% of the cohort should get the top or top two grades in Math.[+5 sentences] Sir, I should be clear. I am not against challenging our students or against facilitating the best or most inclined of them to achieve greater skill and accomplishment. It is just that I disagree that our national exams should serve this purpose. We should not confuse excellence and competency. It is the role of national competitions – Math Olympiads, Science Olympiads, English Olympiads – to reward and recognise excellence. The role of national exams should be to assess for competency.[+1 sentence] And once students clear the threshold of competency, they should get the top grade, without any further finer segregation.
Mr Speaker13 words
[+1 sentence]Mr Foo, I am enjoying your speech, but you have a minute left.
Mr Foo Cexiang264 words
[+3 sentences]Thank you, Sir. I believe this will be especially critical for generations to come with the advent of AI, because my concern is that the acquisition of foundational knowledge and fundamental cognitive skills will be impacted by growing up with AI. Now I need to be like a robot. Already, there have been studies that suggest that Gen Z may be the first generation that shows lower average intelligence quotient (IQ) and cognitive scores than previous generations for attention, memory and literacy. This is linked to screen time, digital devices and social media – and I have no doubt that AI will compound these challenges.[+1 sentence] We are only seeing the tip of the iceberg. In this context, it becomes even more critical that our students achieve fundamental competencies, and the most important factor for this is motivation.[+2 sentences] If our students are able to put in effort and they can achieve top grades with decent effort, I believe it will build up their confidence. It will build up their interest and motivation of the subject, and they will acquire good competency, which forms the solid foundation and springboard for them to leverage the potential of AI. Without this foundation, AI may only serve to retard the cognitive development instead.[+1 sentence] Mr Speaker, the vision and priorities outlined by the Prime Minister in the Budget speech are long-sighted and far reaching. I believe that the suggestions I have made in my speech will further strengthen us as a society and give all of our children a better chance to succeed in life.[+1 sentence] I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Sharael Taha.
Mr Sharael Taha (Pasir Ris-Changi)2315 words
[+7 sentences]Mr Speaker, many Singaporeans and businesses I meet share a common concern. The ground feels less certain. The global order is fragmenting. Supply chains are shifting. Technology is advancing at a pace few governments and even fewer companies can confidently predict. Recent developments reinforce this. The US has announced potential tariff increases. As Deputy Prime Minister Gan noted earlier this week, if exemptions are not secured, Singapore's exports, such as pharmaceuticals to semiconductors to advanced manufacturing, could face higher duties.[+35 sentences] For companies, this means tighter margins. For workers, wage pressures. For investors, greater caution. We cannot control geopolitics. But we can strengthen our resilience. Budget 2026 is delivered in a changed world. Prime Minister Wong has described it as the first step towards securing Singapore's future in this new environment. A changed world it is. Our MDDI GPC, across this term and the last, has consistently championed six themes. Firstly, strengthening Singapore's AI value proposition; second, building deep and broad digital capabilities; third, ensuring ethical governance; fourth, uplifting vulnerable groups through technology; fifth, investing in infrastructure and cybersecurity; and sixth, building a high-trust digital society. Together with fellow PAP MPs, including Ms Tin Pei Ling, Ms Jessica Tan, Mr Alex Yam and Ms Hany Soh, we filed a Motion with 13 Calls to Action in the last term. I am encouraged that many of these themes that we have championed for are reflected in this Budget. But alignment must translate into decisive execution and measurable outcomes. Our response must rest on three pillars: competitiveness, inclusive growth and digital for good. If we get this right, we will not only remain competitive and relevant in a global market, we will also remain united as a society. On competitiveness. When I speak to workers, business owners, young graduates and mid-career professionals, I hear both excitement and anxiety. Excitement because AI holds immense promises. Anxiety because many are unsure where they stand in this race. That anxiety is real. In just the past six months, we see how the global AI race has accelerated at pace. At the Global AI Summit, it was evident that we are entering the era of frontier and foundation models powered by massive compute scaling and multimodal capabilities. Generative AI is no longer experimental. It is embedded in enterprises, in public services and national infrastructure. The shift towards Agentic AI and AI-native enterprises signals structural transformation. This is happening at three levels. First, population scale. In China, AI is embedded across platforms serving hundreds of millions. In the US, AI copilots are integrated into productivity tools used globally. In India, AI is woven into telecom and digital services at the national scale. AI is now part of daily workflows. Second, compute scale. The race is about compute dominance. Next-generation chips are being ordered in unprecedented volumes. Hyperscalers are investing billions in AI data centres. India has announced ambitions to attract up to US$200 billion in AI and data centre investments.[+17 sentences] Sovereign funds in the Middle East are investing heavily. The European Union is securing its own compute capacity. Chips, data centres and energy are now strategic infrastructure. Third, on scale. AI is embedded in manufacturing lines, in logistics networks, in defence systems and in energy grids. This is no longer about chatbots. It is about industrial competitiveness and national capability. As capability accelerates, responsibility must keep pace. AI safety, alignment, model evaluation and red teaming are central to credible deployment. Trust will determine who can scale. Advantage will not come from models alone, but from diffusion. The winners will be able to align compute, capability, governance, talent and industry integration into one coherent strategy. Singapore cannot compete on population scale. We cannot outspend superpowers on compute scale. But we can compete on precision, on trust, on regulatory credibility and deep sectoral integration. And this is not just about technology. It is about jobs. If we anchor AI in sectors where we are strong, such as mentioned, as advanced manufacturing, aerospace, logistics, financial services and healthcare, and scale to more sectors with measurable outcomes, we create higher value roles, more resilient careers and stronger wage growth.[+24 sentences] But if we move too slowly, routine work will be automated elsewhere, and higher value functions may migrate, and our workers will be left behind. The world is moving at scale and our responses must be fast, deliberate, workforce-centred and outcome-driven. To achieve this, we must address key questions. How do we build both deep AI specialists and broad AI literacy? How do we redesign jobs so AI augments rather than replaces? How do we drive real end-to-end business value with AI? What is our strategy on compute capacity, compute sovereignty and resilience? How do we power AI growth with sustainable energy? How will the National AI Council evolve NAIS 2.0 and orchestrate our ecosystem across Ministries, AI missions, Centres of Excellence, talent development, investment, deployment, removing friction across Ministries and deployment across Government and industry? My fellow PAP MPs and I in the MDDI GPC will elaborate further at the COS. National ambition must translate into scalable enterprise capability and better jobs on the ground. Let me now turn to SMEs – something which fellow GPC MP Ms Jessica Tan and others have also touched on. We already have digital grants, pre-approved AI tools and Chief Technology Officer (CTO)-as-a-Service. These are important foundations. But SME owners tell me candidly, "I know AI is important, but I am managing cashflow. I cannot afford a data scientist. I am not sure my data is ready. I cannot experiment without clear returns." Behind each SME owner is a workforce wondering how AI will affect their roles. Most SMEs face three constraints: the cost of talent, the lack of validated use cases and integration challenges. If AI adoption is concentrated among large enterprises, the productivity and wage gap will widen. We must move from advisory support to shared capability infrastructure. I welcome Minister of State Jasmin Lau's emphasis on lower-risk, structured experimentation and shifting funding towards implementation and workflow redesign. I would like to propose three further refinements. First, evolve CTO-as-a-service towards AI-Capability-as-a-Service with pooled AI engineers deployed across SME clusters for hands-on implementation. Second, organise pooled resources by industry to co-develop plug-and-play AI modules with industry leaders for generic processes, such as quality control, logistics optimisation and predictive maintenance.[+2 sentences] These validated solutions reduce blind experimentation and lower development costs. By crowd-sharing capabilities and lowering adoption costs, we can create a faster "IKEA moment" – a term Minister Josephine Teo used to describe the point when enterprises move beyond experimentation to fully integrating technology into their operations. Third, introduce outcome-linked co-funding tied to measurable productivity, cost savings, export growth or energy efficiency, something that was shared by many Members of Parliament yesterday.[+28 sentences] If we treat AI infrastructure like physical infrastructure, shared and accessible, SMEs can compete by agility, not size. Our workers can compete by working smarter. AI must be a multiplier for the many, not a privilege for the few. Mr Speaker, in Malay, please. (In Malay): Mr Speaker, I would like to touch on our community specifically and the need for us to view the issue of skills upgrading and reskilling in this era of AI more seriously. Industries are changing rapidly. AI is not a specialised skill that is only relevant to engineers or programmers. AI cuts across all sectors; from manufacturing, logistics, finance and education to small and medium enterprises. The question is not whether we work in the technology sector or not. The question is how AI will change the way we work. If we are not prepared, we will be left behind. But if we are prepared, AI can become a tool that empowers us. We need to encourage more of our workers, whether young or mid-career, to upgrade their digital skills and understand the basics of AI usage. Not everyone needs to become an AI expert. But everyone needs to know how to use AI to increase their productivity and job value. This is the key to building strong and sustainable wage growth. The same applies to businesses within our community. We should not just become passive consumers of technology. We must see how AI can help businesses grow. For example, using chatbots for customer service, data analytics to understand sales patterns, automation for inventory management and more targeted digital marketing. Last week in Pasir Ris, for the first time we held a large Ramadan Bazaar. I noticed several stalls were already using signboards generated by AI. This shows that our small businesses have already begun taking the first steps. We should encourage the use of AI like this, not just for design but also for stock management, online promotion and business expansion, and many other areas. We must view AI not as a threat, but as an opportunity. If we are bold enough to change and are prepared to upskill, our community will not only remain relevant but can play a leading role in the new economy. (In English): Mr Speaker, in English and to my second point on inclusive growth. A recent MOF report on income growth, inequality and social mobility shows meaningful progress. Our post-tax-and-transfer Gini coefficient has fallen from about 0.47 in the mid-2000s to around 0.37 today. Real incomes at the 20th percentile have grown faster than the median, supported by Workfare and the Progressive Wage Model and OECD studies indicate relatively strong intergenerational mobility.[+4 sentences] These are significant achievements. But as disruption accelerates, the risk is not just income inequality. It is opportunity inequality. Let me highlight two groups of workers who are facing greater risk. For senior workers, the re-employment age will rise to 70 by 2030.[+13 sentences] The Senior Employment Credit and CPF Transition Offset support retention. The Job Redesign Grant helps firms redesign roles. But for our seniors looking for jobs, the lived realities remain challenging for them to seek employment aligned to their experience. We must accelerate structured job redesign using AI and automation to reduce physical strain and enhance productivity. But more importantly, we must expand structured pathways for seniors into roles, such as trainers, mentors, safety supervisors and quality leads, where experience is a strategic advantage. This will widen meaningful employment opportunities for senior PMETs who, today, still struggle to find roles aligned with their expertise. In an ageing society, enabling seniors to remain productive, respected and fairly paid is not just manpower policy. It is central to inclusive growth. I look forward to hearing more on how we can further strengthen senior employment at the COS debates. Second, on fresh graduates. While headline statistics remain stable, many graduates share a different lived experience. Entry-level tasks, such as market research, coding and reporting, are increasingly automated. Fellow PAP MPs Mr Henry Kwek and Ms Denise Phua shared this as the "broken ladder" scenario. At a recent Chinese New Year conversation in Pasir Ris, some of the residents were managers, told me that they can now complete such tasks with AI tools themselves, reducing the need to hire and train fresh graduates.[+16 sentences] The GRIT programme supports about 800 participants. What are the outcomes and how can we scale it up faster? We must also strengthen our internships to be more structured and industry-embedded so that students graduate business-ready, not just AI-literate. This is something that I have spoken on in my earlier speeches. I look forward to hearing more on encouraging seniors and fresh graduate employment in the COS debates. If we get this right, we strengthen mobility across generations. On my last point, digital for good. As we advance technologically, we must invest in technology for social good with equal urgency. Technology must not only increase productivity. It must improve lives. First, we must ensure children from lower-income families are not left behind. Access to devices alone is not enough. We must expand AI literacy, exposure to automation and robotics, and industry mentorship. In Pasir Ris-Changi, our M3 organisation runs RoboWars and hackathons to expose students, including those from lower-income families, to digital skills. We should scale such efforts nationally so that every child has a fair start in this digital economy. Second, on seniors and caregivers. AI-enabled fall detection, smart home sensors, remote health monitoring and telemedicine can allow seniors to age safely at home.[+5 sentences] Predictive analytics can identify health risks earlier. When designed well, these tools ease the burden on sandwiched-generation families juggling work and caregiving. Third, on people with disabilities and caregivers. Remote work tools, assistive AIs and job sharing can expand meaningful employment. Fourth, on people with special needs. Recently, I trialed a project with visually impaired residents to test a wayfinding solution using indoor positioning and AI image recognition to navigate complex indoor spaces.[+1 sentence] The innovation exists. But how do we connect such projects to agencies, funding and testbeds and scale them with less friction? We may need a clearer pathway linking community innovators, GovTech, IMDA, healthcare institutions and social service agencies.[+9 sentences] Finally, trust. As digital adoption deepens, cybersecurity and scam prevention must keep pace. A high-trust digital society requires strong safeguards and responsible governance. Mr Speaker, the challenges before us are complex. We face geopolitical uncertainty, technological disruption and social change all at once. Singapore has never thrived by standing still. Budget 2026 sets direction. Our task is disciplined execution. We must sharpen competitiveness, ensure growth remains inclusive and harness technology for good. AI must strengthen industries, uplift SMEs, empower seniors, open doors for graduates and protect the vulnerable, among many others.[+4 sentences] Above all, our strategy must translate into better lives and good jobs that are higher value, skills-based, fairly paid and future resilient. If we align ambition with action and innovation with trust, we will not merely respond to disruption. We will shape it and secure a resilient, united and forward-looking Singapore for generations to come. Mr Speaker, I support the Budget.
Mr Speaker4 words
[+1 sentence]Second Minister for Finance.
Adjournment of Debate›Motions5 turns · 46w
· 0 highlighted
motion-2868
The Leader of the House (Ms Indranee Rajah)15 words
[+1 sentence]Mr Speaker, may I seek your consent to move, "That the debate be now adjourned."
Mr Speaker18 words
[+2 sentences]I give my consent. . (proc text)]
Mr Speaker7 words
[+1 sentence]Debate to be resumed on what day?
Ms Indranee Rajah2 words
[+1 sentence]Tomorrow, Sir.
Mr Speaker4 words
[+2 sentences]So be it. Leader.
Adjournment›Motions2 turns · 41w
· 0 highlighted
motion-2869
Speaker not recorded14 words
[+2 sentences]. (proc text)]
Mr Speaker27 words
[+3 sentences]Pursuant to Standing Order 2(3)(a), I wish to inform hon Members that the Sitting tomorrow will commence at 10.00 am. Order, order. Adjourned accordingly at 6.33 pm.
Differentiating between Wealth Held by Households in Public Versus in Private Housing, and Measures to Sustain or Improve Upward Mobility Rates›Oral Answers to Questions17 turns · 2,914w
· 22 highlighted
oral-answer-4035
Assoc Prof Kenneth Goh67 words
asked the Prime Minister and Minister for Finance (a) whether the Ministry differentiates between wealth held in owner-occupied public housing and privately-owned housing in measuring household wealth inequality, given the differences in liquidity and ease of deployment arising from resale conditions and use-of-proceeds rules; and (b) if so, how this is taken into account in assessing households' economic resilience and in the computation of wealth Gini coefficient.
Ms Mariam Jaafar69 words
asked the Prime Minister and Minister for Finance in respect of the Ministry's Occasional Paper on income growth, inequality and social mobility trends which indicated that three in four children born into the bottom 20 percent of households in the late 1970s and 1980s moved to higher income tiers as adults, what measures are in place to sustain or improve these upward mobility rates for today's and future cohorts.
The Senior Minister of State for Finance (Mr Jeffrey Siow) (for the Prime Minister and Minister for Finance)19 words
[+1 sentence]Mr Speaker, may I have your permission to answer Question Nos 1 and 2 in today's Order Paper together?
Mr Speaker3 words
[+1 sentence]Please go ahead.
Mr Jeffrey Siow902 words
[+16 sentences]My response will address related oral and written questions on wealth inequality and wealth data filed by Mr Yip Hon Weng, Mr Gerald Giam1,2,3 and Mr Louis Chua scheduled for subsequent Sittings. If Members are satisfied with the response, they may wish to withdraw their questions after this session. Mr Speaker, Sir, over the past decade, real wages have risen across all income levels, with wage growth highest for lower-income workers. Income inequality has decreased. Social mobility between generations remains strong. These outcomes reflect sustained policies to uplift lower-income workers and foster inclusive growth, supported by a progressive system of taxes and transfers. Most countries face challenges in measuring wealth inequality accurately. Certain assets such as unlisted businesses, private equity and overseas assets, are inherently difficult to track and value. Financial confidentiality provisions further constrain data collection. We have made our best effort by combining survey data from the Household Expenditure Survey with administrative records. The survey captures information on assets such as bank deposits and unlisted assets, including overseas assets, and liabilities such as household arrears and bank loans. We augment this with administrative data on properties, Central Provident Fund (CPF) accounts, Singapore Savings Bonds, shares and securities held in Central Depository accounts and the CPF Investment Scheme Special Account, life insurance policies, balances in the Post-Secondary Education Account and Edusave accounts, and Housing and Development Board (HDB)-administered loans. Property values are estimated based on their fair market value. We have progressively improved the coverage and quality of wealth data captured in the Household Expenditure Survey. We will continue to study how data collection methods can be strengthened. Like many other advanced economies such as the United Kingdom (UK), Japan and Germany, we rely primarily on survey-based approaches. We have no plans at this point to seek additional legislative or administrative powers to require more granular asset disclosures solely for inequality measurement. This is our first compilation of the wealth Gini coefficient and we do not have a historical series.[+1 sentence] We intend to track this measure over time. The next cycle of the Household Expenditure Survey is planned for 2028.[+8 sentences] And we will consider whether additional indicators, which Members have suggested, can be provided. Members asked for further breakdowns of wealth inequality – such as by asset type, housing type or age cohort. The Gini coefficient is measured at the household and not individual level. Hence, we do not break it down by age cohorts. We do not compute Gini coefficients by asset type, as households can and do convert their wealth from one asset type to another. We also do not differentiate between public and private housing, or between owner-occupied and non-owner-occupied housing, in computing the wealth Gini, as this a stock measure of net worth and not a measure of liquidity. We do not have sufficiently granular data at the moment to provide the breakdown between local and overseas holdings. Mr Gerald Giam asked about wealth concentration at the top. The top 1% hold about 14% of total household wealth, while the top 5% holds about 33%. These levels are broadly comparable to advanced economies with similar wealth Gini coefficients.[+22 sentences] However, these estimates should be interpreted with caution, due to sample size limitations and potential under-reporting in survey responses at both ends of the distribution. Wealth inequality is higher than income inequality in all advanced economies, as wealth accumulates over the life-cycle. In Singapore, a significant part of household wealth, especially among lower- and middle-income households, is held in owner-occupied housing and CPF savings. Our housing and CPF policies have enabled many Singaporeans to build their assets over time. This broad-based asset ownership helps to moderate inequality while strengthening long-term security and social stability. Mr Yip and Mr Giam asked whether we have considered other forms of wealth taxes beyond property tax. Our approach is to tax wealth in ways that are less susceptible to cross-border movement and tax planning, while preserving competitiveness. This is why we focus on less mobile assets like property and motor vehicles. These taxes are progressive, with higher-value assets taxed at higher rates. We are mindful of inter-generational balance. Younger households who are still accumulating assets should not be unduly burdened. At the same time, higher-value property owners should contribute more. For asset-rich but income-poor seniors, we provide deferral mechanisms for property tax payments to ease cash-flow pressures. We fully agree with Ms Mariam Jaafar on the need to sustain upward social mobility for current and future cohorts. Our strategy is to intervene early, provide support through life and ensure wage progression. We have expanded access to affordable and quality preschool education to give children from all backgrounds a good start. Our schools provide a strong foundation with more support for those from disadvantaged households. SkillsFuture provides continuing learning opportunities for adults, including enhanced support for mid-career workers. The Progressive Wage Model and Workfare raise earnings and strengthen career pathways for lower-wage workers. For families facing complex challenges, ComLink+ provides more intensive, coordinated support in partnership with community organisations. Overall, Singapore remains in a stronger position than many advanced economies. But we do not take this for granted. Tackling inequality and improving mobility requires sustained investment across generations. We will continue to review and update our fiscal measures to ensure they remain effective and sustainable. We remain committed to ensuring every Singaporeans can start well, progress in life and share in our nation's success.
Mr Speaker3 words
[+1 sentence]Assoc Prof Goh.
Assoc Prof Kenneth Goh (Nominated Member)117 words
[+8 sentences]Thank you, Speaker. I thank the Minister for his response. I just have two questions. The first is whether there are more proximal indicators of inequality? I note that the Minister has said that the next survey will be conducted in 2028, but given the importance of wealth inequality and income inequality in our society, whether there are any attempts at capturing some of these more proximal indicators of inequality, both wealth and income? My second question relates back to the statistic. How is the Ministry looking at using this statistic? Are you looking at the trend or are you looking at the threshold and does that subsequently warrant the kinds of actions that you would take?
Mr Jeffrey Siow290 words
[+4 sentences]Thank you, Mr Speaker. Wealth is notoriously hard to measure, particularly data on overseas assets and unlisted assets. This is not unique to Singapore. The current estimates, both wealth as well as income, are our best efforts, in line with best practices in other countries. We have done so to our best effort, combining both survey data with administrative data, as I have explained in my speech. This is the first time we are measuring the wealth Gini coefficient and we are open to improving it over time.[+1 sentence] We will take into account some of the suggestions that are made by Members on what we can do. In terms of household income trends, we already publish that data regularly, annually, in the Key Household Income Trends Report. But for the wealth Gini coefficient and wealth data, it is dependent on the main source, which is the household expenditure survey, which we do every five years.[+3 sentences] I think the next cycle is in 2028. And so, when that data is obtained, we will try our best to put out something regularly. We intend to track this data, as I have explained. In terms of what we would do with this data, I think the important part is to look at the trending.[+2 sentences] The absolute numbers are an indication of where we are, relative to other countries, but the trending is also important, whether or not wealth Gini is going up or going down, in the right direction. The enhanced data and methodology that we have used for both income inequality as well as wealth inequality will improve our understanding of the states of inequality in Singapore, which will better help us develop more evidence-based and targeted policies to improve Singaporeans lives.
Mr Speaker3 words
[+1 sentence]Ms Mariam Jaafar.
Ms Mariam Jaafar (Sembawang)177 words
[+10 sentences]Thank you, Speaker. I thank the Minister for his responses. This is an issue very close to my heart. I have three supplementary questions. First, are there any early indicators for cohorts in the 1990s and the 2000s of the data on where they stand today in terms of upward mobility? And does the Government have any targets; you talked about trends, but do you have targets for what you would like it to be at, in the next time we run this cycle? Secondly, the in the bottom quartile, which has not actually moved in terms of upward mobility, what are the barriers, what are the persistent barriers that keep them there? And how are we evolving our policies for this? And then, thirdly, as we think about artificial intelligence (AI) and technological shifts that are reshaping jobs, how are we ensuring that children from lower-income households are not disproportionately affected? I think I raised this point in my Budget speech yesterday and I am very keen to hear what the Ministry is thinking about that.
Mr Jeffrey Siow410 words
[+8 sentences]Thank you, Mr Speaker. The findings of the Occasional Paper indicate that the social outcomes in the past decade have been positive. I think it suggests that our strategy of combining inclusive economic growth with targeted and progressive support has had tangible impact. But we do not take these outcomes for granted. As our society ages and new generations come onboard and the economy matures, structural pressures on inequality will naturally emerge and sustaining mobility will become more challenging. So, to Ms Mariam's question on younger cohorts, we do not yet have good data on younger Singaporeans because they are still in the early stages of their careers and their earnings have not stabilised. But we are encouraged that the increasing proportion of younger Singaporeans have attained higher levels of education and skills, and that will put them in good stead to be able to do well in life. On her second question on the bottom quintile, the issues are more complex. The families, in particular in the bottom quintile, have multiple needs and need multiple support. And that is why we have been working on a package of various measures, including the enhancement of ComLink+ which the Prime Minister spoke about in his Budget Speech.[+8 sentences] We are also working very hard to make sure that children in those households have a good start in life through preschool and that is part of the KidSTART programme, which we have initiated many years ago. Sustaining social mobility will indeed be a challenge. We will have to work extensively on families in the bottom quintile, knowing that the challenges to overcome are more complex and more difficult. As for AI, the current crop of Singaporeans and the concerns about how they will need to adapt, I think the key is really through ensuring our Singaporeans are skilled, are able to adapt quickly, take on the new jobs that will be created in this new economy. This will generate wage growth and hopefully then, in that way, they will be able to maintain a strong standard of living and continue to progress in life. It is a basket of pressures. I think we have to work hard to lean against the structural pressures that will happen as our economy matures and develops, so that Singaporeans can succeed regardless of background. We have to remain vigilant and to refine our policies when needed so that we can remain socially mobile over the long term.
Mr Speaker4 words
[+1 sentence]Mr Yip Hon Weng.
Mr Yip Hon Weng (Yio Chu Kang)79 words
[+5 sentences]I thank the Minister for his reply. The focus of my supplementary question is on seniors. For older Singaporeans who may own valuable property but have limited or no income, how does the Ministry assess the impact of the higher property taxes on the cost-of-living pressures? I note the Minister had earlier mentioned that there are current initiatives. But will there be additional safeguards to ensure that the measures aimed at reducing wealth inequality do not unintentionally strain retirees?
Mr Jeffrey Siow107 words
[+2 sentences]We recognise the concerns of the group that Mr Yip spoke about – the asset rich and cash poor retirees. Our property tax system currently is progressive. Investment properties and higher-value properties are taxed higher and homeowners with only one property are taxed lower and they receive property tax rebates when necessary. But we nevertheless understand the concerns that individual property owners may face different financial circumstances, particularly on cash flow. So, for asset rich but income poor seniors, we have deferral mechanisms for property tax payments to ease their cash flow pressures. For instance, eligible seniors and retirees can apply to pay via extended interest-free instalments.
[+7 sentences]Thank you, Mr Speaker. Sir, I appreciate that the Ministry of Finance has published the wealth Gini coefficient. I hope that more data on wealth inequality will be published as this could help us to craft policy solutions to reduce inequality in our country. I have two supplementary questions. Has the Ministry conducted a simulation on how much wealth Gini coefficient would be reduced if investment property equity were excluded, to isolate the impact of this type of equity on inequality? Secondly, given that wealth inequality is significantly higher than income inequality, is the Government looking into ways to shift the tax burden away from work and income towards wealth, to better support social mobility? I understand the Senior Minister of State's point just now that this can be tax planned away, but I would like to know the Government is trying and it sees this as a priority.
Mr Jeffrey Siow509 words
[+8 sentences]Mr Speaker, for property, in terms of methodology, we have treated them the same, through property values. Because property value captures a broad range of different property characteristics, whether owner-occupied or not, as a store of value. The wealth Gini coefficient is not a measure of liquidity. It is a measure of the stock of wealth. So, that is the first point I would like to make. Second is that for property, the way we have implemented it in Singapore is that we have taken a broad-based approach to ensure that Singaporeans have broad asset ownership, through HDB flats. And as a result, we should not necessarily compare what we do in Singapore, in terms of including housing, with other countries. So, it is a different metric. On whether or not we have done simulations on separating investment of property from owner-occupied property, we have not done so.[+16 sentences] As I have explained, it is because we treat property as a store of wealth. There is no real need for us to do so and that is something at the moment that we will not do. On tax burden, whether or not we will shift from work to wealth taxation, I think, we remain open. Today, we have an approach that works on the whole. The outcomes of the past decade, in terms of our policies, have been positive. We have been able to achieve real income growth. We have been able to achieve a decline in inequality and we have been able to achieve a balance using both wealth taxation, as we explained, as well as income taxation. As our society ages and we move towards an older society where there is more asset owning, that is something we can consider, whether or not we need a shift. But we have to do this carefully so that we know that the outcomes that we want to achieve can be done so without too much social perturbation. Let me just go back to the issue on investment property, so that I can explain that a little bit more clearly because I have not done so very well. What we do is that for household wealth, we do include both liquid and illiquid assets, because this is in line with international guidelines. All property owners, including those who own HDB flats, can rent out their property for income, and to sell it and keep the proceeds. So, it is a store of wealth. And so, it is up to how people manage it, how they activate this store of wealth that they can use. And so, there is no real need for us, and it is not in international best practice for us to separate out investment versus non-investment properties or owner-occupied versus non-owner-occupied properties. This is in line with international best practices and we will try to continue to do that, particularly since in Singapore, our approach is to encourage owner-occupation, and to encourage and make sure that Singapore has broad-based ownership, particularly through the ownership of their HDB flats.
Redesigning Shelter Models to Better Meet Needs of Rough Sleepers›Oral Answers to Questions8 turns · 671w
· 8 highlighted
oral-answer-4036
Mr Gabriel Lam56 words
[+1 sentence]asked the Minister for Social and Family Development (a) whether the Ministry is concerned that 75% of surveyed rough sleepers in its 2025 survey on rough sleepers reported being unreceptive to staying in a shelter; and (b) how is the Ministry redesigning shelter models to better meet the needs of rough sleepers who avoid existing options.
Mr Gabriel Lam63 words
[+1 sentence]asked the Minister for Social and Family Development (a) how does the Ministry interpret the finding that 95% of respondents in the 2025 survey on rough sleepers sleep rough consistently in the same location; (b) whether this reflects unmet place-based needs; and (c) how does this finding inform the Ministry's outreach strategies to be better tailored for individuals reluctant to relocate to shelters.
The Senior Parliamentary Secretary to the Minister for Social and Family Development (Mr Eric Chua) (for the Minister for Social and Family Development)19 words
[+1 sentence]Mr Speaker, may I have your permission to address Question Nos 3 and 4 in today's Order Paper together?
Mr Speaker5 words
[+2 sentences]Yes, you do. Please proceed.
Mr Eric Chua290 words
[+1 sentence]Thank you, Sir. The 2025 Street Count of Rough Sleepers Survey by the Ministry of Social and Family Development (MSF) found that most rough sleepers choose to sleep in locations that are sheltered from the elements and are generally well-lit.[+3 sentences] These locations also tend to be places they are familiar with, near to friends and family, and some rough sleepers also choose locations that are close to their workplace for convenience. Based on our interactions with rough sleepers, these considerations apply across all geographical locations. Rough sleeping is a complex issue. Many rough sleepers have homes to return to but rough sleep due to disagreements with family, friends or co-tenants.[+3 sentences] MSF staff and volunteers from the Partners Engaging and Empowering Rough Sleepers (PEERS) Network journey with rough sleepers to address the underlying needs and often, a process of trust and rapport building is needed before meaningful support and interventions could be rendered. Over time, we hope more rough sleepers would be prepared to consider shelter and social services support, though the pathway for each rough sleeper would likely be different, just as their individual circumstances differ. Overall, MSF works to ensure that shelter support remains accessible to rough sleepers. For example, to address the survey finding that lack of privacy and personal space were key barriers to rough sleepers moving into shelters, MSF has partnered our shelter operators and re-designed the units with partitioned bed spaces, shelves and wardrobes.[+1 sentence] The Member may also wish to refer to MSF’s 2025 Street Count Report for more details. MSF has also recently announced a $450,000 Partnership to Tackle Homelessness (PATH) fund and invites organisations to trial innovative solutions to address underlying causes of rough sleeping and help rough sleepers work towards housing stability.
Mr Speaker2 words
[+1 sentence]Mr Lam.
Mr Gabriel Lam (Sembawang)86 words
[+5 sentences]I thank the Senior Parliamentary Secretary for his response. In my interactions with rough sleepers, they have cited a few reasons, including a lack of privacy and personal space, as the Senior Parliamentary Secretary has mentioned. They have also cited instances of shelter rules and safety concerns. Would MSF have the proportion of rough sleepers who decline shelters due to rules, safety concerns or loss of autonomy? And my second supplementary question would be, will MSF publish utilisation rates of shelters alongside the rough sleepers count?
Mr Eric Chua150 words
[+2 sentences]Sir, I thank the Member, Mr Gabriel Lam, for his two supplementary questions. We do understand that there are rough sleepers who, for reasons of rules at the shelters, not quite want to do that. The prevalence rate is about 75% based on the last street count. About three-quarters of rough sleepers on the streets today, they do not wish to check into the shelter because of rules, privacy, as I have mentioned, storage space and so on.[+2 sentences] But the primary reason is still one of privacy as well as personal spaces, which is why we have worked with community partners, like New Hope Community Services, to start redesigning our shelter spaces. On his second supplementary question, about utilisation rates, yes, we do publish that. In the Street Count Report, we mentioned 730 transitional shelter bed spaces. As of September last year, utilisation rate was about two thirds or 66%.
Review of Fire Safety and Evacuation Risks Following Temporary Relaxation of Occupancy Cap for Private Residences›Oral Answers to Questions6 turns · 834w
· 12 highlighted
oral-answer-4037
Ms Jessica Tan Soon Neo49 words
[+1 sentence]asked the Minister for National Development (a) whether URA has assessed the fire safety and evacuation risks arising from the temporary relaxation of the occupancy cap for private residences; and (b) what safeguards are in place to address higher turnover and foot traffic arising from the increased occupancy cap.
The Senior Parliamentary Secretary to the Minister for National Development (Dr Syed Harun Alhabsyi) (for the Minister for National Development)92 words
All residential premises in Singapore are subject to fire safety requirements regulated by the Singapore Civil Defence Force (SCDF).[+3 sentences] For example, fire escape routes, such as common corridors and staircases, need to be well-ventilated to aid smoke dispersal during a fire. Exit staircases are also located to provide residents with safe escape routes. Each residential unit is designed as a fire compartment to delay the spread of fire. This facilitates firefighting while enhancing the safety of residents. These standards remain sufficient with the temporary higher occupancy cap for larger private residential properties.
Mr Speaker2 words
[+1 sentence]Ms Tan.
Ms Jessica Tan Soon Neo (East Coast)190 words
[+9 sentences]Thank you, Mr Speaker, I have two supplementary questions for the Senior Parliamentary Secretary. First of all, how does the Building and Construction Authority monitor that the tenancy of private residence aligns with the building occupancy load requirements to ensure safety and accessibility? Fire safety and building code risks are hard to detect in terms of safety risk breaches. Because the overload of electrical points and all that are within the households, so, it is very difficult, even for the Management Corporations Strata Title (MCSTs) let alone the authorities to monitor and check. That can cause a big fire risk. The other supplementary question that I have is, what measures are in place to maintain residents' liveability? Beyond safety, higher density also affects day-to-day liveability, because if there are multiple units within a block that have these eight occupants, common corridors, lifts and all the other facilities will be overloaded. Even access, in terms of evacuation, within a block could be strained because a building load is of a certain capacity. But if there are multiple units, then we will have a problem and that is also difficult to monitor.
Dr Syed Harun Alhabsyi439 words
[+1 sentence]I thank the Member for her supplementary questions. First of all, I would reiterate what I answered earlier: in terms of the standards as far as fire safety is concerned, they remain sufficient even with the temporary higher occupancy cap for larger private residential estates. Just a few points with regard to the allowability of higher occupancy rates. They are only applicable for larger private residential properties, at least 90 square kilometres. [Please refer to "Clarification by Senior Parliamentary Secretary to the Minister for National Development", Official Report, 25 February 2026, Vol 96, Issue 19, Correction By Written Statement section.] And that is the equivalent size of a typical four-room Housing and Development Board flat. I wish to assure the Member that for the owners of eligible properties, if they do wish to increase their occupancy cap, they must first register with the Urban Redevelopment Authority (URA) with a registration fee of $20 to qualify for the higher occupancy cap. Therefore, any allowability for the increase in occupancy cap is registered with the URA and that becomes a point of monitoring of sorts. With regard to dealing with the residents' liveability within the estates, the monitoring of that will come within the MCST of the condominiums to make sure that common spaces and corridors do adhere to the liveability standards or the fire safety standards as provided by SCDF.[+5 sentences] On top of that, while we are looking at the common spaces, I want to reassure the Member that it also comes with a strong sense of prevention as well as public education efforts by the SCDF even in private condominium estates. So, for example, in terms of the ongoing public education efforts, to equip the community with good awareness as well as essential fire safety knowledge, it is done with the ground Community Emergency and Engagement Committees as well as the Community Emergency Response Teams. So, there are regular engagements even with the private estates. Specific to condominiums, there are also safety and security days as well as the block evacuation drills. While the Member has mentioned with regard to the loading as well as the liveability as a result of the higher occupancy cap, it is the case that we are looking at it holistically – from prevention to the regulation, and subsequent to that, as part of the community engagement, increasing the emergency preparedness of all who stay within the condominiums. One would expect that if any resident were to be able to see that there are some fire safety hazards, that these will be highlighted. And where they are highlighted to the authorities, inspections will ensue.
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.]
Time Allocation for Committee of Supply›Announcement by Speaker1 turns · 157w
· 0 highlighted
speaker-2866
Mr Speaker157 words
[+9 sentences]Order. Pursuant to paragraph (7) of Standing Order 92, I have fixed the times for the conclusion of consideration of the heads of expenditure in the Estimates of Expenditure for FY2026/2027 in the Committee of Supply. In fixing these times, I have taken into account the reduction of Question Time to 30 minutes on the days allotted for the Committee of Supply debates and the extension of Sitting times of the Committee of Supply for each of the allotted days. Additionally, Members are notified that the Sittings on the allotted days of 27 February to 6 March will commence at 10.00 am. The "guillotine" times I have fixed have been notified to hon Members. I would also like to remind Members to use slides and videos sparingly to keep the spirit of our debating Chamber. Focusing on the delivery of speeches to be made will create a greater impact in a debate. Order. Questions for Oral Answer.
Measuring Success in National R&D and Private Sector Collaborations and Safeguards to Prevent Loss of Singapore-based Expertise›Written Answers to Questions2 turns · 225w
· 0 highlighted
written-answer-22239
Mr Kenneth Tiong Boon Kiat66 words
[+1 sentence]asked the Prime Minister and Minister for Finance (a) what metrics does the Government use to measure success of collaborations between national R&D institutions and private sector partners; (b) how the Government differentiates success as a "project manager" coordinating vendors versus a "knowledge leader" developing in-house capability; and (c) what steps prevent hollowing-out of Singapore-based expertise in the national R&D institutions due to over-reliance on subcontracting.
Mr Gan Kim Yong (for the Prime Minister)159 words
[+7 sentences]The Autonomous Universities, A*STAR and other public research institutes collaborate with private sector partners to conduct industry-relevant research and development, and to commercialise inventions and technologies from publicly funded research. Through these collaborations, our institutions build up capabilities and know-how while meeting industry needs. At the same time, they contribute to the economy and strengthen our Research, Innovation and Enterprise (RIE) ecosystem. Beyond capacity and knowledge building, the Government also tracks various indicators to measure the success of these partnerships, including Intellectual Property licensing, development of innovative products and services, and formation of new startups. These collaborations between national research institutions and the private sector have been mutually beneficial. Our researchers are able to commercialise their intellectual property with companies, developing innovative products and services that help the companies stay globally competitive. This in turn spurs increased private sector research and development investments in Singapore and the creation of new high value jobs and further strengthens Singapore's RIE ecosystem.
Impact of Baby Bonus and Parental Leave Enhancements on Fertility Rate in 2023 and 2025›Written Answers to Questions2 turns · 160w
· 0 highlighted
written-answer-22240
Mr Cai Yinzhou37 words
[+1 sentence]asked the Prime Minister and Minister for Finance whether an assessment has been conducted on the impact of the Baby Bonus and parental leave enhancements which were implement in 2023 and 2025, respectively, on the fertility rate.
Ms Indranee Rajah123 words
[+5 sentences]It is difficult to discern the impact of any single policy on our fertility rate, as the measures in our Marriage and Parenthood (M&P) package are intended to work in combination to support Singaporeans in their M&P journey. From our surveys and engagements, we have found that the Baby Bonus Scheme and parental leave enhancements have been positively received. For example, parents and young couples shared that the parental leave enhancements would encourage more people to have children. Parents also perceived the increased financial support and time spent with their newborns to be helpful in their parenthood journey. We regularly monitor the efficacy of our measures and will continue to review our M&P package to better support parents in starting and raising families.
Support Measures for Singapore-based Firms Navigating US Tech Restrictions and China Rare Earth Export Controls›Written Answers to Questions2 turns · 259w
· 0 highlighted
written-answer-22241
Ms He Ting Ru61 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry (a) what is the Ministry doing to help Singapore-based firms navigate US technological and transshipment restrictions and China's rare earth export controls; (b) how will the Ministry seek to review and update these support measures; and (c) how does the Ministry work with firms that face challenges from these regulations.
Mr Gan Kim Yong198 words
[+8 sentences]The Ministry of Trade and Industry (MTI) and the relevant agencies issue advisories and conduct outreach programmes to raise awareness and build capabilities on export controls among the Singapore business community. For example, in April and June 2025, MTI and Singapore Customs issued advisories regarding unilateral export controls on advanced semiconductors and artificial intelligence technologies, as well as the importance of accurate permit declarations for exports. Singapore Customs also works with their international partners to conduct annual outreach seminars on export controls. EnterpriseSG works with the Singapore Business Federation and its Centre for the Future of Trade and Investment to provide tools, resources and advisory support for businesses to navigate and manage their trade operations. In addition, the Singapore Economic Resilience Taskforce (SERT) was established in April 2025 to support businesses and workers in navigating global economic uncertainties. SERT launched the Business Adaptation Grant in October 2025 to help eligible enterprises adapt their business operations and strengthen supply chain resilience. The grant supports activities, such as navigating trade compliance requirements, reviewing legal and contractual risks and pursuing supply chain and market diversification. The Government closely monitors global developments and will review the support measures for companies as needed.
Reviewing Singapore's 2030 Solar Targets Following 2GWp Target Success and Planned Pathway towards Cleaner Energy Sources›Written Answers to Questions2 turns · 201w
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written-answer-22242
Ms He Ting Ru60 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry with Singapore exceeding its 2GWp 2030 domestic solar installation target based on planned installations as of Q2 2025 (a) how does the Ministry intend to review and enhance more ambitious 2030 solar targets; and (b) what is the planned pathway towards transitioning away from new fossil fuel-based electricity generation.
Mr Gan Kim Yong141 words
[+6 sentences]As announced at Budget 2026, we have increased the 2030 target for domestic solar deployment to 3 gigawatt-peak (GWp). Besides maximising the deployment of domestic solar, we are exploring other potential energy pathways that can decarbonise our power system. We are introducing next generation gas-fired power plants, that have a lower carbon footprint than the power plants in service today and can be adapted to operate on new low-carbon fuels, such as hydrogen. We are also pushing forward with our plans to import low-carbon electricity from the region and building our capabilities in low-carbon alternatives, such as advanced nuclear. Even as we pursue these various pathways, we cannot escape the fact that Singapore remains alternative-energy disadvantaged. Hence, the pace of our decarbonisation will ultimately depend on technological advancements and the extent to which other countries are prepared to cooperate with us.
Timeline of Indonesian Low-Carbon Electricity Projects and Impact on Future Household Electricity Prices›Written Answers to Questions2 turns · 156w
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written-answer-22243
Ms He Ting Ru49 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry (a) when are the six Indonesian projects with Conditional Licenses for 3GW of low-carbon electricity imports expected to turn commercially operational; and (b) what is the assessed impact on future household electricity prices as a result of this.
Mr Gan Kim Yong107 words
[+5 sentences]The Energy Market Authority has issued Conditional Licences to six projects to import low-carbon electricity from Indonesia. These project developers are working to obtain regulatory approvals and meet development milestones and hope to begin commercial operations by the end of the decade. Project developers are currently in the midst of commercial negotiations on power purchase agreements with businesses that are large electricity consumers. For now, there is no plan to mandate the purchase of imported electricity. It is up to the project developers to decide whether to offer households retail plans for imported electricity and households can choose to take up these plans on a willing-buyer-willing-seller basis.
Data on E-Vaporiser Usage among New Arrested Drug Abusers›Written Answers to Questions2 turns · 48w
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written-answer-22244
Mr Ng Shi Xuan35 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs whether the Ministry has any statistics on the prevalence of the use of e-vaporisers among drug abusers, in particular new drug abusers arrested.
Mr K Shanmugam13 words
[+1 sentence]The Central Narcotics Bureau does not track the statistics requested by the Member.
License Suspensions due to Erroneously Issued Speeding Tickets and Recourse Available for Affected Vocational Drivers›Written Answers to Questions2 turns · 83w
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written-answer-22245
Miss Rachel Ong70 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs (a) whether any drivers have their licenses suspended due to the inclusion of demerit points from the 1,523 speeding tickets erroneously issued; (b) if so, how many of these are taxi or private hire vehicle (PHC) drivers; and (c) what recourse or financial restitution is available to these vocational drivers for the loss of livelihood during their suspension.
Mr K Shanmugam13 words
[+1 sentence]No drivers had their licence suspended due to the speeding tickets erroneously issued.
Status of Step-up Measures to be Implemented by Carousell and Additional Consumer Protection Measures against E-commerce Scams›Written Answers to Questions2 turns · 116w
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written-answer-22246
Mr Alex Yeo70 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs (a) what is the implementation status of the step-up measures that Carousell committed to by 31 January 2026 under the E-Commerce Code of the Online Criminal Harms Act 2023, given the increasing misuse of SingPass-verified Carousell accounts for e-commerce scams; and (b) whether the Ministry intends to implement any further measures to protect consumers from similar e-commerce scams.
Mr K Shanmugam46 words
[+2 sentences]The Ministry of Home Affairs is assessing the effectiveness of the measures implemented by Carousell in preventing the misuse of SingPass-verified accounts and will provide an update when ready. We continue to monitor the scam situation on Carousell closely and will consider further measures if necessary.
Expanding National Genetic Testing Programme Beyond Single-Gene Disorders›Written Answers to Questions2 turns · 85w
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written-answer-22247
Mr Yip Hon Weng40 words
[+1 sentence]asked the Coordinating Minister for Social Policies and Minister for Health whether the Ministry plans to expand the national genetic testing programme beyond single-gene disorders to include common multifactorial conditions, such as Type II diabetes to facilitate early preventive interventions.
Mr Ong Ye Kung45 words
[+2 sentences]When it comes to genetic tests for preventive care, the Ministry of Health takes a disease-centric approach, where there are established gene-disease relationships and proven interventions. We have started on a couple of diseases and will explore others, including Type II diabetes in due course.
Consular Assistance for Singaporeans Detained by US Border and Immigration Services in 2024 and 2025›Written Answers to Questions2 turns · 87w
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written-answer-22248
Mr Fadli Fawzi48 words
[+1 sentence]asked the Minister for Foreign Affairs (a) whether any Singaporeans in the United States of America have sought consular assistance following detention by the United States (i) Customs and Border Protection or (ii) Immigration and Customs Enforcement in 2024 and 2025, respectively; and (b) if so, how many.
Dr Vivian Balakrishnan39 words
[+2 sentences]The Ministry of Foreign Affairs extends consular assistance to Singaporeans in the United States of America, including those detained by the Customs and Border Protection and Immigration and Customs Enforcement. There were eight cases in the past two years.
Verifying Approval Process for Singapore's Exported Waste and Rejection Rates of Waste Export in 2024 and 2025›Written Answers to Questions2 turns · 163w
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written-answer-22249
Mr Dennis Tan Lip Fong58 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) how the Ministry ensures that the Prior Informed Consent from the state of import or transit required under the Basel Convention has been obtained before waste are exported from Singapore; and (b) what percentage of such waste have been rejected or returned by destination countries in 2024 and 2025.
Ms Grace Fu Hai Yien105 words
[+3 sentences]Under the Hazardous Waste (Control of Export, Import and Transit) Act, exporters of hazardous and other wastes controlled under the Basel Convention must obtain a Basel Permit from Singapore's designated competent authority, the National Environment Agency (NEA), before any export of the waste can take place. NEA grants a Basel Permit to exporters only after receiving written consent under the Basel Convention Prior Informed Consent (PIC) procedure from the competent authorities of the states of import and transit regarding the export proposal. In 2024 and 2025, none of such waste exported under a Basel Permit and PIC procedure was rejected or returned by destination countries.
Assessing Secondhand Smoke Exposure in Open Common Areas and Additional Measures to Protect Residents›Written Answers to Questions2 turns · 147w
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written-answer-22250
Mr Edward Chia Bing Hui63 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) whether the Ministry's assessments of residents' exposure to secondhand cigarette smoke include open-to-sky common areas where smoking is permitted; and (b) whether the Ministry will consider additional buffer zones, distance requirements, or other measures to better protect residents, especially those in ground-floor and low-level units, from secondhand cigarette smoke exposure from such common areas.
Ms Grace Fu Hai Yien84 words
[+3 sentences]My Ministry has not conducted assessments of residents' exposure to secondhand tobacco smoke (SHS) arising from smoking at open spaces in residential estates. We recognise that some residents, particularly those living on lower floors, may experience SHS when smokers smoke in open spaces near their homes. We urge smokers to be considerate and refrain from smoking for extended periods in areas where the SHS can affect nearby residents. We will take public feedback into consideration as we continue to review our smoking prohibition policies.
Expanding Day Activity Centre Capacity for Young Adults with Autism and Additional Support for Caregiving Families›Written Answers to Questions2 turns · 225w
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written-answer-22251
Mr Christopher de Souza48 words
[+1 sentence]asked the Minister for Social and Family Development whether the Government will (i) expand Day Activity Centre capacity and subsidies for young adults with moderate to severe autism and (ii) introduce additional healthcare, transport and financial support to ease long-term caregiving burdens for families facing pro-long waiting times.
Mr Masagos Zulkifli B M M177 words
[+7 sentences]The Ministry of Social and Family Development (MSF) is ramping up the capacity of Day Activity Centres (DACs) by 500 places, as announced in MSF's Committee of Supply (COS) in 2024. More details will be shared at a later date. Government funding for DACs is tiered according to the care needs of the client, with more resources provided to support clients with higher needs, such as those with moderate to severe autism. Also, as announced in MSF's COS in 2025, the long-term care subsidies will be enhanced from July 2026, and will benefit families tapping on long-term care and adult disability services, including DACs and transport. This is in addition to the enhanced subsidies for Assistive Technology Fund which took effect in January 2026. For suitable individuals on the waitlist, SG Enable facilitates referrals to other facilities with available capacity and supports continued engagement through activities at the Enabling Services Hubs, and the Supported Transition and Engagement Programme for graduates of special education schools. Caregivers may also tap on subsidised respite services through the Take-A-Break (TAB) programme.
Application and Success Rates of Special Approval for Additional Subsidies by Non-working Main Applicants since 2023›Written Answers to Questions2 turns · 195w
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written-answer-22252
Mr Abdul Muhaimin Abdul Malik53 words
[+1 sentence]asked the Minister for Social and Family Development for each year since 2023 (a) what is the (i) application rate and (ii) success rate of Special Approval applications for Additional subsidy for infant and childcare by non-working main applicants; (b) what are the common reasons cited in Special Approval applications for Additional subsidy.
Mr Masagos Zulkifli B M M142 words
[+6 sentences]Under Special Approval, non-working applicants can receive subsidy support equivalent to what a working applicant can receive under extenuating circumstances. From 2023 to 2025, common reasons cited in applications include needing to care for other dependants, seeking employment, undergoing training/skills upgrading, pregnancy and illness. From 2023 to 2025, around 3% of all recipients of Basic and Additional Subsidy applied for Special Approval. The approval rate for applications have remained high at around nine in 10. To better support lower-income families, we have extended full childcare subsidies to families with a monthly household income of $6,000 or below for their income tier, regardless of the applicant's working status. Additionally, families under the Housing and Development Board's Public Rental Scheme and the Ministry of Social and Family Development's ComCare schemes have been automatically eligible for maximum preschool subsidies, regardless of the applicant's working status.
Data on AI Singapore's AI Apprenticeship Programme's Graduate Placement in Last Three Years and Transparency on Hiring Practices›Written Answers to Questions2 turns · 151w
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written-answer-22253
Mr Kenneth Tiong Boon Kiat69 words
[+1 sentence]asked the Minister for Digital Development and Information regarding AI Singapore's AI Apprenticeship Programme's (AIAP) asserting a graduate placement rate of over 90% (a) for each cohort in the last three years, what percentage of graduates were hired by AI Singapore or its affiliated entities; (b) what percentage of permanent staff are themselves AIAP alumni; and (c) what measures ensure these statistics reflect genuine market absorption, not internal re-hiring.
Mrs Josephine Teo82 words
[+2 sentences]The AI Apprenticeship Programme (AIAP) develops skilled AI talent through hands-on project work with companies, providing practical training that supports both professional development and real-world AI deployment. The Member may refer to the written reply to Parliamentary Question 1035 given on 24 February 2026 on the progress made under the AIAP. [Please refer to "Impact Assessment of Investments into AI Manpower and Capability Development from 2022 to Date", Official Report, 24 February 2026, Vol 96, Issue 18, Written Answers to Questions section.]
Data on Total Number and Load Capacity of Data Centres in Singapore›Written Answers to Questions2 turns · 56w
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written-answer-22255
Ms Elysa Chen34 words
[+1 sentence]asked the Minister for Digital Development and Information (a) whether the Ministry has data on the total number and load capacity of data centres in Singapore currently; and (b) if so, what are they.
Mrs Josephine Teo22 words
[+1 sentence]Singapore's total data centre (DC) capacity exceeds 1.4 gigawatts, and we are home to more than 70 cloud, enterprise and co-location DCs.
Supporting Lower-Income Students in Direct School Admission Applications to Ensure Equitable Talent Identification›Written Answers to Questions2 turns · 225w
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written-answer-22256
Ms Elysa Chen49 words
[+1 sentence]asked the Minister for Education (a) how does the Ministry support students from lower-income families to overcome barriers, such as (i) access to training, (ii) preparation and (iii) exposure opportunities when applying through the Direct School Admission scheme, so that talent identification does not depend disproportionately on family resources.
Mr Desmond Lee176 words
[+8 sentences]The Ministry of Education (MOE) invests significant resources to support students from lower-income families to discover and nurture their interests and talents. For instance, MOE provides Opportunity Fund grants to schools for them to subsidise co-curricular development opportunities for students from low-income households. MOE also runs the Junior Sports Academy for primary school students who show sporting potential. Selection is based on general motor ability, with no prior sports training needed. The main objective of these efforts is to help students from lower-income families to discover their strengths and interests, which may lead to them applying for Direct School Admission (DSA), with the support of their schools. However, these efforts are not aimed at preparing them for DSA, as it is not the main pathway for students to gain admission to the next level of education. For DSA, our schools adopt a holistic approach to selection and consider factors such as a student's potential and personal qualities, beyond their demonstrated achievements. This approach recognises that talent can manifest differently depending on a student's background and opportunities.
Challenges Affecting Uptake of Graduate Industry Traineeship (GRIT) Scheme and Successful Job Placement Outcomes›Written Answers to Questions2 turns · 363w
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written-answer-22257
Ms He Ting Ru60 words
[+1 sentence]asked the Minister for Manpower since the launch of the Graduate Industry Traineeships (GRIT) scheme in October 2025 (a) what factors contributed to fewer than 50% of the 800 places being taken up; (b) whether these factors include any employer participation or scheme design constraints; and (c) how many trainees have secured full-time employment with their sponsor companies upon completion.
Dr Tan See Leng303 words
[+13 sentences]My reply will address Mr Gerald Giam's oral Parliamentary Question (PQ) and Ms He Ting Ru's written PQ filed for today's sitting. The Graduate Industry Traineeships (GRIT) and GRIT@Gov programmes were designed to improve the employability of graduates who needed more help to find a permanent job, amidst uncertain hiring sentiments last year, compared to the exceptionally tight labour market in previous years. We provisioned for 800 GRIT and GRIT@Gov vacancies and are working with the various host organisations to expedite the filling of their allocated traineeships. While the number of filled traineeships has since increased to close to 400, we continue to prioritise channelling fresh graduates to full-time employment. Applications for the GRIT traineeships have fallen by about 90% compared to when it was first launched in October 2025. Based on feedback from many host organisations, a significant number of applicants had declined traineeship offers as they had found full-time employment or decided to pursue other opportunities. The 350 trainees were roughly split equally between GRIT and GRIT@Gov. We have sourced GRIT vacancies from companies in growth sectors that can offer quality traineeships for our graduates, and about a third of these vacancies were offered by small and medium enterprises (SMEs). Correspondingly, about one‑third of GRIT trainees were with SMEs. We have designed GRIT to facilitate the conversion of trainees into permanent employees with their host organisations before the traineeship ends. For example, host organisations that offer permanent employment to trainees before the completion of the traineeship would not be disadvantaged. If a host organisation hires a trainee who has completed at least three months of the traineeship, the organisation will continue to receive subsidies for the remainder of the traineeship duration. As the first batch of trainees only commenced their traineeships in December 2025, there have not been conversions so far.
Impact of 2022 Commercial Strata Subdivision Changes on Central Area Property Markets for SMEs›Written Answers to Questions2 turns · 211w
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written-answer-22258
Mr Abdul Muhaimin Abdul Malik67 words
[+1 sentence]asked the Minister for National Development since the implementation of restrictions on the strata subdivision of commercial properties in central area in 2022 (a) whether the Ministry has observed any significant changes in the prices or transaction volumes of strata-titled commercial units; and (b) what measures are being considered to ensure that small and medium-sized enterprises have access to affordable commercial spaces for ownership in central area.
Mr Chee Hong Tat144 words
[+5 sentences]The strata-subdivided commercial property market in the Central Area has remained stable since the implementation of strata-subdivision restrictions in 2022. Median prices increased modestly at an average of 0.4% per year between 2022 and 2025, compared to a decrease of an average of 0.8% per year in the pre-COVID-19 period between 2016 and 2019. There was an average of 325 transactions per year between 2022 and 2025, compared to an average of 290 transactions per year between 2016 and 2019. The subdivision restrictions apply only to specific commercial developments in prominent areas and key routes in the Central Area, such as Orchard Road and Shenton Way, and those under the Central Business District Incentive and Strategic Development Incentive Schemes. Businesses, including small and medium-sized enterprises, continue to have access to a wide range of commercial spaces at different price points across the Central Area.
Data on Appeals Outcomes of HDB Sellers Affected by Ethnic Integration Policy›Written Answers to Questions2 turns · 249w
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written-answer-22259
Ms Valerie Lee53 words
[+1 sentence]asked the Minister for National Development in 2025 (a) how many appeals were received by HDB dwellers who faced difficulties selling their flats due to the Ethnic Integration Policy; (b) what were the success rates of such appeals; and (c) what percentage of such cases went through the buyback assistance by the Government.
Mr Chee Hong Tat196 words
[+9 sentences]The Ethnic Integration Policy (EIP) is important for Singapore's racial harmony and cohesion in a multicultural society. The Housing and Development Board (HDB) provides a range of assistance measures for flat owners who face genuine difficulties selling their flats when EIP quotas have been reached. These include giving such owners more time to sell their existing flat if they have purchased another one, or in exceptional circumstances, waiving the EIP limits to allow them to sell their flat to buyers of any ethnic group. As a last resort, HDB may also buy back flats from eligible EIP-constrained flat owners if they have tried their best to sell their flat, but are unable to do so. In 2025, HDB received 657 EIP-related appeals from flat owners. HDB acceded to 208 appeals, including helping five households via the buyback measure. The breakdown by ethnic group is in the table below. As of 31 December 2025, HDB owns about 100 units that were bought back via the EIP buyback assistance measure or compulsorily acquired by HDB for other reasons. These units will be offered for sale progressively under the Sale of Balance Flats exercise and open booking of flats.
Data on Disputes in Private Residential Estates from 2021 to 2025, and Improved Support for MCST Councils in Estate Management and Dispute Resolutions›Written Answers to Questions2 turns · 150w
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written-answer-22260
Ms Valerie Lee61 words
[+1 sentence]asked the Minister for National Development (a) what has been the trend from 2021 to 2025 of the number of official disputes lodged with the Strata Titles Board and the Commissioner of Buildings for residential private estates; and (b) how does the Government plan to better support Management Corporation Strata Title councils in financial prudence, estate management and community dispute resolution.
Mr Chee Hong Tat89 words
[+4 sentences]The number of applications lodged with the Strata Titles Boards has remained stable over the past five years at an average of 120 cases annually. Feedback on disputes amongst Management Corporation Strata Title entities, subsidiary proprietors and managing agents lodged with the Commissioner of Buildings has declined, from over 3,000 cases in 2021, to less than 900 in 2025. The Government is reviewing the Building (Strata Management) Act to improve financial oversight, strengthen self-governance and enhance dispute resolution processes for strata developments. More details will be shared when ready.
Cost and Funding of Free Shuttle Bus Service in Gek Poh and Bus Utilisation Rates since 2025›Written Answers to Questions2 turns · 201w
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written-answer-22261
Ms He Ting Ru61 words
[+1 sentence]asked the Minister for National Development (a) what is the cost and funding source for the free daily Gek Poh shuttle bus service; (b) what is the bus utilisation rate since its inception in September 2025; and (c) whether any preliminary studies or learning points from Marine Parade shuttle service have been considered before commencing the shuttle service in Gek Poh.
Mr Chee Hong Tat140 words
[+7 sentences]Gek Poh Shopping Centre is currently closed for upgrading works, which are expected to complete in third quarter of 2028. To ensure that residents continue to have access to amenities during this period, the Housing and Development Board (HDB) has provided a free daily shuttle bus service to ferry residents between Gek Poh Shopping Centre and the nearby Hong Kah Point Neighbourhood Centre. This is not a new practice. HDB had previously provided such temporary shuttle services during similar upgrading projects for the convenience of residents. The context is different from the Marine Parade shuttle bus service. The Gek Poh shuttle bus service cost around $14,000 per month and is part of the lump sum tender for the upgrading of Gek Poh Shopping Centre. The shuttle bus is usually quite well-utilised during weekday mornings and around noon time on weekends.
Recusal of Non-Muslim Board Members from Decisions Made on Singapore College of Islamic Studies' Islamic Curriculum›Written Answers to Questions2 turns · 184w
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written-answer-22262
Mr Fadli Fawzi44 words
[+1 sentence]asked the Acting Minister-in-charge of Muslim Affairs (a) whether the non-Muslim members of the Board of Governors and Steering Committee will recuse themselves from decisions relating to the Islamic curriculum of the Singapore College of Islamic Studies (SCSI); and (b) if not, why not.
Assoc Prof Dr Muhammad Faishal Ibrahim140 words
[+4 sentences]The development of the Islamic curriculum of the Singapore College of Islamic Studies (SCIS) and the decisions on all matters relating to the Islamic faith in the curriculum, will be led by the Mufti and supported by our religious leaders and scholars on the SCIS Board of Governors and Steering Committee, as well as its Advisory Panel. The College will also partner esteemed Islamic institutions from Egypt, Jordan and Morocco, in the design and delivery of its religious curriculum. As the SCIS' Islamic Studies programme adopts an interdisciplinary approach, experts in fields beyond the Islamic Sciences may be consulted. This approach ensures that students will be equipped with a strong understanding of Islamic principles and a deep appreciation of the context of Singapore's diverse and modern society, which will prepare our future religious teachers to serve the community more effectively.
Cumulative Noise Cap Implementation for Concurrent Infrastructure Projects with North-South Corridor Project›Written Answers to Questions2 turns · 152w
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written-answer-22263
Mr Yip Hon Weng62 words
[+1 sentence]asked the Acting Minister for Transport in respect of the construction noise from the North-South Corridor project (a) whether a cumulative noise cap can be implemented for residential estates facing concurrent projects; and (b) whether the Ministry will review the 70-metre distance rule for noise barriers where residents face over five years of infrastructure noise, specifically at Nuovo and Castle Green condominiums.
Mr Jeffrey Siow90 words
[+4 sentences]Where cumulative noise levels exceed regulatory noise limits for the North-South Corridor, the National Environment Agency will work with the Land Transport Authority and its contractors to coordinate construction schedules to minimise overlapping activities, where practicable. Enforcement action will be taken against individual sites that exceed regulatory noise limits. Noise barriers must be installed for construction projects within 75 metres of noise-sensitive premises, including residential buildings. Localised noise impact assessments must also be conducted before and during construction, and if needed, contractors would have to implement further noise mitigation measures.
Timeline for Public Bus Accessibility Feature Upgrades to Support Visually Impaired and Deaf Commuters›Written Answers to Questions2 turns · 229w
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written-answer-22264
Mr Cai Yinzhou65 words
[+1 sentence]asked the Acting Minister for Transport as of 2026 (a) what proportion of public buses still lack integrated next-stop visual displays and audio announcements; (b) how the Ministry ensures accessibility for visually impaired and deaf commuters on these older buses; (c) whether the Ministry will mandate retrofitting for the remaining fleet rather than waiting for natural replacement; and (d) what is the projected completion timeline.
Mr Jeffrey Siow164 words
[+7 sentences]About 20% of our current public bus fleet is equipped with the Passenger Information Display System (PIDS) for buses which features visual displays and audio announcements of upcoming stops. Another 20% of the fleet have internal speakers that provide audio announcements. All new buses will be equipped with PIDS, and by 2030, around 70% of the fleet will have at least one of these systems as we refresh our fleet. Older buses were not designed to include such systems; it is not practical to retrofit them with visual displays, speakers and cabling. Apart from technological solutions, bus captains are trained to assist commuters with additional wayfinding needs. Commuters who are deaf or visually impaired can request for bus captains to alert them when the bus is arriving at their stop. We also encourage commuters to assist their fellow passengers if they need additional wayfinding assistance, such as through the "Please alert me when I am approaching my stop" card in the Helping Hand scheme.
Addressing Dangerous and Careless Driving›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 186w
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written-answer-na-22193
Mr Chua Kheng Wee Louis64 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs (a) in each year over the past five years, what is the number of offences committed for each of (i) dangerous driving and (ii) careless driving; and (b) in view of the Government's zero tolerance for road traffic fatality rates, what additional measures are being taken to address dangerous and careless driving.
Mr K Shanmugam122 words
[+6 sentences]Between 2021 and 2025, the Traffic Police (TP) recorded an annual average of about 190 dangerous driving and close to 18,000 careless driving offences. The Government adopts a four-pronged approach to road safety, involving enforcement, penalties, public education and road infrastructure. For example, TP has started activating the speed enforcement function in some red-light cameras. TP has also strengthened its traffic violation detection capabilities with the new Traffic Violation Enforcement Cameras, which have been deployed at some accident-prone areas and locations where offences are frequently reported. The Ministry of Home Affairs (MHA) raised the fines and demerit points for speeding violations from 1 January 2026. MHA and TP are considering further measures to enhance road safety and will announce them when ready.
Criteria for Commencing Police Investigation on Report of Voluntarily Causing Hurt or Advising Victim to File Magistrate's Complaint›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 161w
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written-answer-na-22194
Mr Kenneth Tiong Boon Kiat70 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs (a) what criteria do Police use to decide whether to investigate a voluntarily causing hurt report or refer the victim to a Magistrate's Complaint; (b) whether these criteria account for repeated assaults by the same perpetrator; and (c) in the last three years, how many such reports resulted in (i) police investigation and (ii) referral to Magistrate's Complaints.
Mr K Shanmugam91 words
[+5 sentences]Police will initiate investigations into reports of Voluntarily Causing Hurt (VCH) where there is harm to public interest and safety, it involves vulnerable victims or there are other aggravating factors, including whether it is a repeat offence by the perpetrator. Otherwise, the Police will advise complainants to file a Magistrate's Complaint instead. Between 2023 to 2025, there were about 14,000 reported cases of VCH each year. Approximately 30% of these cases were investigated. The Police do not track whether an investigation was initiated by the Police or directed by a Magistrate.
Addressing Situation Where Foreign Spouses of Lower-income Elderly Singaporeans Cannot Work without LTVP›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 180w
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written-answer-na-22195
Mr Kenneth Tiong Boon Kiat75 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs (a) how does the Long-Term Visit Pass (LTVP) application policy for foreign spouses of lower-income elderly Singaporeans avoid a catch-22 where incomes are insufficient and yet spouses cannot work without LTVPs; (b) whether ICA has modelled fiscal benefits of conditional LTVPs tied to employment versus long-term costs of institutional care from rejection; and (c) how does this support stable family formation for seniors.
Mr K Shanmugam105 words
[+4 sentences]The Immigration and Checkpoints Authority (ICA) takes several factors into account in assessing Long-Term Visit Pass applications for foreign spouses of Singapore Citizens and Permanent Residents, including the length of marriage, whether the couple has children from the marriage, the ability of the household to financially sustain themselves and whether they have any adverse records. Where applicants declare specific caregiving needs, ICA also takes that into account. Couples should check, before they get married, on the likelihood of the foreign partner obtaining long-term stay facilities. Every application has to in essence, among other factors, not end up requiring the Singaporean taxpayer to pay more eventually.
Audits on Contractors' Maintenance of Speed Enforcement Cameras and Penalties for Lapses›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 159w
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written-answer-na-22198
Mr Yip Hon Weng68 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs (a) when does Traffic Police conduct audits on speed enforcement cameras after the maintenance by contractors; (b) how are contractors penalised for lapses resulting in erroneous issuing of traffic summons; (c) what avenues are available for the public to dispute speeding summons; and (d) whether camera settings are verified following disputes to prevent recurrence or errors.
Mr K Shanmugam91 words
[+4 sentences]The Traffic Police (TP) conduct monthly audits on all speed enforcement cameras, which includes verifying that the speed settings are accurate. Where there are lapses by contractors, they will be subject to financial penalties or contract termination in accordance with the contractual agreements. Motorists who wish to dispute a speeding offence may submit an appeal to TP via the Singapore Police Force's e-services. Where the review of appeals suggests anomalies in the speed camera settings, TP will verify the camera settings and engage the contractor to fix the camera if necessary.
Maintaining Camp Security In Light of Recent Fake Bomb Threat Incident Involving Paya Lebar Air Base›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 135w
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written-answer-na-22199
Mr Christopher de Souza73 words
[+1 sentence]asked the Coordinating Minister for Public Services and Minister for Defence in light of the fake bomb threat incident at Paya Lebar Air Base (a) how will the Ministry maintain base and camp security, such as to take a strong strategic position against perpetrators who seek to harm our assets; and (b) how does the Ministry aim to maintain security and mindset readiness amongst personnel to address such incidents and manage their aftermath.
Mr Chan Chun Sing62 words
[+1 sentence]The Member may refer to the reply to Parliamentary Question No 7, asked by Mr Yip Hon Weng, for the Sitting on 24 February 2026. [Please refer to "Threats against National Security Sites and Resources Expended on Investigations", Official Report, 24 February 2026, Vol 96, Issue 18, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]
Outcomes of Lung Transplants Performed in Singapore and Maintaining Expertise in This Field›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 254w
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written-answer-na-22200
Mr Kenneth Tiong Boon Kiat71 words
[+1 sentence]asked the Coordinating Minister for Social Policies and Minister for Health given that fewer than 20 lung transplants have been carried out since 2000 under the Lung Transplant Programme (a) what were the outcomes of each lung transplant performed since 2020; (b) whether such volume is sufficient to maintain competence in such specialisation; and (c) whether solutions, such as treating subsidised ASEAN patients, have been explored to arrest any skills erosion.
Mr Ong Ye Kung183 words
[+10 sentences]Patients undergoing lung transplant generally have end-stage lung disease. Lung transplant is the only remaining lifesaving treatment option for these patients. There are multiple factors that influence post-transplant outcomes. These include the recipient's underlying diagnosis and presence of cardiopulmonary complications arising from the original lung disease and the health condition at the time of transplantation. Between 2020 and 2025, there were four lung transplant surgeries performed. Three of the recipients passed away and the other is recovering well. The volume of lung transplant surgeries in Singapore is not expected to be comparable to Western countries, likely due to our lower prevalence of end-stage lung diseases. Nonetheless, the transplant team maintains their expertise through training at high volume transplant centres overseas and participation in international conferences and workshops. Experts from the Duke University Health System, one of the largest lung transplant programme in the United States, also proctor the transplant surgeons during transplant surgeries performed in Singapore. Transplant surgeons also maintain their technical skills by performing other thoracic surgeries involving similar surgical techniques used in lung transplants and undergo surgical practice using animal models.
Measures for Prevention, Detection and Early Treatment to Reverse Increase in Cancer Rates among People under 40›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 147w
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written-answer-na-22201
Ms Valerie Lee55 words
[+1 sentence]asked the Coordinating Minister for Social Policies and Minister for Health in light of the rise in cancer rates among people aged under 40, what comprehensive cross-sector measures is the Government implementing to address prevention, early detection, research into causes, environmental risk factors, lifestyle interventions and timely access to treatment to reverse this concerning trend.
Mr Ong Ye Kung92 words
[+4 sentences]To address the rising burden of cancer, we have been embarking on upstream population health measures, such as discouraging smoking and alcohol consumption, promoting healthy diet and physical activity. For specific cancers, we also encourage vaccinations and early detection through evidence-based screening programmes under Healthier SG. The Government will continue to support research into the causes, detection and management of cancer and work through the Singapore Translational Cancer Consortium to better coordinate the work of local cancer researchers. We will also regularly review and monitor our efforts in cancer prevention and care.
Recommendation for One Dose of MMR Vaccine Before Travel for Infants Aged Six to 11 Months›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 142w
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written-answer-na-22203
Mr Ng Shi Xuan67 words
[+1 sentence]asked the Coordinating Minister for Social Policies and Minister for Health (a) whether the Ministry and the Expert Committee on Immunisation have considered the United States Centers for Disease Control and Prevention's recommendation that infants six to 11 months old should receive one dose of the Measles-Mumps-Rubella (MMR) vaccine before travel; and (b) what are the reasons why the Government has decided not to adopt this recommendation.
Mr Ong Ye Kung75 words
[+3 sentences]On 13 February 2026, the Communicable Diseases Agency issued guidance recommending that infants aged six to 11 months travelling to countries with measles outbreaks or high measles incidence should receive an earlier dose of MMR vaccine. This dose should be given at least two weeks before travel to reduce the risk of infection when travelling. For long-term immunity, such infants should still complete the two-dose MMR vaccine series according to the National Childhood Immunisation Schedule.
Divergence in Costs Incurred by Labour-intensive Domestic Sectors and Outward-facing Industries›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 325w
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written-answer-na-22204
Mr Mark Lee70 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry in light of the 2025 Economic Survey which shows that aggregate cost indicators moderated but reveals sectoral divergence with unit labour costs rising in labour-intensive domestic sectors and uneven productivity gains in outward-facing industries, such as general manufacturing where many SMEs operate, how the Government assesses the risk of a widening two-track economy and its implications for cost competitiveness.
Mr Gan Kim Yong255 words
[+14 sentences]In 2025, the unit labour cost (ULC) of domestically-oriented sectors rose, while that of outward-oriented sectors declined. This divergence was due to weaker labour productivity growth in domestically-oriented sectors relative to outward-oriented sectors, even though the increase in total labour cost per worker was similar across both groups1. The Government is aware of the cost pressures faced by domestically-oriented businesses, especially the small and medium-sized enterprises. We have been helping them manage these cost pressures. The Government will further provide a Corporate Income Tax Rebate and Cash Grant, through which businesses can receive up to $30,000 in benefits in the Year of Assessment 2026. However, such assistance can only go so far. Businesses must continue to transform and upgrade to remain competitive in the long run. The Government will work closely with firms that are willing to embark on this journey. For instance, the Enterprise Development Grant supports Singapore companies in building new capabilities, investing in research and innovation, and venturing into overseas markets. The Government is also investing heavily in training and skills development to raise workforce productivity. For example, in domestically-oriented sectors, such as retail and food services, the Progressive Wage Model provides structured career pathways that incentivise lower-wage workers to upgrade their skills and increase productivity. We must continue pressing on with efforts to achieve broad-based productivity growth. This is the only way for businesses in Singapore to remain competitive and for Singaporeans to enjoy sustainable wage growth. The Government stands ready to provide further support to businesses and workers where needed.
Data on Space Within REIT-owned Malls Occupied by Retail Brands, Broken Down by Brands' Country of Origin›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 163w
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Ms Valerie Lee73 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry whether the Ministry can provide, for end-2022 and for the most recent data, a comparison of the percentage share within REIT-owned malls of (i) total Gross Floor Area and (ii) number of units, respectively, which are occupied by retail brands, grouped by country of origin for the brand, regardless of local ownership, franchise or partnership structures under which tenants operate the brands.
Mr Gan Kim Yong90 words
[+3 sentences]The Government does not collect data on the profile of tenants in privately-owned or REIT-owned malls. Tenancy mix and tenant profiles in commercial developments are the result of commercial decisions made by both property owners and tenants and reflect market factors, such as consumer demand preferences and prevailing economic conditions. While the Government may not be privy to detailed commercial data of individual commercial properties, we monitor aggregated market trends as well as engage regularly with industry associations, small and medium-sized enterprises representatives and property stakeholders to understand the ground.
Capture of Data Based on Retiree, Disabled Persons and Single-parent Households, and on Housing Categories Despite Change in Government's Income Trends Report›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 265w
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Ms Elysa Chen73 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry regarding changes to the Government's annual household income trends report (a) whether disaggregated market income statistics can be provided by households with retirees, disabled persons, single-parent households and different housing categories; (b) whether the widened scope of analysis to cover all resident households will lead to vulnerable groups being statistically obscured; and (c) if so, what safeguards are there to prevent this.
Mr Gan Kim Yong192 words
[+8 sentences]The changes to the Key Household Income Trends report were made partly in response to Singapore's changing demographics. With our ageing population, there is a growing proportion of retiree households who do not have employment income, but may have income from non-employment sources, such as annuities including from CPF, rental, investments and regular allowances from their children. Expanding the household income definition and household coverage thus ensures a more complete representation of resident households and their income trends. Notably, the report now covers resident households comprising solely of non-employed persons aged 65 and over. This accounted for 49.3% of residents in the lowest income decile. The inclusion of these retiree households enables the Government to better understand the financial resources available to them and provide targeted support where necessary. Disaggregated household market income data for retiree households comprising solely of non-employed persons aged 65 and over is available and published on Department of Statistics' website. However, market income data for lone-parent households and households with at least one member with difficulty performing basic activities are not available annually but are reported in the Census and General Household Survey conducted every five years.
Building Strong Pipeline of Cybersecurity Talent Across All Sectors›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 294w
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Assoc Prof Kenneth Goh54 words
[+1 sentence]asked the Minister for Digital Development and Information what are the Ministry's plans to develop and sustain a strong pipeline of cybersecurity talent and capabilities to address the increasing prevalence and sophistication of cyberattacks, including measures to build expertise not only within Government but across critical infrastructure operators, private enterprises and the wider workforce.
Mrs Josephine Teo240 words
[+11 sentences]Critical information infrastructure owners (CIIOs) are accountable for the cybersecurity of their systems, including acquiring the right tools and capabilities to safeguard the cybersecurity of their systems. The Government plays an enabling role in ensuring adequate expertise and capacity exists within the broader cybersecurity ecosystem. To support our CIIOs, many of whom are private enterprises, the Government organises nationwide cybersecurity exercises, such as Exercise Cyber Star and Critical Infrastructure Defence Exercise (CIDeX). These exercises enable cyber defenders across public and private sectors, particularly those from our CII sectors, to enhance their skills against evolving cyber threats. For leadership development, the Cyber Security Agency (CSA) has partnered with Singapore Management University to deliver the Cybersecurity Strategic Leadership Programme. This initiative equips senior leaders with the knowledge and skills necessary to effectively lead cybersecurity functions within their organisations. The Government has established several programmes to cultivate cybersecurity talent from an early stage. CSA's Cybersecurity Development Programme trains graduates with minimal cybersecurity background into qualified cybersecurity professionals. Additionally, the Digital and Intelligence Service's Sentinel Programme and CSA's SG Cyber Youth provide students with hands-on experience in real-world cybersecurity skills, including web programming, network forensics and penetration testing. These youth-focused initiatives foster early interest amongst young people and inspire them to pursue cybersecurity as a viable career path. The Government will continue to monitor and review these efforts to ensure our national cybersecurity capabilities keep pace with the evolving threat landscape and emerging challenges.
Stepped-up Vigilance or Measures for Zero-day Vulnerabilities Following UNC3886 Cyberattacks›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 174w
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Mr Dennis Tan Lip Fong41 words
[+1 sentence]asked the Minister for Digital Development and Information in view of the UNC3886 cyberattacks, how is the Government working with technology vendors to ensure that zero-day vulnerabilities exploited by such actors are patched or mitigated across all sensitive public sector systems.
Mrs Josephine Teo133 words
[+8 sentences]Zero-day vulnerabilities cannot be completely eliminated. By definition, the risk they pose cannot be fully addressed because "patches" are not yet available. However, the Government does put in place measures to detect and prevent significant damage to key systems. When we receive credible information on zero-day exploits, the Cyber Security Agency and GovTech work with vendors to confirm the nature of incidents and accelerate remediation efforts where needed. In addition, we require critical system owners to conduct frequent security testing and threat hunting. This facilitates timely detection and remediation. It is also important to put in place a layered defence approach. This means controls at the perimeter of systems, coupled with systematic efforts to detect unauthorised activity within our networks, deal with them robustly and deal with attacks before significant damage is done.
Mandating Content Filters and Digital Watermarking for High-risk AI Tools›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 205w
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Mr Cai Yinzhou52 words
[+1 sentence]asked the Minister for Digital Development and Information (a) whether IMDA will mandate content filters and digital watermarking for high-risk AI tools, following the blocking of Grok in Indonesia and Malaysia; and (b) how the Ministry intends to audit AI models accessible in Singapore for compliance with the Model AI Governance Framework.
Mrs Josephine Teo153 words
[+6 sentences]Testing standards and technical solutions to manage artificial intelligence (AI)-related risks are still developing. Nonetheless, we have consistently emphasised the need for responsible AI development and deployment. We have sought to provide practical support through guidelines, like the Model AI Governance Framework, and testing tools, like AI Verify. We will update our policies as standards and technical safeguards mature. Singaporeans are protected from online harms through safeguards such as the Codes of Practice for Online Safety and the upcoming Online Safety (Relief and Accountability) Act. The Member may refer to our previous response to Ms Cassandra Lee's Parliamentary Question on safeguards for users of Grok's app delivered at the 3 February 2026 Parliament Sitting. [Please refer to "Safeguards to Prevent Harm to Vulnerable Users of Gen AI Chatbot App", Official Report, 3 February 2026, Vol 96, Issue 15, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]
Continued Use of Facsimile for Communications with Government Agencies, and Pursuit of Digital and Safer Alternatives›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 129w
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Ms Diana Pang Li Yen67 words
[+1 sentence]asked the Minister for Digital Development and Information (a) how prevalent is the continued use of fax communications between law firms and agencies, such as HDB, CPF Board, Singapore Land Authority (SLA), and banks; (b) whether there are plans or timelines to phase out fax in favour of secure digital communications; and (c) and how such changes will be implemented to safeguard data security and operational continuity.
Mrs Josephine Teo62 words
[+3 sentences]The Ministry of Digital Development and Information does not track the usage of fax communications. We understand that law firms generally use email or online channels instead of fax to communicate with Government agencies and banks. We do not have plans to phase out fax communications as a policy and will leave it to organisations to decide if they still require it.
Differences in PISA Performance across Socio-economic Groups›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 144w
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Assoc Prof Kenneth Goh68 words
[+1 sentence]asked the Minister for Education in respect of Ministry of Finance's Occasional Paper on Income Growth, Inequality and Social Mobility which indicated students from lower socio-economic status (SES) backgrounds perform strongly in PISA 2022 relative to OECD peers (a) whether the Ministry monitors differences in PISA performance across socio-economic groups in Singapore; (b) whether the differences are statistically significant; and (c) how the SES-performance gaps evolved over time.
Mr Desmond Lee76 words
[+3 sentences]Based on the Programme for International Student Assessment (PISA) study by the Organisation for Economic Cooperation and Development, students from higher socio-economic status (SES) homes do better than peers from lower SES homes on average. This is true for all PISA participating systems, including Singapore, in all previous PISA studies. The statistically significant performance gaps in PISA between students from the bottom- and top-25% SES homes have remained largely stable in Singapore from 2012 to 2022.
Leveraging SAF's Contracted Food Services and Cookhouse Models for School Meal Provisions›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 255w
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Mr Cai Yinzhou63 words
[+1 sentence]asked the Minister for Education (a) whether the Ministry is exploring a collaboration with the Singapore Armed Forces (SAF) or its contracted food service providers to leverage their large-scale central kitchen and cookhouse expertise for providing school meals; and (b) whether the Ministry will consider adopting SAF’s "Design, Equip and Operate" kitchen model to increase meal capacity in schools facing canteen vendor shortages.
Mr Desmond Lee192 words
[+8 sentences]When developing the Central Kitchen Meal Model (CKMM) for schools, the Ministry of Education (MOE) engaged a range of food operators, including Chang Cheng Group, Neo Group Limited, the National Trades Union Congress (NTUC) Foodfare, SATS Food Services and Wilmar International, to understand their operational capabilities. Some of the operators eventually participated in our open tender exercise for the provision of school meals. MOE also engaged the Singapore Armed Forces (SAF) to learn from SAF's experience in working with food operators. MOE's CKMM is designed with our students in mind, and our requirements differ from SAF's requirements in some areas. This includes allowing parents and students to independently choose and purchase meals and meeting the dietary and nutritional requirements of children. Where relevant, MOE's CKMM incorporates elements of the SAF's model, where operators are required to design, equip and operate school canteen facilities. MOE will continue to explore different options that best serve our students' needs and continuously refine our CKMM. The intent is not to scale up CKMM to all schools, but to offer it to schools that have severe difficulties of getting stall holders to provide meals at the canteen.
Correlation between Students' Use of AI and Cognitive Skills Decline›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 465w
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Mr Cai Yinzhou63 words
[+1 sentence]asked the Minister for Education (a) what data the Ministry has on students' AI usage and its correlation with cognitive skill decline; (b) whether baseline assessments will be introduced to monitor these impacts; (c) how are teachers trained to detect AI-induced cognitive atrophy; and (d) what interventions, such as device-limited classes, are planned to prevent over-reliance and ensure students first master foundational concepts.
Mr Desmond Lee402 words
[+18 sentences]The Ministry of Education (MOE) provides guidance to schools to ensure that the use of artificial intelligence (AI) enhances, rather than undermines, teaching and learning, whilst guarding against cognitive atrophy. While MOE does not have Singapore data on correlation of student AI usage to cognitive atrophy, we are currently conducting studies on the impact of AI on students' learning. International research has shown that inappropriate or ill-structured use of AI by students can result in over-reliance, negatively impacting students' basic recall and understanding of simple concepts. This would, in turn, hamper the development of higher order thinking. Teachers therefore hold off the use of AI when our students are in the early stages of acquiring knowledge and skills, so that they develop strong foundations before they are introduced AI to augment their learning. For example, at lower primary levels, students learn best by using multiple senses to engage with real-world objects. Technology is therefore used lightly in the classroom, to prioritise hands-on inquiry, real-life explorations, and outdoor experience. AI is progressively introduced from Primary 4 with teachers' supervision. At the secondary level, students are equipped with personal learning devices and progressively use AI independently for learning. This is done through well-designed learning tasks, which allows students to benefit from the personalisation of learning offered by AI while guarding against cognitive outsourcing. Teachers are provided with MOE-developed AI tools, which are designed to be pedagogically sound and are accompanied by appropriate guardrails. These tools are in the Singapore Student Learning Space so that all students can access them to help empower their learning. Given that students' access to AI is not just confined to school, MOE has taken steps to develop students' AI literacy, as well as guide students on ethical and responsible use of AI so that they will use AI to benefit their learning. Teachers are trained to design and conduct lessons to help students acquire fundamental knowledge and develop higher order thinking skills. MOE provides in-service professional learning to equip teachers to use AI thoughtfully, grounded in pedagogical principles that enhance student engagement and learning. MOE continues to assess students' mastery of foundational concepts to ensure they can apply them without using AI. For example, proctored examinations that disallow AI use help ensure that students have strong fundamentals. Teachers' interactions with students also give them good knowledge of each student's learning progress to provide support when learning gaps are observed.
Review of International Baccalaureate Programme and Its Extension to More Mainstream Schools›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 186w
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Mr Darryl David49 words
[+1 sentence]asked the Minister for Education (a) when the last review of the International Baccalaureate (IB) programme in mainstream schools has been conducted; (b) what have been the findings of this review; and (c) whether there are plans to extend the IB programme to more mainstream schools in the future.
Mr Desmond Lee137 words
[+8 sentences]The International Baccalaureate Diploma Programme (IBDP) was introduced to our mainstream schools as part of the Ministry of Education's (MOE's) effort to provide diversity in the education landscape. Unlike the GCE A-Level programme, the IBDP is not part of our national curricula. The MOE therefore does not review the IBDP curriculum. Nonetheless, we monitor developments in the IBDP and the outcomes of students taking the IBDP to ensure it remains relevant to our students. Students in our mainstream schools offering the IBDP consistently performed better than the global candidature. Almost all were awarded the IB Diploma. Beyond academics, IBDP students also reported positive perceptions of their schools' efforts to develop their 21st century competencies. There are currently no plans to extend the IBDP to more schools, as the GCE A-Level programme remains relevant as our national curriculum.
Singapore's Stance on Recognition of Somaliland as Independent and Sovereign State›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 38w
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Mr Fadli Fawzi21 words
[+1 sentence]asked the Minister for Foreign Affairs what is Singapore's position on the recognition of Somaliland as an independent and sovereign state.
Dr Vivian Balakrishnan17 words
[+2 sentences]Singapore continues to recognise the Federal Republic of Somalia. There has been no change to our policy.
Preventing Unmeritorious Cases from Continuing to Receive Legal Aid›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 197w
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Ms Diana Pang Li Yen42 words
[+1 sentence]asked the Minister for Law (a) how many legally aided persons have been ordered by the Courts to pay costs in the past five years; and (b) whether procedures have been tightened to prevent unmeritorious cases from continuing to receive legal aid.
Mr Edwin Tong Chun Fai155 words
[+7 sentences]Based on our records, there were four legally aided persons from 2021 to 2025 who were ordered by the Courts to pay costs. All four cases were civil matters, out of about 5,500 civil cases that received Grant of Aid or Provisional Grant of Aid in that period. We conduct a rigorous legal merits test, including assessment of the applicant's amenability to accept legal advice, before granting aid. For civil legal aid, we will assess whether the applicant has a reasonable prospect of success in Court based on all available information and evidence. For criminal defence aid, we will assess whether the applicant requires legal representation to plead guilty or if there are reasonable grounds for defence. Cases are closely monitored and aid may be cancelled where there are no longer merits. For example, where new information affects case viability or where the manner in which the applicant wishes to conduct proceedings has become unreasonable.
Dedicated Support for Singaporeans to Work Abroad to Help Develop Global Leadership Pipeline›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 299w
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Mr Yip Hon Weng55 words
[+1 sentence]asked the Minister for Manpower (a) how does the Ministry encourage Singaporeans to pursue longer overseas postings exceeding three years for career development; (b) whether Government offices abroad provide dedicated support to help individuals settle; and (c) how the Ministry balances local talent retention with the strategic necessity of developing a global Singaporean leadership pipeline.
Dr Tan See Leng244 words
[+11 sentences]The Government supports companies in posting their Singaporean employees overseas to gain relevant experience through programmes, such as the Overseas Markets Immersion Programme (OMIP) and the International Postings Programme for financial services. These programmes stipulate a minimum duration abroad to provide time for the individual to integrate into their role and gain meaningful professional experience. For OMIP, the overseas posting must be at least six months. Beyond this period, the precise duration for each individual depends on company needs and the individual's preferences. These programmes also impose a maximum duration of support to encourage employers to take ownership of their employees' career development. The Government also provides transitional support to help individuals settle-in overseas. Singaporeans abroad can tap on the Economic Development Board's Singapore Global Network, which organises networking events with in-market business leaders and provides both physical and digital community platforms to connect with other Singaporeans working abroad. Participants in the Singapore Leaders Network can make use of the Overseas Transition Support programme, which provides participants with pre-departure training in areas, such as navigating cultural differences in communication. Given the significant investment in deploying employees overseas and the invaluable experience they gain, companies generally send employees they have assessed to have high potential. Government support programmes encourage the retention of these employees. For example, Workforce Singapore's OMIP requires participating companies to outline a career development plan for their employees' development over the next 24 months, including potential career pathways after their overseas posting.
Mediation for Flexible Work Arrangement Requests›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 154w
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Ms Yeo Wan Ling54 words
[+1 sentence]asked the Minister for Manpower (a) how many cases relating to the Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR) have been referred to the Tripartite Alliance for Dispute Management (TADM) and Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) for mediation; and (b) what were the top three reasons for commencing mediation.
Dr Tan See Leng100 words
[+4 sentences]Since the Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR) took effect on 1 December 2024, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) has received one complaint. TAFEP has since worked with the company to revise its processes to be in line with the TG-FWAR. The Tripartite Alliance for Dispute Management does not handle complaints related to TG-FWAR, and employees who feel that their flexible work arrangement requests are not properly considered should approach TAFEP for assistance. As there has only been one complaint to-date, it is not possible to identify the top reasons for seeking mediation.
Effect of Employment Pass Qualifying Salary and Other Workforce Policies on Skills Gaps and Wage Growth›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 307w
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Ms Hazlina Abdul Halim29 words
[+1 sentence]asked the Minister for Manpower whether sector-level data indicates that the Employment Pass (EP) qualifying salary and other foreign workforce policies have narrowed skills gaps or supported wage growth.
Dr Tan See Leng278 words
[+10 sentences]Overall, our foreign workforce policies have helped to maintain Singapore's global competitiveness and grow the economic pie, which has created good jobs for Singaporeans and helped us achieve good wages and improvements in standards of living. Our income growth is higher than that of other developed countries, with real median income of full-time employed residents increasing by 4.1% in 2025. Over the last 10 years, our resident unemployment rate has remained stable and low at around 3%, positioning Singapore as the third lowest when compared with OECD countries. The number of residents in higher-skilled professional, managerial, executive and technician (PMET) jobs has grown in tandem with the number of foreign PMETs. Over the past 10 years, the number of residents holding PMET jobs increased by 357,000, while the number of Employment Pass (EP) and S Pass holders increased by 24,000. In growth sectors, such as financial and insurance services, professional services and information, communications and technology, resident PMET employment increased by 157,000, while EP and S Pass holders increased by 8,000. The Ministry of Manpower (MOM) regularly updates our foreign workforce policies, such as the EP and S Pass qualifying salaries, and Complementarity Assessment Framework (COMPASS) to ensure that foreign professionals complement our local workforce. For example, the COMPASS Shortage Occupation List awards bonus points to EP applicants to alleviate skills gaps in the labour market. In considering whether to place an occupation on the list, MOM takes into account the industry's commitment to develop the local pipeline. The list of shortage occupations is reviewed annually, and MOM has since removed three occupations in the Infocomm Technology sector in 2026 as more local workers have filled these jobs.
Assessment of Effectiveness and Extension of Courier Hub Scheme to More Estates›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 254w
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Ms Valerie Lee63 words
[+1 sentence]asked the Minister for National Development (a) whether an update can be provided on the Courier Hub Scheme; (b) how many applications has been received since the start of the scheme; (c) how effective has the scheme been; and (d) whether the Ministry will consider making it mandatory for all parcel sorting activities within HDB estates islandwide to be governed by this scheme.
Mr Chee Hong Tat191 words
[+9 sentences]The growth of e-commerce in recent years has led to an increase in the volume of online purchases and deliveries. To improve efficiency of last-mile deliveries in residential estates and alleviate congestion at the main hubs of courier companies, the Urban Redevelopment Authority and the Housing and Development Board (HDB) launched the Courier Hub Scheme in September 2024, where courier companies can apply to use car park lots for sorting and dispatch of parcels to walkers. HDB has expanded the scheme to offer more options to courier companies. HDB currently offers 89 multi-storey car parks under the scheme, up from 50 at its launch. As of 16 February 2026, HDB has received 30 applications from courier companies. Courier companies using the scheme have reported efficiency gains which have enabled residents to receive their parcels faster, with fewer trips required by delivery vehicles. However, there are constraints on how many car parks HDB can offer under the scheme. We have to prioritise residents' parking needs and consider the impact on surrounding residential blocks such as noise. We will monitor and review the scheme, alongside other solutions for last-mile delivery and parcel sorting.
Effectiveness of New Barrier-free Parking System in HDB Car Parks›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 153w
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Mr Abdul Muhaimin Abdul Malik55 words
[+1 sentence]asked the Minister for National Development (a) whether the Ministry has conducted any study into the effectiveness and user experience of the new barrier-free parking system in HDB carparks; and (b) how will the system be improved to better serve future carpark users, particularly for those who may be unaware of the new parking arrangements.
Mr Chee Hong Tat98 words
[+4 sentences]As part of the Housing and Development Board's (HDB's) efforts to improve the parking experience for residents and motorists, HDB is trialling a barrier-free parking system at eight car parks. One benefit for users is that the system would send pre-enforcement alerts to motorists who have parked in unauthorised lots to inform them to shift their vehicles before a notice of parking offence is issued. With these pre-enforcement alerts, illegal parking cases have decreased by close to 60%. HDB will continue to refine the system and study other technologies to enhance motorists' parking experience at HDB car parks.
Quantity, Flat Type and Location of Current Stock of SBF Flats›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 145w
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Ms Elysa Chen52 words
[+1 sentence]asked the Minister for National Development (a) what is the current stock of unselected Sale of Balance Flats (SBF) by (i) flat type and (ii) estate, including flats rolled over from previous SBF exercises; and (b) whether the Ministry has observed a quarter-on-quarter increase in this stock over the last two years.
Mr Chee Hong Tat93 words
[+5 sentences]The Housing and Development Board (HDB) currently has close to 900 unselected flats from Sale of Balance Flats (SBF) exercises. These are located islandwide, comprising around 80 2-room Flexi flats, with the rest being 3-room and larger flats. HDB conducted three SBF exercises across 2024 and 2025, so it is not meaningful to track the quarter-on-quarter changes in stock of unselected SBF flats. The take-up rate for flats offered in SBF exercises has remained relatively stable at around 90% over this period. Unselected SBF flats are then re-offered in a subsequent sales exercise.
Support for Social Workers to Deal With Children who Suffer from Vape and Etomidate-laced Vape Addiction›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 77w
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Ms Hazlina Abdul Halim36 words
[+1 sentence]asked the Minister for Social and Family Development what specialised support services are accessible to social workers supporting children in residential homes under Family Guidance Orders, where such children suffer from vape and etomidate-laced vape addiction.
Mr Masagos Zulkifli B M M41 words
[+1 sentence]In general, social workers supporting children who present with vaping or etomidate-laced vape addiction, including children placed in residential homes under Family Guidance Orders, have access to specialised support services, such as training in managing substance abuse and substance addiction recovery.
Maintaining Detailed Product Traceability Information to Ensure Food Recall Notices Reach Small Retailers and Broader Public›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 206w
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Ms Nadia Ahmad Samdin51 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) whether the Ministry requires importers to maintain product traceability systems capable of identifying product distribution down to specific retail outlets during recalls; and (b) how does the Government ensure that recall notices will reach small retailers as well as the broader public.
Ms Grace Fu Hai Yien155 words
[+8 sentences]During a food recall, the Singapore Food Agency (SFA) issues a direction to implicated businesses to remove affected products from all points of distribution. They are then required to inform SFA upon compliance. SFA checks the consolidated recalled products at businesses' premises after completion to verify compliance with the direction. Failure to comply with a direction constitutes an offence and may result in prosecution in Court. SFA also publishes press releases to notify the public of recalled products and monitors feedback from the public for follow-up enforcement actions, if needed. To strengthen the food recall process, importers and licensed food businesses involved in key nodes of distribution are required to keep records for traceability and recalls under the Food Safety and Security Act by 2028. SFA does not prescribe the product traceability system to be used by businesses. They have the flexibility to adopt any system that allows them to make swift and precise recalls.
Average Time for Completing Food Product Recalls›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 156w
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Ms Nadia Ahmad Samdin44 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) what is the average length of time for completing food product recalls for notices issued in the past three years; and (b) what enforcement action has been taken against retailers and importers in those cases.
Ms Grace Fu Hai Yien112 words
[+5 sentences]When the Singapore Food Agency (SFA) issues food recall directions, implicated businesses must remove affected products from all distribution points within 48 hours and report back to SFA once the recall is completed. SFA checks the consolidated recalled products at businesses' premises after completion to verify compliance with the direction. Failure to comply with the direction constitutes an offence and may result in prosecution in court. In the past three years, SFA has not had to take enforcement action against any business issued a recall direction, as they have complied with the direction. In the event that affected products are found for sale, SFA will investigate and take the relevant enforcement actions.
Implication for Design of Social Transfer Schemes with Change in Household Income Reporting to Include Non-employment Data›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 144w
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Ms Elysa Chen57 words
[+1 sentence]asked the Prime Minister and Minister for Finance (a) whether and how the shift to reporting household market income, including non-employment income and households with no employed persons, will affect the design and targeting of major social transfers, such as ComCare, Silver Support, Workfare and the Assurance Package; and (b) whether any scheme parameters will be reviewed.
Mr Jeffrey Siow87 words
[+6 sentences]Most Government schemes rely on employment income for means-testing. There are no immediate plans to change this. That said, where appropriate, we already take into account other relevant indicators. For example, ComCare adopts a holistic assessment of an applicant's financial circumstances, including all sources of income. This ensures that assistance is directed towards those who genuinely require support to meet their basic needs. The Government will continue to review the parameters of our social support schemes to ensure that they remain effective in supporting their intended beneficiaries.
Effectiveness of Dadah Itu Haram Campaign in Changing Attitudes Towards Recreational Drug Use›Written Answers to Questions for Oral Answer Not Answered by End of Question Time3 turns · 423w
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Mr Abdul Muhaimin Abdul Malik73 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs since the launch of the Dadah Itu Haram campaign in 2017 (a) whether the Ministry has commissioned perception studies or longitudinal research to assess changes in attitudes towards recreational drug use among Malay/Muslim youth; (b) if so; whether the findings can be made available; and (c) if not, whether the Ministry will consider undertaking such study to measure the campaign's effectiveness.
Mr Abdul Muhaimin Abdul Malik55 words
[+1 sentence]asked the Coordinating Minister for National Security and Minister for Home Affairs (a) how does the Ministry ensure that the Dadah Itu Haram campaign effectively reaches at-risk youths within the Malay/Muslim community; and (b) what metrics are used to assess the resonance and behavioural impact of the campaign's messaging among vulnerable subgroups within the community.
Mr K Shanmugam295 words
[+12 sentences]The Dadah Itu Haram (DIH) campaign was launched in April 2017, in consultation with community leaders, to raise awareness within the Malay community about the harms of drugs. The Islamic Religious Council of Singapore (MUIS) and all 70 mosques in Singapore help spread the DIH message widely to the Malay community. With the launch of the DIH grant for mosques in August 2024, an estimated 4,000 participants are engaged via mosques' DIH-related events and activities yearly. A Central Narcotics Bureau (CNB) survey of the Malay community in 2020 found that 75% were aware of the DIH campaign, and 71% had a positive perception of it. CNB reviewed the detailed findings together with MUIS and community leaders. Following this review, the DIH's campaign focus shifted from merely raising awareness, to encouraging mutual care and a healthy and drug-free lifestyle. The DIH tagline was refreshed in 2022 with the message, "Ambil Peduli, Hadir Di Sisi", meaning "Show Care, Be There". Over the years, the DIH campaign has built up a strong ecosystem of partners and programmes to reach out to youths, including at-risk youths, through activities, such as futsal and cycling. Ex-abusers who have stories that youths can relate to, are also invited to share their experiences and help guide youths away from drugs. The Ministry of Home Affairs and the National Council Against Drug Abuse (NCADA) conduct regular surveys to understand public perceptions and attitudes towards drugs and drug policies in Singapore. NCADA's latest 2025 National Drug Perception Survey found that attitudes towards drugs amongst youths have turned more conservative, as more youths perceive that drug abuse is harmful. 87.7% held conservative views, compared to 83.2% in 2023. This is an indication of the effectiveness of our preventive drug education efforts, which includes the DIH campaign.
Regulations for Advertisements that Make False Claims by Using AI-generated Images›Written Answers to Questions for Oral Answer Not Answered by End of Question Time3 turns · 329w
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Dr Charlene Chen43 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry is working with digital platforms, such as e-commerce and property listing sites, to detect and remove AI-generated content that misrepresents products and services; and (b) if so, how.
Dr Charlene Chen39 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Competition and Consumer Commission of Singapore detects and identifies advertisements making misleading and false claims and portrayals using AI-generated images; and (b) if so, how.
Mr Gan Kim Yong247 words
[+11 sentences]The Consumer Protection (Fair Trading) Act (CPFTA) protects consumers against misleading or false claims made by businesses, including those involving artificial intelligence (AI)-generated content. Consumers who encounter such claims by businesses can approach the Consumers Association of Singapore (CASE) for assistance. The Competition and Consumer Commission of Singapore (CCS) will also investigate and take enforcement action, where necessary, against egregious businesses. Thus far, CASE and CCS have not received complaints relating to misleading or false advertisements made using AI-generated content. To support a transparent and trusted digital marketplace, CCS has worked with e-commerce platforms and industry stakeholders to raise industry standards and promote responsible business conduct. This includes enhancements to the Technical Reference 76 industry code on e-commerce transactions to encourage the use of AI in a fair, safe and transparent manner. CCS has also introduced the AI Markets Toolkit to help businesses assess whether their AI models and practices comply with the CPFTA. For online property listings, the Council for Estate Agencies' (CEA's) Code of Ethics and Professional Client Care, under the Estate Agents (Estate Agency Work) Regulations 2010, requires property agents to ensure that all marketing materials accurately represent the property. In line with this, agents should provide sufficient disclaimers to inform consumers of the use of AI to alter or enhance images or videos. CEA has taken enforcement action against agents who have not done so. CEA is also reviewing its regulations to provide further guidance on the use of AI in property advertisements.
Investigation into Firms under Transboundary Haze Pollution Act for Recent Haze Due To Peat Fires in Johor›Written Answers to Questions for Oral Answer Not Answered by End of Question Time3 turns · 190w
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Mr Fadli Fawzi50 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) whether any firms inside or outside Singapore will be investigated under the Transboundary Haze Pollution Act 2014 in relation to the recent peat fires in Johor that have caused Singapore to be impacted by haze; and (b) if not, why not.
Mr Fadli Fawzi56 words
[+1 sentence]asked the Minister for Sustainability and the Environment (a) whether Singapore has received any request from the Johor State Government or Malaysian federal government for assistance to put out the recent peat fires in Johor; (b) whether Singapore has offered assistance to Johor or Malaysia to put out the fires, and (c) if not, why not.
Ms Grace Fu Hai Yien84 words
[+3 sentences]I have addressed Parliamentary Question No 18 in my combined oral reply on 12 February 2026. [Please refer to "Assessment of Transboundary Haze Episodes, and Review of Bilateral and Regional Haze-mitigation Measures", Official Report, 12 February 2026, Vol 96, Issue 17, Oral Answers to Questions section.] For Parliamentary Question No 19, Singapore has not received any requests from Malaysia for assistance to put out the recent peat fires in Johor. We are in touch with the Malaysians and will continue to monitor the situation.
Assessment of Employment Opportunities, Wage Growth and Shift Towards Technology-driven Jobs Given Declining Job Creation Per Dollar of Investment›Written Answers to Questions for Oral Answer Not Answered by End of Question Time3 turns · 587w
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Ms Mariam Jaafar65 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry in respect of the EDB Year 2025 in Review which indicated that fixed asset investments increased but job creation fell in 2025 (a) whether the Government assess that Singapore is experiencing a structural shift towards capital-intensive, technology-driven industries; and (b) how its industrial strategy is adapting to ensure continued broad-based employment opportunities for Singaporeans.
Ms Mariam Jaafar68 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Trade and Industry in respect of the EDB Year 2025 in Review which is indicative of fewer jobs created per dollar of investment, whether the Government will publish additional metrics on the quality of jobs created, including (i) wage levels (ii) skill requirements and (iii) career progression pathways to better reflect the impact of investments on the livelihoods of Singaporeans.
Mr Gan Kim Yong454 words
[+21 sentences]Despite a more economically fragmented and uncertain global environment, the Economic Development Board (EDB) secured in 2025, investment commitments comparable to recent years. The lower number of jobs committed in 2025 relative to 2024 reflects two factors. First, companies are more conservative in their hiring projections, given the challenging and uncertain environment. Second, many of the projects secured are more technology- and capital-intensive and therefore require relatively fewer workers, but each worker generates a higher value-add to the economy. Most of the 15,700 jobs committed over the next five years are for professional, manager, executive and technician roles, with two-thirds expected to command a gross monthly salary above $5,000. We do not have a breakdown of the number of entry-level versus senior management roles. These investments also generate positive spillovers for the broader economy. A 2025 Ministry of Trade and Industry study published in the Economic Survey of Singapore found that firms that are linked to EDB-supported companies enjoyed higher value-added per worker, local employment and local wages. As outlined at the mid-term update on the Economic Strategy Review, economic growth will be harder to achieve in a more challenging external environment. Moreover, technological change means we can no longer assume that growth will generate the same number of jobs as before. The Government continues to pursue an economic growth strategy to create good jobs for Singaporeans and support Singaporeans with skills training and upgrading to obtain the good jobs created. First, our economic agencies will continue anchoring high-value investments in key and emerging growth sectors, to create good jobs for Singaporeans. As these companies expand and deepen their activities here, Singaporeans will have more opportunities and pathways to progress into specialist, managerial and leadership roles. Second, the Government will work with companies to strengthen the local talent pipeline. This includes partnerships with institutes of higher learning to offer internships and training programmes in our growth industries. Third, we will support our small and medium enterprises (SMEs) to grow and transform. SMEs can tap on the Partnerships for Capability Transformation scheme to help them pursue growth alongside multinational corporations, as well as schemes such as the Enterprise Innovation Scheme and Productivity Solutions Grants, both of which have been enhanced in Budget 2026. Fourth, we will support our companies to redesign jobs and upgrade their workforce. Companies can tap on Career Conversion Programmes to reskill their workers to take on jobs in growth areas. There will also be enhanced support for job redesign under the SkillsFuture Workforce Development Grant, as part of the Enterprise Workforce Transformation Package which will be rolled out from 2026. The Government is continually reviewing our economic and workforce strategies to ensure that we will continue creating good jobs for Singaporeans.
Clarification by Senior Parliamentary Secretary to the Minister for National Development›Correction by Written Statement3 turns · 296w
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Speaker not recorded38 words
[+1 sentence][(proc text) The following statement was made in a speech given by the Senior Parliamentary Secretary to the Minister for National Development (Dr Syed Harun Alhabsyi) during Question Time at the Sitting of 25 February 2026: (proc text)]
The Senior Parliamentary Secretary to the Minister for National Development (Dr Syed Harun Alhabsyi)170 words
[+7 sentences]I thank the Member for her supplementary questions. First of all, I would reiterate what I answered earlier: in terms of the standards as far as fire safety is concerned, they remain sufficient even with the temporary higher occupancy cap for larger private residential estates. Just a few points with regard to the allowability of higher occupancy rates. They are only applicable for larger private residential properties, at least 90 square kilometres. And that is the equivalent size of a typical four-room Housing and Development Board flat. [Please refer to "Review of Fire Safety and Evacuation Risks Following Temporary Relaxation of Occupancy Cap for Private Residences", Official Report, 25 February 2026, Vol 96, Issue 19, Oral Answers to Questions section.] I wish to make the following factual correction to my reply given during the Sitting of 25 February 2026. My statement should read as follows:
The Senior Parliamentary Secretary to the Minister for National Development (Dr Syed Harun Alhabsyi88 words
[+5 sentences]): I thank the Member for her supplementary questions. First of all, I would reiterate what I answered earlier: in terms of the standards as far as fire safety is concerned, they remain sufficient even with the temporary higher occupancy cap for larger private residential estates. Just a few points with regard to the allowability of higher occupancy rates. They are only applicable for larger private residential properties, at least 90 square metres. And that is the equivalent size of a typical four-room Housing and Development Board flat.
Ms Diana Pang Li Yen (Marine Parade-Braddell Heights)1363 words
[+24 sentences]Mr Speaker, I rise to speak in support of the Budget as delivered by the Prime Minister. What struck me about this Budget is not just the package of measures, but the signal it sends. In a more uncertain, fractured world, it reassures all Singaporeans that we can remain steady, confident and united, it reassures Singaporeans that we are always here to take care of each other. This Budget carries a clear "we first" direction, reminding us that progress is not just about growth in figures, but about shared responsibilities, stronger bonds and a social compact that is real in everyday life. Mr Speaker, if we take this "we first" direction seriously, then we must pay attention not just to the policy intent, but how these policies land on the ground, especially at transitional points where households and businesses are most exposed. In that spirit, whilst I will touch briefly on ComLink+, measures affecting small and medium enterprises (SMEs), I will focus my main remarks on the revised Preferential Additional Registration Fee (PARF) policies and the issues of transitional fairness. First, Mr Speaker, I support the enhancement of ComLink+, which is a scheme that helps families progress from public rental towards home ownership. But I want to raise the practical issues on transitional risk. Moving from public rental housing into a new home is not that simple. For some of these families, there is a degree of vulnerability as they encounter moving – there are renovation costs, furniture costs, new travel routines, childcare, school logistics and sometimes, a change in a workplace too. Some of these families may not yet be stable to absorb a sharp drop in social and financial support if they are immediately treated as having "graduated" out of ComLink+. It is only human nature that if families fear that by buying a home triggers an immediate loss of support, they may delay taking up the step of home purchase that the policy is trying to encourage. Mr Speaker, this is not a call to keep families dependent. It is the opposite. If we want families genuinely to take the difficult step from rental to ownership, or from assistance to self-reliance, we should make the transition predictable and safe. I hope the Ministry of Social and Family Development (MSF) can share how support is tapered when these families transition out of ComLink+ and whether their family coaches can help with a transition plan, so they do not fall into gaps between schemes at their most vulnerable and most fragile moments of the transition. Next, Mr Speaker, the Budget also introduces policies that affect a large majority of SMEs. In doing so, the Government typically engage trade associations and chambers to gather feedback of on-the-ground perspectives. However, not all SMEs is required to be part of these bodies. Even the Singapore Business Federation (SBF), as the apex business chamber, only has compulsory membership for companies above the $0.5 million paid-up or authorised capital threshold. This means a substantial segment of the micro-SMEs may not be in the room when these policy feedback are being gathered, even though they are the ones who are most sensitive to cost and compliance changes. I therefore urge the Government to consider opening feedback channels you hear from these small and micro-SMEs, via channels, such as the SME Centres, so that in all fairness, the policy does not get shaped mainly by the larger companies. Mr Speaker, for the last part of my speech, I will turn to the PARF changes. Since the announcement, I have received ground feedback from residents and people who are concerned about the sudden implementation and the financial hit they may have to take, through no fault of their own. As announced, the PARF rebate will be reduced by 45% and the cap lowered from $60,000 to $30,000. This change applies to Certificates of Entitlement (COEs) obtained from the second COE bidding exercise in February 2026 onwards.[+2 sentences] Mr Speaker, my concern is not about whether the Government has good policy reasons to recalibrate PARF. Policy can and do change all the time. My concern is the effective date and the absence of transition safeguards for buyers who had already committed to a car purchase under the prior framework.[+8 sentences] One of my Geylang Serai resident shared with me that before Budget Day, he committed to a vehicle purchase and paid a deposit based on the prevailing PARF rules. However, after the announcement, the dealer's position was that the deal will proceed, and if the buyer cancelled, this deposit would be forfeited because the dealer did no wrong and any dispute should be taken to the authorities. In reality, for many committed buyers, there is no meaningful option to renegotiate the pricing or cancel their purchase without losing substantial deposits. These buyers bear the downside of an immediate policy shift. Mr Speaker, what makes this change particularly difficult is the hastiness of the implementation. The next COE cycle started after Budget was announced and before this House got to debate the policy change. When the PARF rebate framework changed with such a short runway, the assumptions that buyers and sellers made at the point of contract no longer stands, yet buyers remain locked in because they cannot back out of the contract without any penalty. I, therefore, have six questions I hope the Ministry for Transport (MOT) can consider. First, why was there no interim measures for buyers who had already committed and paid deposits before Budget Day, and would the revised PARF framework have started in a later COE cycle or with a longer lead time, so that the buyers have time to react and consider their decision to buy?[+1 sentence] Second, in deciding on an immediate start date, did the Government consider industry practices, such as non-refundable deposits, and was it anticipated that some buyers would face the dilemma of either proceeding at a loss or forfeiting their deposits if they cancel their car purchase? Third, will the Government consider introducing a limited relief mechanism for buyers who entered into purchase agreements and paid deposits before Budget Day?[+1 sentence] For example, mandating a short grace period, a cancellation-without-penalty window or other measures to prevent immediate hardship to this group? Fourth, did the Government consider the impact on new-car sellers who typically commit to inventory and order pipelines six to 12 months in advance? For these new car dealers, they are now at risk of holding stock that is much harder to sell and may have a knock-out effect on their business viability and also employees' jobs. Fifth, did the Government expect this change to increase COE renewals because retaining older cars becomes relatively more attractive and if so, what is the expected impact on the number of COEs available for the new cars and the resulting trajectory of the COE premiums?[+3 sentences] Finally, did the Government assess how this policy might raise household costs, including higher used car prices and the impact on families who need cars for caregiving, disability needs, shift work or caring for elderly family members? Mr Speaker, some people have also asked my team whether if this is, in substance, an electric vehicle (EV) promotion policy. If so, can the Government clarify whether our infrastructure is ready? For example, is the national power grid ready to support a mass adoption of EVs, and will EV charging, especially in older estates, keep in pace, so Singaporeans will not feel that policy is moving faster than practical realities.[+3 sentences] Mr Speaker, the principle is simple. When policy moves quickly, transitional safeguards matter. Otherwise, it creates a perception that when Government provides support, there are conditions and waiting period. But when the Government takes away value, it can be immediate. I worry this perception would erode trust, especially if ordinary families are hurt because they are not sophisticated buyers and reasonably expect the rules to remain stable when making big purchases.[+2 sentences] So, in closing remarks, Mr Speaker, I support the Budget's "we first" direction. However, I urge the Government to view the issues that I have raised through the lens of transition and in fairness, whether it is social, economical or business in nature.
[+14 sentences]Mr Speaker, last year I turned 60 and was classified as a senior citizen, entitled to a PAssion Silver Card. It was a proud moment for me. I had reached a recognised life stage when society deemed it fit to accord me a public travel concession. It also made me reflect more about the demographic group I just entered and what this next phase of life should be about. According to the World Health Organization (WHO), healthy ageing is defined as the process of developing and maintaining the functional ability that enables well-being in older age. It moves beyond a disease-focused model, aiming to maximise a person's capability to be and do what they value, whether in terms of mobility, relationships or societal contribution. Our own Ministerial Committee on Ageing has adopted a similar approach. In its 2023 Action Plan for Successful Ageing, it is stated that, and I quote, "Ageing is not only about illness and frailty. It also provides opportunities for longer years of active engagement, good health and contribution to society." Sir, I have spoken about ageism in this House in the past. Instead of seeing a grey-haired individual as weak and helpless, we should as far as possible see how that person's ability and potential can be unlocked. We should look to empower our seniors. Over the years, various taxpayer-funded schemes have been put in place to uplift seniors. I will highlight just a few. If seniors wish to continue working, the Government provides employers with a Senior Employment Credit, which has been extended for another year under this year's Budget.[+17 sentences] Senior Singaporeans have also been included in the SkillsFuture programme, making lifelong learning affordable. Our public buses are now fully wheelchair-friendly, with bus stops mostly barrier-free, encouraging disabled seniors to go out and stay connected. Sir, the topic of the Prime Minister's Budget speech this year is "Securing Our Future in a Changing World". Yet, at the same time, amidst this relentless pace of change, we must ensure that we do not leave our seniors behind; many of whom are struggling to keep up with a world vastly different from the one they used to know. Today, I would like to highlight three areas that seem to me to be recurring issues facing seniors: first, the push towards digitalisation; second, the withdrawal of face-to-face services; and third, the Government's means testing policies. First, on digitalisation. The relentless pace of digitalisation is epitomised by the use of Singpass. To transact with all Government departments, Singpass is the default mode. Singpass has overall been a great enabler that eases authentication and transactions across many sectors. For some seniors, however, it is bewildering and disempowering. Seniors who never had a smartphone have to purchase one in order to download the Singpass app and utilise its functions. Even so, many are unable to operate the app as it is simply alien to what they are used to. They find it difficult to open the app to quickly scan QR codes or to toggle between the app short message service (SMS) functions and websites in order to key in one-time passwords, all within a short time limit. Seniors with close relatives or friends can get help for digital transactions. However, this still engenders a feeling of dependency and helplessness. Then, there are seniors without children or close relatives. The prospect of isolated seniors is real. According to the Ministerial Committee on Ageing, an estimated 83,000 seniors above 65 years will live alone by the year 2030.[+2 sentences] These vulnerable seniors may end up trusting the wrong people or may decide not to transact with the Government at all. Many seniors, especially the older ones, did not have the opportunities for schooling, unlike later cohorts. According to the Department of Statistics Population trends 2025, as at 2024, nearly 40% of those over 55 years old, have education at below secondary level – a very significant segment.[+14 sentences] Education levels tell us something about comfort with technology, as using technology usually requires higher level language skills, often in English. Sir, to that end, I wonder if there is information available on the extent to which services may not be reaching seniors due to the demands of digitalisation and how best we can support them. For example, I am aware that the Silver Generation Office is doing health-related outreach to isolated seniors at their homes. How far are they trained and able to assist such seniors in digital transactions? I now move on to the related point of the withdrawal of face-to-face or over-the-counter services. Sir, in the last decade, there has been a rapid withdrawal of face-to-face services across many sectors. One huge change is in banking, with banks driving their customers to digital banking apps and the reduction in physical bank branches. For Government services, this has been happening as well, with face-to-face services being reduced for one reason or another. For instance, we have been told that due to manpower constraints in the Home Team, Neighbourhood Police Posts and some neighbourhood Police centres no longer have manned counters. Sir, a recent drastic change affecting residents in the Hougang area has been the closure of the Housing and Development Board (HDB) Branch Office at Hougang Central. Although the closure of this office was due to the site being sold for development, the lack of a replacement physical branch has upset and worried residents. This is not surprising. According to the Department of Statistics, as at June last year, the Hougang planning area is one of those which has a high concentration of residents over the age of 65. On this, Sir, please let me continue in Mandarin. (In Mandarin): The HDB Branch Office at Hougang Central closed on 1 September, affecting areas, including Hougang Single Member Constituency and parts of Aljunied Group Representation Constituency (GRC). Residents told me that they now must travel to the more distant Sengkang Branch to do their business, which is very inconvenient.[+1 sentence] In response to the related issue raised in Parliament by Hougang Member of Parliament (MP) Dennis Tan, the Ministry of National Development responded that the Hougang Branch closed on 1 September to make way for the development of an integrated commercial and residential project in the vicinity of Hougang Avenue 10 and Hougang Central. Currently, HDB has not established a new physical branch nearby, but has replaced counter services with electronic service and self-service machines.[+13 sentences] Here, I would like to ask HDB, before deciding to close the Hougang branch, was there sufficient assessment of the impact on Hougang residents? Hougang area has many old flats and senior residents. Does the Government believe that after the branch closure, residents simply have to adapt to digital services? If it were in newer areas with younger residents where physical branches were closed, I might be able to understand. But in a community like Hougang where senior residents are the majority, is such an arrangement appropriate? (In English): Sir, back to English. Residents of the area have been asking what is next on the Government's agenda for the removal of face-to-face services? They worry that the Hougang Neighbourhood Police Centre is next. Sir, finally, I move on to my third and final observation on means testing for subsidies and benefits. In the Budget speech, Prime Minister Wong emphasised that families were the bedrock of society and the first line of support for every individual. It is useful to examine whether some Government policies might inadvertently discourage family support. Take, for instance, the means testing criteria for Government subsidies and schemes, the Silver Support Scheme and healthcare subsidies for long-term care and outpatient treatment under the Community Health Assist Scheme (CHAS) are prime examples of policies affecting seniors. These schemes have eligibility criteria, such as per capita household income (PCHI). Should a wage-earning adult child decide to live with his or her parents for mutual support, the seniors may become ineligible for support or have support reduced compared to if they lived on their own.[+5 sentences] The same would apply to a single aunt or uncle with very limited resources, but living with a family of working adults. Sir, it is thus not surprising that there are adult children who decide not to have the same address as their parents or relatives, so that their elderly can qualify for more Government support. This surely cannot be the message the Government wishes to send. I agree with the principle of means testing, as our resources are finite. However, some refinement of our means testing criteria is due. Would it be possible for instance, to do away with the per capita household income criterion for schemes, such as Silver Support, and simply look at the seniors' own income?[+4 sentences] Sir, to round up, I would like to urge the Government to continually review how it empowers seniors and to that end, I wish to conclude on a positive note. I must give credit to the Traffic Police and the Land Transport Authority (LTA) for something meaningful they have just implemented to help senior drivers. For years up to now, drivers aged 65 or older have had to undergo medical examinations for renewal of their licences – for the general driving licence issued by the Police, once in three years; for the vocational licence issued by LTA, it is annually. Senior drivers have come to the Meet-the-People Sessions, expressing confusion over these two requirements. Some have also had difficulties uploading the medical reports onto the portals of the two agencies, as they were not comfortable handling attachments. Now, under the new harmonised medical examination report scheme implemented on 2 February, drivers need only attend one medical examination that can be used by both agencies. In addition, the doctor will be the one uploading the medical report onto the relevant portal.[+4 sentences] Drivers need not do this themselves anymore. This is similar to the way medical examination reports on migrant domestic workers are being submitted to the Ministry of Manpower (MOM) by clinics. Sir, the new scheme implemented by both these agencies demonstrates how a seemingly small gesture can go a long way to easing the life of seniors. With collaboration across agencies and with Singaporeans, we can forge a kinder, more conducive environment for all generations.
Mr Speaker3 words
[+1 sentence]Ms Hany Soh.
Ms Hany Soh (Marsiling-Yew Tee)1401 words
[+21 sentences]Mr Speaker, I rise in support of Budget 2026. As the Head of Advocacy for the People's Action Party (PAP) Women's Wing's Seasons of Life, I am heartened by the Budget's emphasis on supporting Singaporeans through every stage of their journey – from youth to parenthood and into the golden years. Drawing from my engagements with residents in our Marsiling-Yew Tee GRC and various community partners and stakeholders, I wish to raise recommendations that build on this foundation, ensuring no one is left behind as we navigate life's seasons together. Let me begin with our youths and the imperative of education for lifelong learning. As the Deputy Chairperson of the Education Government Parliamentary Committee (GPC), my colleagues and I remain unwaveringly committed to ensuring access to education at all life stages. I fully agree with the Prime Minister that learning must extend beyond theory and translate into hands-on applications that empower individuals to thrive. An example which I wish to share with this House is the YMCA's Vocational and Soft Skills Programme (VASSP), an initiative I have proudly supported for the past few years which aims to equip out-of-school youths and youths-at-risk with job competency and specific vocational skills. I regularly attend their dialogue sessions, where I share my personal story: starting as a student in the Normal (Academic) stream, facing doubts about my future, yet finding the confidence to pursue a law degree and becoming who I am today. This programme is a vital effort to uplift youths who may feel disillusioned about their future due to influences like misguided peers or challenging family backgrounds. Such initiatives should not only be encouraged but normalised, aligning with the Prime Minister's vision in his Budget speech: that every Singaporean, regardless of where they start in life, should have a fair chance to pursue their aspirations and realise their full potential. As our nation ramps up efforts in artificial intelligence (AI) education and encourages lifelong learning, we must ensure that the right infrastructure is in place to support every keen learner. I have previously suggested in this House that we consider establishing another Institute of Technical Education (ITE) in the North. This new ITE could also serve as a dedicated campus for lifelong learning, collaborating closely with the nearby Republic Polytechnic and collaborate closely with the adjacent JTC industrial areas. Such a facility would democratise access to practical, skills-based education, bridging gaps and fostering a culture of continuous growth. Turning to marriage and parenthood, I applaud the Budget's recognition that families are the bedrock of society and the first line of support for every individual. Building on this geological metaphor, Budget 2026 should enhance support for family starting and building, much like the stratification of bedrock that provides enduring stability. Prospective parents face unique concerns and challenges; there is no silver bullet to improve our ever-low total fertility rate (TFR) overnight. The decision to marry and have children is deeply personal. The key question is: what are the "right conditions" that would help couples feel confident and ready to start a family? Through my engagements with fellow Singaporeans, in particular my Woodgrove residents and Fertility Support Singapore (FSS), I have been motivated to continue to spotlight support for assisted conception procedures. As Minister Indranee Rajah noted in her speech at FSS' "Fertility and Inclusion in the Workplace" forum, and I quote, "There are couples who wish to have children but have difficulties conceiving. The struggles they face are deeply personal, often invisible and sometimes painful." SingHealth statistics indicate that roughly one in six couples, about 17%, experience infertility in Singapore.[+1 sentence] For these couples who clearly wish to start families but face daunting hurdles, we can and must do more. FSS' community engagements reveal that financial costs are the top stressor, forcing some to abandon their fertility journey entirely. With two successive years of historically low TFR, Sir, the time to act is now. My fellow PAP Women's Wing MPs and I stand aligned with FSS' recommendations to propose several feasible solutions to create those "right conditions": one, promote early health screenings for fertility, potentially collaborating with the Registry of Marriages and as part of the Healthy SG movement; two, increased subsidies for assisted reproductive treatments (ART); three, raising the MediSave utilisation limit for ART and allowing treatments in private clinics to alleviate long waiting times in public hospitals where time is of the essence. Additionally, we recommend Government to co-fund for ART at private clinics, expanding MediSave withdrawals from three to six cycles, MediSave coverage for elective egg freezing, subsidised fertility screenings for couples and enhanced workplace support for fertility and family-building.[+6 sentences] Beyond conception, the journey after birth, subsumed under SG Made For Families, also influences decisions to start families. Concerns include accessible and affordable housing as well as mitigating career impacts for parents raising children. It is regrettable that not every need can be met as each family's circumstances are unique. That said, this House will strive to ensure that every Singaporean family is cared for. A common appeal from my Woodgrove residents is for housing that allows them to build true homes. Obstacles that my residents face include successfully balloting for a HDB flat, upgrading to a larger flat to accommodate their growing family, which for buyers of resale flats means needing to fork out at times significant cash to meet the cash-over-valuation component. As such, I hope that HDB can provide access to bigger HDB flats by granting priority as second timers to the Sale of Balance Flats for families with two or more children who wish to upgrade and live closer to or with their parents. For children’s education, we must keep expenses affordable by offering better flexibility in tapping on the Child Development Account (CDA) funds for preschool-recommended enrichment lessons and field trips, for example. We should also support continuous career progression for working parents, especially mothers, ensuring stable incomes to cover growing expenses for ageing parents and children. I urge reinstating the working mother tax incentives to allow mothers who earned more income each year to claim a larger amount of tax relief for each child, so as to motivate mothers to remain and/or return to the workforce when they feel ready to pursue leadership positions.[+3 sentences] Finally, let us not forget our seniors entering their golden years. Many do not wish to burden their children, and seek to remain active and healthy. Grassroots organisations and Active Ageing Centres play complementary roles in this, supporting seniors with face-to-face interactions, helping them to embrace digitalisation, organising regular engagements to foster community bonds while keeping our seniors’ minds sharp and prevent physical frailty. A recent example is the Frailty Management Programme that was launched in Care Corner Active Ageing Centres in Woodgrove and Marsiling, with a comprehensive and tailored care plan and close monitoring to address our seniors’ physical, nutritional and social needs.[+1 sentence] Mr Speaker, the Government has been actively encouraging seniors, and in particular, Singaporeans to embark on legacy planning. But I believe more can be done to increase the take-up rates, especially among our seniors, such as: one, continuing to waive the Lasting Power of Attorney (LPA) registration fees for Singaporeans; and two, considering a revamp of the Wills Registry, while ensuring users are properly advised by legal professionals and better protected.[+9 sentences] At this juncture, I wish to declare that I am a practising lawyer. As part of our PAP Senior Group initiatives, Woodgrove Branch has organised three sessions of pro bono LPA certification sessions last year serving our seniors in need. I am immensely grateful to our group of dedicated volunteers and lawyers, who have given many of my Woodgrove residents a peace of mind and more importantly, assisted them in completing their legacy plans. At Marsiling-Yew Tee GRC, we have more pro bono LPA certification sessions in the pipeline, which we hope our residents will sign up for and attend when the dates are announced. Please stay tuned. Building on the momentum, I intend to speak during the Ministry of Law’s Committee of Supply (COS) to propose ways to enhance access and protection to encourage legacy planning. Mr Speaker, in conclusion, Budget 2026 lays a strong foundation but with these recommendations, we can make it even more inclusive. By supporting Singaporeans through youth, parenthood and seniority, we build a resilient nation where every season of life is one of opportunity and dignity. I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Andre Low.
Mr Low Wu Yang Andre (Non-Constituency Member)2495 words
[+11 sentences]Mr Speaker, the Prime Minister has set out an ambitious vision for AI. He asks us to harness it as a strategic advantage. I agree with that framing. The question I want to put to this House today is: a strategic advantage for whom? The answer will determine whether Budget 2026 fulfils its promise; that growth must translate into good jobs and rising incomes for Singaporeans. I want to address three things. How can we own the technology rather than just renting it? How can we protect the worker who is being asked to adapt in this new age? And how can we ensure that the gains are shared with the people who helped create them? Let me start with the technology itself. Mr Speaker, I want to push our AI ambitions further. Right now, the heavy fiscal levers in our AI strategy are largely focused towards adoption – identifying where AI can improve our existing industries and subsidising our businesses to deploy it faster.[+1 sentence] That is necessary but not sufficient. If our industrial strategy remains focused on fast adoption, we are agreeing to a permanent, compounding transfer of value to foreign technology companies.[+17 sentences] Every API call we make, every subscription, every enterprise licence, is rent paid to a landlord in Silicon Valley or perhaps China. Singapore has never just accepted that kind of relationship with any industry. We move up the value chain, extracting value at the source. We do not just use semiconductors; we manufacture them. And our ambition for AI should be no different. We need to stake out our own defendable positions and capture the value that comes with them. The question is therefore where, specifically, we have a right to win. And I think that the answer starts with understanding Singapore’s constraints. We cannot win a compute war. We lack the land, the power grid and the capital to train trillion-parameter frontier models. But Singapore has been here before. When we faced constraints in other industries, we did not try to outspend our larger competitors. Instead, we identified niches where our specific combination of capabilities gave us an advantage and we built from there. We have already done this in AI. Singapore has produced SEA-LION and MERaLION, large language models built on open-weights foundations, fine-tuned for Southeast Asian language context and our cultural context. We identified a gap in our region and we filled it. That was and remains the right instinct. We must now look further afield with global ambitions. I want to make the case for another niche, one with global export potential – Edge AI and the efficiency research that underpins it.[+26 sentences] The rest of the world is running into the same energy wall that we face when deploying. Data centres are straining electrical grids everywhere. The United States (US) is planning new nuclear plants, specifically to power AI data centres. My colleague, Dennis Tan, earlier highlighted in this House the outsize environmental impact of an indiscriminate rush to embrace large-scale models for every minor task, a dilemma that every nation is grappling with. This global problem, in other words, is the same problem our constraints have been forcing us to think about – how do you make AI run on less? This is the field of model distillation and quantisation, compressing large AI models so they can run locally, with minimal degradation in performance, without an Internet connection to the cloud, on a fraction of the energy. The result is what practitioners call “Edge AI” – intelligence that runs on the device itself, rather than routing data to a distant server. The Prime Minister announced four national AI Missions in this Budget. I want to look at two of them through the lens of Edge AI. In advanced manufacturing, the robots on a factory floor cannot depend on a cloud connection. A production line that hesitates because of network latency or halts because of an outage is a competitive liability. The AI running that factory needs to operate locally and be resilient to disruption. In connectivity, the autonomous systems that manage our containers at our ports make thousands of routing decisions every second. Our ports handle a large proportion of the world’s transshipment volume. These decisions cannot wait for a round trip to a data centre. The export potential follows directly. As the rest of the world scrambles to solve their energy and latency constraints, the software that makes AI run efficiently on local hardware will command a significant premium. We are already being pushed to solve this problem. We should be solving it deliberately and with an eye on selling the solution. I am not a deep technical expert and I am not offering a comprehensive blueprint today. What I am suggesting is a way to think about where Singapore has a right to win, and Edge AI is one possible answer to that question, among many others. The same logic points towards explainable AI – building tools that make the reasoning that AI models make transparent enough for regulated industries to deploy. Finance and healthcare, the two other sectors that are the focus of our AI Missions, are just these industries that operate under obligations to explain automated decisions. Singapore's regulatory institutions and our reputation for the rule of law may give us a genuine advantage in the space as well. These are just ideas, and there will be other niches that neither side of this House has yet identified. So, what do I ask for? The Government has already committed $37 billion under the Research, Innovation and Enterprise 2030 (RIE2030) plan, with AI explicitly within the scope. I ask that within that envelope, Edge AI efficiency research – model distillation, quantisation and on-device deployment – be named as an explicit priority, with success measured by commercial export potential and not just domestic adoption.[+12 sentences] My more specific ask concerns the national AI Missions. The four Missions are already funded. I ask that each Mission consider Edge deployment capability as a key design criterion, whether an efficient, low-latency, sovereign Edge model is appropriate for the use case. And more broadly, I ask that the Government establish a formal process for identifying Singapore’s AI export niches, applying the same constraint-aware logic that produced SEA-LION and MERaLION, across our strategic industries. Not just Edge or Explainable AI. A systemic search for where Singapore has a right to win and a commitment to back those niches with capital. The goal is to ensure that in years to come, Singapore is a genuine owner of commercial AI capability that we can export to the world. Not just a well-compensated tenant but a landlord of our own. But owning the technology is only the first part of the answer. The second is protecting the people being asked to adapt to it, including those the market has already started to leave behind. Mr Speaker, the aggregate economic data looks encouraging – broad-based wage growth and lower income inequality. But averages can be dangerous and they can mask a specific problem that I think deserves more attention. Research published in October last year by Stanford University and ADP found that since late 2022, which was when ChatGPT broke cover, entry-level hiring in AI-exposed sectors in the US has fallen by 16%. For software developers aged 22 to 25 specifically, the headcount has fallen by a greater 20%.[+17 sentences] We do not have such granular data for Singapore but that alone is part of the problem. This is what I call the broken bottom rung of the ladder. Now, I want to be clear that what is at stake here is not just in economic terms but in human terms as well. The first job is not just income. It is the place where you discover what you are capable of. Where someone more senior takes a chance on you, teaches you something you could not have learned any other way and passes on a standard of craft or judgement that you will carry for the rest of your career. It is where professional identity is formed. If that rung is gone, not because graduates are less capable, but simply because it is now cheaper to automate the tasks that used to justify hiring them, we do not have an unemployment problem; we have a rupture in how knowledge and expertise pass from one generation to the next. The experienced professionals of 2046 are the junior hires of today. If we do not hire them today, we will not have any in 20 years. After my Parliamentary colleague, Eileen Chong, and I put out a call for feedback some months ago, we heard from many young Singaporeans who are living this. Graduates who applied for over 100 roles; who took unpaid internships, hoping it would lead somewhere; who are talented, willing and being told by the market there is simply no place for them yet. They are simply asking for a chance to start. The broken rung is the most visible symptom, but the disruption does not stop at entry-level workers. Mid-career workers face a parallel challenge – skills that took years to build being absorbed by AI faster than retraining programmes can respond. So, what do I ask for? Data first. We cannot manage what we do not measure. I call on MOM to publish granular employment data for new graduates, broken down by sector, role type and AI exposure levels.[+2 sentences] If the broken rung is happening here, we need to see it in our numbers before we can respond to it. The Government's 400% Enterprise Innovation Scheme (EIS) tax deduction for AI expenditure is a powerful lever as well. While the details are being firmed up, I ask that the Government require that firms claiming the EIS deduction above a meaningful threshold demonstrate a credible plan for maintaining graduate and entry level roles, not by preserving roles that AI has genuinely made redundant, but by investing and reimagining what junior work looks like in an AI-augmented firm.[+10 sentences] Public money for AI adoption should come with a commitment to developing the workers who will work alongside it. The Government's announcement of six months of free premium AI tool access for workers taking selected courses is also a welcome step. But six months is a trial period. Mastery takes longer. AI is not a course you complete, it is daily practice, much like using spreadsheet programme is. A worker who builds that habit over six months and then has the access removed is being set up to fall again. The Workers' Party (WP) has called for SkillsFuture Credit to cover AI tool subscription on an ongoing basis. I renew that call today – for young workers starting out and for those mid-career workers who need to stay current as well as for our senior workers looking to embrace new technology. The SkillsFuture Level-Up Programme currently targets workers aged 40 and above, but the disruption is hitting many earlier. Singaporeans in their mid to late 30s, the Millennial cohort, whose careers were built on skills that AI is now absorbing are facing displacement before they even qualify for mid-career support. Lowering the qualifying age to 35 is a simple, concrete and targeted step that addresses where the disruption is actually occurring.[+27 sentences] That brings me to the third and final question. AI is not just changing how we work. It is changing what we owe each other. The assumptions baked into our social contract about risk, about reward, about the relationship between capital and labour were written for a different economy. Budget 2026 is an opportunity for us to update this. So, what do I ask for? The WP has called for a redundancy insurance across multiple Parliaments. I argue for it myself in my maiden speech. I will not repeat the following argument today. But I want to offer a different frame for it. Critics have called it a welfare crutch. I want to make the opposite case. Redundancy insurance is the engine of the economic agility that this Budget demands. A worker with six months of financial breathing room can say yes to retraining. They can take the risk of moving sectors. They can be the bold, adaptable Singaporean that the Government is asking them to be. Without that buffer, the rational response to uncertainty is not agility, it is paralysis or grabbing the first job that comes along, plunging workers into a cycle of underemployment. Paralysis is exactly what we cannot afford in an economy that is undergoing structural transformation. The Government is rightly optimistic about AI's potential, but responsible governance requires managing all our outcomes, including the downside. Redundancy insurance is a suitable hedge; and I urge the Government to act on it. The EIS deduction condition I proposed earlier on maintaining graduate and entry level pipelines as a condition for tax deductions addresses new workers entering the workforce, but there is a parallel question about existing workers. What happens to the person already in the job when AI arrives? Right now, the tax system is largely neutral on the question. A firm can deploy AI to augment its workforce or to replace it and incentives are often available either way. Without a nudge, the default logic of capital is to substitute labour. Labour is expensive. Shareholders benefit when headcount falls. AI makes substitution easier than it has ever been. I propose a targeted retraining tax credit, available only to firms that can demonstrate that they have reskilled a specific worker into an AI-augmented role rather than retrenching them.[+5 sentences] Retention done right cost less than redundancy. Let us make the fiscal system reflect that. Which brings me finally to the distribution question. Global evidence consistently shows that productivity gains from AI do not automatically translate into wage growth. The Government is investing taxpayer resources and regulatory sandboxes in four national AI Missions: advanced manufacturing, connectivity, finance and healthcare. These are the right priorities, but they come with a public obligation. I propose that an annual AI gains audit, scoped specifically to these four sectors, be implemented. Not red tape for every business, but a targeted accountability mechanism for sectors receiving extraordinary levels of public support to answer one straightforward question: are the productivity gains from state-backed AI Missions flowing into the wages of our workers or are they flowing into shareholder returns?[+2 sentences] Mr Speaker, this is a Budget with genuine ambition and the WP supports much of its direction. But ambition must come with accountability. The strategic advantage of AI must be felt in the wages of our workers, not just in the earnings reports of the companies deploying the technology.[+1 sentence] Own the technology, not just rent it. Protect the worker that is being asked to adapt to it and ensure that the gains of AI accrue to workers and not capital owners.[+1 sentence] These are not obstacles to Singapore's AI ambitions, they are the conditions that make these ambitions worth pursuing.
Mr Speaker4 words
[+1 sentence]Dr Choo Pei Ling.
Dr Choo Pei Ling (Chua Chu Kang)1625 words
[+12 sentences]Mr Speaker, Sir, before I begin, I would like to declare that I am an assistant professor in imaging neuroscience at the Singapore Institute of Technology, and I am a registered member of the Allied Health Professions Council. Healthcare affordability is not simple. It is a shared equation. In mathematics, we assume that one plus one equals two. It seems obvious, straightforward. But even something as simple as one plus one only works when the foundations are sound. Healthcare is like that. Many Singaporeans ask, "Can healthcare be more affordable? Can waiting times be shorter? Why does it feel more expensive?" These are valid concerns. But when we look beneath the surface – at ageing, chronic disease, medical inflation, workforce pressures and rising expectations – we see that healthcare is not a simple sum. In this Budget, the Ministry of Health's (MOH's) operating expenditure is about $20 billion. Over the past decade, healthcare spending has more than doubled.[+58 sentences] As more Singaporeans live into their eighties and beyond, demand will continue to rise. This $20 billion is not just a number. Behind it are countless hours of system design, workforce planning, infrastructure development and careful budgeting by our policy-makers, healthcare leaders and civil service. It represents: subsidies that keep care accessible; investment in hospitals and community facilities; expansion of long-term care; and training and retaining of healthcare professionals. Healthcare is a system that must be carefully balanced. And like any equation, the outcome depends on how responsibly each part is managed. Affordability therefore cannot mean only what an individual pays today. It must also mean what the nation can sustain tomorrow. If costs are not shared responsibly, they do not disappear. They are simply borne elsewhere – by taxpayers and future generations. Budget 2026 reflects that balance investing where necessary, strengthening fiscal structures and our financing mechanisms, and ensuring that our system remains strong not only for this generation, but for the next. Mr Speaker, healthcare waiting time is often where policy becomes personal. It is the elderly resident sitting quietly outside a specialist clinic. It is the working adult taking leave to accompany a parent. It is the anxiety of waiting for clarity. In Tengah, residents share these concerns with me. They are not asking for extravagance. They are asking for reassurance that care will be timely, accessible and sustainable. Rising waiting times do not happen in isolation. Singaporeans are living longer, chronic conditions are more prevalent and mental health needs are growing. Medical advances also mean we can treat far more conditions than before. Demand is rising partly because we are doing more and doing it better. That is progress. But progress brings pressure. Waiting time is the visible symptom of rising demand in a more capable system. Budget 2026 recognises this structural shift. It continues to invest in hospital capacity and manpower. It strengthens primary care under Healthier SG. It expands community hospitals, step-down care and long-term care capacity. These are not short-term fixes. They are long-term adjustments. But capacity alone cannot secure sustainability. Capacity is necessary, but sustainability also depends on managing demand appropriately and delivering care in the right setting. Hospitals are best focused on acute and complex care. Stable chronic conditions, prevention and recovery are often better supported closer to home, through our general practitioners (GPs), community teams and integrated networks. This is not about reducing care. It is about delivering care more appropriately so that access remains protected over time. Embedding strong primary and community care early in all estates is how we prevent avoidable strain as our population ages. If we manage demand wisely today, we protect access tomorrow. Mr Speaker, Budget 2026 continues to strengthen Healthier SG and primary care. This reflects a simple reality: long-term sustainability depends not only on how we treat illness, but on how early we prevent it. Doctors anchor our healthcare system. They diagnose, manage complexity and intervene when risk is high. That role remains central. But health is shaped less by crisis and more by consistency. In rehabilitation work, I often see how small, sustained interventions change trajectories. What appears to be a simple back strain may reflect years of cumulative weakness and poor movement habits. With early strengthening and education, recurrent injury and future specialist visits can be avoided. The issue is not just back pain. It is the long-term trajectory. Managing blood pressure before complications arise. Keeping diabetes controlled before organ damage develops. Maintaining strength and balance before a fall leads to hospitalisation. These interventions are quiet but they determine whether someone remains independent at 75 and beyond. For many families, that independence determines whether caregiving remains manageable. Prevention does not compete with hospital care. It protects it. The most affordable hospital bed is the one we never need to use. Budget 2026 strengthens this direction through Healthier SG enrolment, primary care reinforcement, and expanded community and long-term care capacity. Embedding prevention early through thoughtful design in our residential estates and active ageing programmes allows us to shape healthier habits before chronic strain accumulates. Extending healthspan alongside lifespan reduces pressure on families, hospitals and public finances.[+13 sentences] Prevention is not about spending less. It is about sustaining independence, protecting dignity and preserving the system for the next generation. Mr Speaker, Budget 2026 continues to strengthen care beyond hospital walls through shared care with GPs, expanded community capacity and home-based models. This reflects an important evolution in how we organise care. Hospitals are built for acute and complex conditions. Doctors stabilise patients after stroke, surgery or serious illness. That role is decisive and remains central. But long-term outcomes are determined by what happens after discharge. Recovery is not automatic. When rehabilitation is timely and coordinated, patients regain function earlier, caregiver strain reduces and hospital capacity is preserved for those who need it most. When recovery is delayed or fragmented, avoidable readmissions return pressure to acute services. Strengthening community rehabilitation and home-based recovery therefore improves both patient outcomes and system efficiency. This is not an additional layer of care. It ensures that our investment in acute medicine delivers full value. We can continue refining this by shortening time-to-rehabilitation after discharge, strengthening community therapy capacity and tracking functional outcomes to ensure quality and accountability.[+33 sentences] These refinements do not compete with acute medicine. They complete it. For example, in my constituency of Tengah, as a young and growing estate, planning neighbourhoods that are ageing-friendly and rehabilitation-supportive from the start will reduce avoidable strain as our residents grow older. Good medicine stabilises. Recovery determines whether that stability lasts. Mr Speaker, behind every infrastructure expansion and policy reform in this Budget stands a healthcare workforce carrying increasing complexity. Doctors manage clinical uncertainty and high-stakes decisions. Nurses sustain care across wards and communities under rising demand. Allied health professionals restore function and independence. Pharmacists safeguard medication safety. Care coordinators keep services connected. Each profession carries distinct responsibility. And each is indispensable. If we want better access and shorter waits, we must strengthen not only capacity, but coherence. When responsibilities are organised clearly around training and competency, duplication reduces, bottlenecks ease and patients move more smoothly through the system. This is not redistribution of authority. It is disciplined deployment of expertise. Sustainability is not only about infrastructure and funding. It is about work design, career pathways and workforce well-being. Workforce sustainability is central to national resilience. No healthcare system succeeds if any part of the team is persistently overstretched. To our healthcare workers, your work is demanding and it matters deeply. A sustainable system must also be one that sustains you. When the workforce is supported, patients benefit and when we steward both carefully, healthcare remains strong for generations to come. Mr Speaker, in Mandarin. (In Mandarin): Mr Speaker, healthcare has never been simply a matter of "how much money is spent." It concerns the peace of mind of families, the dignity of our seniors and whether our system can endure over time. Many Singaporeans ask, "How much will I have to pay this time?" This is a very real and reasonable question. But we must also honestly ask another question: "If individuals bear none of the cost, who will ultimately shoulder it? Will it be taxpayers, the next generation, or society as a whole?" Healthcare costs do not disappear; they must be borne by someone. This is precisely one of the most difficult aspects of healthcare policy. In conversations with residents in Tengah, I found that what many elderly people fear most is not their own suffering, but becoming a burden to their families.[+1 sentence] That sentiment deserves our understanding. I support the Government's continued efforts in MediSave, subsidies and long-term care support.[+1 sentence] At the same time, we must ensure that the system remains sustainable. The best healthcare is not only about treating illness after it occurs, but about preventing disease, promoting early recovery and reducing avoidable hospital stays.[+4 sentences] Healthcare is not simply a matter of adding or subtracting costs; it is a responsibility shared by society as a whole. As long as we strengthen the foundations, Singapore's healthcare system can go further and remain stable. (In English): Mr Speaker, to conclude, in mathematics, one plus one equals two only when the foundations are sound. Healthcare is no different. Affordability, access and quality do not happen by accident.[+3 sentences] They are the result of careful choices, shared responsibility and long-term stewardship. Stewardship is not about choosing between care and cost. It is about protecting both – with balance and foresight. If we want healthcare that remains strong for this generation and the next, then every part of the equation must be managed responsibly.[+3 sentences] Because in healthcare, one plus one does not automatically equal two. It equals two only when we build it carefully – together. I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Fadli Fawzi.
Mr Fadli Fawzi (Aljunied)2741 words
[+28 sentences]Mr Speaker, this is the first Budget of the current Parliamentary term. I would like to think of this as an opportunity for us to future-proof Singapore in a world characterised by flux, we must be steadfast in holding on to who we are – our collective identity as Singaporeans are our roots, keeping us fixed and resolute as One People through disruptions and upheavals. Sir, the Budget is as much about our collective values and identity, as much as it is about dollars and cents. In his Budget speech, the Prime Minister identified that the spirit of our people is our greatest strength. He also said that Singaporeans must be active participants rather than mere spectators in our nation-building effort. I agree with this sentiment. But, Sir, participation requires agency. If the Government is sincere about the spirit of our people being our greatest strength, then it must be equally sincere about giving Singaporeans the means and the space to tend that spirit themselves. Too often, however, Singaporeans find themselves as mere spectators in the making of our national collective identity. The Government recognises the importance of nurturing the shared bonds of civic friendships among Singaporeans. I hope to, however, convince the House that our national identity and sense of solidarity is something that is best fostered organically from the ground up in ways that affirm and reflect our citizens' lived experiences. In the next few minutes, I will talk about heritage, history and human ingenuity. First, I want to suggest the importance of heritage conservation, not out of sentimentality or nostalgia, but because these places have meanings for us as Singaporeans. Places and place memories are important to our identity and belonging. Unrelenting change, including those brought about by rampant commercialisation, can degrade our sense of who we are. Second, I will also suggest that the construction of our national history can be more democratised and inclusive. If Singaporeans are to be active participants in nation building, then we deserve to tell a Singaporean story that is brought forth by the collective memory making of the Singapore public. My final point will address the Government's focus on AI. I understand that we have to embrace advances in technology and seek to include these tools in our repertoire. My concern is specific that we do not elevate AI to such a degree that we risk undermining the very thing that we are seeking to enhance: our human ingenuity. Sir, our heritage is essential to our civic and national identity. The Government has made it a priority to renew and strengthen our Singapore spirit in this year's Budget. I especially welcome the Prime Minister's plans to strengthen our cultural and heritage institutions, which include the reopening of the revamped Malay Heritage Centre. However, even at the Istana Kampong Glam welcomes the public through its doors once more, it would be a pity if Kampong Glam itself loses its cultural character as a historical precinct which it has served and still continues to serve local communities. I spent part of my early childhood in Bussorah Street which was once known as Kampong Kaji. For me, Kampong Glam cannot be separated from the social and communal practices which are embedded within the neighbourhood. Kampong Glam thrives because the district remains a living heritage for the community who live, work and visit there. I am sure that the House shares my concern about how traditional and heritage businesses often with long standing roots in Kampong Glam are finding themselves displaced by the challenging operating environment. On 12 January, a report by CNA revealed that between 2023 and 2025, the yearly median rent in Kampong Glam rose from $6.02 to $7.54 per square foot, translating to a 25% increase over two years. During our Sitting earlier this month, the Senior Parliamentary Secretary for National Development confirmed that a small proportion of tenants did face rental hikes of 25% or more in these two years. He, however, said that this involved leases for shops in high footfall streets, such as Haji and Bali Lanes.[+1 sentence] However, this is not sufficient as an assurance that Kampong Glam will remain viable for heritage businesses. High rents in Haji and Bali Lanes can easily have a spillover effect on other adjacent streets, such as Arab Street, which houses some traditional textile retailers. The disappearance of heritage businesses in Kampong Glam will be an irreversible thinning of the precinct's place meaning.[+17 sentences] We should also not understate the intimate connections between our sense of self, our sense of belonging and our sensing of the physical infrastructure. To a large degree, our identity is anchored in places. People know who they are because they know where they were, where their grandparents brought them around to run errands, where they posed with their extended family around Sultan Mosque for a Hari Raya photo, or where they socialised over teh tarik with friends or brought their partner for a date. Even when I grew older, I continued to bond with my father about Kampong Glam and our shared his interest in its history and heritage. Born and raised in Kampong Kaji, my father would regale me with stories of Wak Cantuk and playing with his friends from Gedung Kuning and other parts of Kampong Glam. While he is no longer here, our conversation still lived on fondly through my memories and every time I drop by Kampong Glam. Mr Speaker, it may be said that churn and change is a constant order of the market. However, such indiscriminate churn can carelessly sever the connective threads nested in Kampong Glam that intricately links people and places, history and memory, and identity and belonging. A nasi padang stall that has operated for decades, or a textile shop that has served both grandmother and granddaughter – these are not merely commercial storefronts selling goods and services. These are also precious repositories of cultural knowledge, community relationships and public memory. These are simply gone when they are gone. And no influx of souvenir shops, photo booths and Instagram-friendly cafes can compensate for such a loss. Sir, if I may, I would like to quote a line from an essay titled "Displacing Singapore" written by Mr Peter Schoppert, which described the constant physical transformation of Singapore as such: "The past continually makes way for a future that has no time to ripen into a present." With Kampong Glam, we have the opportunity to do things differently, to let the past ripen into a present. We can still balance the forces of commerce and the imperatives of culture. This includes helping the heritage businesses that carry the memory of many generations, supporting the families who have anchored this district through the decades and taming speculation so that the cultural heritage of the district is not hollowed out. The Urban Redevelopment Authority's (URA's) planning parameters for historical districts stipulate guidelines for building use. Would it not be possible to amend these parameters to ensure that heritage businesses can remain viable in the areas, such as introducing heritage business licences, specifically for historic districts? This would offer businesses some measure of protection from open market competition, as well as prevent the over-commercialisation of a historic district.[+17 sentences] Sir, I turn now to the topic of our national history. Recently, I visited the Albatross Files exhibition at the National Library, which I thought was quite remarkable, since it is not often that the state offers a revisionist account of its own historical narrative. As a student, the narrative of separation that I was taught was one of expulsion. A Straits Times report from 21 December 2025 quoting a former secondary school history teacher confirms this. That aside, the declassification of the Albatross File is a good move. Yet the existence of the file was only first revealed in 1996 by Dr Goh Keng Swee during an interview with Dr Melanie Chew. And it took another 27 years for it to be fully declassified. Must Albatross really wait for 30 years before its existence was to be publicly acknowledged and almost 60 years after Independence before its contents were to be fully revealed to the public? Even then, the declassification process of Albatross seems tightly managed. I refer to the 7 December speech by Senior Minister Lee Hsien Loong, who shared how a specific team went through the material carefully, picked out the key documents and sections, annotated them and wrote up the editorial apparatus. I do not mean to downplay the considerable work and effort of these scholars. However, was there a reason that the file was not released to the public domain in the first instance so that the wider community of scholars and the public can read, discuss, interpret and construct their understandings of a past in a more democratic and collective fashion? As the Minister for Digital Development and Information stated in her written answer on 12 January, "A deeper appreciation of our history and how we got here will strengthen our national identity." I however doubt that our more mature and discerning citizens can truly have this deeper appreciation if the Government's approach to history remains didactic, where history is meant to be consumed by the people rather than constructed by the people and for the people. Historical narratives gain resonance when it is written by the many, not dictated by the few. Sir, in the spirit of encouraging and facilitating a deeper appreciation of our history, would it not be more reasonable to have, as a default, an automatic declassification and public release of records once 25 years have elapsed? Currently, even Government documents that have been transferred as public records to the National Archives Singapore (NAS), the so called "public archives", are not easily accessible. In 2023, the then Senior Minister of State for Communications and Information mentioned that the NAS has made the metadata of around 780,000 records available to the public. However, most of these records still require permission from the originating agency before they can be read. In the Senior Minister of State's statement, it was also revealed that 68,000 filed records have been declassified and made accessible to the public.[+24 sentences] Sir, surely any public archive deserving of its name should have its records readily available to the public without the need to seek permission from a Government agency. An automatic declassification process will make records generally available to the public by default instead of requiring interested Singaporeans and researchers to undertake an opaque approval process to gain access. I understand that a more transparent and open declassification policy may cause some anxieties. However, the Government can heed the advice of Senior Minister Lee, who once said, quote "In teaching the Singapore Story, you have to deal with delicate issues, especially race and religion, and sometimes relations with our neighbours. We must treat such issues sensitively, but we cannot gloss over them. Amnesia is not an option. We cannot pretend that incidents involving race and religion never happened. They are part of our history", end quote. Sir, a society that can collectively alter its history is one that is confident in facing the future. To future-proof Singapore, amnesia is not an option. If you want Singaporeans to be active participants in their own country, if you want our citizens to deepen their appreciation of our history and to strengthen our national identity, then the Government must believe that Singaporeans can be trusted to participate in the construction of our national history. Sir, my final topic – AI. A focal point of the Budget speech was on harnessing AI as a strategic advantage for Singapore. The Prime Minister outlined the Government's commitment to strengthen AI literacy for our students in the institutes of higher learning (IHLs) and to help workers automate routine tasks so they can concentrate on performing higher value activities that would involve judgement, creativity and human insight. These are pragmatic measures to familiarise Singaporeans with AI and integrate its use into our daily routines. However, I wonder whether we are in danger of becoming an AI-reliant society, rather than an AI-resilient society. My worry is that such indiscriminate habituation to AI may risk undermining the very things that we want to augment. Those things that the Prime Minister talked about – judgement, creativity and human insight. Sir, human ingenuity is a precious thing, and we must not let it be the case that the more we rely on AI, the more we end up dulling our critical faculties for human ingenuity. Sir, as an undergraduate, I remember struggling through dense academic text, picking apart the writings of scholars such as Émile Durkheim, Max Weber and Karl Marx, trying to find out what their words meant and what it is they were trying to convey. Had AI been available then, it would have been convenient and very tempting for me to have ChatGPT summarise the content or generate ideas for an essay or seminar discussion. However, there is value in undertaking the sometimes slow, often uncomfortable and always arduous task of reading a text and grappling to understand it on your own terms. This is the process through which we sharpen our cognitive skills. This is how we learn to decipher and interpret the meanings of the written word, and by extension, make sense of the world, which those words reflect and shape. This is how we develop our sense of judgement and our capacity for creativity. I appreciate the Prime Minister's reassurance that the Government will define how AI is developed and used in Singapore, including setting out clear rules for its responsible and safe implementation.[+8 sentences] I await more clarity in this direction. One last point, Mr Speaker, I will reiterate what my WP colleague Dennis Tan raised, and his concerns about AI and the environment. We should remember that every AI query has a physical and environmental footprint. We may think of AI as performing virtual magic on our computers, giving us answers in almost an instant, or even helping us to generate pantun for Parliament. But this magic has to piggyback on a vast infrastructure of data centres that consume voracious amounts of electricity and water. Globally, data centres are straining power grids and depleting water sources. Needless to say, the energy and water demands of these data centres also have third party effects, such as increasing the utility cost for everyone else, including residents. This has become such a serious issue in the US to the extent that the New York Times reported on 15 January, that the politicians and lawmakers have started mulling over legislation to oblige tech companies to pay their fair share for electricity consumption, including paying upfront for the cost of upgrading the power grid. Locally, data centres accounted for 7% of Singapore's total energy usage in 2020. Moreover, data centres also contribute to the urban heating of our island, because for every one megawatt of heat removed from data centres by the cooling systems, 1.2 megawatt of heat is ejected into the environment. In fact, resource and sustainability concerns prompted the Government to issue a moratorium on data centre construction in 2019, which has been lifted in phases since 2022. In May 2024, the Infocomm Media Development Authority (IMDA) released the Green Data Centre Roadmap, which established energy and water efficiency targets for data centres for the next 10 years.[+5 sentences] I hope that the Government is confident that we are not only on pace to meet these efficiency targets, but to also ensure that the data centres' energy and water consumption does not create upward pressure on the utility cost for households and small businesses. Sir, I highlight these issues not as a reason to abandon or shun AI, but the world is facing an existential challenge of climate change and the United Nations University Institute of Water, Environment and Health recently warned of a global water bankruptcy. Given these circumstances, it seems only pragmatic for us in this House and as a country to consider the ethical and environmental trade-offs involved as we embark on a national quest to integrate AI into our personal, social and working lives. Sir, the Prime Minister has identified the many challenges that Singapore is facing. I hope that the Government reads my remarks as I intend them to be: constructive amendments for the purpose of strengthening our civic endurance and collective resilience to navigate the challenging days ahead.
Mr Speaker3 words
[+1 sentence]Mr Gabriel Lam.
Mr Gabriel Lam (Sembawang)1008 words
[+1 sentence]Mr Speaker, Budget 2026 is not incremental, it is strategic. It is presented at a moment when the Prime Minister has described a profoundly changed world.[+2 sentences] More fragmented, more contested and less predictable. Last year, we grew at 5%. This year, growth is expected to moderate to between 2% and 4%.[+7 sentences] The global environment will remain structurally uncertain. In such a world, resilience must be intentional. Today, I will focus on three foundations that will determine whether we truly secure our future together: one, a workforce that can outrun disruption; two, families that experience structural assurance; three, a Singapore spirit strong enough to withstand fragmentation. These are not separate agendas. They reinforce one another. Economic resilience begins with adaptability. This Budget strengthens that adaptability. The Local Qualifying Salary will rise to $1,800. The Progressive Wage Credit Scheme will be enhanced and extended.[+16 sentences] More than 600,000 individuals took up SkillsFuture-supported training last year. Over 60,000 mid-career Singaporeans have benefitted from the Level-Up programme. The merger of SkillsFuture Singapore (SSG) and Workforce Singapore (WSG) into a single integrated agency is a decisive structural move. It recognises that in an era of frequent job transitions, training and placement must operate as one system. In the logistics industry, there have been many success stories of candidates undergoing career conversion or job reskilling and finding a newfound purpose in the workforce. I am very grateful to the various trade associations and chambers, as well who work hand-in-hand with the Government agencies in securing jobs for workers in their sectors. But participation must translate into mobility. In a slower growth environment, our edge will not depend on how many courses are taken, but on whether upgrading consistently leads to higher wages and better prospects. The next step must be sharper outcome accountability. I thus call on the Government to publish regular data on post-training wage progression and re-employment outcomes by sector. Industry Transformation Maps should embed workforce mobility benchmarks, not just productivity metrics. Firms that receive significant transformation grants should demonstrate clearly how local workers benefit in terms of career progression. Resilience must mean that effort leads to advancement, visibly and measurably. Yet even the most adaptable worker draws strength from stable family foundations. Economic confidence cannot be sustained if households feel uncertain. This year's Budget strengthens support across life stages. Preschool subsidies will extend to families earning up to $15,000.[+17 sentences] ComLink+ enhancements can provide around $10,000 annually for families with young children. Central Provident Fund (CPF) top-ups of up to $1,500 will support Singaporeans aged 50 and above with lower balances. We begin this term on a strong fiscal footing. These measures ease pressure at critical junctures. In my interactions with residents in Canberra, many families have shared similar concerns. They are working hard, managing their responsibilities diligently and doing their best to provide for their children and care for their parents. What I hear consistently is not a demand for more but a desire for greater certainty, certainty that support will remain stable, that costs will not outpace incomes unpredictably and that the system will continue to stay behind them as they navigate different life stages. But in an ageing society with structurally rising healthcare and retirement needs, assurance must be systemic. We must hence move towards a clearer, consolidated family assurance framework – one that maps lifetime support across housing, childcare, healthcare and retirement in a transparent way. I call on the Government to ensure that inter-agency support for families under multiple schemes is streamlined into a single digital interface, reducing administrative complexity. Income thresholds for key schemes should also be reviewed regularly and pegged transparently to median income growth so that support evolves automatically with living standards. Assurance should not feel conditional or episodic. It should feel embedded. When families feel predictable stability, they make long-term decisions with confidence, and that confidence strengthens economic resilience. But every strong household and strong worker requires something deeper. In 2025, global conflict remained high, with over 200,000 violent conflict events recorded across many regions and conflict-related fatalities rising to nearly 240,000, underscoring how geopolitical instability persists across multiple theatres and continues to affect millions worldwide. Singapore cannot afford social fracture. The Budget invests deliberately in strengthening shared bonds through cultural institutions, expanded sports facilities, extended 250% tax deductions for donations and corporate volunteering, and a new $50 million SG Partnerships Fund.[+10 sentences] These are not soft measures. They are strategic investments in cohesion. In Canberra, we launched Project Sound Box, a sound mitigating box that reduces the sound generated from the lion dance troupes in the area by 40 decibels. The troupes also work closely with various stakeholders to end training by 9.00 pm and to provide updates on their training schedules. This information is disseminated to the resident chat groups so that they can be kept informed. We have also organised learning journeys where residents of different races come and see the troupes train, and the troupes give a briefing on the significance of the various dance moves. The troupes are seen as a member of the community and are invited to various events in the community. But unity must be operationalised. The SG Partnerships Fund should incorporate clear multi-year community impact metrics so that cohesion outcomes are sustained, not symbolic. Structured civic participation pathways, including youth policy internships and project incubators, should become a permanent feature of our governance landscape. Corporate volunteering and social contribution metrics can be integrated into environmental, social and governance (ESG) reporting frameworks, encouraging deeper private-sector ownership of nation-building. A "we first" society must be cultivated intentionally. Unity must be measurable, participation must be meaningful and contribution must be normalised.[+9 sentences] In conclusion, Budget 2026 recognises that the world has changed. Resilience, therefore, must be layered and disciplined. A workforce that translates skills into mobility. Families that experience structural assurance. A society that embeds unity into practice. When these three reinforce one another, we do not merely withstand uncertainty. We convert it into strength. That is how we secure our future together. Mr Speaker, Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Kenneth Tiong.
Mr Kenneth Tiong Boon Kiat (Aljunied)2783 words
[+18 sentences]Speaker, last week was the Lunar New Year. I had the pleasure of sampling a Xiangshan Hong Mei Ren mandarin orange. The texture was extraordinary, the vesicles of the orange were very sweet, the skin almost paper thin. It has been described as eating jelly, or jelly growing on a tree; 12% to 15% sugar content, low acidity, no floating skin. It inspired me to investigate its history. The Hong Mei Ren was once called the Ehime No 28, developed over 15 years at the Ehime Prefectural Fruit Tree Experiment Station in Japan, and prized for its jelly-like texture and ultra-premium positioning. But due to the lack of intellectual property (IP) protection, it was lost. A handful of stem cuttings were carried to Xiangshan county in Zhejiang province in China in 2001. Today, the Hong Mei Ren has expanded to over one million mu (亩) over 15 Chinese provinces, dwarfing Japan's 300 hectares over a hundred fold. Fifteen years of breeding, gone. Just like that. It was one of the most consequential agricultural IP losses in modern Japanese history, alongside the Shine Muscat grape and strawberry leakages. That reminded me of something closer to home. It is well known that our research and development (R&D) ecosystem over the last 30 years has not produced impressive commercial outcomes. Tens of billions of spending since 1990, more than 30 years. Where are the deep tech commercial successes? The report card of significant commercial outcomes, high value initial public offerings (IPOs), globally competitive companies is bare. That is what I would have said up to 23 May 2025. On that day, Mirxes, a microRNA cancer diagnostics biotech company incubated over many years of Agency for Science, Technology and Research (A*STAR) research at Biopolis IPO-ed on the Hong Kong Stock Exchange (HKEX), raising HK$1.09 billion with China-linked cornerstone investors.[+2 sentences] Finally, a billion-dollar IPO. Coincidentally, also about 15 years of effort, like the Japanese breeding the Ehime No 28. But the story is more complicated. Mirxes listed in Hong Kong, not Singapore, because the Singapore Exchange (SGX) has no equivalent to the HKEX pathway for pre-revenue biotech. Its cornerstone investors were Chinese entities holding over 40% of the IPO.[+2 sentences] Its manufacturing now is in Zhejiang province. Its growth market is in China. So, the initial science came from Singapore, but commercialisation leaked offshore.[+5 sentences] If this is success, then what does failure look like? This is not the fault of the Chinese. They optimise rationally within the realities of the system. This is our failure to capture value, our responsibility to anticipate, to get it right, to make sure Singaporean taxpayers reap the rewards of tens of billions ploughed into R&D. Mirxes highlighted two facts. First, the system does not produce a strong pipeline. That Mirxes is the only billion-dollar IPO or commercially significant R&D company after 30 years of continual investment tells you something.[+8 sentences] Second, even when a success emerges, the system is naively vulnerable to value chain leakage. To lose a one-billion-dollar IPO may be regarded as a misfortune. To lose more is carelessness. I will return to this later. Sir, I welcome the Budget's commitment to $37 billion under RIE2030 and the expansion of Startup SG Equity into growth capital. These are steps in the right direction. But the question is not whether we are spending enough, it is whether the system converts that spending into commercial outcomes for Singapore. Why does the system produce these two outcomes: (a) a limited pipeline of commercially viable R&D companies; and (b) a failure to take advantage of successes when they come? The structural flaw is that agencies like the Economic Development Board (EDB) and the Statutory Boards are structured as grant givers, not as investors or ecosystem builders.[+30 sentences] If you are a grant giver, your job is to mark the market, to benchmark, to do due diligence against market rates. If you mark the market, you are then subject to the audit process, every decision scrutinised against whether you followed the benchmark. If you are a civil servant in that position, there is absolutely no reason to stick your neck out. Zero incentive for upside, only downside risk from audit. So, of course, you end up with super conservative civil servants who say, "I do not want to do any innovation." You end up with long meetings where senior officials agonise over $5,000 or $10,000 because they are worried about compliance. Worse, annual key performance indicator cycles force officers to judge five- to seven-year bets on a 12-month horizon. So, promising ventures get culled before they can prove themselves. Meanwhile, you miss the forest for the trees. To take an ecosystem approach to funding so that the day-to-day operational environment for R&D startups is the best that it can be. To design policy to capture R&D upside. Our agencies are structured to avoid losing money, not to make it. That is why 30 years of spending has not produced 30 years of results. I agree with the Prime Minister that R&D is a core imperative. Productivity gains, moving up the value chain. All of this matters. But there must be an honest reckoning with 30 years of limited commercial outcomes and value leakage. The R&D ecosystem needs three things: money, speed and a market. First, money. I tried to count Singapore's Government-linked startup funds. I stopped at 20. There are eight sub-schemes under the Startup SG umbrella alone. SGInnovate, Xora Innovation under Temasek. Vertex Holdings with seven sub funds. The National Research Foundation, A*STAR, the Infocomm Media Development Authority and the Monetary Authority of Singapore run their own programmes. This is not an exhaustive list by any stretch of the imagination. Of course, each was created for a reason. Each has a logic, but the aggregate effect is a landscape so fragmented that no single entity has the mandate, the capital concentration or the institutional authority to make the kind of large, decisive fast bets that define successful deep tech commercialisation elsewhere. The SG Growth Capital merger of SEEDS and EDBI is a step in the right direction, but the deeper question is whether we have the institutional courage to truly consolidate to give one to two entities the capital, the mandate and critically, the permission to fail, at scale, rather than spreading accountability so thin that no one is responsible for ecosystem outcomes. The pruning must go deeper. France has a public investment bank called Banque publique d'investissement (Bpifrance), a single institution combining innovation investment, SME lending, loan guarantees, export credit insurance and strategic equity stakes.[+2 sentences] In 2024, Bpifrance deployed 60 billion euros. Its officers proactively contact companies with programmes. It is commercially viable, with a 2024 net income of 900 million euros.[+7 sentences] Under Francois Hollande and economic advisor Emmanuel Macron, in 2012, France merged four fragmented investment bodies – one for SME loans, guarantees innovation, one for venture capital, one for strategic equity and one for regional equity – into a single entity, Bpifrance. Export credit insurance was added later in 2017. It now employs about 3,500 staff, centralising innovation investment, economy-wide strategic investment, SME financing, loan guarantees, export support and regional business development. The diagnosis that prompted Bpifrance's creation was plain. Despite strong science and underlying dynamism, France's entrepreneurial culture was weak, risk-averse and fearful of failure. Bpifrance also organised learning expeditions and export programmes to help French companies internationalise. It became the anchor investor across French tech, not just deep tech. Its 10-year assessment found that 80% of French startups that raised funds between 2013 and 2021 received Bpifrance support, and two thirds of French venture capital funds have Bpifrance as a limited partner. Bpifrance deliberately accepts below market returns, targeting 7% annually rather than 10% plus to take risk that private investors will not, training a generation of entrepreneurs and building an ecosystem from scratch.[+26 sentences] I believe we need an equivalent policy investment bank – an institution outside the civil service, incentivised to take risk and freed from line-item accountability, staffed with ecosystem builders, not risk-averse civil servants. We need to take a portfolio approach, thinking in 10-year cycles, 10-year cohorts, 10-year mandates. They need the right incentives. We had this in the early years with DBS and Temasek, but both have since drifted from that mission and today, no institution fills the gap. The WP has argued before for an Export-Import (EXIM) Bank. The French example shows a mandate wider still – innovation investment, SME lending, export credit, strategic equity, all under one roof. It is often said that we have a lot of capital in Singapore, but we have the wrong type of capital for R&D commercialisation. Capital tied to Government and corporates. Excessive obsession with business metrics way too early. Startups forced to jump through a thousand hoops for small cheques. Family officers largely uninterested in our R&D ecosystem. My colleague Jamus Lim has proposed requiring a modest domestic allocation as a condition for family office tax incentives, which I support. What does success look like 25 years from now? A flywheel, where private capital is sophisticated enough to understand deep tech. Patient capital writing experimental cheques, less metric-obsessed early on. This is the ecosystem that we should be building towards. Second, speed. Funders and regulators need to understand that two extra days of approvals or one month of delayed cash flow is life and death for a startup. You do not understand what it takes if you have not tried it yourself. Fast capital deployment does not just save companies. It trains a generation of entrepreneurs who will not waste 60% of their time fundraising. We should make peace with the fact that roughly 80% of bets on startups made in good faith will back a losing venture. That is the power law in action. The real gain is often the entrepreneur's second and third startup. But if the first attempt feels like pulling teeth, they drop out, and the compounding of iterated learning across business formation is lost. Speed is not just about money, it is about people. MOM uses income as its proxy for talent: the Tech.Pass at $22,500 a month, the ONE Pass at $30,000.[+8 sentences] This may work for hot fields. It seldom works for deep tech, which due to their call-option nature, are unfashionable before they are fashionable. A strong biotech engineer in Thailand earns a quarter of Singapore wages. To bring them here, a startup must triple their salary – not because their skills are worth less, but because MOM's threshold demands it. That is startup cash burnt on regulatory compliance, not R&D. We are asking founders to choose between the talent they need and the runway they cannot afford to lose. The assumption that salary equals value breaks down where it matters most. Deep tech talent is scarce, specialised and often transient. An 18-month engagement with a materials engineer or a combustion engine specialist can redefine a company's trajectory.[+1 sentence] The visa framework should reflect that reality. I propose a segmented approach: a company-driven deep tech visa, tied not to income, but the company's credentials.[+36 sentences] A monthly review committee of mixed Singaporean and international entrepreneurs evaluating deep tech companies. There are perhaps 50 to 80 serious deep-tech companies formed here each year. Companies meeting the criteria enter a special segment: flexibility for three to five visas in Year One, with annual portfolio reviews assessing whether the company is growing. Easy entry, progressively stricter requirements on each renewal, all strictly performance-based. Is the company growing? Are Singaporeans being hired and trained alongside foreign specialists? If yes, renew. If not, exit. Traditional organisations – banks, established corporates – can afford strict income rules. There is enough local talent. But deep-tech startups need radical fluidity and the visa regime most suited to them should follow the company, not the person. We should also aim to make visa decisions snappy. It is fine to say no to people. But let us have the courtesy to do it fast, within a matter of weeks. Let us not waste our companies' time. Third, a market and offtake. Money and speed are necessary, but insufficient if no one is buying. The system must be designed for offtake, structured so that when R&D produces something, there is a buyer on the other end. Singapore hosts regional headquarters, not global ones. Decision-making centres remain in New York, London, Paris and Shanghai. Regional postings run three to four years. When the regional executive who championed an innovation pilot rotates home, continuity goes with them. Corporate incentive structures often reward launching initiatives, not seeing them through, creating structural discontinuity. Tax incentives should require backing from both regional and global headquarters. If there is no interlocutor in New York or Shanghai who has signed off, no incentive. This ensures a direct link to decision-making and prevents projects from being forgotten when executives rotate home. Beyond that, we should attach strategic buyer offtake commitments to grants. Require multinational corporations (MNCs) to pilot, evaluate or procure from at least one local startup or SME, as part of grant conditions. And the Government itself must practise innovation procurement. Europe and China give SMEs quotas of contracts to help them gain scale, so we must do the same. I said I would return to the question of protecting value. Money, speed and a market can build a pipeline. But pipeline alone is not enough if the value leaks out. Three countries have dealt with this question, and they are not peripheral economies. They are among the most successful R&D ecosystems in the world. Israel protects at inception. Under the Law for the Encouragement of Industrial Research and Development, the Israel Innovation Authority attaches binding conditions to all public R&D funding. IP developed with public grants cannot be transferred outside Israel without explicit prior approval.[+6 sentences] Unauthorised transfer is a criminal offence. No known prosecution has occurred, but the deterrent is powerful. Taiwan protects through structure. Industrial Technology Research Institute spun off Taiwan Semiconductor Manufacturing Company in 1987, by transferring fabs, equipment, technologies and 98 professionals to a new Taiwanese entity – with significant government ownership. The critical feature was not any single restriction but a system: government ownership stakes in spin-offs, personnel who were Taiwanese nationals, incorporation in Taiwan, government funding giving the state structural leverage over deployment. South Korea designates core protected technologies. Under the Industrial Technology Protection Act, South Korea designates more than 70 technologies across 13 fields as National Core Technologies – semiconductors, displays, batteries – and requires prior approval for any export or merger and acquisitions involving these technologies. Maximum prison sentences for overseas technology leakage reach 18 years, with punitive damages at five times actual losses.[+4 sentences] Singapore needs equivalent mechanisms for conditionality. Some say we should adopt golden shares, IP retention conditions and protected technologies. Domestic manufacturing requirements tied to public funding. My view is the necessary and plausibly sufficient policy to adopt is an IP conditionality regime, designed for a small open economy. Legislate that IP developed with public R&D funding cannot be permanently transferred offshore without prior approval from a designated authority – enforceable domestically against Singapore-domiciled entities and individuals.[+16 sentences] Ultimately, we will be judged on the competitiveness of our ecosystem. An SGX that rewards R&D. Special Economic Zones that can scale up manufacturing at lower cost. Company-driven R&D manpower policies. Risk capital from a consolidated policy investment bank, like Bpifrance. Trade architecture that companies actually use, not headline ASEAN Trade in Goods Agreement numbers or scarcely used Free Trade Agreements (FTAs), but reduced non-tariff barriers and the ability to incorporate once in Singapore and operate across key Southeast Asian markets. When companies reach a certain size, the siren song of redomicile will prove irresistible for many. The competition shifts to building a growth-capital ecosystem deep enough and catalysing a Southeast Asian market large enough that staying makes more sense than leaving. So, sunset such an IP conditionality regime once the ecosystem is strong enough. This will crowd-in private R&D and take the burden of sustaining our headline R&D numbers off the Singaporean taxpayer. Yes, fewer R&D startups may form under these IP conditions. But I say, it is better to have fewer startups with real upside capture than sexy headlines, nice public relations pieces in CNA and nothing to show from it. And it shifts R&D accountability to where it belongs, not on public servants approving a grant, but on the system retaining value. You may be very proud of your Ehime No 28. But unless you take preparatory measures, unless you design for the upside, one day you will find your R&D being sold as a Hong Mei Ren mandarin. Incubated in Singapore, harvested in Zhejiang and Hong Kong. Thank you, Speaker.
Mr Speaker3 words
[+1 sentence]Dr Hamid Razak.
Dr Hamid Razak (West Coast-Jurong West)1531 words
[+18 sentences]Mr Speaker, Sir, I rise to respond to Budget 2026, which shows a Government responding to the needs of the people while taking care for the long term. As expectations rise with regards to access to care, social support and well-being, and rightly so, we should not only be spending more, in terms of the help we give our people, but also spending to ensure that the help is received in a simple and dignified manner. In this regard, I have three reflections to share. First, how residents experience our systems on the ground; next, the progress Singapore has already made towards systemic integration; and third, how we can deepen integration so that care truly becomes seamless. First reflection – when help exists, but feels hard to reach. Let me share a story of one of our residents in Jurong Spring Gek Poh. A senior elderly lady who comes monthly to collect her food packs from our weekly ground-up initiative called the Jurong Spring Food Cares programme. For months she did not come, and we wondered what had happened to her. One day, I received a phone call from her sister, saying that she had fallen, taken ill at the hospital and was now recuperating at home. She eventually returned to her home in our constituency and I visited her. She was overwhelmed – medical appointments, social service worker appointments and many other agencies that she had to visit. At the same time, she was trying to cope with the new diagnosis of breast cancer, not knowing exactly how deeply this was going to affect her. She did not lack the services or the help. What she lacked was just better coordination and integration. Our systems are robust and well-intentioned, but to a vulnerable senior, they can sometimes feel difficult to navigate. As we move towards a "we first" society, we must design systems not just for efficiency, but also for human experience. Reflection number two – the current progress we have made on integration as a nation. Mr Speaker, Sir, I want to acknowledge that Singapore has already made significant progress in integrating healthcare and social support, and this is important because health and social issues do not exist in isolation. The formation of the Agency for Integrated Care (AIC), the development of regional health systems, expansion of community care and ageing in place initiatives, like the Age Well SG, demonstrate our strong foresight and the sustained effort by the Ministry of Health (MOH) and the whole of Government. Integration is already underway through care coordinators, transitional care programmes and stronger partnerships across primary, acute and community care sectors.[+5 sentences] These are important and commendable foundations, but we must be cognisant that integration succeeds, not merely when agencies connect, but when our people feel the connection. Health challenges today are rarely, purely medical. A clinic visit may begin with diagnosis of diabetes or injury, but underlying issues may include loneliness, caregiver strain, financial stress or mental health concerns. To truly integrate care, we must see the whole person and not just the diagnosis. Reflection three – learning from international practice and adapting it for Singapore. During my public health training at the Saw Swee Hock School of Public Health, I studied models of integrated care that left a lasting impression on me, including work from the Manchester Local Care Organisation in the United Kingdom, where integrated neighbourhood care has been implemented at scale. Patients with complex needs were assigned a single case worker, supported by a multidisciplinary team, which included doctors, nurses, social workers and other allied health professionals.[+13 sentences] One person understood the patient's story. One person coordinated services, one trusted point of contact. Patients did not have to repeat their stories across agencies. They experienced continuity, clarity, and most importantly, dignity. Singapore does not need to replicate another system, but we can adapt useful principles within our already strong healthcare and social care systems. Mr Speaker, Sir, I propose that we explore placing more integrated case workers within our community and primary healthcare systems, the first touch points for many of our seniors. Why this settings? First, the seniors already trust their doctors. Second, as I have mentioned before, medical and social needs surface simultaneously most of the time. Third, early intervention becomes possible, and fourth, support becomes proactive rather than reactive. Imagine a simple workflow. A senior visiting a primary care physician for follow-up for poorly controlled diabetes. The doctor identifies several social vulnerabilities, a co-located or a nearby social worker or caseworker immediately responds and assist, with application for financial aid, mobility devices, befriending services and even social prescription. True integration begins when help starts the moment the need for that help is recognised. This can be piloted progressively within our regional health systems, leveraging our Healthier SG networks, existing care coordinators, shared digital records, community partners, including our community health posts.[+12 sentences] In fact, this might achieve three of our national priorities of creating more jobs, providing seamless care, and even piloting AI solutions when we handle very complex health and social issues. Stealing the words of my colleague, Dr Tan Wu Meng from last year's COS debates, this should not be seen as a cost, but as a forward investment, an investment in our people, for our people. So, let us invest more in integration and integration is not just about building new systems, but about making existing systems feel like one. Mr Speaker, in Malay, please. (In Malay): Mr Speaker, before I continue, allow me to give some focus to our Malay/Muslim community. Many Malay/Muslim seniors face challenges that not only relate to physical health, but also social, emotional and spiritual in nature. In our culture, peace of mind, moral support and spiritual guidance are very important to age gracefully. Many of them come not just for financial or medical assistance, but because they seek support and guidance. For our community, that place is usually the mosques and local asatizah networks. The mosque is not just a place to perform their prayers, but also a centre for community support. We already have a strong foundation in place through the M3 network, which combines the efforts of Government agencies and Malay/Muslim community institutions. Based on this strong foundation, may I propose these three measures. First, enhancing training and resources for mosque officers and volunteers so that they can work more closely with the health and social services sectors. Second, placing social health coordination officers at mosques that are more frequently attended by senior citizens so that assistance can be better accessed. Third, expanding senior citizen programmes at mosques to include health talks, health screenings and counselling support.[+12 sentences] With these measures, Malay/Muslim seniors are not only cared for physically but are also strengthened spiritually and socially. (In English): Mr Speaker, in Tamil, please. (In Tamil): Mr Speaker, at a time when we are debating on Budget plans with regard to ageing, we must also reflect on how we understand ageing. Often, ageing is described only as a challenge. Our senior citizens are not a burden. They are repositories of wisdom, examples of patience, community leaders with skills and experience. Also, they are strong pillars of families and society. Therefore, it is now time for us to change the direction of our national conversation. We are not a society that is ageing, we are a society that is active and that which has a long life. We are not a society that is growing old, we are a society that is living well and maturing. We are not only a society that supports the elderly, we are a society that empowers the elderly. To implement this, we can advance in several key directions. First, we must create more opportunities that encourages lifelong learning. Second, we must expand on meaningful employment opportunities for seniors.[+9 sentences] Third, we must create a platform where seniors serve as mentors to the youth. Fourth, we must increase opportunities to utilise their experiences in community management, arts and traditional sectors. Finally, we must create programmes that not only meet the needs of seniors but also celebrate their strengths and contributions, because a country's strength lies not only in its youth, but also on the experiences and wisdom of its elders. (In English): Mr Speaker, Sir, we should judge ourselves not just by how advanced our systems are, but by how cared for our people are within those systems. As Singapore moves towards becoming a “we first” society, our task is not merely to build more programmes, but to ensure that every resident experiences care as one coherent journey – simple, humane and dignified. Because integration is not achieved when policies align on paper but when a senior no longer feels lost, when help arrives without confusion and when dignity is preserved at every step of life. If we succeed, ageing will not be feared as decline but embraced as a stage of contribution, purpose and active longevity. So, let us not just build a system that treats illness, health, social, or otherwise, but build a society that journeys with all our people together as one with clarity, compassion and care. I support the Budget, Mr Speaker.
Mr Speaker3 words
[+1 sentence]Mr Alex Yeo
Mr Alex Yeo (Potong Pasir)1377 words
[+3 sentences]Mr Speaker, I am extremely heartened by the Government’s support of our seniors in this year’s Annual Budget Statement. As the Prime Minister acknowledged in the Budget Statement, with longer lifespans, retirement adequacy is a major concern for our seniors. This is a sentiment that is echoed by the seniors in Potong Pasir. Our life expectancy in Singapore has risen over the years to about 83.5 years.[+1 sentence] If a senior retired in 2005 at the statutory retirement age of 62 years, he or she would be 82 in 2025 – a long retirement period of 20 years. During this 20-year period, if we use the Monetary Authority of Singapore's (MAS’) goods and services inflation calculator, a basket of goods and services under the food, healthcare and transport categories which, in my view, are three categories that affect seniors significantly, increased approximately between 60% to 80%.[+2 sentences] For a retired senior, every dollar saved at the time of retirement, for retirement will be stretched with each passing year. Accordingly, the Government has over the years supplemented our seniors in retirement with cash and voucher support in various forms: CPF and MediSave top-ups, Silver Support and the Pioneer, Merdeka and Majulah Packages. In this Budget, seniors can look forward to benefiting from additional subsidies for CareShield life premiums via a top-up of the long-term care support fund, further CPF top-ups and changes to the CPF system to help build up retirement savings.[+20 sentences] The objective is to ensure that seniors age with dignity, security and peace of mind. However, as the number of seniors continues to grow in the community, as we expect it to, it is inevitable that there will be seniors who fall between the gaps. Others may have to grapple with challenges that extend beyond financial concerns. Today, I wish to highlight the concerns of two such categories of seniors. The first are retired seniors who live in homes with higher Annual Value (AV). I had raised the issue of reviewing the use of the AV as a means test for healthcare subsidies in my maiden speech last year. This issue has also been raised by other Members of this House on other occasions. To address this, the Government had reviewed the AV threshold for means testing from time to time and raised it to allow more Singaporeans to benefit from higher subsidies. I agree with the Prime Minister when he explained in his response at the Budget debate last year that there is no perfect means testing regime to test both income and wealth. However, the fact that this issue has been raised on a number of occasions by Members of this House reflects the ground sentiment that an increasing number of seniors living in homes with higher AV are either extremely concerned about their retirement adequacy in the future or already facing financial challenges in retirement. To be clear, the means testing regime of PCHI and in its absence, the AV of one’s residence is, on the round, an objective measurement of one's income and wealth in the distribution of subsidies. I will posit, however, that retired seniors, who need to plan their retirement funds over a longer life span, own and live in homes with slightly higher AV purchased through pre-retirement income, or have residential arrangements that may not accurately reflect their level of wealth, are disproportionately more affected by this means testing regime than any other demographic of Singaporeans. Perhaps the deeper underlying issue is to consider whether there is a need to review holistically how we assess our retired seniors in the various subsidies and support mechanisms that we have in place. Some of these mechanisms are applied nationally across all demographics of Singaporeans. The means testing regime of PCHI and AV is one. Other mechanisms are senior-centric, like silver support and the Pioneer Generation and Merdeka Generation Packages. For those mechanisms applied nationally, in healthcare for example, some subsidies are tiered, like in hospitalisation ward subsidies, while others suffer a cliff-drop reduction of subsidies, like in the case of residential long-term care services. Sir, if there is a policy imperative that the needs of our seniors, especially those in retirement, should be prioritised, I ask if the Government will consider reclassifying seniors as a separate category for current subsidy mechanisms that apply across all demographics and apply a more nuanced and targeted approach to address the needs of this growing class of retired seniors. The second category are seniors who live alone. This is a growing trend. According to the Department of Statistics, the number of one-person households for those aged 65 years and above has more than doubled from 2014 to 2024, rising from 42,100 to 87,200 households. Based on the overall expectation that one in four Singaporeans will be over the age of 65 by 2030, we can certainly expect this trend to continue to grow.[+16 sentences] Through my pro bono LPA Programme over the past 10 years, I have had the opportunity to engage many seniors who make conscious choices on a very difficult and life-changing issue of the possible loss of mental capacity. It is abundantly clear to me that they are anxious, worried and unsettled about what could happen to them as they age, especially if they are single or choose to live alone due to complex family dynamics. Let me share an example. A senior lived alone in a home that was in a state of disrepair. Our volunteers in the neighbourhood observed that she needed help. No family member or relative was contactable. She was physically frail. Sadly, her mental capacity was also failing. She missed her bills and had her utilities turned off. She missed her meals, even though volunteers left cooked meals at her doorstep. She was friendly one day and extremely hostile the next. Our grassroots team, the Social Service Office, AIC and other volunteer groups rendered assistance in whatever way possible. Yet they were limited as to how far they could go, and no agency had the authority and or the power to intervene directly. Eventually, after almost a year, we were informed that some action had been taken to have her situation addressed. This may be an isolated case, one with a peculiar set of circumstances. But as the number of seniors living alone in Singapore grows, the expectation must be that more such cases will emerge. Currently, the Public Guardian can only supervise or investigate matters involving LPAs and or deputyships. Under certain circumstances, the Public Guardian may appoint suitable third parties, like social workers or medical care providers as professional deputies. The Mental Capacity Act, however, does not empower the Public Guardian to intervene directly if a senior loses his or her mental capacity and has no viable person who can be appointed as a deputy to make decisions and manage matters on his or her behalf. This could result in vulnerable seniors failing to get the support or timely intervention they need, even with many willing helping hands in the community. I ask if the Government will consider reviewing the Mental Capacity Act and empowering the Public Guardian to intervene directly in such cases?[+2 sentences] The Public Guardian can work alongside the Public Trustee to manage the assets of such seniors and direct caregiving agencies to administer the care required. I understand that in jurisdictions such as Australia, there exists a legal framework that allows for direct intervention in such cases. Interestingly, Australia also recently enacted the rights-based Aged Care Act 2024 which came into force on 1 November 2025 with a focus on empowering seniors to uphold their rights, needs and personal choices in their aged care.[+4 sentences] Mr Speaker, as our population ages and the needs of our seniors become more varied and complex, it is vital that our policies evolve with greater clarity and foresight. The concerns I raised today – from retirement adequacy to fair access to support and the vulnerabilities of seniors who live alone – remind us that no single framework can meet every circumstance. As we continue strengthening our systems, let us work together collectively to achieve the objective espoused in this year’s Budget: for every senior in Singapore to age with dignity, security and peace of mind. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Cai Yinzhou.
Mr Cai Yinzhou (Bishan-Toa Payoh)1844 words
[+12 sentences]A surplus of $15.1 billion. Mr Speaker, Sir, this year we find ourselves in a position of remarkable fiscal strength. Much of the debates in this House has been dedicated to "national AI Missions" and our digital frontier. With the privilege of being the last speaker of the Budget debate, I want to speak about a different kind of infrastructure, one that does not run on silicon or servers, but on the time, heart and grit of our people. I am referring to the Care Economy. When we say "Care Economy," we are not just talking about a sector of work. It refers to the unpaid labor of a daughter waking up at 3.00 am to check on the rise and fall of breath of her bedbound father. The teacher conducting a welfare check in the evening at home of an absent child. It is the parent caring for an adult child of special needs worrying about the future when they pass on. Or a retiree delivering lunch to a lonely neighbour unwell for the day. Currently, the national accounting of our GDP struggles to see that work. It is invisible. The World Economic Forum estimates compensation of unpaid care labour globally to be in the tune of roughly $11 trillion – 9% of global GDP. Closer to home, a 2024 Duke-National University of Singapore (NUS) study revealed that informal caregiving for our seniors aged 75 and above is worth $1.28 billion annually, an equivalent to 11% of our total Government expenditure on healthcare, which is today's second after defence.[+7 sentences] Behind every fiscal surplus is an "invisible surplus" provided by our caregivers. Their time is uncounted, but without it, our society would fracture. We must recognise that care has a cost, often paid in the currency of burnout by those who give the most. First, I would like to call for a flipping of paradigms. The terms "silver tsunami" or "super-aged society" are used with a sense of gloom and burden. I call for a reframe. Let us strive amidst a "silver opportunity" for a "super healthy society". It is heartening to see the expansion of the SG Partnerships Fund, but we can be bolder. I propose a specific seniors-led tier within this fund offering higher funding for ground-up initiatives led and participated by those above 60.[+12 sentences] Let us empower our active agers to be perceived not just as recipients of help, but mentors to youths and first-responders to frail neighbors in community. Let us build a silver economy where products and services are designed by seniors, for seniors, allowing them to age with agency and purpose. Next, as HDB supply gradually begins to meet demand, the anxiety of our residents shifts. It is moving from "Will I get a BTO?" to "What happens to my home in the long run?" And for those still on the margins – single unwed parents or Singaporeans with foreign spouses – the question remains, "Is there a place for me here, for me and my family?" We must reframe the narrative of home ownership. HDB should not be viewed through the lens of ticking depreciation or potential profit. It must be seen as a home for life. When a resident feels secure in the longevity of their community, they do not just live there. They invest social capital and their generations after continue aspiring to remain as many generations have in Toa Payoh. While we await the details of the Voluntary Early Redevelopment Scheme (VERS), it is an opportunity to reframe and offer a vision of Singapore where HDB ownership provides psychological and social security through every transition of life. Mr Speaker, the true test of resilience is only discovered when it is tested. In Toa Payoh, we have 17 rental blocks in Toa Payoh Central. I noted in a Parliamentary Question reply this week that the median number of occupants in a two-room rental flat is four.[+21 sentences] Allow me to visualise what I have seen. You step into a flat with multiple children, up to eight or 10 people in a two-room. One room, one hall and one toilet. The only room is typically wall-to-wall with mattresses with clothes piled, strewn all around. the living room doubles as a kitchen and a nursery. Young children lie, occupied with screens while parents cook or rest after a long day of work, if they are even home. Sometimes, you find a charging personal mobility aid. Within these four walls, a conducive environment is a state of mind, staying on the right track in life and keeping up with educational goals is a daily uphill struggle. While our nation's commitment to education reform is a vital tool for social mobility, school only accounts for a fraction of a child's day. What happens during the school holidays or the unsupervised hours after the bell rings? I have sat with primary school students who shared a cigarette, exchanging tips on which shop to shoplift. And this is a friction of inequality that no Ministry alone can solve. What is heartening, though, is the organic resilience of our community. Youths from the youth network have formed a kids club in Toa Payoh Central. What started as weekly activities at the basketball court during school holidays have become homework sessions during school term. These same children are now supervised at least for one night in seven days. Mr Speaker, these children want to study, but they can only do so in the right environment, with the right role models. If we truly believe that education is a vital tool for social mobility, let us reconsider and prioritise the design of spaces and rules in our homes and communities. We have the Enhancement for Active Seniors (EASE) Programme for retrofitting seniors' homes. How about access as a ComLink scheme milestone? Incentive for retrofitting modular furniture for families with young children in rental flats? I have even thought of the acronyms – ACCESS can stand for Adaptable, Compact, Child-centric Enhancements for Small Spaces, or Augmenting Conducive Childhood Environments for Student Success. Our income inequality is at its lowest on record, but the more insidious wealth inequality has widened.[+3 sentences] When a few accumulates significant assets, properties, equities and growing bank balances in an uncertain world, the instinct to secure one's future can easily transit into a cycle of accumulation where enough is always just beyond reach. The gap between the haves and the have nots threaten to wedge society psychologically. As President Tharman Shanmugaratnam reminded us at the Opening of this Parliament, we must resist the trend where wealth and trenches and inequality is passed down. With a $15.1 billion surplus, we have the fiscal capacity to do exactly that.[+1 sentence] We must be surgical in a moral division of resources to reinvest in our collective social capital, beginning with the stability of homes. Caregivers often torn between being at work and the bedside, just as childcare leave supports the role of a parent, we must fund paid parent or elder caregiving leave.[+7 sentences] Workplace accommodations so that choosing to care for parent does not mean a blow to one's career for the sandwiched generation. Not every disability requires a wheelchair. Thousands battle autoimmune and invisible conditions that demand immense stamina. We must fund better diagnostic support and workplace flexibility, ensuring our infrastructure of care includes the struggles we cannot see. The rising tide of youth mental health challenges is a cry for presence. We must divert resources to give parents the commodity of time, prioritising parenting over productivity during critical development windows and crisis. Family must always be our first line of defence. While staff in senior care centres uphold basic care and nursing competencies, yet when those same seniors requiring specialised care return home at night and on weekends, we do not require our foreign domestic workers to have these similar qualifications. We should subsidise upskilling specialised in geriatric and palliative care.[+7 sentences] Offering these professionalising home-based services can extend ageing in place and provides our seniors dignity and our families a peace of mind. For the vulnerable and persons with disabilities, we must move deeper for them. This means moving beyond vouchers towards long term coordinated interventions that break the cycle of poverty, safeguard our children and ensure every Singaporean is an active contributor to our nation. For large families with many children, costs do not merely add up. They multiply: from space at home, food portions to educational expenses and transportation costs. These scale exponentially with every single member. Unfortunately, childcare leave and Community Development Council (CDC) vouchers does not follow the same logic of proportionality. If demography is destiny, and families are bucking the trend to hold up our TFR, we must increase direct tiered support for families with three or more children to ensure that the invisible infrastructure of a large family remains a source of strength rather than a driver of household debt.[+11 sentences] Mr Speaker, I will now address some of the concerns of my residents in Mandarin. (In Mandarin): Mr Speaker, the Government is investing heavily in artificial intelligence, but when I visit Toa Payoh, I often hear seniors express a complex sentiment about AI, in Hokkien: "Ai lai, Mai lai". Please allow me to explain. The first "Ai" is AI – artificial intelligence. This Chinese New Year, I believe many received AI-generated cartoon-style family portraits and even saw friends galloping with horses in the images. This technology makes everyone's "good morning images" more interesting – this is the kind of AI application that everyone welcomes. But technology's value should not stop there. We must harness AI's powerful organisational capabilities to handle complex administrative work. Technology should not bring distance, but societal cohesion with love. Because the second "Ai"; must be the "Ai" of "爱心" or love. What seniors worry about is not how smart machines are, but that machines replace human warmth. What they "Mai lai" or do not want to come, is that kind of cold interaction that has only graphics on a machine, without human dialogue. We must be clear: AI is the "ladder" that helps us identify vulnerable groups, but every node in the care network must be filled by humans.[+7 sentences] Mr Speaker, facing the technological wave, I hope our society will not be replaced by cold AI systems, but should embrace the spirit from Aaron Kwok's classic song, "对你爱、爱、爱不完" (ln English): Loving you endlessly. Technology should not bring distance, but societal cohesion with love. (In English): In conclusion, Speaker, a rich Singapore is not defined by the size of surplus in our banks, but by the strength of the bonds in our community. It is a place where a senior feels valued, a caregiver feels seen and our social fabric and cohesion remain strong. Let us invest in the high touch human connection that no AI Mission can ever replace too. And as Benjamin Kheng would sing in our 2024 National Day song, Not Alone: "If we just look to each other, then this house will feel like home." Mr Speaker, I support the Budget.
Mr Speaker6 words
[+1 sentence]Prime Minister and Minister for Finance.
The Prime Minister and Minister for Finance (Mr Lawrence Wong)8632 words
[+43 sentences]Mr Speaker, this year we tabled the largest Budget in our history – larger than the five Budgets combined in 2020 to fight COVID-19. And not surprisingly, we also have a record number of Members participating in this debate. And I thank everyone who has spoken and supported the Budget. I would like to start by sharing with Members something I say at all Budget dialogues I have attended so far and that is, please do not look at any one Budget in isolation. Because it is not possible for any single Budget to be all encompassing. So, if your favourite item is not mentioned in this year's Budget, it does not mean that it has been overlooked or ignored. Because every Budget builds on the last, and lays the framework and groundwork for the next. Indeed, in the debate, several Members highlighted that suggestions and points they raised on AI in previous years were taken up this year, in this year's Budget. So, that is the spirit in which we craft and design every Budget. On that note, I have listened carefully to the many thoughtful suggestions that have been shared in the last few days, even on the occasions when I have not been in this Chamber, I have read your speeches. We will study your suggestions and give them due consideration. And maybe, in a few Budgets from now, some of these suggestions will be highlighted thereafter. Sir, I will not be able to address every point raised today. The programmes, specific questions will be taken up during the COS debates. For my response, I will focus on three broad issues that have been highlighted. First, how will we secure continued economic success and good jobs for Singaporeans in a changed world? Second, are we doing enough to ease cost pressures and ensure every Singaporean can progress? And third, is our fiscal strategy fit for the future, the challenges we face both now and in the future? Let me start with how we sustain economic success and secure good jobs for Singaporeans. Many Members spoke about this, including Ms Jessica Tan, Mr Victor Lye, Mr Kenneth Tiong, Dr Neo Kok Beng, Dr Wan Rizal, Ms Gho Sze Kee and Mr Vikram Nair, amongst others. Our economic strategies must adapt to a changed world. This is a world where power and strength increasingly shape outcomes where rules are more contested, where economic relationships are being rewired. We felt these pressures acutely last year, especially after the US' Liberation Day tariffs. Now, fresh changes in US tariffs remind us that uncertainty and volatility is becoming the norm and in such a world, smaller countries, like Singapore, risk being bypassed or marginalised. So, we cannot afford to stand still. We must deepen trusted partnerships, diversify our links and strengthen our resilience. And crucially, we need to establish leadership positions in key domains, so that we create distinctive value that others cannot easily replicate. And many Members talked about value capture for our economy. That is exactly what we are doing. And so, we are investing heavily in R&D, building up our enterprise ecosystem step by step and anchoring cutting-edge investments in Singapore. We must stay at the frontier – in advanced manufacturing, finance, digital services and new growth sectors. In the past, growth and jobs moved more closely together. When the economy expanded, firms hired more workers across the board. Today, the relationship is more complex. Let me explain. Our fast growing sectors are export oriented. That is to be expected. Companies in these sectors compete globally and they create well-paying jobs, with strong career progression opportunities. But precisely because they compete at the frontier, they have to be productive and operate efficiently, often with lean manpower. And that is a global trend. You look at leading companies around the world, some of them run highly automated facilities, including so-called "dark factories" that operate 24/7 with minimal human presence. That is one reason why manufacturing employment in many advanced economies has steadily fallen. We see similar patterns here in Singapore. Over the last decade, the manufacturing sector has, on average, contributed about 20% of GDP.[+1 sentence] But its employment share is smaller. And it has declined – from 14% in 2015 to about 12% today. Over that same period, employment in exportable services – areas like finance, information technology (IT) and professional services – has grown as we diversified our economy. Yet, taken together, the manufacturing, finance, IT and professional services segments of our economy account for just around 30% of employment.[+11 sentences] Does that mean that growth is no longer important? Far from it. Growth is essential. It creates new opportunities, raises wages and generates the resources we need as a society. Frontier industries, in particular, produce positive spillovers. They anchor our enterprise ecosystem and drive demand across the rest of the economy. So, without sustained growth and, especially, growth at the frontier, investments will go elsewhere, capabilities will erode, wages will stagnate and Singapore risks a real decline. But growth alone is not sufficient. Growth alone will not automatically translate into job opportunities across the board. We must also uplift the broader domestic economy – raising productivity, wages and career pathways across the services sector. And that is why we are taking sustained action in areas like education, healthcare and social services. We have put in place skills frameworks to articulate competencies, enable skills upgrading and support structured progression in these areas. We have increased salaries for workers in public healthcare institutions and Government-supported preschools.[+23 sentences] We have updated salary guidelines for the community care and social service sectors. These are not ad hoc or one-off moves. They are integral to our economic strategy. Because inclusive growth means more than developing frontier industries. It also means ensuring that domestic services – services that Singaporeans rely on daily – become more productive, more professional and more attractive as careers. In this regard, SMEs play a critical role. They employ many Singaporeans and anchor economic activity across our island. Many members also shared their concerns about SMEs, including Ms Diana Pang, Mr Jackson Lam, Mr Fadli Fawzi, Mr Edward Chia, Ms Denise Phua, Mr Azhar Othman and Mr Sharael Taha. In particular, the two SME segments under greater pressure are retail and food and beverage (F&B). These sectors face structural headwinds – from e-commerce and changing consumer habits and from increased overseas travel by Singaporeans and perhaps also by the strong Singapore dollar. Yet, even amid these challenges, the number of F&B and retail establishments continue to grow. And with more players in the market, competition has intensified. So, how should we respond to these trends? In the immediate term, we have provided Corporate Income Tax rebates, including in this Budget. Over the longer term, our support must be sustainable and should not distort market incentives. For businesses in retail and F&B, what are their cost drivers? The largest components of their operating expenditure are the costs of goods and materials, labour and rent. Let me go through each one of these. In a small economy like ours, goods and materials are largely priced in global markets. So, there is little scope for us to influence these costs. On rental costs, at the macro level, rentals have broadly tracked economic fundamentals. Rent increases for retail spaces have trended below nominal GDP growth and inflation in the last few years. Rental costs have also declined as a share of total business costs. Between 2019 and 2024, they fell from 26% to 17% for the F&B sector; and from 30% to 26% for the retail sector.[+12 sentences] Now, that is the broad picture. Of course, market rents vary by property type and location. Individual tenants may face higher rent increases at renewals, and we are mindful of these cases. Where Government agencies are landlords, like HDB and JTC, and where we have direct oversight, like in hawker centres, we have frameworks to keep rents fair and competitive. And we will continue reviewing and updating these frameworks. We will also continue to monitor the situation closely to ensure that rentals remain sustainable and competitive. I have covered cost of goods, rental. Next, manpower. Indeed, labour costs have increased in recent years. Part of this reflects structural factors – an ageing population and tighter labour supply as well as market forces as firms compete for workers. But part of this is also the outcome of policy. Through the Progressive Wage Model, we are raising wages for lower-wage workers. That is the right thing to do – to uplift incomes, strengthen dignity in work and narrow wage gaps. And at the same time, to support businesses through the transition, we introduced the Progressive Wage Credit Scheme and, in this Budget, we are enhancing the Scheme and extending it for another two years.[+1 sentence] That reflects our consistent approach to uplift workers while supporting firms to adjust. Mr Mark Lee asked for more leeway for SMEs to hire foreign workers. We cannot relax the Dependency Ratio Ceiling (DRC). Doing so will encourage excessive reliance on foreign manpower and weaken our Singaporean core. But we will consider calibrated ways to provide more flexibility, like expanding the sources from which businesses can hire Work Permit holders, for certain types of occupations where genuine shortages exist.[+22 sentences] We will continue to strike the right balance – sufficient flexibility for businesses without undermining Singaporean workforce development. Ultimately, the sustainable path forward is productivity improvement and business transformation. And many Members spoke about this. We know that SMEs need more support to embark on such transformation. Several Members, including Ms Cassandra Lee, Mr Lee Hong Chuang and Mr Henry Kwek, have offered suggestions on what more we can do. Mr Mark Lee also highlighted the need to strengthen management capabilities, and he and several other MPs, including Mr Liang Eng Hwa and Mr Victor Lye, spoke about the importance of internationalisation. These are all useful feedback and suggestions, and the Government will continue to take them onboard, study them and lean forward to enable our SMEs to innovate, upgrade and internationalise. SMEs that redesign jobs and transform their operations can offer higher wages and more meaningful opportunities to attract and retain Singaporeans. Many SMEs have done so successfully, including those in retail and F&B. Enterprise Singapore and the Singapore Productivity Centre recently did a deep dive into F&B establishments in Singapore. The findings were reported in the media and they are very instructive because F&B establishments that benchmark themselves with productivity standards and knew that they were lower than the benchmarks could find practical and useful ways to raise their productivity. And when they did do so, they have generally done better. I mentioned HarriAnns on Budget Day as one example. Other companies have done so too – restructured, transformed, digitalised and even expanded abroad. And we want to encourage many more SMEs to take that path. Let me cite another example. Poh Heng Jewellery. It was founded in 1948 as a small shop on North Bridge Road. Over the decades, it grew into a household name. A few years ago, the company embarked on a serious transformation. It strengthened its management. It embraced e-commerce. And with Government support, it is developing AI tools to analyse customer data and shopping behaviour, so as to enable more personalised product recommendations. And it now employs 150 people and is making plans to expand into ASEAN.[+25 sentences] These examples show that even traditional industries can reinvent themselves and in doing so, create better opportunities for Singaporeans. Another powerful force reshaping our economy is AI. And many Members spoke about this, including the National Trades Union Congress (NTUC) Secretary-General Ng Chee Meng, Mr Desmond Tan, Mr Desmond Choo, Dr Charlene Chen, Mr Darryl David, Ms Lee Hui Ying, Ms Mariam Jaafar, Mr Andre Low and Assoc Prof Jamus Lim. Many also shared about the anxieties that workers and fresh graduates are feeling. These concerns are real. And we must, and we will, take them seriously. Historically, every major technological wave has displaced some jobs but also created new ones. Computers displaced stenographers and typists but created new professions in ICT, in finance and services. And over time, productivity gains expanded opportunities for workers. Indeed, what we have seen in Singapore so far is that AI can augment jobs and help workers achieve more, even as it automates certain tasks. Take the example of Ms Angeline Tan, who works at Nanyang Incorporated, a local event infrastructure company. Her company adopted an AI chatbot to handle customer enquiries. Instead of being displaced, she stepped up. She became a Chatbot Manager, assuming responsibility for auditing the system's responses and ensuring its accuracy. But she did not stop there. She upgraded her skills further. And today, she is an AI Tech Lead in her company, overseeing the implementation of AI tools, improving workflows and taking on more creative responsibilities. And that is the pathway we want to encourage – workers moving up the value chain. AI can also make our workplaces more inclusive. Robots can handle physically demanding tasks. For example, they can support seniors and persons with disabilities. Ms Denise Phua and Mr Sharael Taha spoke about this, and we will step up efforts in this area too. These are not theoretical possibilities. They are already happening today. For now, our labour market remains resilient. The proportion of permanent employees has risen to a record high of nearly 91%, with gains across most sectors. Vacancies continue to outnumber jobseekers and over 40% of openings are entry-level professionals, managers, executives and technicians (PMET) roles, indicating still healthy demand for young graduates.[+24 sentences] So, thus far, the evidence does not point to widespread displacement. But as many Members have highlighted, there are emerging pressures and we recognise that. We cannot rely only on today's data. We must prepare for tomorrow. I mentioned earlier that the historical experience with major technological waves is that ultimately more jobs are created than lost. That has been so in the past. But there is no economic law that says this will always happen or that this will happen in the future. Indeed, many are concerned that this time may be different. Because AI is more powerful, advancing faster and affecting a wider range of occupations. And many Members raised important concerns, for example, that companies may lean too heavily on AI and invest less in worker training. That more workers could be displaced and the older ones will find it harder to re-enter the workforce. And that entry level jobs, the first rung of career ladders, may be hollowed out. We are alert to these risks and we will act early to prevent such outcomes from taking hold in Singapore. We will invest more deliberately and more systematically in our people. In that regard, I agree with NTUC Secretary-General Mr Ng Chee Meng's three calls: to empower every worker to be AI-ready; to strengthen support and safeguards for workers; and to strengthen the Labour Movement's ability to protect and uplift PMEs. We will work closely with our tripartite partners, especially NTUC, to realise these shared goals. What does this mean in practical terms? For example, as we develop Champions of AI and implement our national AI Missions, we will not only just help companies transform. We will capture value in Singapore; we will pay close attention to how these companies apply AI; and, importantly, guide them to use AI to enhance human skills and expertise. Take aviation maintenance. Machines and AI can perform many functions. But skilled technicians remain essential and AI can help them make better diagnoses and perform their work more cost effectively. Achieving all this will not be easy. Every sector is different, and how they use AI and the impact on workers in each sector will vary and that is why we are coordinating all of these efforts through the national AI Council, aligning industry transformation and workforce upgrading to ensure that AI uplifts our workers. That is our assurance and that is why our strategy going ahead is clear. We will not have jobless growth in Singapore.[+1 sentence] We will exploit AI to grow the economy, and we will ensure that growth translates into good jobs and better wages. That is how we give every Singaporean confidence to progress in the future.[+1 sentence] Next, let me touch on cost pressures. We achieved better than expected growth of 5% last year.[+6 sentences] Yet, as many Members have highlighted, including Ms Hazlina Abdul Halim, Mr Saktiandi Supaat, amongst others, Singaporeans continue to feel cost-of-living pressures. The data may show improvement. But lived experience and realities do matter. So, the question is this: what more must we do to ease cost pressures and ensure every Singaporean can continue to progress? We must first understand why affordability and cost concerns have surfaced – not just in Singapore, but across many economies around the world. After COVID-19 and the war in Ukraine, inflation surged globally. In Singapore, it rose to more than 6% in 2022 and it has since come down to 0.9% last year.[+8 sentences] Inflation has moderated, but price levels remain higher than before and that is what households are experiencing. To cushion the spike, we provided more than $10 billion through the Assurance Package. Some have observed that the transfers in this year's Budget are smaller than last year. But in fact, support in this Budget remains substantial and broader in scope: we are providing CDC Vouchers, cash support, utilities rebates, Child LifeSG credits and CPF top-ups for seniors. What does this mean? A middle-income household with young children receives about $2,800, after you tote up all the different items. A lower-income household with young children – about $5,000. And a retired elderly couple – about $7,600. Essentially, we give more to those with greater needs and we give more to seniors, especially our retirees, as they are not working and have to cope with higher prices on fixed incomes.[+5 sentences] These are meaningful sums and they are on top of substantial, broad-based subsidies for essentials, like education, healthcare and housing, as well as targeted support for lower-income families and workers. Mr Louis Chua said the Government’s primary response has been to rely on one-off and ad hoc handouts. He said that last year. I had clarified the matter then. But regrettably, he has repeated this false claim again this year. Because the facts are only about 5% of our overall Budget is for one-off measures – that was so in FY2025 and it is so in FY2026. The remaining 95%, the overwhelming share, is for longer-term and structural schemes.[+6 sentences] And in this Budget, we enhanced preschool and student care subsidies, as well as ComLink+ to support families with children. Total social spending has increased this year. It has not gone down. We are providing more help for Singaporeans. Our approach is not just to cushion costs because the durable solution to cost pressures is steady, sustainable wage increases. Mr Shawn Loh highlighted concerns that a decreasing proportion of Singaporeans benefit from economic growth. He highlighted the concerns among seniors and, indeed, one group that will face greater impact is retirees because they are not working and that is why we provide more for them in the Budget. But when we look at data at both the household and the individual worker levels – household and workers – in fact, incomes have risen faster than inflation over the past decade, across the entire income distribution.[+6 sentences] So, real incomes have gone up for both households and for workers across the entire income distribution. We also look at household expenditures. Spending has increased in dollar terms, but expenditure as a share of income – that has either remained stable or fallen, across the income distribution as well. Meaning Singaporeans generally are spending less as a share of their incomes even if their spending has gone up in dollar terms. In particular, the share of household income spent on essentials, like food, public transport and education, has declined across all income quintiles. There is one exception – that is, healthcare. Singaporeans are spending a larger share of their income on healthcare and health insurance.[+48 sentences] That reflects our rapidly ageing population because as you get older, you will tend to spend more on healthcare, and that is why we provide significant and growing subsidies for healthcare services and for our national health insurance premiums. It is also why we have taken steps to rein in overly generous private riders and other practices that drive up medical inflation, especially in the private sector. And we will continue to ensure that healthcare remains affordable in Singapore. No Singaporean will be denied the healthcare they need because of an inability to pay. That is our assurance. Another reason for concerns about cost is that inflation for some frequently consumed services, especially F&B, has risen faster than general inflation. Food consumption may form a smaller share of income which I mentioned just now. But we experience the higher prices each time we order something, or we dine out and the psychological impact is immediate and visible. The domestic services, be it healthcare or F&B, are labour-intensive. We want wages for Singaporeans in these sectors to rise. But when wages rise, costs also increase. And that is the fundamental tension every economy must manage. Some countries choose to suppress service wages to keep prices low. But then this traps a segment of workers in low-paying jobs. It is not what we want to do. Others, like the European economies, have taken a different path. Wages in the services sector are high. You go to any European country, you will know they are paid very well. But that leads to higher prices overall and a heavier cost burden, which in turn has to be supported by a larger welfare state, financed by taxpayers. There is no free lunch. Someone has got to pay this. So, Singapore is forging our own path. We pursue broad-based wage growth. But wage increases have to be supported by skills upgrading and productivity improvements. And at the same time, the Government bears a substantial share of the costs of essential services, through subsidies and transfers, with more support for lower- and middle-income households. Overall, this balance has delivered good and affordable services to Singaporeans at a sustainable cost. But we know that this is still a work in progress. The macro data may be reassuring. But as many Members have highlighted, the lived realities differ from household to household and the circumstances vary for specific segments. Different families face different pressure points. For example, there are larger families with more children and they will face greater cost burdens, as Mr Pritam Singh and Mr David Hoe have highlighted. Mr Singh suggested adjusting the CDC vouchers. That could be one way to help them. But we will continue to explore other measures to help those with larger families. There are also families caring for seniors or children, and especially those sandwiched with both. Ms Yeo Wan Ling, Ms Jessica Tan and Ms Nadia Ahmad Samdin highlighted their concerns. And in fact, we already provide more for them in the Budget, in every Budget, including in this year's Budget. There are families with members who have special needs. Prof Kenneth Poon and Ms Hazlina Abdul Halim highlighted their concerns. And caregivers too need to be supported, as Mr Cai Yinzhou and Ms He Ting Ru highlighted. In recent Budgets, including this one, we have strengthened support for all of these groups. And we will continue to do so, and will consider the suggestions that Members have made. Targeted support for specific groups requires means-testing, And we use different indicators to means-test. The two key ones are the AV of dwellings and PCHI. Quite a number of Members in this debate, including Mr Alex Yeo, Ms Jessica Tan, Mr Gerald Giam, Ms Sylvia Lim just now, Mr Edward Chia suggested reviewing these indicators. I suppose if you were to take a step back, most of us would agree that support should be given to households with less income and less wealth. No one would dispute that. How to measure income and wealth is the challenge. AV and PCHI are practical and effective indicators. But no measure is perfect and we will continue refining our criteria, especially when it comes to support for seniors.[+15 sentences] Cost pressures can also feel sharper due to inequality. Because of inequality, comparisons intensify. Social stresses grow. Encouragingly in Singapore, income inequality has narrowed compared to a decade ago. Lower- and middle-income workers have seen faster real income growth than those at the top. Without this inclusive growth, I have no doubt that the cost pressures that we are feeling on the ground would have been far worse. We have achieved good outcomes. But we will continue to press on. And in this Budget, we are raising the Local Qualifying Salary as well as enhancing and extending the Progressive Wage Credit Scheme. Several Members, Mr Patrick Tay, Mr Melvin Yong and Mr Sanjeev Tiwari, suggested further steps to support lower-wage and vulnerable workers. We will study your suggestions carefully – balancing wage increases with sustainable productivity improvements. We are also paying close attention to wealth inequality. We have begun publishing the data and will track this more systematically. But we are not starting from a weak base. Through housing grants, homeownership and CPF top-ups, we enable lower-income households to accumulate assets in Singapore. Today, households in the lowest quintile have average net wealth of nearly $300,000 – that is a meaningful foundation.[+32 sentences] Mr Saktiandi and Assoc Prof Terence Ho suggested additional asset-based transfers. I think someone called it a "Singapore Dividend" or other forms of putting together the measures that we do to help Singaporeans build assets. In fact, this is the approach that the Government has long taken. We focus not just on income support, but on enabling Singaporeans to accumulate assets, because asset ownership gives families a concrete stake in our nation's success and allows them to share directly in Singapore's progress. We do this through a range of different mechanisms like the CDA, Edusave, Post-Secondary Education Account, through CPF and our housing policies and most recently, we introduced the Institute of Technical Education (ITE) Progression Award which incorporates an element of CPF top-ups. We will continue to strengthen pathways for Singaporeans to build savings and assets. We also have progressive taxes on wealth, through our property and vehicle taxes. We will continue to study ways to moderate excessive wealth concentration – carefully and responsibly. But redistribution has limits. It is very easy to say, "Let's tax the rich more!" But capital and talent are mobile and if we rely solely on ever-higher taxes for this segment, eventually, the broad middle will also have to shoulder the burden. And we risk undermining competitiveness, enterprise and job creation. Redistribution alone cannot build a strong and resilient society. So, our approach is balanced. We keep taxes moderate but progressive. We redistribute resources to those with greater needs. And we complement that with heavy investments in human capital – early childhood education; quality schooling and tertiary education; as well as lifelong learning through SkillsFuture. Upward mobility remains central to our social compact. Because here in Singapore, your starting point should never determine your finishing position. Several Members also spoke about retirement. Mr Saktiandi Supaat has been championing this for many Budgets. Ms Poh Li San also mentioned this in the debate. And in this Budget, we are indeed strengthening our CPF system because Singaporeans are living longer and we want them to retire with confidence and peace of mind. Our CPF system rests on sound and sustainable principles. Each member saves for his or her own retirement. But we do not leave individuals to fend for themselves. We boost those with lower balances through Silver Support, the Majulah Package and periodic CPF top-ups. And we continue to review the parameters of these schemes. That keeps our system fiscally sustainable, while ensuring that those with less get more support. The CPF provides, as Members would know, risk-free returns of 2.5% on the Ordinary Account (OA) and 4% on the Special Account (SA), with extra interest of 1% to 2%. Members who wish to invest their savings for potentially higher returns can do so, today, through the CPF Investment Scheme (CPFIS). But the experience with the CPFIS has been mixed. From 2016 to 2024, while a majority of CPFIS-OA investors earned above 2.5% per annum, only about half achieved returns of more than 4%; this is for OA.[+1 sentence] In other words, many would have been better off topping up their CPF SA and earning the guaranteed 4% return. For CPFIS-SA investors, the results were even more sobering – around three in four made 4% or less per annum.[+10 sentences] In other words, they underperformed the SA rate, which is risk free. So, the reality is that we all talk about investments. Such a wonderful thing. But investing and earning consistently good returns is not that easy. That is why we took some time to study how to implement a low-cost investment option within the CPF – it has to be simple, low-cost and effective. There are commercial lifecycle products available in the market, but up till now, the take-up has been limited, partly due to the high fees, which can go up to as much as 2%. But in recent years, the market has matured. More players have entered. Digital platforms have helped to lower costs. That is why we now believe it is possible to offer well-diversified life-cycle products at lower fees. The CPF Board will be engaging the industry next month to call for expressions of interest.[+1 sentence] There is still a lot of work to be done – designing the scheme, the specific parameters that several Members talked about, building the IT system and ensuring a smooth and seamless user experience. The CPF Board is working towards rolling out the scheme in the first half of 2028, but if we can do this earlier, we will.[+6 sentences] Beyond retirement, we have and will continue to strengthen support across life stages. We have initiated major moves as part of Forward Singapore. In public housing, through the new HDB classification system of Standard, Plus and Prime flats. In healthcare, through Healthier SG and Age Well SG. We have made SkillsFuture a key pillar of our social compact and we are strengthening this further. We have introduced the SkillsFuture Jobseeker Support Scheme and we have enhanced ComCare and ComLink+. Mr Abdul Muhaimin asked about this particular issue of ComLink+.[+1 sentence] Let me just touch on it briefly. There are, today, about 11,000 families on ComLink+, most are in rental housing.[+21 sentences] There are around 14,000 eligible families living in rental flats. We have approached them, but some chose not to come onboard ComLink+ or could not be contacted. With the enhancements to ComLink+, we will redouble our efforts to reach out to them and with stronger community support, we hope more of them will come onboard the scheme. And we will also extend ComLink+ to lower-income families beyond the rental blocks. Members have also offered many other suggestions to further strengthen our community and social support system. Many suggestions have been offered. For example, in healthcare delivery and integration with social support. Members, like Dr Choo Pei Ling, Mr Dennis Tan, Miss Rachel Ong and Dr Hamid Razak, just now spoke about this. Suggestions around housing and neighbourhood rejuvenation – Mr Ang Wei Neng and Ms Joan Pereira touched on that. More support for the arts, culture and community initiatives – Ms Elysa Chen and Assoc Prof Kenneth Goh mentioned that in their speeches, as well as suggestions to review the income thresholds for the Jobseeker Support Scheme (JSS), which Mr Ng Chee Meng and Mr Patrick Tay had advocated. We will study these suggestions carefully. In particular, the JSS was launched only recently, about a year ago. So, we will review the scheme and its parameters once we have more experience. Many Members also asked for more support for families, especially for parents and would-be parents. Mr Foo Cexiang, Ms Hany Soh, Mr Shawn Loh, Ms Eileen Chong, Mr Gabriel Lam and others have highlighted this concern. Indeed, our falling TFR is a serious concern. It is not unique to Singapore. It is happening across all advanced and high-income economies. So, we really should have some humility about this because no country has truly succeeded on a sustained basis to reverse this decline. Members offered practical suggestions around housing, cost pressures and the affordability of raising children. Some also asked for more work flexibility and leave provisions, so that parents can be present in their children's formative years. In fact, we have taken significant steps on both fronts recently.[+1 sentence] We have enhanced shared parental leave. And with the Large Families Scheme, parents can now receive up to $48,000 for their third or fourth child, and even more for the fifth or subsequent child. As a result of the recent enhancements, our expenditure on marriage and parenthood initiatives has increased – from $4 billion in FY2020 to $7 billion in this Budget.[+22 sentences] But we will not stop here. We have not given up. We will not give up. We are already planning for the next tranche of measures to strengthen support for families. And there will be an opportunity to discuss this at the COS debate and the Minister in the Prime Minister's Office will share more at that occasion. Sir, this Government will continue to provide stronger assurance for Singaporeans at every stage of life. We will do this in a coherent and deliberate way – strengthening individual responsibility, reinforcing collective support and preserving long-term sustainability. We will continue to strengthen our social compact and ensure Singapore remains a society where every citizen can progress with confidence. Let me move on to the third question – is our fiscal strategy fit for immediate challenges and is it positioning us well for the future? Let us first look at the global context. Since the start of this decade, countries have been tested in ways few could have anticipated. Many advanced economies are now carrying record high levels of public debt. And as debt rises, so will borrowing costs. Over time, this constrains fiscal flexibility and weakens longer-term growth potential for these economies. Against this backdrop, Singapore's strong fiscal position is a strategic advantage. Many Members spoke about our fiscal position and public finances, including Mr Ang Wei Neng, Ms Valerie Lee and Mr Xie Yao Quan. I am glad they see our healthy fiscal position as a strength; a source of strength. Given the surplus we have generated, in FY2025 and also the ones that we expect in FY2026, Mr Gerald Giam have asked whether the Goods and Services Tax (GST) hike should be re-evaluated. But let us consider the facts. At the beginning of this decade, we knew that healthcare spending would rise sharply in line with our rapidly ageing population. This was structural, not cyclical. And healthcare was not the only area where spending pressures were increasing. We had estimated that healthcare alone would require additional funding of 0.6% to 1.2% of GDP and this would happen in the second half of this decade, which we are in right now.[+3 sentences] That is a significant and permanent increase. The question was how to fund this. We studied a range of options. We raised property taxes and motor vehicle taxes for luxury cars. We have increased the top marginal personal income tax rates.[+1 sentence] But these moves were still not sufficient to close the structural funding gap. The WP had suggested raising the maximum Net Investment Returns Contribution (NIRC) we can use in the Annual Budget from 50% to 60%. We did not agree with that proposal, because the NIRC framework was carefully designed to safeguard intergenerational equity.[+2 sentences] If we increase the cap to 60%, that can ease immediate pressures. But it will weaken fiscal discipline, reduce our buffer for future shocks and it will shift a heavier burden onto the next generation. In the end, the GST was the only broad-based and sustainable option to fund rising healthcare needs, while preserving our reserves framework.[+54 sentences] But even as we raised the GST, we also made sure we mitigated the impact on Singaporeans. We delayed the effective tax increase for the majority of Singaporean households, by at least five years. We enhanced the permanent GST voucher to further defray the tax paid by lower- and middle-income households. After accounting for these measures, the majority of GST collections are and will continue to be, from higher-income households, tourists and foreigners. In other words, we secured stable funding for healthcare while cushioning the impact of the increase for most Singaporean households. Could we have relied instead on Corporate Income Tax collections? But remember, back in 2022, when we made the decision on the GST, there was no sign that Corporate Income Tax collections would rise so significantly. At that time, the discussions on Base Erosion and Profit Shifting (BEPS) were still evolving. The eventual outcomes and their revenue implications were far from certain. It would not have been responsible to fund permanent healthcare commitments using revenue sources that were uncertain and can yet dry up. Corporate Income Tax collections only started rising towards the end of FY2023 and have stayed elevated until now. This outcome was not anticipated. It was due to GDP growth outperforming expectations in 2024 and 2025, as well as better-than-expected contributions from multinational enterprises (MNEs) in a few key sectors. And this brings us to the issue of fiscal marksmanship – Mr Alex Yam, Mr Gerald Giam, Mr Louis Chua and Mr Xie Yao Quan touched on this. We have debated this before in the House. It is perhaps, my favourite topic, because I have shared before that I started work in the Ministry of Finance (MOF) doing precisely this – fiscal projections. And as I have explained, our forecast deviations are within a reasonable range – comparable to other advanced economies. Within this range of variation, revenues in recent years have indeed come in above projections. Is it because we were overly conservative? The short answer is, no. Our projections are prepared by the MOF economists using the best available data at the start of each financial year, including GDP growth assumptions at that time. But for a small open economy, like Singapore, growth outcomes can diverge significantly from forecasts, as global conditions evolve, Because we are so dependent on the external environment, forecasting Singapore's GDP growth is like forecasting the world's GDP growth; which is very, very difficult to do. Likewise, revenues from property transactions or Certificate of Entitlement (COE) premiums are inherently difficult to predict. Can you tell what the next year's property prices will be? What next year's COE premiums will fetch? It is very hard to do. In the case of COEs, we increased the quotas. Yet the premiums continued to rise with sustained demand. That explains the increase in revenue from Licences and Permits, which Mr Gerald Giam asked about. So, forecasting in such an environment will never be exact. But I assure everyone in this House and Singaporeans that our approach has been and will be responsible and professional. A further insinuation is that the PAP Government deliberately painted a "doom and gloom" picture for electoral advantage. Let us consider the facts and the context. Actually, after the US Liberation Day tariffs, there was widespread uncertainty across the world, not just in Singapore. At that time, how many analysts projected 5% growth for Singapore in 2025? I do not recall any. The reason why things did not turn out as badly as we feared was partly due to factors beyond our control, but also partly because of the decisive steps we took. Deputy Prime Minister Gan and the team moved quickly, engaging the US to safeguard our core interests, deepening links with other countries, forging new agreements that sustained investor confidence. Our agencies, our businesses and our workers adapted swiftly and worked tirelessly through a very uncertain period. Their efforts deserve recognition. Let us not belittle these contributions just to score a political point. The fact that we are in a better position today than our projections is something we should all welcome. It is good news for Singapore and Singaporeans. Imagine if we had chosen differently. If we did not raise GST and had instead hoped for revenue upsides. And then the economic situation did not turn out so well. We would be having a very different debate today. We would be scrambling to close fiscal gaps. We would be responding from weakness. But because we made the difficult yet responsible decision, because we chose responsibility over convenience, we are now in a position of strength. Sir, we did not gamble with Singapore's future. We made the hard call and that is why we can act with confidence today. Next, let me turn to our medium-term revenue and expenditure outlook. We are expecting structural revenue increases from Financial Year 2027. That is when the first revenue collections from the BEPS Top-Up Taxes come in. Based on the strong corporate tax collections so far – and that is pre top-up taxes – our initial sense is that the further increase from the top-up taxes could be significant.[+34 sentences] We will continue to firm up our estimates over the coming months as we get more up-to-date data on how firms are performing and adjusting their plans. Since the BEPS revenue is coming, some may ask, well, how about rolling back the GST? Again, the GST increase was introduced to fund rising structural healthcare expenditure for an ageing population. These spending needs are permanent and will continue to grow. They should be supported by a stable and reliable revenue base. At the same time, as I have shared in the Budget, Government spending is rising in many other areas, aside from healthcare – for social needs, economic competitiveness, our energy transition, security and infrastructure. The additional corporate tax revenues will strengthen our fiscal position and support these growing needs. But they do not replace the structural role of the GST and especially what we have done to fund permanent and rising healthcare costs. In fact, expenditure pressures are already evident. Take the example of defence spending. I mentioned that the Ministry of Defence's (MINDEF's) budget of 3% would be where it is for now and that the budget includes spending on cybersecurity by MINDEF and the Singapore Armed Forces (SAF), something Mr Giam asked about. But it does not include cybersecurity spending beyond MINDEF. And we do need to spend more on cybersecurity outside of the MINDEF family. The Ministry of Digital Development and Information, and the Cyber Security Agency, for example, will have to invest more. We will have to harden our critical information infrastructure, like our grids and our power system, against cyber threats. That is why I said in the Budget that security spending will rise in the coming years. In short, our aim is not to run high surpluses for the rest of this term of Government, something that Mr Liang Eng Hwa asked about. Our objective is a balanced Budget over the term of Government. And that is clear from our historical records. Mr Xie Yao Quan very helpfully gave a speech yesterday outlining the historical data. And if you look at the past years, we have had balanced Budgets in many years – balanced meaning within a range of plus/minus 0.5% of GDP, in terms of the overall fiscal balance. We have had years of surpluses, we have had good years, but we have also had years of deficits. But on the whole, we plan for a balanced Budget over the term of Government. If there are revenue upsides, when there are revenue upsides, we will deploy these to meet our growing needs. Mr Shawn Loh suggested giving back surpluses above 2% of GDP to all Singaporeans. But in practice, we actually do not wait to cross a mechanical threshold like that. Whenever there are revenue upsides, we have shared some of the gains with Singaporeans. Last year, we used that to fund the SG60 package. This year, we channelled them towards CPF top-ups and the Cost-of-Living Special Payment. We have also strengthened our national priorities by investing in our social support system – enhancing our connectivity, security and economic resilience. For this FY2026 Budget, expenditure is at 18.4% of GDP. As I said just now, it is the largest Budget on record. Earlier, MOF had projected that Government spending could reach 20% of GDP by 2030. But if you look at the trends, since emerging from COVID-19, expenditure has grown by an average of $10 billion every year. And we expect our needs to rise even more for the coming years, in this term of Government. So, Government spending is likely to exceed 20% of GDP well before 2030.[+1 sentence] In light of our fiscal position, Mr Shawn Loh had asked if the Government can commit to not making further major revenue moves. At this juncture, if circumstances remain broadly stable and without any further major revenue moves, we expect our fiscal position during this term of Government to remain healthy. We have already said that there will be no further GST increases until at least 2030.[+6 sentences] Aside from the GST, we continue to review our tax system regularly as part of prudent fiscal management. We will make revenue adjustments only when necessary – to fund structural spending needs or to achieve clear policy objectives like strengthening progressivity or addressing externalities. These are difficult decisions. Any tax change, I should say any tax increase, is a difficult decision. We take them only after careful study and full consideration of the impact on households and businesses. MOF had earlier published medium-term fiscal projections up to 2030. With updated revenue and expenditure developments, these projections will need to be refreshed. So, we will publish updated medium-term projections extending to 2035 by next year.[+5 sentences] But a word of caution is in order. Because in today's fast-changing world, assumptions can quickly become outdated. The forward projections serve as a guide and will have to be continually updated. Ultimately, what matters most is maintaining fiscal discipline, together with the agility and nimbleness to respond swiftly as circumstances change. Let me turn to specific points on our tax system. Ms Diana Pang asked about the timing of the changes to the Preferential Additional Registration Fee rebate. We implemented the vehicle tax changes immediately to prevent a rush-to-market.[+4 sentences] That has long been our practice for property and motor-vehicle-related taxes. The changes are announced and then applied immediately to ensure market stability and fairness. A number of questions has been raised on this particular issue, and the Ministry of Transport will address them separately. Mr Saktiandi and Mr Louis Chua shared their views on the personal income tax regime. When taken together with our progressive tax rates, tax reliefs and rebates, currently about one in three resident workers pay no personal income tax. Among those who do, about eight in 10 have an effective tax rate of less than 6%.[+5 sentences] We will consider these suggestions around the personal income tax as part of our regular fiscal reviews. There was a debate yesterday about what it means to run a fiscal surplus. Does a fiscal surplus mean that the Government is taking more from the economy and leaving households and businesses to bear a deficit? This is an oversimplified and inaccurate characterisation of how our fiscal system works. A surplus simply means that in a year, revenue exceeds expenditure. And in Singapore's case, revenue includes significant investment income from our reserves, not just taxes collected from businesses and households. So, if you exclude Net Investment Returns Contribution (NIRC), expenditure exceeds revenue.[+4 sentences] In other words, we are putting money back into the economy, not draining money from businesses and households. In fact, our Budgets in both 2025 and 2026 have been expansionary, with significant support for households and businesses. More importantly, we should look at who pays the tax and who benefits from the transfers. And on that score, the picture is clear. For every dollar of tax paid by the top quintile, they receive 20 cents in benefits.[+3 sentences] That is the top income quintile. Pay a dollar in tax, you get 20 cents in benefits. In contrast, the middle quintile receives around $2 in benefits. A dollar of tax, you can get back more, $2 in benefits. And the bottom quintile gets $7 in benefits.[+39 sentences] In other words, those who are better able to contribute, are the ones who generally pay more in taxes. We use that revenue to strengthen our social compact and provide greater support to those who need it most. Mr Speaker, our fiscal system is fair, progressive and sustainable. It is pro-worker, pro-enterprise and pro-Singapore. Let me conclude on a final point around accountability. I agree in-principle with the many comments and suggestions that Members have made, including Mr Pritam Singh, Dr Haresh Singaraju and Mr Yip Hon Weng, asking for more information to ensure fiscal accountability and value for money in Government spending. We want to do that. We want to ensure that. This is why we have been publishing the Singapore Public Sector Outcomes Review biennially since 2010. That sets out the key outcome indicators across major policy areas and allows the public to track our progress over time. We will continue to review the indicators in the report and ensure they are relevant and useful. It is not static. We continually look at refreshing and updating this document. Ministries on their own also conduct detailed reviews of major spending programmes to assess effectiveness and outcomes. I will ask all Ministries to provide clearer and more accessible information on major initiatives, so that Singaporeans can better understand how public resources are used and what results they achieve. Mr Speaker, let me conclude. I have outlined our strategies to secure our future together in this changed world. I thank Members of this House for your support for the direction we must now take. This next phase will not be easy. The economic headwinds remain. The geopolitical environment is becoming more contested. The major powers are competing more intensely. They may say they are not asking others to choose sides. But in reality, they are using the full range of tools – from economic leverage to regulatory controls and technology restrictions – to advance their interests. Others may be subtle – seeking to influence opinions, shape narratives, or even sow division among our people. We must be clear-eyed about these realities. But we have faced difficult external environments before. We have navigated uncertainty, preserved our sovereignty and independence, and emerged stronger because we remained one united people and acted with resolve. And we enter this new era with considerable strengths. A strong economy. A cohesive society. Sound public finances. These are not accidental achievements. They are the result of decades of hard choices made by generations of Singaporeans. This Budget builds on that strong foundation. It is a collective commitment that we will do what it takes to thrive in a more demanding world, that we will stand together when pressures mount and we will continue pushing forward to seize new opportunities on the horizon. The world may be more uncertain, but we are prepared. We are united. And together, we will shape our own destiny and secure a brighter future for every Singaporean.
Mr Speaker50 words
[+4 sentences]Before I call on hon Members for clarifications, I seek Members' understanding to keep them clear and concise. And if you have many clarifications, please raise all of them when called upon. Knowing the Prime Minister, I know he will also keep his answers clear and concise. Mr Pritam Singh.
Mr Pritam Singh (Aljunied)219 words
[+7 sentences]Thank you, Mr Speaker. I will be brief. I actually did not have any clarification questions until Prime Minister reached the end of his speech, where he spoke of more information, more accountability, more sharing from the Government. This is, of course, warmly welcomed. I made some points in my speech about RIE. Just to make the point very clearly, the previous RIE plan had a simple pie chart, with a diagram telling people who are interested what $25 billion would be used for. The latest one does not have anything of that sort. It just dives straight into the RIE domains. And this is an example of, I think, the sort of accountability people are actually interested in looking at – how or where the $37 billion, which was committed to RIE 2030, how it will be expended, how Singaporean jobs will be enhanced and what opportunities there would be for Singaporean, to say nothing of the budgetary issues.[+2 sentences] I believe there was a Member yesterday, also, who commented that he filed some Parliamentary Questions to MOE and he did not get the answers that he asked for. I think there is quite a lot of work to be done there, and I hope in this term of Government, we see a new approach from the PAP Government.
Mr Lawrence Wong189 words
[+1 sentence]Sir, we will provide more information. I see the value of getting Ministries to put out more information, to share more about how their resources are being used and what outcomes they have achieved. And so, as I have committed in this Budget, or in the speech just now, we are getting Ministries to do more, certainly in the area of RIE as well.[+8 sentences] More information and hopefully, that will encourage people, Singaporeans, to also look at the information and have a better understanding of what we have achieved. For example, in the debate just now, I heard Mr Kenneth Tiong talk about the outcomes of our R&D spending. We may have different views. I think that was rather one-sided, in talking about how poorly we have performed in terms of R&D spending and what outcomes we have achieved. But hopefully, with more information, we can have a more holistic appreciation of the various outcomes we have achieved. We are not complacent, we are always looking at ways to do better. We acknowledge that. But having the information to provide more informed debate is always something we would encourage.
Mr Speaker3 words
[+1 sentence]Ms Sylvia Lim.
Ms Sylvia Lim104 words
[+7 sentences]Thank you, Speaker. I have a question for the Prime Minister on what he said about BEPS. I am not an economist, so please forgive me if I do not frame it correctly. He appeared to say that we are expecting upside in the next few years due to BEPS. From what I recalled in past debates, he was more cautious. I mean, he said, well, we also have to consider the incentives that we need to give to businesses, and in the end, it might not be a net positive. So, I wanted to know whether he has changed his view on this.
Mr Lawrence Wong332 words
[+4 sentences]Sir, we were more cautious in the initial years because there was no certainty how BEPS would evolve, and remember there was Pillar One and Pillar Two. Pillar One was targeted at jurisdictions like us, hub economies – where there was a move to shift profits away from hub economies. So, we were concerned about revenue loss under Pillar One. Pillar Two was about a minimum tax rate across the board. And that would give upsides to revenue, but we were not sure at that time whether Pillar Two would be implemented.[+1 sentence] Today, Pillar One has not taken off. So, the downside risk has come down, at least for now.[+2 sentences] It may be resurrected later on, but Pillar One has not been implemented. It is not on the agenda for now. Pillar Two has had broad-based consensus and therefore, jurisdiction after jurisdiction have been implementing their version of a domestic top-up tax, and we have too.[+6 sentences] That certainly will provide revenue upsides. But it does not change our broader assessment that even with the revenue upsides, we will have to spend more and we will have to find ways to strengthen our investment promotion toolkit, because notwithstanding the minimum corporate tax of 15%, which was supposed to give governments more negotiating power over the MNEs, the reality is MNEs still have considerable negotiating power. And governments everywhere want to attract these strategic investments to their own countries. And they are continuing, notwithstanding a minimum corporate tax of 15% to offer other generous incentives, which are considered BEPS-compliant. So, they are spending more, they are offering a whole range of different incentives to reshore or to attract strategic investments like that. That is what the competitive landscape is today. That is the reality of the competitive landscape. So, the revenue upside is more assured, in terms of the domestic top-up tax, but at the same time, we are very likely to also have to spend more on the economic front to stay competitive.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)221 words
[+11 sentences]Sir, I appreciate Prime Minister Wong's highlighting of the F&B sector, which of course, is close to many Singaporeans' hearts and stomachs. It is facing indeed undue pressure, and something that we get as feedback as well. Prime Minister emphasised how the Government has, where it can, looked to mitigate pressures that they face on rent. He spoke about how it hopes to try to limit hikes in properties that it controls. Yet many business owners share that there is insufficient effort at restraining unbridled market forces and they hope that some form of a cap on the year-to-year rate of increase in rentals, without outright rent control via a fixed rent ceiling, may be helpful. I wonder whether Prime Minister can share whether this is a possibility in future. On labour, I appreciate Prime Minister's explanation that foreign worker quotas and levies remain needed to ensure a Singaporean core. Yet, the feedback we receive is that despite paying rather solid wages in these sectors, it is really hard to attract locals. And I note that certain other sectors, like construction, actually have higher DRC. I believe the F&B is currently classified under services, which has a much lower DRC. Given the unique work conditions within F&B, I am wondering if the Government will consider relaxing the ratio for this sector.
Mr Lawrence Wong315 words
[+1 sentence]Sir, on rentals, as I mentioned just now in my speech, at the macro level, we have not seen rental rates spiking up. In fact, as I mentioned just now, at the macro level, rental rates have moved in line with economic fundamentals – lower than GDP growth, lower than inflation rates.[+2 sentences] There may be localised issues, localised shortages, or a particular area, very popular, that kinds of things, these things can happen. I am not saying they do not. There will always be a distribution of rental increases. But overall, the situation remains stable, so we do not envisage imposing rental caps, particularly since at the macro level, the situation remains stable.[+3 sentences] In fact, the experiences of jurisdiction everywhere when they impose such rental caps has been not so positive. Because you end up with inadvertent consequences and you do not always achieve the objectives that you had wanted to do, which was to ensure competitive rentals. On foreign worker levies and DRCs for the F&B industry, they are part of services. The DRC is lower than construction, but we prefer not to carve out something separate for F&B, because it is really very hard to distinguish between F&B as a service and the other service industries. Once you make the DRC for F&B lower, you can be sure there will be many F&B foreign workers in Singapore doing non-F&B jobs.[+1 sentence] And it is very hard to monitor. It is very hard to enforce because they are all service-related. So, we rather keep services DRC as a whole, where it is.[+1 sentence] But as I mentioned, where there are ways in which we can extend some flexibilities to businesses, like on the source of workers, we will consider doing so.
Mr Speaker3 words
[+1 sentence]Mr Saktiandi Supaat.
Mr Saktiandi Supaat (Bishan-Toa Payoh)221 words
[+13 sentences]Thank you, Mr Speaker. I have got three supplementary questions. First of all, I would like to thank the Prime Minister for mentioning that he will be releasing fiscal projections beyond 2030. Just wondering whether I can get clarification from Prime Minister whether those projections will be accompanied with economic baseline assumptions, specific scenarios? That will be useful for the public. Within the same domain, thank you to Prime Minister for explaining the reassurance that the fiscal policy has been expansionary. It helps to relieve concerns that it has been extracting and there is opportunity cost on that front. Second supplementary question, Mr Speaker, is on climate transition. I think Prime Minister in his speech and in his opening Budget speech touched a bit on climate and energy transition. But I was wondering whether the Prime Minister can share a bit more about climate transition, especially our plans to have those polders around Singapore. What are those costs on our fiscal needs and our fiscal expenditure going forward, because those will be quite substantial beyond 2030 and beyond 2040 as well. And thirdly, I would like thank the Prime Minister for mentioning my suggestion about changing the income tax thresholds, to help relieve lower-income and middle-income workers and Singaporeans. I was wondering what is the possibility of that suggestion being implemented.
Mr Lawrence Wong299 words
[+1 sentence]Sir, on the three questions. First, yes, we will provide the economic assumptions underpinning our fiscal projections.[+4 sentences] Second, on the climate transition, we will continue to provide more information on both our mitigation, as well as our adaptation plans, because we are moving on both. On the mitigation, it is really about pushing for decarbonisation and doing more in terms of clean energy, and there will be opportunities in due course to share more. On adaptation, it is really about protecting Singapore against rising sea levels, and we will also find opportunities to share more about these plans. We have already started to set aside resources for these two areas of work, which will require a lot of additional investments, so we are already setting aside funds for that. Thirdly, on the personal income tax thresholds, as I said just now, we will take on board these suggestions as part of our regular fiscal reviews.[+3 sentences] I would also just want to mention again, on the point that Assoc Prof Jamus Lim talked about rental. While I gave a macro picture about the overall rental rates, as I mentioned in my speech just now, I do recognise averages may not capture every single experience. There will be instances where rental renewals end up with sharp increases. We know that this happens, but the interventions and the way we help will have to take into account the different considerations. We do not think rental caps will work, but for example, if we understand better a particular situation where there has been very sharp increase in rental for that location, it could be a supply source shortage, there could be specific circumstances linked to that area.[+1 sentence] Then we will have to study and consider what appropriate interventions might work for such circumstances.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim57 words
[+1 sentence]Just to very quickly clarify, I do not mean a rental cap in terms of the total amount that it can increase to, but just the rate of increase – precisely what the Prime Minister is getting at, which is when there is a surge, whether there is a cap on how much that surge can occur.
Mr Lawrence Wong41 words
[+1 sentence]Sir, as I have mentioned, in instances where the Government is a landlord or where we do have some control over rentals – hawker centres, HDB rentals, JTC rentals – we already do so and will continue to finetune our framework.
Mr Speaker3 words
[+1 sentence]Ms Mariam Jaafar.
Ms Mariam Jaafar (Sembawang)247 words
[+11 sentences]Thank you, Speaker. I have two clarifications for the Prime Minister. First of all, thank you so much for addressing the increase in capital intensity at some length. I have asked in two Parliamentary Questions yesterday about it that I did not get to ask a supplementary question for, so I am going to take the time to do it now. At the same time, I am very heartened to hear the promise that in Singapore, we will not have jobless growth. I also am very heartened by the promise at the end of your speech on greater transparency on outcomes. So, I was wondering if you could share if capital intensity continues to increase, how will the Government's measures of outcomes change, if any? My second clarification is, you talked about making the hard calls. I think it is very easy to talk about hard calls in terms of raising revenues, but let us also remember that hard calls are also in how much we choose to invest to grow the economy. And so, I would like to just hear his thinking around how he will balance the need for immediate support, preserving fiscal space for unforeseen pandemics or higher than expected healthcare increases, but also importantly putting more into things that will grow the economy. Even though a billion dollars is being laid out for AI, for example, I would like to hear whether there is openness and preserving fiscal space for investing in growth.
Mr Lawrence Wong280 words
[+2 sentences]Sir, as the Member has highlighted, returns to growth accrue to capital or labour. There is a lot of concern that with AI you will see a disproportionate shift of returns to capital, and labour will suffer. We are, as I said in my speech, I did not highlight that in such terms, but that is the risk we are very much alive to. And if the trends in the marketplace globally are moving in that direction, well, we will have to consider what additional levers, what steps to take, how we ensure that workers benefit from growth.[+5 sentences] That is our commitment. We will try our very best to have AI develop in such a way that is pro-worker that enhances human skills and expertise. And at the end of the day we will have levers also, through SkillsFuture, through transfers, through a whole range of different means, to make sure that growth in Singapore is balanced and Singaporeans will benefit. Not just capital owners, not just the companies that push out AI tools. Singaporeans will always benefit from growth in Singapore. On the question around our openness to using fiscal space and resources for growth, yes, of course we are.[+5 sentences] We will always want to grow the pie, because that is what our future is about. We have to be at the frontier. We have to keep on expanding the pie for all to benefit. Our investments in R&D are very much in that direction. With AI and all the moves we talked about in AI, we will also allocate more resources to pushing the frontier, so that we can continually expand opportunities, jobs and better incomes for Singaporeans.
Mr Speaker3 words
[+1 sentence]Mr Louis Chua.
Mr Chua Kheng Wee Louis (Sengkang)335 words
[+3 sentences]Thank you, Speaker. I have three clarifications for the Prime Minister. I think the first is on the point he mentioned about the one-off, Sir, that I mentioned in my speech. To me, the question is really, as I have shared in my speech, in light of our surpluses, are we then better off to put in place the structural levers and interventions, rather than having to decide on these on a one-off basis year after year?[+6 sentences] So, I gave the example of personal income taxes. Are we better off having that updating of the bracket rather than have varying personal income tax rebates year after year? Similarly, on the corporate front, are we better off with revising, maybe some of our Partial Tax Exemption and Startup Tax Exemption schemes, which were last changed in 2018? And I also gave the example of how for the Global Trader Programme, that was extended up till 2031. So, that is the first. The second is in relation to the Occasional Paper that MOF has put out. Just wondering if the Prime Minister has given the MOF team perhaps a timeline as to when recommendations may be put forth to address some of the issues that were brought up, specifically when it comes to the taxing of wealth.[+5 sentences] I think it has always been mentioned that it is mainly via our system of property taxes. And the report has showed wealth, especially for the top 20%, to the extent that it is under reported. I would say that probably the share of non-property assets is likely to be larger than what we have found. So, in the context, wealth taxes beyond just property taxes. And last but not least, in terms of the TFR, on this front, again, to maybe borrow a phrase from the Ministry for Sustainability and the Environment, are we willing to have ambitious and realistic targets with regards to the TFR, even if for the medium to longer term to guide our policy interventions?
Mr Lawrence Wong560 words
[+19 sentences]Sir, I thank Mr Chua for his clarification on the first point about the Government relying on one-off ad hoc measures. I hope we can banish this forever in this House. Because we do not rely only on one-off ad hoc measures. We have some, yes, 5% of the Budget. How is that an over reliance? We have much more allocation of resources on longer-term and structural schemes. And will there continue to be some one-off measures? Yes, we will, from time to time, it is not mutually exclusive. But the weight of our fiscal moves are really on the longer-term and structural schemes. The emphasis is in that direction. And it is not just a mindset issue, it is not just a policy issue. You can look at it from a resource issue: 95% allocated there; clearly, the emphasis is in these areas and the reviews will be done from time to time. As I mentioned just now, policy changes, policy reviews, take some time. We take in suggestions. Some suggestions we may not be able to do, and we explain our position, and there will be differences of views. But there will be suggestions which we think are good and we will consider them carefully. And in time to come, we will make the changes. For the suggestions that Mr Chua had put forward on personal income tax, we will take them, as I had mentioned to Mr Saktiandi, together with other suggestions that Members have given as part of our regular fiscal reviews. That also goes to timeline. The Occasional Paper that we are putting out will be done by next year, but the fiscal reviews that we do on the policy front, that happens on a regular basis. There is no specific timeline for this because we are always on a continuing basis, reviewing and updating our policies.[+2 sentences] On TFR and measures, will we be more ambitious? I would say we have always tried to be ambitious. We have pushed the boundary each time in terms of the moves we made. And in this coming review we will be even more ambitious.[+17 sentences] Can we set targets? Name me a country which has succeeded on a sustained basis. These are very complex. This is a trend that is happening around the world. It is not just about economics. If money can solve the problem, I will put the money down and solve the problem. But it is not just an economic issue, it is far more complex than that. Countries have spent far more than us and have not been able to achieve a meaningful, sustained improvement in their TFR. So, we will try. We are not giving up. We will be more ambitious. And Minister Indranee at the COS debate will share more about how we can try to engender a whole-of-society reset around marriage and procreation. We will give it our best efforts. Just a quick point that my colleague just highlighted to me when Mr Singh talked about the RIE reports and what have been published. In fact, someone alerted me that there are additional reports, beyond what Mr Singh had shared. At the office, the National Research Foundation has put out more information already. But in any case, as I said, our commitment, whatever the baseline is today, we will do more.
Mr Speaker3 words
[+1 sentence]Mr Mark Lee.
Mr Mark Lee (Nominated Member)134 words
[+7 sentences]Thank you, Mr Speaker. I have two clarifications for the Prime Minister. When tariff shocks escalated last year, businesses were certainly genuinely uncertain. It was the Government's swift and credible response that stabilised sentiment and positioned Singapore as a trusted base amid fragmentation. However, as the tariff situation becomes uncertain again and supply chains continue to readjust, could the Prime Minister give assurance to businesses that we will have the fiscal space to support them, to respond decisively if volatility intensifies? At the same time as we move decisively into frontier industries like AI, quantum and space technologies, these are energy intensive and capital heavy sectors. Could the Prime Minister clarify how the Government assesses our long-term fiscal headroom to support both frontier industry development and the sustainable energy infrastructure required to power it?
Mr Lawrence Wong245 words
[+8 sentences]Sir, on the first question, yes, we give our assurance to all businesses. We are all in this together. Whatever uncertainty and volatility we may face, the Government will certainly be there to walk with our businesses and our workers to navigate the changes ahead of us. We are not out of the woods yet. The situation was better than expected last year, but there is new uncertainty now. And I think uncertainty and volatility will now be the norm anyway. So, we will continue to work closely with our businesses and workers, and also as part of our tripartite system. On the frontier industries and the fact that they are energy intensive, it is a cause for concern. I think Mr Dennis Tan had also spoken about this. We are trying our best to manage this and the solution for us at the end of the day is to accelerate our efforts on decarbonisation to be able to harness even more clean energy sources than the limited sources we have today.[+1 sentence] That is key. The new sources may not materialise in the short term. We are working on multiple fronts, including importing clean energy from outside Singapore, pursuing ideas like hydrogen, as well as civilian nuclear energy.[+1 sentence] But we are going full steam ahead on all of these areas so that we can find clean energy sources for ourselves that are reliable, sustainable, competitive, and that will help drive the industries of the future.
Mr Speaker4 words
[+1 sentence]Ms Yeo Wan Ling.
Ms Yeo Wan Ling (Punggol)116 words
[+5 sentences]Thank you. Prime Minister, our workers were very, very encouraged and inspired to hear that you will be personally overseeing the Singapore's AI transitions. With autonomous vehicle (AV) bus services expected to commence this year, as well as pilot AV shuttle services already underway, it is clear that the pace of change is accelerating. My question is, how will we ensure that sectors such as our bus industry and point-to-point transport sector are given sufficient time and structured support for these transitions? In particular, how do we sequence implementation so that technologies like AI and AV strengthen safety standards, uplift skills and enhance livelihoods, rather than become a source of disruption and anxiety for our workers?
Mr Lawrence Wong105 words
[+2 sentences]Sir, I recognise the anxieties of our drivers. In fact, when I had the dialogue with union leaders, this was surfaced as well. The assurance I gave then and I give now is that we will manage this very carefully. We already have very close engagement with the unions and drivers, and as we introduce these new technologies, we will pace the transition in a way that ensures that we are also able to retrain workers if jobs are impacted and make sure that the transition and the introduction of technologies do not adversely impact our workers.[+1 sentence] We want workers to benefit from new technologies.
Mr Speaker4 words
[+1 sentence]Dr Neo Kok Beng.
Dr Neo Kok Beng (Nominated Member)72 words
[+1 sentence]Thank you, Speaker. The Prime Minister mentioned in his Budget speech that 1% of the GDP is dedicated to R&D expenses, commonly known as the gross expenditure on R&D (GERD).[+4 sentences] Israel, an innovation nation, has 6%. I think Sweden has 4%. For most of the European countries, it is about 3%. What is our target and how can we actually use part of the $15 billion surplus to give it a boost?
Mr Lawrence Wong175 words
[+10 sentences]Sir, we have been maintaining that commitment of 1% for some time now. I do not think it is about saying that we just have to do more and spend more. As many have highlighted, we want to ensure good outcomes from our R&D spending as well. So, we will continue if the outcomes are good. If we are getting good results, we are able to get good projects, certainly, we will be prepared to put more into Government R&D. But we also do not just track what the Government spends. We want Government spending to catalyse more business R&D. So, the other measure, aside from GERD is BERD or the business expenditure on R&D, which is commonly tracked as well. And we are heartened that on the business side, private sector R&D in Singapore has also gone up, corresponding or together with Government spending on R&D. That bodes well for the future because that means that the private sector, too, is seeing the benefits of investing more in R&D and investing for the future.
Mr Speaker3 words
[+1 sentence]Mr Kenneth Tiong.
Mr Kenneth Tiong Boon Kiat209 words
[+3 sentences]Thank you, Speaker. I, of course, respect the Prime Minister's prerogative to characterise my views on R&D as somewhat one-sided. So, I would like to offer him the opportunity for a fuller defence in light of, perhaps, three groups of facts. First, since 1991, the first National Technology Plan to RIE2030, the nominal amount committed is about $125 billion, of which I think there are indeed few visible commercial outcomes.[+5 sentences] Mirxes in 2025 was the first and only billion-dollar IPO. I do not recall any other commercially significant companies out there. Even if we were to give it to the Government that it is an MNC-driven strategy, the first phase of the Biopolis project was not a big success. For all the MNC R&D offices for these pharmaceutical companies – in 2010, we had the departure of Eli Lilly; in 2013, we had the departure of Pfizer; in 2014, the departure of GlaxoSmithKline; in 2016, the departure of Novartis. So, I do not really quite see where, perhaps, he is having his different view from. My second clarification is whether he will consider putting on a policy investment bank function or, rather, reconstituting it, given that it has been missing since Mdm Ho Ching took over Temasek in 2002.
Mr Lawrence Wong457 words
[+1 sentence]Sir, as far as the outcomes of R&D are concerned, we track a whole range of outcomes. It is not just on the basis of a company getting IPO success.[+2 sentences] There are outcomes with regard to jobs created. There are outcomes with regard to the spillovers to local industries and the SMEs that support our MNEs doing research here. There are outcomes to the wider economy and incomes that are raised. There are outcomes with regards to business expenditure on R&D, which we have talked about just now.[+5 sentences] So, it is not just a narrow focus on a single measure of success but a wide range of different indicators. For the research part, mind you, which is also important because we do not only want commercialisation success, we also want to anchor strong basic research. That scientific base is important. It is also tracked with another set of different indicators, like publications, which we also track. So, there are a wider range of outcomes we track in terms of our R&D spending. That is why I said just now that the views that Mr Tiong had highlighted were rather one-sided. I do agree with Mr Tiong though, about what he said about the broad principle that sometimes the system can be risk-averse, that there are ways to do more in terms of value capture.[+8 sentences] There is no disagreement, in principle, in terms of that direction. We want to encourage more private innovation. We want to encourage more of an enterprise-building approach, in terms of how we grow our economy rather than just focus on specific individual grant schemes. There is scope to have less fragmentation. These are things we are already doing and will continue to do. On the question of an investment bank approach. Well, I would also disagree with him that this has changed with the chief executive officer in Temasek. This has never been the case. Temasek, when it started, was always very clear about its mandate from the very beginning – commercial, not doing national service, focused on commercial outcomes.[+3 sentences] If there are things that the Government wants to do and Temasek thinks it is useful to do from a commercial point of view, then, yes, we can partner Temasek to do so. There are many instances even till today, including some of the equity funds which are done with a co-investment approach with Temasek, not because we forced Temasek to do these as national undertakings but because they see commercial value in growing enterprises and growing the enterprise ecosystem, and in achieving and securing better long-term returns for their portfolio. This has been consistently the approach from the start and that is the same approach we will continue with Temasek going forward.
Mr Speaker3 words
[+1 sentence]Ms Denise Phua.
Ms Denise Phua Lay Peng (Jalan Besar)358 words
[+6 sentences]Thank you, Prime Minister, for a convincing round-up speech. I am seeking three clarifications. Number one is on SMEs. In this age of AI and growth, I asked about how the Government intends to strengthen the intermediaries who are actually advising the SMEs in this age, intermediaries, like the SME Centres, Singapore Business Federation, NTUC, the Employment and Employability Institute (e2i) and the trade associations, for example. From where can these intermediaries tap on resources to advise and to be in a good position to advise as well. That is my first clarification. The second one is on the Prime Minister's comment on no jobless growth.[+15 sentences] I wrote that down. The Prime Minister said that. No jobless growth. I wanted to hear his thoughts on the prognosis of those Singaporeans who are unlikely to catch up. The vulnerable, for example, like some of the seniors, like persons with disabilities who have higher support needs, for example. They might actually lose jobs in this time and age. So, I wanted to hear his views on those who are likely to lose jobs and actually may not be able to take up or upgrade their skills, in that sense. The third clarification is on TFR. I think somebody mentioned it, but I am very relieved to hear from the Prime Minister that this is not a lost cause and that even if the Budget Statement does not cover it, Minister Indranee will cover that. Hopefully, what Elon Musk has predicted, that Singapore will become extinct, that will not be a reality. But can the Prime Minister share a little bit more about strategies other than producing our own? We know that many young people may not want to get married or even after they get married, some of them prefer pets to children. Are there other strategies that the Prime Minister will consider, like easier adoption procedures to have more people adopt, more of us Singaporeans adopting? The second is, in terms of immigration as well, to bring in people who are of the right profile and suitable profile to grow our Singaporean population? So, three clarifications for you, Sir.
Mr Lawrence Wong325 words
[+5 sentences]Sir, on intermediaries, it is an area we are looking at. No easy answers now because when it comes to providing IT solutions that are AI-enabled, that is quite straightforward. But when you talk about intermediaries who truly understand what it means to transform an enterprise using AI, in fact, there are very few. I mentioned this in my Budget speech, even the leading companies are grappling with this and looking at ways to do this better. So, it is an area where we ourselves are looking to build capabilities and expertise and identifying experts who can help us and not just help us as in help the Government, but help the intermediaries within our economy, who can in turn help our businesses, especially our SMEs. Second, on jobless growth and the concerns that vulnerable groups may have.[+1 sentence] We are very mindful of these concerns. That is why we have progressively strengthened our social support system. We have put in place Jobseeker Support, we are strengthening SkillsFuture and we will continue to monitor this segment very closely and the impact that AI may have on vulnerable and disadvantaged workers, on seniors. We will continually review and strengthen our support mechanisms.[+5 sentences] Third, on the TFR and whether there are other ways in which we can encourage or we can maintain our Singaporean core, whether it is through adoption or immigration. Yes, indeed, we will have a multi-faceted approach. Mr Foo Cexiang gave a very good speech yesterday on adoption procedures and how it can be very complex and frustrating for parents who would like to adopt. I think it is something that certainly we would want to take a closer look at to see how we can streamline. So, our approach, as Minister Indranee will share during the COS, will not – of course, marriage, procreation, parenthood within Singapore is important, but also other areas, like adoption, as well as immigration will come in as well.
Mr Speaker4 words
[+1 sentence]Assoc Prof Kenneth Goh.
Assoc Prof Kenneth Goh (Nominated Member)174 words
[+9 sentences]Thank you, Speaker. I thank the Prime Minister as well for his wrap-up speech. My questions relate to education and inequality. Just like Member Denise Phua, I want to quote something the Prime Minister mentioned, which is that the starting point should never determine our finishing position. I think that is a very high and inspiring principle to share. But I bring this up because based on recent data – and I had asked a Parliamentary Question to MOE before about the difference in Programme for International Student Assessment (PISA) scores across different income groups, we find that these differences are statistically significant. They are there. While they are no different from other Organisation for Economic Cooperation and Development (OECD) countries, I think that we have that larger aspiration not just to match up to what other countries are doing, but to do better, regardless of what the other countries are doing. So, I wanted to hear from the Prime Minister, what his thoughts are and what MOF is thinking is around this issue.
Mr Lawrence Wong224 words
[+1 sentence]Sir, the concerns that the Member had raised on education are indeed on our agenda. In fact, many Members spoke about education during the debate. I did not really touch on it as a topic in the round-up speech, but we have this as one of the key items on our agenda for this term of Government, looking at how we can especially help disadvantaged groups level up in our education system, focusing on those with less resources, those with different start points, making sure that more support is given to them, but at the same time addressing the other concern too, which many Members spoke about – the concerns about high-stakes exams, the anxiety about the arms race that parents and students are feeling.[+6 sentences] So, that is on our agenda. That is something we are looking at. Other concerns that I think Members raised in this House during the debate, for example, around digital screen time – Ms He Ting Ru talked about that, others too. Access to social media for children, that is also on our agenda. So, there are things that we are reviewing. Like I said, I cannot cover every single topic in a Budget or in a round-up speech, but these are things and priorities that we are looking at and we will have future occasions to address them.
Mr Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied)220 words
[+9 sentences]Thank you, Mr Speaker. I thank the Prime Minister for responding to my speech. I have got two clarifications. The Prime Minister said that Budget Estimates are prepared by MOF economists based on variable data, including GDP growth projections. While I accept that GDP is highly sensitive to external shocks and can deviate significantly from forecasts and this impacts the actual fiscal position, but in the interest of transparency, will MOF provide more disclosure regarding the methodology of its revenue projections? For example, our GDP assumptions pegged to the mid-point of the official forecast range at the start of the fiscal year and what is the specific weighting of GDP growth in fiscal estimates? Secondly, the Prime Minister argued that these deviations are within a reasonable range and result in unavoidable volatility. However, this does not fully account for the systemic nature of the trend. Could the Prime Minister explain why there is a consistent directional bias towards conservative fiscal marksmanship over the past 20 years, excluding the two years of exceptional circumstances of the COVID-19 pandemic and the FY2023 Majulah Package allocation? For 18 of these 20 years, the actual surpluses have consistently exceeded original estimates by significant margins.[+1 sentence] A review of the historical data shows that these variances frequently reach double-digit, triple digit or even quadruple digit changes.
Mr Lawrence Wong140 words
[+9 sentences]Sir, the MOF economists when they look at fiscal projections use Government's forecast of the economy, which is also published. We would typically use the mid-point of the range and then, of course, because these are in nominal terms, you have to factor for that. And the projections are done on those basis. There is a well-defined methodology used by many governments to project revenue, which often are tied to incomes. There is a certain buoyancy estimate of how buoyant the revenue is when incomes rise so the GDP is the most critical assumption in many revenue projections. The estimates are what they are. Why have we seen more revenue upsides than downsides over the years? Perhaps, there is a simple explanation to this – which is that we have consistently performed better than expected. We should welcome that.
Mr Speaker3 words
[+1 sentence]Mr Azhar Othman.
Mr Azhar Othman (Nominated Memebr)325 words
[+16 sentences]Thank you, Mr. Speaker. When we mentioned about space technology, quantum technology, AI technology and decarbonisation technology, if we look forward, it is very exciting to see all these coming. But, at the same time, we must also understand the capacity of our workforce. At one point, they must be prepared to train towards a certain skill and these skills are somewhat, I would say, common across the board and these technologies need expert skills or those who are highly skilled. Having said that, how do we ensure that our workforce can keep up to the change? And furthermore, does our education allow that to happen as well? Because the speed of technology moves so fast; in other words, the speed of the education must also follow through as well. So, these are things that that become very clear and very apparent of what I think we must prepare the workforce for: the ability to learn, the ability to quickly learn become crucial. Secondly, the point I want to raise is that I look at countries who have 2040 vision, 2050 vision. I am sad to say that the fundamentals of the citizens are not able to cope to the change where the country wants to go to. In other words, as a country move forward and get better and better, the workforce or the people still lag behind. At one form, they try to get better because of their own internal problems or their own family problems. Another section is that how do we improve, how we make them improve to keep up to the technology, to the change? So, Singapore in the context whereby we are moving quite rapidly; so does the world. But is the workforce, is the citizen able to do so? And how do we change the structure or allow the structure to be evolved, starting from education and looking at how the workforce can adapt to it because —
Mr Speaker7 words
[+1 sentence]Mr Azhar Othman, get to your clarification.
Mr Azhar Othman18 words
[+1 sentence]So, this is the point I am saying: how do we prepare our workforce towards this technological change?
Mr Lawrence Wong186 words
[+1 sentence]Sir, I agree fully with Mr Azhar that human capacity, human capital is critical. In fact, I would say the long-term potential of Singapore, how far we go really depends on us being able to maximise our human potential.[+4 sentences] That is key and that is why we have long invested in education. And it is not just about the investments. It is about updating our system so that at the school and tertiary levels, we help prepare our students well for new industries of the future. But even that alone is not enough because, as Mr Azhar highlighted, the technology is changing so quickly. Whatever you have learned in school or from tertiary levels of education may very well need a refresh and an update a few years later after you graduate. And that is again why we are investing significantly in SkillsFuture and we have made it a key pillar in our social compact.[+1 sentence] So, we are mindful of all of these concerns – of the need to prepare our people well for the future and we will continue to invest heavily in every Singaporean.
Mr Speaker3 words
[+1 sentence]Mr Shawn Loh.
Mr Shawn Loh (Jalan Besar)190 words
[+5 sentences]Mr Speaker, I have quite a few questions. But the Prime Minister has been answering our questions for close to an hour. So, I will ask only one. And I note the collective sigh of relief in the House. I am glad to hear Prime Minister's round-up speech. Specifically, he acknowledged that rising incomes are the best way to guard against increases in the cost of living. But he also acknowledged that for the half a million retirees in Singapore, they do not experience these rising incomes when the cost of living increases.[+3 sentences] To the Government's credit, the last few years of support have given that assurance to our retirees. Would the Prime Minister now agree that we should assure this group of retirees that structural support should always keep up with the cost of living, not including the one-off measures that Prime Minister mentioned but that 95%? Can Prime Minster promise our half a million retirees in Singapore that the cost of living should be not too much of an anxiety to all of them and that the current levels of support should stay the same in real terms?
Mr Lawrence Wong145 words
[+1 sentence]Sir, I was relieved that Mr Loh said he only has one question, but he asked the most difficult question. To answer the question, we will continue to monitor cost of living across all segments of society. We are very mindful that retirees will face potentially the biggest concerns because they do not have incomes, they will not benefit from wage increases and the cost-of-living pressures would be felt more acutely by this segment.[+3 sentences] And so our assurance to them is that we are watching out for them, we will take care of our retirees. But at the same time, we will also take care of all Singaporeans, to make sure that we help wages go up, we help retirees who do not have wage increases ease their cost pressures across different areas. And everyone, everyone in Singapore can truly benefit from the nation's progress.
Mr Speaker4 words
[+1 sentence]Ms Poh Li San.
Ms Poh Li San (Sembawang West)135 words
[+2 sentences]Thank you, Mr Speaker and thank you, Prime Minister, for the round-up speech. Prime Minister, you mentioned in your Budget speech on taking SkillsFuture forward and strengthening the assurance for mid-career workers and seniors. In my speech, I asked to help our young seniors stay relevant and employable for the long term. I call for more fundamental revamp of the SkillsFuture and to retrain our workforce every 10 years or so, to counter the shorter economic cycles and the impact of AI.[+1 sentence] I would like Prime Minister to share more about beyond merging WSG and SSG, and involving the IHLs and Institutes of Education (ITEs) more for continuing education and training, will the Government be looking at more measures to help our young seniors, especially the PMETs to stay effectively more relevant and more employable?
Mr Lawrence Wong303 words
[+3 sentences]Sir, the short answer is yes, we will certainly help our young seniors. We know that at that mid-career level if you are made redundant, getting back into the workforce can be more challenging. At that level, wage increases also may not be as high because there is a certain life-cycle to wages. Wage increases tend to be higher when you are younger and then, after a while, it starts to plateau off.[+2 sentences] So, they will face more pressure too. So, we are mindful. That is why we have already put in place schemes, like Level-Up for those above 40. And we will continue to see how we can strengthen support for mid-career, young seniors. And with the merger of SSG and WSG, I am sure we can do more.[+4 sentences] There are many, many good ideas put forward by Members for many different segments: young seniors, retirees, disadvantaged groups. We want to do more for everyone. I wish I had a wand, a magic solution that can solve every problem and take care of every group overnight. But the realities of life are not like that. Policies take time, new schemes take resources and importantly, let us be very mindful, we are able to talk about all of these things and all the good things we can do because our economy has done well, because we have good growth and now, we are in a position with the resources to act decisively. If these foundations are not present, we would be scrambling, we would be having a very different conversation. So, let us also be mindful of the fundamentals – keep growth, keep our economy growing, keep on ensuring a dynamic vibrant economy, good growth and generate the resources we need in order to take care of all the different segments of society.
Mr Speaker54 words
[+2 sentences]We have had an hour of clarifications from 16 Members. I do not see any more Members raising their hands.