Support for Supply Chain Sector amidst Ongoing Middle East Conflict

Mr Foo Cexiang asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry has been engaging stakeholders in the supply chain sector; (b) what are the key concerns raised by these stakeholders; and (c) how does the Government plan to support the supply chain sector in the midst of the ongoing Middle East conflict.

The Government has engaged supply chain-related businesses through associations from the logistics and land transport sectors associations and trade associations and chambers. The businesses are concerned about rising costs due to the Middle East conflict affecting fuel, raw materials, transport and shipping costs.

To help businesses manage their overall costs in the immediate term, we have enhanced the Corporate Income Tax rebate announced at Budget 2026, from 40% to 50%, for the Year of Assessment 2026. The minimum benefit that an active company with at least one local employee will receive is now $2,000, up from $1,500. The total benefit cap for each company has been raised from $30,000 to $40,000.

The Government has also recently expanded the Energy Efficiency Grant (EEG) Base Tier to all sectors and extended this support for another year, to 31 March 2028. This will enable more businesses to benefit from the EEG, as they adopt eligible energy efficient solutions to become more energy resilient and sustainable.

These measures were announced at the previous Parliament Sitting as part of the Ministerial Statements on the impact of the Middle East conflict. We must be prepared for the effects of the war to persist with a prolonged conflict. The Government will continue to monitor the situation closely and is committed to roll out more support measures for businesses where necessary.