Debated in Parliament on 24 Feb 2026.
Debate resumed.
Mr Edward Chia.
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.
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.
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.
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? 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. 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. 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. 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.
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 Ang Wei Neng.
Mr Speaker, Sir, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, a Budget surplus of $15.1 billion is likely the largest in absolute terms since 1965. 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. 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. 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. 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. 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. 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. 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.
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. 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.
Second Minster for Finance.
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