Debated in Parliament on 4 Mar 2024.
Mr Chairman, I beg to move, "That the total sum to be allocated for Head L of the Estimates be reduced by $100".
When I stand up to speak in this House, I am often raising questions or asking the Ministry for things. This time, I am standing to thank the Ministry for the phenomenal job it has done on our climate policies. Of course, I still have questions and many more things to ask for, but those will come later.
We have shown tremendous leadership on the global stage at the 28th meeting of the Conference of the Parties (COP 28) on climate change. We co-facilitated ministerial consultations on climate mitigation and co-chaired the First Global Stocktake of the Paris Agreement. At home, we are transiting to a low-carbon future by raising the carbon tax to $25 per tonne, tracking the public sector's performance on sustainability through the GreenGov.SG Report and enhancing the Energy Efficiency Fund. We are also taking steps to strengthen our climate resilience by looking into coastal protection, heat stress and updating our climate projects through the Third National Climate Change Study (V3).
We have also taken concrete steps towards becoming a zero-waste nation. We introduced the disposable bag charge, the food waste reporting framework and will introduce the beverage container return scheme soon. We are taking care of our lower-income workers by extending the Progressive Wage Model (PWM) to the waste collection and materials recovery sectors. We have made our living environment safer and more livable. We introduced the statutory presumption for littering from flats, looked into preventing disease outbreaks and made our hawker centres more vibrant. We have also made sure that our food and water supplies are resilient to safeguard against future crises.
Sir, 2023 has been a busy and productive year for the Ministry. I thank the Ministry and the many public servants and civil society groups behind the scenes who have made all these progress possible.
In 2024, we are one more year closer to the 2030 deadline in the Singapore Green Plan 2030 and the 2050 deadline to reach net-zero emissions here in Singapore. Every day, our planet is warming. I am glad we are acting fast and taking bold steps. I am glad the voices of many in this House and outside of this House have been heard and the Government has been taking concrete steps to look into what we have called for. Well, with the exception of second-hand smoke which we must do so much more.
I know my Government Parliamentary Committee (GPC) colleagues, fellow Members of Parliament (MPs) and I will be asking lots more questions about the Ministry's plans for 2024. I look forward to a robust and lively debate.
Question proposed.
Mr Chairman, the Singapore Green Plan 2030 has set concrete targets to reduce our carbon emissions. It is a whole-of-nation effort involving all stakeholders – Government agencies, enterprises, communities and individuals.
Some of these targets are shorter-term, such as the plans to quadruple solar energy deployment by 2025 and to develop over 130 hectares of new parks by 2026. Other targets, such as producing 30% of Singapore's nutritional needs locally and completing the formulation of coastal protection plans by 2030, are for the longer term.
Would the Ministry of Sustainability and the Environment (MSE) share an update on the progress made by Government agencies towards their 2030 Green Plan targets? What had been the impact of the COVID-19 pandemic and supply and logistics challenges caused by global political tensions and conflicts? What about the progress amongst multinational corporations (MNCs) and small and medium enterprises (SMEs) in terms of their environment, social and governance (ESG) performance?
Mr Chairman, three years ago on 10 February 2021, we embarked on a bold journey with the Singapore Green Plan 2030 aiming to transform our nation into a sustainable and climate resilient future. Since then, the world has witnessed unprecedented climate challenges and the urgency of our actions has only intensified.
The Green Plan is a whole-of-nation movement that seeks to chart Singapore's green target over the next decade. It strengthens Singapore's commitment under the UN 2030 Sustainable Development Agenda and the Paris Agreement. The ultimate goal is to position Singapore to achieve its long-term net-zero emission aspiration by 2050. Now, 1,110 days or 36 months on after the announcement of the Green Plan, what have we achieved?
There were five key targets listed in the Green Plan.
First one: plant one million more trees, enhance our urban greenery as well as promoting biodiversity. How many trees have we planted out of our one million target? Did the Government take into account how many trees were cut down to make way for development during the last three years as well? For the trees that were removed, how many were matured trees that are more than a decade old? I am concerned with the replacement of these matured trees with young saplings, may be contrary to our first target. Biodiversity conservation needs further focus, ensuring our ecological wealth thrives along with urbanisation.
Target number two: quadruple solar energy deployment by 2025, accelerating the adoption of renewable energy. Solar energy deployment has seen commendable upward trajectory with more solar panels deployed on Housing and Development Board (HDB) flats, commercial as well as industrial buildings, including our airport. More floating solar farms were deployed. Last year during the Budget, I suggested to make solar panel deployment mandatory for all new buildings so that we can hardwire this requirement into our building code. So, this will speed up our solar energy deployment as well. We are only one year away from 2025. May I ask how much solar energy deployment have we achieved so far? Once we have achieved this target, what is the next target? More Government incentives in subsidy, grants and tax benefit can be considered to encourage solar power adoption.
Number three: reduction of waste sent to landfill by 30% by 2030, focusing on waste reduction as well as recycling. With more economic activities resuming to pre-COVID-19 levels, more waste will be generated. How many more tonnes of waste were sent to landfill annually over the last three years? Are we able to achieve this target? Will there be a review and a revision of this target in view of renewed economic activity?
Target number four: to make at least 20% of schools carbon neutral by 2030; encouraging sustainable practices in educational institutions, educating our young. Currently, how many schools are carbon-neutral? What are the challenges to achieve this target? The weather is getting warmer and the schools are using more air-conditioning to provide a good and conducive, comfortable learning environment. Schools are using also more computer, AI as well as electronic devices that consumes more electricity. Is this target achievable and realistic?
Target number five: to ensure all newly registered cars are cleaner energy models from 2030 onwards; transiting to a green transport. What percentage of newly registered cars now are classified as cleaner energy models today? With more COE released recently, there is certainly an increased number of cars on our roads. More cars means more carbon emission as majority of the cars does not belong to the cleaner energy models. How many EV chargers were installed in public car parks to cater for this transition over the last three years? Are we bringing in new clean car models including swappable batteries as well as cars running on hydrogen?
The strength of the Green Plan is the holistic approach involving multiple Ministries and there are clear targets providing a roadmap for actions as well as the emphasis on renewable energy and waste reduction that aligns with global sustainability goals. There are areas of improvement. While the targets are ambitious, we could even aim higher.
For instance, exploring more aggressive renewable energy goals beyond quadrupling solar power deployment and explore other forms of renewable energy. There should be more community engagement involving citizens, more actively through education, incentives and community-led initiatives. Invest in comprehensive public awareness campaigns to foster a culture of sustainability.
The Government should also establish robust mechanisms to track progress and hold stakeholders accountable and do timely reporting. More can be done to encourage collaborations with private sectors, research institutions, international partners to drive innovation and share best practices. The Plan should remain flexible to adapt to changing circumstances and emerging technologies.
In summary, the Singapore Green Plan 2030 is a commendable step towards a greener and more sustainable future. By addressing the suggested areas for improvement, we can enhance its impact and ensure a resilient and thriving Singapore for generations to come.
Mr Chairman, with global warming, Singapore will not be spared. Our days will become hotter and we expect to have very hot days with temperatures exceeding 35 degrees Celsius. It has been projected that we will have more warm nights too, when temperatures exceed 26 degrees.
Ms Nadia Samdin. You can take your three cuts together.
Much obliged. Thank you, Chairman. Ocean conservation and coastal protection are issues close to my heart. Last year, MSE's Government Parliamentary Committee Chair Mr Louis Ng and I spoke up on an Adjournment Motion to emphasise the importance of safeguarding our ocean. Today, I want to ask about rising sea levels as our coasts are vulnerable to floods and erosion.
It was recently reported that Singapore's annual total rainfall was 13.1% above the long-term average in 2023 and the mean temperature for the last decade reached a new high of 28.06. It is important we continue fortifying our coasts to mitigate the impact of climate change. I would like to ask how will findings from Singapore's Third National Climate Change Study (V3) help to inform and bolster our coastal resilience strategies, including the possibility of incorporating nature-based solutions?
What plans does the Ministry have to enhance local technical capabilities and citizen participation in this domain? For example, are there initiatives to collaborate with IHLs to share data, analyse and further develop our expertise in coastal protection?
Increasing local agriculture and aquaculture production are key objectives in reaching our "30 by 30" goal. We must be cognisant of the environmental and natural wildlife, as we tackle our food security challenges, as we are reshaping natural environments with development and technology. For example, a study found that aquaculture activity in close proximity to coral reefs limits survivorship and growth rates.
I would like to ask what is the progress of the "30 by 30" plan and, in particular, of our local aquaculture sector, through the Singapore Aquaculture Plan? How does the Government intend to safeguard natural habitats around open ocean aquaculture Bills, and what processes or checks are there when issuing new licences?
It has also been reported that 70 farms in Lim Chu Kang have had to move out for developmental purposes. I understand we are transforming the area into a high-tech agri-food zone. It is also important to support the livelihood of people impacted by this transition.
Can the Ministry provide an update on the progress of the Lim Chu Kang Master Plan, including whether the Government will explore integrating offshore aquaculture sites and agriculture systems for more sustainable production and optimising the farming production zone? And could the Minister also share the measures implemented by MSE to support local farmers who have been impacted by this transition?
Sir, food security is an essential pillar of national security, and both environmental and geopolitical events pose a threat to local supply. Due to disruptions, El Niño risks and food export bans, various crops have risen in prices. Take, for example, regional rice exports. Thai 5% broken rice reached US$660 per metric tonne in end-January 2024, a record high.
We must increase our food resilience through minimising external disruptions and maximising internal production. I would like to ask what is the take-up rate of the Farm-to-Table Programme and how many more businesses have been procuring locally farmed produce since the scheme's inception? Can the Government consider giving recognition to wet market stallholders who supply Singapore-grown produce in the heartlands, including potential incentives, such as rental subsidies?
What is the progress of the Alliance for Action (AfA) for Local Produce Demand Offtake and Consumer Education and the SG Fresh Produce (SGFP) logo? Finally, can the Ministry share how the Government intends to better manage the increasing frequency of food supply chain disruptions?
Chairman, I wish to request that MSE share with us a progress update on the Lim Chu Kang Masterplan. The Lim Chu Kang Agri-Food Production Hub has been positioned as a key initiative to support Singapore's "30 by 30" ambition. The Singapore Food Agency (SFA) had earlier said that a detailed Masterplan will be published by 2023. Care needs to be taken to create the conditions to help Lim Chu Kang become a successful agri-food cluster.
One question to consider is whether a clustering concept is suitable for agriculture in Singapore. Clustering works if there are true economies of scale, which may not exist if different farms at Lim Chu Kang choose to grow different produce. Indeed, vertical farms survive by differentiating their products for niche markets where prices are higher, but demand is also limited. It would be difficult for vertical farms to compete on a large scale in Singapore, where most households would prefer cheaper produce imported from Malaysia and elsewhere, for example.
Another stated objective of the Lim Chu Kang Masterplan is to create good jobs for Singaporeans, but finding locals who want to commute there may be a far greater challenge than we anticipate. Has SFA considered a decentralised model instead? For example, we could consider siting indoor farms in under-utilised buildings or residential areas. Singapore's growing population of plant hobbyists is potentially a good source of farmhands, but long commutes could be a deal breaker for them.
Returning to our food security goals, food security is about how we feed the masses during times of crisis. So, to what extent will calorific efficiency be considered when SFA makes decisions about which crops should be grown under the Lim Chu Kang Masterplan? This is an important question because the high-end kale that a vertical farm needs to sell to be commercially viable is not nearly as valuable as a sweet potato during a crisis. In essence, it is not clear to me how future tenants at Lim Chu Kang will balance commercial viability with food security objectives.
Perhaps, we need to have a larger conversation about how serious we are about ensuring food security by farming locally and what amounts of financial resources would be required to achieve this.
The Government has set the goal of producing 30% of Singapore's nutritional needs by 2030. What has been the progress of our "30 by 30" plan? Our agri-food producers face various issues, including lease durations, rising costs, lack of economies of scale and a challenging business environment. What measures are in place to ease these pressures and attract more producers and investors to this sector? Could the Minister provide an update on the $60 million Agri-Food Cluster Transformation Fund?
And for a sustainable agri-food sector, we need strong support and demand from our consumers, too. The AfA on Demand Offtake and Consumer Education was formed last February to look into demand and supply aggregation of local produce. One of its main objectives is to increase public awareness and also to build greater support for local produce through consumer education. What has been the progress on this?
Also, how is the Government ensuring food security, in view of the increasing frequency of food supply chain disruptions? What can Singapore consumers do to support our food resiliency?
Lastly, given the announcement today by cultivated meat producer Eat Just, that operations in Singapore will be paused, can the Minister shed light on how will this latest development affect Singapore's "30 by 30" food security goals?
Mr Don Wee, you can take your two cuts together.
Chairman, I welcome MSE's inaugural GreenGov.SG report, which was released last December. It shows how the public sector is progressing in its green transition journey, including its use of electricity and water, as well as in reducing its emissions. I am sure all Singaporeans appreciate that the Ministry is being transparent and accountable to the public on its efforts to reduce its carbon footprint.
Decisions like prioritising the reduction of single-use items, such as bottled water for meetings and disposables for meals, as well as measures to replace potable water with non-potable water for irrigation, general washing and cooling, will have an impact beyond the public sector. These actions are a positive influence for businesses and families who have yet to fully incorporate similar practices into their companies and lifestyles.
The sources of emissions in the report refer to Scope 1 and 2 emissions. Direct emissions, such as those from waste burning as well as vehicles powered by internal combustion engines, fall under Scope 1. The use of electricity is categorised under Scope 2 emissions. In Singapore, over 90% of our electricity is generated from natural gas.
Scope 3 emissions, which refer to the indirect greenhouse gas (GHGs) emissions incurred as part of an organisation's value chain, like the emissions from purchased goods and services or business travel by employees, were not included in the report. Scope 3 emissions may form a significant part of total emissions and may even exceed Scope 1 and 2 emissions combined.
Would the Government consider including Scope 3 emissions and other additional information, like waste data, in its next report?
As one of the biggest purchasers of goods and services, the public sector plays an important role in setting an example and leading the country to develop green habits, develop and use greener products, as well as adopt greener practices.
Since 2007, the Government had put in sustainability requirements for selected goods and services, such as information and communications technology (ICT) equipment, electrical appliances, paper, water fittings, buildings and vehicles. I support the Government's efforts to do even more to green its supply chain.
Last year, the Government announced that it would set aside up to 5% of evaluation points for environmental sustainability in public sector tenders, starting with large construction and ICT projects. The reason for these two sectors is because, together, they make up more than 60% of the value of Government procurement contracts awarded.
I would like to ask the Government what has been the response and feedback from these two sectors? May I also ask how did the Government decide on the green procurement criteria for the construction and ICT sectors?
The Government will gradually introduce sustainability practices or requirements into procurement into more sectors. What is the timeline to expand the adoption of these sustainability criteria to more public-sector procurement sectors?
Chairman, let me begin by declaring that I am a senior executive with a large local enterprise (LLE) and I manage the sustainability business and practices for the company, amongst other roles.
Sir, it is heartening that the Government has published the first GreenGov.SG report for FY2022. In the FY2022 report, it mentioned that post-pandemic, an increase in activities is expected during the recovery, thus the greenhouse gas (GHG) emissions in the near term will also increase. I understand that we have been measuring and disclosing these emissions on Scope 1 and Scope 2. When do we expect GHGs for Singapore to peak, so that efforts can be further focused on reduction towards net-zero?
Today, the Government is the largest procurement party for the public sector. Can I ask what will the Government plan to include in the next GreenGov.SG report? Will the disclosure begin to include Scope 3 emissions, as that is a critical aspect of the products or services procured? Furthermore, any GHGs reduction targets without Scope 3 may not be meaningful, since we do not have the visibility on the full supply chain, nor its materials at source or manufacturing processes to produce the products or services.
While I recognise it is difficult to grapple with Scope 3, the position that the Government takes in this respect will be a signal of what the industry, especially the corporates, should endeavour to achieve. In our next phase of urbanisation and economic growth, many projects that we are undertaking from public housing, transport infrastructures to connectivity service provisions, the criteria that the Government sets for these sectors will imply the need for early planning and ability to comply by all parties, particularly the construction and ICT sectors. Can the Minister share what and how are the green procurement criteria decided for these sectors?
Finally, I want to reiterate my previous call for support towards SMEs on this sustainability journey. Inevitably, there are many requests and requirements when new frameworks are introduced that will effect changes to the traditional industrial practices and processes. SMEs throughout the world face the same challenges in learning the state of things for sustainability, how to comply with new regulations and where to find essential information that enables necessary compliance, and how to build their business processes and models around sustainability.
The issue here is beyond carbon tax or GHGs emissions for any SME. The crux of managing the issue is knowing where to begin. Apart from cost, SMEs struggle to implement needful processes and require handholding from understanding the current gaps in their company, and the next steps that are critical for them to becoming a sustainable supplier.
SMEs need more than just advice or grants, but actually, a 101 guidebook. Many corporates in Singapore rely on local SMEs to fulfil their procurement needs. We want to help them and support their transition towards sustainability. But corporates alone will not make the cut for levelling their capabilities. What will the Government do to assist them in reaching the first milestone of understanding their current position and assess the needs to improve upon?
Is it possible to categorise the assessment of SMEs and their needs by nature of businesses, ranging from trading, manufacturing, consumer sales or others. These would then allow impactful first steps that can give a sense of the state of things in the SMEs and, subsequently, the Government can consider to provide useful targeted support accordingly to them as they transition over time.
Achieving net-zero emissions by 2050 must be a whole-of-nation effort that must involve businesses. In Budget 2023, Minister Grace Fu said that "businesses should do more with less". The Minister also said that while some upfront costs may be incurred, lower energy and resource used will lower costs over the long run.
In a 2023 survey of businesses that have adopted technology to make the green transition, only 16% were confident of achieving their sustainability target. Businesses are optimistic about the green economy, but may lack the guidance needed to take concrete steps to transition.
The $5 billion Future Energy Fund is a huge boost for the transition to cleaner fuels. I am also heartened by the extension and expansion of funds by SMEs, including through the Enterprise Financing Scheme and the Energy Efficiency Grant.
Beyond making funds available, can the Government proactively reach out to SMEs on accessing and utilising these funds? I hope we can provide more support to SMEs to cross the barrier and translate funding into concrete actions on the ground.
Mr Chairman, Singapore's green transition requires all stakeholders to play their part in reducing their carbon footprint. Enterprises can contribute in many ways, such as by becoming more energy-efficient and reducing waste.
What is the Ministry doing to incentivise businesses to use renewable energy and to reduce energy consumption?
In view of current and new regulations to reduce waste and boost recycling, how is the Ministry supporting companies to build their capabilities to do so? In addition, are there industry guidelines and targets to encourage business-client cooperation in reducing waste, particularly packaging waste for consumer products?
Mr Gan Thiam Poh, take your two cuts together.
Chairman, as part of Singapore's efforts to mitigate climate change, our carbon tax was increased from the previous $5 per tonne of emissions to $25 per tonne. It will rise to $45 per tonne between 2026 and 2027.
The higher carbon tax rates will prompt businesses to consider and search for ways to be more energy efficient. However, reasons such as sunk investment cost in current equipment and tools and manpower constraints, especially for SMEs, are some of obstacles for enterprises. What are the help and supporting measures available for businesses seeking to be more energy efficient?
Singapore's carbon tax has jumped fivefold from $5 per tonne of emissions to $25 per tonne. In the next three years, it will rise to $45 per tonne. What plans does MSE have to educate, encourage and assist our households to switch to more energy-efficient appliances and adopt green lifestyle habits to obtain savings on their electricity bills? With more hot days and warm nights due to global warming, how can households keep cool without turning to air-conditioning which is one of the major appliances that consume more electricity?
Mr Chairman, in view of the raised carbon tax and our residents' cost of living concerns, how has MSE been helping households to improve their energy and water usage efficiency, in order to enhance their cost savings? How has MSE been working to raise public awareness on tips to conserve these precious resources? How else can MSE incentivise households that keep water and electricity consumption below national average or certain benchmark consumption per pax to encourage conservation of these resources? I hope MSE can share its ongoing and prospective efforts for the points I have raised above.
Singapore's green transition should be a just and inclusive one. I am glad that the Climate Friendly Households Programme helps 1-, 2- and 3-room HDB households reduce their energy and water consumption. The programme gives eligible households vouchers to purchase refrigerators, shower fittings and LED lights. If all eligible households make the switch, this is the equivalent of taking 10,000 cars off the road. The water savings amount to 400 million gallons of water annually.
The programme will expire on 20 March 2024. Can the Ministry share if there are plans to extend the programme? Additionally, will the Ministry consider expanding the scope of the programme to include more households and more appliances? In particular, can we consider expanding the programme to encourage passive cooling measures for households, such as installing heat-reflecting windows and adding insulation to windows and doors?
Sir, post COVID-19, there is a much better awareness on the impact of indoor air quality on the health of occupants in a building. The National Environment Agency (NEA) currently requires building owners to comply with a set of guidelines to ensure a reasonable standard of indoor air quality and improving ventilation.
The question that arises is: how NEA will be able to regulate this requirement? We should not wait until the occupants get sick before any investigation is launched on the adequacy of the measures put in place by building owners. Hence, from a regulatory perspective, how does NEA proactively monitor the owners' compliance of air quality standards in public and commercial buildings? Would the compulsory installation of monitors, such as carbon dioxide monitors, in these buildings help in the task?
Finally, what has been NEA's experience in supervising the Code of Practice for the control of Legionella bacteria in cooling towers of the buildings?
Ms Carrie Tan, take your two cuts together.
Mr Chairman, Singapore's Zero Waste Masterplan aims to increase the overall national recycling rate to 70% and reduce waste sent to the landfill by 30% by 2030. This goal seems reasonable.
Singapore has had Clean and Green Campaigns since 1990 and most of us recognise the 3Rs – reduce, reuse and recycle. But our actions do not mirror this awareness. Even though more than half of Singaporean households said they were recycling, the actual domestic recycling rate based on recyclables collected was only 13%. People are still discarding far more non-recyclables!
Despite much effort, there has been limited success after many years. In fact, the domestic recycling rate even dropped slightly in 2022! It is time to shift focus to "reducing" and "reusing" instead, while "recycling" happens in parallel.
Research shows it is the effort required and not the lack of desire that is the obstacle to an action. When we do not know how to repair, repurpose or re-share an item, discarding it is far easier! Convenient opportunities to swap and repair items should be permanent features in our neighbourhoods.
In Nee Soon South, we have successfully run Shwap for Sustainability events where residents can exchange clothes with one another to reduce fast fashion waste. The community group Repair Kopitiam, organises regular community events in different neighbourhoods where residents can learn how to repair items from trained volunteers.
These are two examples of local initiatives that I hope MSE can give resourcing and legs to, to propagate into all neighbourhoods in Singapore through the SG Partnerships Office. Let us discard the "throw away" mindset and embrace a "treasuring" mindset – using less, sharing more, wasting not. Let us make reducing and reusing a national movement.
Singapore is ageing. There are more people dying each day, each year. From 20,933 deaths in 2020, the number grew to 25,600 in 2022. This may sound morbid but is the harsh reality and trend going forward.
What is MSE's long-term strategy and innovations, given that competing land needs and climate change concerns are rendering traditional ways of afterlife arrangements increasingly difficult? Do we cut down more trees to make way for more columbariums? Or can MSE work with A*STAR, for example, on research and development to treat ashes to make them beneficial for trees instead?
What are other options to having an urn, a niche and more columbariums for memorialising our loved ones who passed? I urge MSE to do more to increase Singaporeans' awareness and willingness towards alternatives, such as inland or sea-scattering of ashes. These conversations need to start now with my generation of millennials, who are more open-minded than our parents and may well opt for alternatives.
Sir, our hawker culture is our national treasure, providing Singaporeans with affordable and well-loved hawker fare. With an ageing population, rising costs and manpower shortages, there has been concerns over its sustainability.
NEA has implemented programmes and initiatives to support and encourage hawkerprenuers to join the trade. But, anecdotally, the failure rates of new stalls in some hawker centres and coffee shops has been quite high, with a number of stalls shutting down in less than one year. Further, many younger hawkerpreneurs aspire to serve more upmarket fare or atas fares, such as gourmet pastas, gourmet burgers that start north of $8 in our hawker centres that cater to the taste of more affluent broader population. Hawkerpreneurs who have the ambition to expand, express frustration in the lack of manpower and the inability to hire foreigners as their number one challenge.
What more can the Government do to ensure that the hawker trade can attract and retain Singaporeans, while ensuring the continued availability of good low-cost options in our hawker centres and coffee shops?
Sir, many of our residents depend on hawker centres to provide their main meals several times a week. Hawker centres are an integral part of our community lives, providing a wide range of good food. However, with rising costs of ingredients, manpower and utilities, our hawkers are finding it harder to keep their food prices as affordable as in the past. On the other hand, fewer Singaporeans are becoming hawkers even as many of the current hawkers are getting older and gradually retiring.
What is the Ministry's strategy to maintain the balance between keeping hawker food prices affordable while ensuring the earnings of our hawkers are attractive enough to continue working and to bring in new talent into this sector?
Last year, my Sengkang colleague Assoc Prof Jamus Lim elucidated that pricey coffee shop rents form part of the recipe for expensive hawker food. Likewise, hawkers operating from hawker centres face significant pressures from high and rising rents, causing them much financial strain and, inevitably, many may have to raise their food prices – albeit grudgingly, for many well-meaning hawkers.
As of 2021, the median monthly rent was $1,250 for non-subsidised stalls in NEA-operated hawker centres and $2,000 for stalls in privately-operated hawker centres under the Socially Conscious Enterprise Hawker Centre scheme. These pricier rents could likely be due to the operator passing through the high-bids placed during a tender, such as a successful bid of over $6 million for the operation of the recently-opened Buangkok Hawker Centre, onto stallholders.
Hence, by bringing all centres under NEA control, the costs for our stallholders could be better managed or even reduced, whilst keeping menu prices affordable. Good food stalls in NEA-operated hawker centres also face elevated rents – with tender documents revealing that the median winning bid for January to November 2023 was approximately $1,700 with some stalls even fetching over $6,000 in rent, such as the case for the highest-ever $6,810 per month rental for Newton Food Centre hawker stall.
With the introduction of a rental cap for this year's Geylang Serai Ramadan Bazaar, perhaps a similar idea could be implemented for stalls in NEA-operated hawker centres or even other Government-leased properties, such as HDB eating houses as well; instead of a purely price-based tender where hawker stalls are simply awarded to the highest bidder. With the rising cost of living hitting Singaporeans hard, measures ought to be in place to ameliorate the financial pressures experienced by hawkers whilst ensuring the affordability of hawker food for all.
Mr Chairman, we proudly commemorate Singapore's hawker culture as the nation's inclusion on UNESCO's Representative List of Intangible Cultural Heritage of Humanity in 2020. The dedication of our hawkerpreneurs, who tirelessly work over hot stoves and woks, ensures the preservation of this invaluable cultural heritage.
Moreover, our hawkerpreneurs fulfill a crucial social need by providing affordable and delicious meals to all Singaporeans, particularly those from resource-low families. They also offer convenience to dual-income households, who often lack the time to prepare meals.
Despite their invaluable contributions, our hawkerpreneurs face escalating challenges, including one: higher manpower costs, driven by the need to uplift lower-wage workers and the tightness of the labour market. It is worth noting that hawkerpreneurs are restricted from hiring foreign workers, limiting their pool of available stall assistants. Two, increased ingredient costs due to global inflation. Three, hawkerpreneurs plying their trade in some coffee shops have also experienced escalating rental prices.
In light of the Government's comprehensive efforts to enhance the livelihoods of lower-wage workers through initiatives like the Progressive Wage Model (PWM) and increasing local qualifying salaries, it is imperative to consider the well-being and livelihoods of our hawkerpreneurs too.
Therefore, I would like to inquire whether the Ministry has conducted a study on the average earnings of our hawkers, comparing them with the latest salary benchmarks, including overall pay and hourly earning rates? Specifically, a study focusing on younger hawkerpreneurs who face higher living expenses, such as housing mortgages and children's education, would be beneficial. What plans does the Ministry have to ensure that our hawkerpreneurs can maintain a decent livelihood?
Additionally, while the Government has emphasised the necessity for consumers to pay more to support the uplifting of lower-wage workers and strengthen social inclusivity, hawkerpreneurs often face criticism when revising meal prices upward. How does the Government intend to assist hawkerpreneurs in implementing price increases that are fair to both them and consumers?
Sir, in November 2023, Singapore Management University (SMU) published a study on the cleanliness of public toilets in hawker centres and coffee shops entitled, "Public Toilets as Dirty as in 2020".
The study concluded that whilst there have been improvements at the hawker centres compared to 2020, Singaporeans conveyed that more should be done to improve toilet sanitation at coffee shops. In HDB housing estates, we often see irresponsible cases of littering and dumping amongst residents. They expect the poor Town Council cleaners, who already have heavy workloads, to clean after them. This is unfair. For a first-world country like Singapore, we can certainly do better.
How do we ingrain in Singaporeans the message that cleanliness is a joint responsibility amongst all of us? How can we improve the cleanliness outcomes in our estates and public toilets?
Chairman, cleanliness, or lack of, in the toilets of our coffee shops and hawker centres, has been a perennial issue. For a brief period during the COVID-19 pandemic, they improved greatly and Singaporeans were hopeful that finally, clean toilets in our beloved hawker centres will become the new norm. Unfortunately, this turned out not to be the case and the state of wet and dirty toilets resumed.
As a developed country, this is an area which we must make more effort to improve upon. What are the plans by the Ministry to address the issue of dirty toilets in public places, including those in the wet markets and coffee shops? In addition, how can we involve more Singaporeans to keep other public spaces clean?
Recent surveys have shown that the standard of cleanliness in our public toilets at hawker centres and coffeeshops remains disappointing. What plans does the Ministry have to address the longstanding issue of dirty toilets in these public places? What measures will the Government implement to educate and involve our community to keep our public spaces clean?
Mr Chairman, in an island-wide study conducted by the Singapore Management University (SMU) last year, more than 66% of 9,411 Singaporeans interviewed were of the view that public toilets in hawker centres and coffee shops either remain as dirty as they were three years ago, or “have become much dirtier”. Additionally, about 60% of the respondents also said that efforts in cleaning up toilets in hawker centres and coffee shops ranged from mostly ineffective to completely ineffective; only 6% of Singaporeans were optimistic about the efficacy of clean toilet campaigns.
Why are public toilets in Singapore in such bad condition, or at least perceived to be? Could it be because one, public toilets are not well designed for robust public use, operations and maintenance? Two, public toilet operators or their contractors are not maintaining toilets to attain and maintain good functional and hygiene standards? Three, users of public toilets lack graciousness in keeping toilets clean? Or four, there is a sense of lack of ownership among all stakeholders to ensure that toilets are functional, safe and clean in Singapore?
Mr Chairman, in the SMU study, in 2023, the top three cleanest public toilets in hawker centres and coffee shops were those located in Marina South, Outram and Boon Lay. Clean public toilets, is certainly not a myth. With an ageing population and risks of disease outbreaks in the future, it is crucial for us to ensure that Singapore has clean and hygienic toilets. Thus, I ask: what plans does MSE have to address the issue of dirty toilets in these public spaces? What were the learning points from campaigns that were rolled out in the past? Do the relevant authorities plan to step up monitoring and enforcement to ensure public toilets are well maintained?
Chairman, one of the things we are most known for is being one of the cleanest cities in the world. It is a blessing to be able to walk down litter-free roads built through public culture and awareness and the hard work of many. I would like to ask how have new policies, like the Tray and Crockery Return Scheme since June 2023, or the High-rise Littering Statutory Presumption clause improved cleanliness in our heartlands? And what resources have been deployed to manage errant dumping, and high-rise littering, which sometimes caused by well-meaning elderly who throw food out the window for birds? What are the Government strategies to manage to improper waste disposal, particularly at residential HDB units and in our housing estates? Could MSE also share its strategies working together with other agencies to tackle urban bird issues which persist in several hawker centres and estates?
“Killer-litter” is a term coined decades ago and today, it continues to be relevant to every one of us. Most of us live in high-rise apartments, whether they are HDB flats or private condominiums. As we have experienced, killer-litter can occur anywhere, posing a grave danger to all. Sometimes, high-rise littering are not deliberate acts of throwing items down the building block. Rather, these are items placed on ledges or open terraces, or hung on balconies. With more extreme weather conditions nowadays, more items are at risk of injuring someone when there are strong winds. How will the Government deter potential high-rise littering and ensure that residents take precautions with their items in open areas?
Despite numerous efforts by agencies like NEA, Town Council and others, the state of public cleanliness and hygiene remains much to be desired. Irresponsible waste dumping, high rise littering, cigarette butt littering remain a common scene in our neighbourhoods and heartland centres. While the majority of the public are socially responsible, there are still a recalcitrant minority that continues to be inconsiderate and behave irresponsibly. It seems that effect of deterrence has no impact on them.
Can I ask if surveillance and the enforcements can be significantly beefed up to deter more of such inconsiderate behaviours? May I ask what are the Ministry’s plans to further enhance efforts to keep Singapore clean, especially at the littering hotspots around the island?
Chairman, foreigners and tourists often speak of Singapore as a clean city-state. This is a reputation we want to maintain. We also want to ensure our residents live well in a clean and healthy environment. We have been able to achieve this so far due to the hard work of our cleaners. There are also meaningful initiatives like the ones led by our Public Hygiene Council. However, as locals, we know there are some challenges.
According to a study conducted by SMU, also quoted by other Members, more than 66% of Singaporeans said public toilets in hawker centres and coffee shops either remain as dirty as they were three years ago or "have become much dirtier". In April 2023, in the SMU’s Public Cleanliness Satisfaction Survey, 90% of respondents acknowledged that Singapore is clean only because of the efficiency of its cleaning services. And 77% of respondents believe that it is the Government’s responsibility to keep Singapore clean.
Indeed, it can be difficult to keep certain places, like public toilets in hawker centres, clean. We need to create a culture where people take responsibility and participate in the efforts of maintaining hygiene and cleanliness so that we can truly be a clean city and not a "cleaned" one. We need a whole-of-society approach in tackling this matter. How is MSE working with different agencies and community partners in this endeavour?
I also note that the National University of Singapore (NUS) and JTC Corporation, are supporting trials with autonomous cleaning bots in toilets at industrial parks, hospitals, malls and the airport. How can the Government leverage technological advancements in managing hotspots where cleanliness is an issue?
Designated smoking area are created to confine smokers and their smoke within a space and protect non-smokers from the harmful effects of second-hand tobacco smoke. Without these clearly designated zones, smokers are more likely to break the law and smoke in a prohibited area. Therefore, I would like to ask the Minister what is the progress of designating smoking areas in buildings, F&B outlets, and various other spaces, and if there are plans to expand their set-ups.
Mr Louis Ng. Your two cuts together, please.
I have been pushing the issue of second-hand smoke repeatedly for the past few years. We cannot end the MSE Committee of Supply (COS) without including this important issue. I know Senior Minister of State Amy Khor has reluctantly handed over this issue to Senior Parliamentary Secretary Baey Yam Keng. I hope with a fresh pair of eyes and his healthy lungs – he exercises a lot – we can finally move forward on this issue of second-hand smoke.
It is ironic that we are doing so much to protect public health, implement measures to reduce pollution levels and improve air quality but we do so little when it comes to protecting people from second-hand smoke in their own homes. Our homes should be our sanctuary. But for so many people, second-hand smoke is a deadly intruder. This should not be treated as a neighbourly dispute but instead, treated as a public health concern. A serious public health concern. I have given many suggestions to tackle second-hand smoke in homes. Beyond issuing advisories, can the Government share what it is doing to protect people from second-hand smoke in their own homes?
Next, since 2019, Orchard Road has been designated a No Smoking Zone. This means that smoking is only allowed in Designated Smoking Areas. The Orchard Road No Smoking Zone was recently expanded to the Somerset Skate Park.
It has been five years since we introduced the Orchard Road No Smoking Zone. In 2021, Minister Grace Fu shared that MSE will monitor and assess the effectiveness of the Orchard Road No Smoking Zone before considering whether to designate other areas as No Smoking Zones. Can the Ministry provide an update on its assessment? Will the Ministry consider expanding the No Smoking Zone to other busy streets and areas, such as the Central Business District and the Civic District?
Minister Grace Fu.
Thank you, Mr Chairman. In our early days of Independence, Singapore stood at critical crossroads, with limited resources, an uncertain economic future and pressing public health concerns. Back then, our forefathers recognised the importance of safeguarding a clean and green environment to protect the health of our people, fuel economic growth and pave the way for a brighter future.
A public cleaning regime was put in place, where our cleaning workforce swept the streets and removed refuse daily. We cleaned up the Singapore River, which was heavily polluted from human and economic activities. Street hawkers were rehoused into hawker centres, equipped with proper facilities to ensure food safety and hygiene standards.
Today, we again stand at crossroads of political, economic, social and environmental changes. This is why the Government launched the Forward Singapore exercise last year – to re-examine our values and aspirations, and to forge a new social compact for the road ahead.
Forward SG underscored the crucial role of collective responsibility in shaping our shared future. It also highlighted the importance of ensuring that the basic needs of all Singaporeans continue to be met. This includes a clean and liveable environment, with reliable access to safe food and water.
My Ministry will work with all segments of our society to build a clean, green and resilient home for our current and future generations. In this COS debate, I will provide an overview of our efforts to enhance public hygiene and update on the Singapore Green Plan; Senior Minister of State Amy Khor will talk about our efforts in green procurement, energy efficiency and waste management; Senior Minister of State Koh Poh Koon will speak about how we are enhancing our food security, protecting our coasts, and strengthening the resilience of our hawkers; Senior Parliamentary Secretary Baey Yam Keng will delve into the operational and technological aspects of our environmental cleanliness initiatives, as well as our community engagement efforts.
First, public hygiene. What comes to mind is environmental cleanliness – keeping our surroundings free from litter and clutter, and the iconic “Keep Singapore Clean” campaign. Public hygiene is more than that. It forms the very foundation of our well-being – safe food, clean air and clean water. Collectively, all facets of public hygiene come together to create a thriving urban environment and protect our physical and mental health.
Sustaining high levels of public hygiene requires the active participation of all of us. The Government, businesses, communities and individuals must all work together to contribute to a clean environment, safe food, clean air and clean water. This is the social compact that will strengthen our sense of collective responsibility to one another.
MSE will designate 2024 as the Year of Public Hygiene. The Year of Public Hygiene will see greater emphasis on delivery of public environmental services, resourcing the environmental industry with capability building and technology adoption, and augmenting our enforcement efforts.
Complementing enforcement are our efforts to harness the spirit of collective responsibility as part of Forward SG, for all stakeholders to play a role in upkeeping good public hygiene practices for the betterment of our society. Senior Parliamentary Secretary Baey will elaborate on this.
Let me first touch on environmental cleanliness.
The Government has been working closely with our businesses to keep our public spaces clean. In 2021, we launched the Environmental Sanitation (ES) regime under our Environmental Public Health Act (EPHA) to promote higher cleanliness standards and place greater accountability on businesses to keep their premises clean. The ES regime sets out mandatory baseline cleaning and disinfection standards for premises with high footfall and vulnerable occupants, such as coffee shops, food courts, schools and elder care facilities. It also requires premises to appoint a trained and registered individual to develop and implement an ES programme in accordance with prescribed standards. Our agencies have been working diligently with business owners to ensure that minimum cleanliness standards set out under the ES regime and others under the EPHA are met.
Several Members – Ms Poh Li San, Mr Gan Thiam Poh, Ms Hany Soh and Mr Murali Pillai – have raised questions on toilets in coffeeshops and other public spaces.
NEA and SFA have been conducting enforcement blitzes on public toilets, including those in coffeeshops and hawker centres, to ensure that they are properly maintained and cleaned according to requirements under the EPHA.
NEA and SFA have also been conducting checks to ensure proper disposal of food waste by food establishments, to provide clean, pest-free dining environments for Singaporeans. This includes making sure that establishments have sufficient and properly maintained bins, and that any waste generated is properly bagged, conveyed to the bin centre in a timely manner, and not left overnight.
We will step up on enforcement where necessary. Senior Parliamentary Secretary Baey will speak more on our approach.
Mr Chairman, our cleaning industry has been a cornerstone of our environmental cleanliness efforts, forming the backbone of our clean-up initiatives.
With an ageing population and a shrinking workforce, the industry faces shortages and reductions in manpower. It is important for us to uplift our cleaning industry, to ensure that they are adequately equipped and resourced to uphold high standards of environmental cleanliness.
We have seen several efforts, led by the industry, in supporting our cleaning workforce. Temasek Polytechnic launched their Enviro Tech Innovation Hub (ETIH) last year, with the support of NEA, together with the Environmental Management Association of Singapore and industry players such as cleaning companies and tech partners. The ETIH will develop training programmes to upskill our cleaning industry and testbed cutting-edge technology solutions to increase productivity, such as the usage of IoT sensors and devices to manage cleanliness performance.
We are actively upskilling our cleaners, so that their capabilities and skillsets evolve in tandem with the industry’s needs.
Mr Louis Ng mentioned the Progressive Wage Model (PWM) earlier. We introduced enhanced training requirements under the PWM for the cleaning industry in December 2022, which has allowed cleaners to acquire new and relevant skills, such as how to operate emerging technologies and digitalisation tools used in cleaning operations.
The PWM also entails a cumulative wage increase of up to 85% from 2022 to 2028, ensuring that our cleaners’ wages continue to rise alongside improvements in their competencies and skillsets. Base salaries of local cleaners have risen to between $1,570 and $2,210 in 2023, and will increase each year until 2028.
Next, safe food. SFA takes a risk-based approach in regulating food safety, where licensing requirements and food safety grading criteria are calibrated based on food establishments’ risk profiles. This focuses our inspection resources on where risks are higher and encourages businesses to implement sufficient measures to ensure food safety, while keeping compliance costs low.
Let me provide an update on our food safety grading system.
Under the existing grading system, food establishments are graded between A and D, based on an annual audit. This provides a snapshot of an establishment’s food safety standards at the point of inspection. However, it does not adequately reflect whether these standards are consistently maintained.
For better food safety assurance, we are moving towards a new Safety Assurance for Food Establishments (SAFE) framework, where establishments will be graded based on their food safety track record and prevailing food safety management systems. It will also harmonise the grading systems for both retail and non-retail food establishments, which are currently regulated by two different frameworks.
In line with our risk-based approach, establishments involved in significant food handling with a large scale of distribution, such as food manufacturers and caterers, will need to meet additional requirements to attain higher grades compared to those of smaller scale. Establishments with poor food safety performance and lower grades will face more frequent inspection. Poor performance during these inspections could lead to downgrading.
This new SAFE Framework is a better version from the one we announced in 2021. SFA incorporated feedback that it has received from the industry and kept the intent of recognising food establishments with a consistent record of good food safety performance, and spurring others to achieve and maintaining high grades of food safety. More details will be released later this year.
With a risk-based approach, we are also removing licensing requirements and fees on food establishments with minimal food safety risk. This helps to reduce regulatory compliance and increase operational efficiency.
I announce that by 1 January 2025, all market stalls and vending machines selling non-food items or low-risk food items, such as canned food and packet biscuits, will not need to be licensed. More than half of existing market stall licensees and around two in five existing vending machine licensees will benefit from this new policy.
The safety of food from these stalls and vending machines will continue to be regulated through standards imposed by SFA on the importers and suppliers of these food items.
Another aspect of public hygiene is the quality of indoor air which Mr Pillai spoke about. Formaldehyde is a chemical that can be found in some building products such as paints. Prolonged exposure to formaldehyde can lead to negative health effects, such as respiratory discomfort and an increased risk of certain cancers.
To protect our people from such exposure, we will be progressively introducing limits on formaldehyde in building products, starting with interior paints. From 2025 onwards, interior paints with formaldehyde will not be allowed for sale in Singapore. [Please refer to clarification later in the debate.] Further details will be released.
To Mr Pillai’s question on how we are safeguarding indoor air quality in buildings, NEA currently does not mandate minimum indoor air quality standards for buildings. Instead, NEA takes the approach of promoting greater business responsibility in maintaining high levels of indoor air quality, and providing guidance on best practices.
NEA, the Building Construction Authority (BCA) and the Ministry of Health (MOH) have jointly issued a set of guidelines on improving ventilation and indoor air quality in buildings, which Mr Pillai had mentioned earlier. These guidelines encourage premises managers to install carbon dioxide monitors to assess the adequacy of ventilation in their premises. NEA has also published a detailed guide for premises managers on how to implement carbon dioxide monitoring.
Mr Pillai also asked for an update on the implementation of the Code of Practice (COP) for the Control of Legionella Bacteria in Cooling Towers. The COP was replaced by the Code of Practice for Environmental Health (COPEH) and related Guidelines in 2021. Under the EPHA, we require all cooling towers to be registered with NEA, to enhance the traceability and control of potential outbreaks. As Legionella is primarily spread via inhalation of contaminated water aerosols, the EPHA requires building owners to regularly submit water sampling results to NEA, to ensure that the water quality in their cooling towers complies with stipulated regulatory limits.
Last but not least, clean water. Ensuring a supply of clean water is a collective responsibility shared by both the Government and businesses. Businesses must play an active role by implementing adequate earth control measures to prevent silt from being washed into our waterways and reservoirs, and refrain from disposing hazardous substances into our public sewerage system. On the Government’s part, the Public Utilities Board (PUB) will look to introduce additional measures to safeguard our waterways, reservoirs, and sewerage system. This includes tightening controls on silt discharges into our waterways and reservoirs, and illegal discharges of dangerous and hazardous substances into our public sewerage system. More details will be released later.
Chairman, even as we draw focus on the "hygiene" factors in the year ahead, we are not taking our eyes off longer-term challenges such as climate change. Dr Lim Wee Kiak and Ms Poh Li San asked for an update on the Singapore Green Plan.
We are making good progress to achieve our targets. Dr Lim asked about the progress of specific initiatives and targets. I will not go into details of each target under the Green Plan, but focus on providing an overview of our key achievements. I invite Dr Lim to separately file questions on specific initiatives and targets to the respective Green Plan Ministries.
On City in Nature, the Ministry of National Development (MND) and the National Parks Board (NParks) are pressing on with conserving and extending our natural capital throughout the island. Senior Minister of State Tan Kiat How will provide further details during MND’s COS.
On Sustainable Living, my Ministry rolled out the Disposable Carrier Bag Charge last year, requiring large supermarket operators to charge for disposal carrier bags. Since its implementation, supermarket operators have observed a 50% to 80% reduction in the use of disposable carrier bags. More Singaporeans are observed to use reusable carrier bags for their grocery shopping.
The Ministry of Education (MOE) has also been instilling sustainable living habits in our students through the Eco Stewardship Programme, where schools have implemented the "4Cs" approach of Curriculum, Campus, Culture and Community to allow students to learn about sustainability in a more integrated and applied manner.
We are also powering on with our Energy Reset. Thanks to the Ministry of Transport (MOT) and the Land Transport Authority's (LTA’s) efforts, about two in three new car registrations in 2023 were cleaner energy cars, and one in three HDB carparks are now equipped with electrical vehicle charging points. The Ministry of Trade and Industry (MTI) and the Energy Market Authority (EMA) are making good progress in greening our national grid, issuing the first Conditional Approvals for low-carbon electricity imports from Cambodia, Indonesia and Vietnam.
To foster an inclusive transition to a green economy, the Monetary Authority of Singapore (MAS) announced Greenprint, a digital solution to help businesses simplify and standardise the reporting of sustainability data. Greenprint will launch in phases in 2024 and focus initially on automating basic climate reporting for small and medium enterprises (SMEs), before scaling its automation capabilities to support larger corporates.
To secure our Resilient Future, my Ministry is pressing on with our efforts to ensure that our environment remains liveable, our food supply remains reliable and our coastlines remain well-protected in the face of extreme weather patterns. Senior Minister of State Khor recently updated this House on the measures we are taking to increase Singapore’s heat resilience, which should address Ms Poh’s queries on the topic. Senior Minister of State Koh will update on our food security and coastal protection efforts later.
As Dr Lim alluded to, the Green Plan is a living plan that will evolve over time with more ambitious targets and aspirations. In 2022, we announced that the public sector will commit to achieve net zero emissions around 2045. Last year, we raised our target for restoration and enhancement of forest, coastal and marine habitats, from 30 hectares to 80 hectares by 2030. We are closely monitoring the progress of our initiatives, to ensure that they remain relevant to our long-term sustainability goals.
Mr Chairman, as the world grapples with daunting, long-term challenges like climate change, let us not lose sight of the fundamental necessities for a good and healthy life – a clean environment, safe food, clean air and clean water.
As committed under Forward SG, the Government will continue to spearhead efforts towards our shared vision of a Clean, Green and Resilient Singapore. But we can do so only through collective action with our businesses and our people.
My hope is for Singapore to be a clean country and not just a cleaned country, and I echo the comment made by Ms Rahayu Mahzam. I hope to see businesses operate with pride, offering not only clean spaces for Singaporeans, but also implementing responsible practices that safeguard the food we eat, the air we breathe, and the water we drink. I hope to see communities become engines of positive change, fostering a culture of shared ownership and partnering the Government in building a new social compact. I hope to see Singaporeans treat our streets, our parks and our public spaces like extensions of our own homes, going the extra mile to keep our surroundings clean as Singapore is our home.
This is the Singapore we deserve, the Singapore we can build, and the Singapore we must leave for generations to come. [Applause.]
Senior Minister of State Dr Amy Khor.
Chairman, while we push hard on public hygiene which is the foundation for healthy, resilient communities, we must also press on with our efforts to confront climate change. Climate change has profound impacts on public hygiene and public health.
Singapore is committed to peaking emissions before 2030 and achieving net zero by 2050. We have taken concrete steps to reduce our carbon footprint. These include gradually increasing our carbon tax rate, facilitating renewable energy imports and promoting energy efficiency. Everyone needs to fight climate change – the Government, businesses and households.
Let me start with the Government. In 2021, we launched GreenGov.SG, the public sector's sustainability movement where we committed to ambitious carbon and resource efficiency targets. Last December, we published the inaugural GreenGov.SG report, which documented our sustainability efforts, progress and plans.
Miss Cheryl Chan and Mr Don Wee asked about our plans for the next GreenGov.SG report and whether Scope 3 emissions would be included.
The second report will be released this year and will include data on waste and waste reduction efforts. As there are wide-ranging sources of Scope 3 emissions from the Government's extensive activities and the sources that are deemed material vary across agencies, we are still studying the appropriate approach.
Under GreenGov.SG, we are pursuing green Government procurement to spur more environmentally sustainable business practices and accelerate the supply of more environmentally-friendly goods and services. We want to encourage companies to green their processes and products. As announced at COS last year, we will consider the sustainability practices of companies that tender for Government projects, starting with large construction and ICT projects. This is on top of the sustainability requirements that we have imposed for the goods we procure.
Miss Chan and Mr Wee also asked how we decided on the green Government procurement criteria for the construction and ICT sectors.
Over the past year, we have consulted the industry and incorporated their feedback on the environmental sustainability-related evaluation criteria. Subsequently, we piloted the criteria by setting aside up to 5% of evaluation points for five construction tenders and one ICT bulk tender.
For the pilot construction tenders, companies were assessed on whether they have carried out climate-related disclosures; adopted decarbonisation technologies, such as electric generators; incorporated low-carbon construction materials; and achieved relevant sustainability certifications.
For the ICT sector, hardware suppliers were assessed based on criteria, such as sustainable packaging options and sustainability-related certifications. We also plan to include criteria for data centre operators and cloud service providers, such as whether companies have embarked on sustainability reporting and the power usage effectiveness of their data centres.
We will continue to refine our environmental sustainability evaluation criteria for large construction and ICT tenders with minimum Estimated Procurement Value of $50 million and $10 million respectively. To Mr Wee's query on the expansion timeline, we plan to expand this initiative to include companies that tender for MICE and other events organised by the public sector from Fiscal Year 2025. We will conduct industry consultations with key players, before finalising the details.
Beyond the public sector, we will continue to facilitate the greening of businesses. We hope to encourage companies, particularly SMEs who are less well-resourced, to adopt sustainability practices while improving their bottom line.
Miss Chan, Mr Louis Ng, and Ms Poh Li San asked how the Government is supporting SMEs to implement green measures in the supply chain. The Government is providing local enterprises with more tools and resources to become sustainable. Companies can tap on capability-building programmes, such as courses and playbooks on decarbonisation, or funding support to do sustainability reporting and invest in energy-efficient equipment.
As shared by Senior Minister Teo Chee Hean, we have increased the carbon tax rate to $25 per tonne this year. We will progressively raise it to between $50 to $80 per tonne by 2030. This better prices the externality of carbon emissions and nudges businesses and individuals to reduce their carbon footprint.
Enhancing energy efficiency will help businesses cut energy costs. Mr Gan Thiam Poh and Ms Poh would be happy to know that NEA's Energy Efficiency Fund (E2F) has been supporting SMEs in the manufacturing sector since 2017. Enhancements to the E2F from 2022 onwards, such as increasing the grant support cap from 50% to 70%, has increased take-up rate by fourfold, to 48 projects. The amount of committed funding also increased from around $700,000 to around $2.1 million post-enhancement.
The Government has reviewed existing energy efficiency grants by various agencies and will subsume the E2F under the expanded Energy Efficiency Grant (EEG), as announced at Budget 2024. The expanded EEG will benefit more sectors, including Construction, Maritime and the Data Centres industry. It will adopt a two-tier structure, with higher support of up to 70% provided to companies that wish to make larger investments to drive greater energy efficiency.
I would like to reassure Mr Ng that the Government is streamlining the application process by consolidating EEG applications across sectors on the Business Grants Portal. The Government will continue to work closely with the industry, including Trade Associations and Chambers, to proactively reach out to SMEs to promote awareness of the EEG.
Adopting energy-efficient equipment will translate to significant cost savings for businesses and households. NEA's energy efficiency labels and standards have helped companies and consumers make informed decisions since 2008. For instance, the average energy efficiency of air-conditioners and refrigerators improved by 59% and 42% respectively. This is equivalent to the annual energy consumption of about 405,000 4-room housing units and translates to annual overall household energy savings of more than $500 million.
From 1 April 2025, we will be implementing labels and standards for two more equipment types, namely household water heaters and commercial storage refrigerators. Water heaters are the third-highest energy consuming household appliance. There are more energy-efficient options, such as instantaneous water heaters, which on average consume about 50% less electricity than electric storage water heaters. This enables homeowners to save on energy bills.
Commercial storage refrigerators are prevalent in food and beverage establishments like hawker centres, food courts and restaurants and can account for about one-third of hawkers' electricity usage.
As refrigerators consume energy throughout the day, we encourage businesses to purchase energy-efficient models to enjoy long-term savings, such as inverter technology refrigerators that are on average 40% more energy-efficient. This will result in annual energy cost savings of about $700, with payback on capital expenditure within a year.
Overall, the lifecycle cost of such efficient models are up to 60% lower than that of standard models. Furthermore, businesses can apply for the EEG to offset up to 70% of the upfront costs.
In 2019, to optimise energy consumption at the systems-level, we introduced Minimum Energy Efficiency Standards (MEES) for water-cooled chilled water systems to encourage adoption of energy-efficient chilled water operations by industrial facilities. Mandatory MEES requirements were introduced for new industrial facilities in 2020. This has helped new facilities each save an average of $300,000 annually in electricity costs, recouping their initial outlay just after three years.
We will amend the Energy Conservation Act this year to effect similar requirements for existing industrial facilities from December 2025. Existing industrial facilities can expect average energy savings of about $1.25 million per year, per facility across the system's 15-year lifespan and to recover retrofitting and operating costs within five and a half years.
Besides improving energy efficiency, pursuing sustainable waste management practices should also be a priority for organisations. By following the 3Rs to reduce, reuse and recycle waste, businesses can increase efficiency and lower costs.
Ms Poh asked how we are supporting businesses in building up capabilities to better manage their waste. Businesses have suggested that it would be useful to appoint staff with formal training to champion the shift towards circular and zero-waste business models. In response, NEA has worked with training providers to introduce Zero Waste Manager (ZWM) courses to train participants to implement 3R efforts and integrate them into their companies' organisational culture.
The courses will also guide companies in fulfilling regulatory requirements, such as Mandatory Waste Reporting (MWR). Not only will the courses benefit some 750 companies covered under the MWR scheme, they can also equip other companies with the necessary knowledge to kickstart their waste reduction and recycling journeys.
Additionally, the ZWM course will benefit employees and companies in the waste management sector looking to provide value-added services, such as waste consultancy and audit services. We encourage all companies to appoint and train staff to lead their waste management and 3R efforts. These two- to three- day courses are developed and conducted in partnership with three training providers: the Waste Management and Recycling Association of Singapore, Republic Polytechnic and NTUC Learning Hub.
To ensure these courses are accessible and affordable, they will be subsidised by SkillsFuture Singapore and whitelisted under Workforce Singapore's Career Conversion Programmes for Sustainability Professionals.
Mr Gan and Ms Hany Soh asked if there will be support for households, which will face higher utility bills from the carbon tax increase. We remain committed to helping households cope with cost of living. As announced by Deputy Prime Minister Lawrence Wong, additional U-Save rebates will be disbursed to HDB households as part of the enhanced Assurance Package, cushioning increases in utility bills. We will enhance support for households wishing to be more energy- and water-efficient, which will also help lower their utility bills.
Launched in 2020, the existing Climate Friendly Households Programme (CFHP) provides $225 worth of vouchers to 1- to 3-room HDB households, consisting of a $150 refrigerator voucher, $50 shower fittings voucher and $25 LED lighting voucher.
As of January 2024, more than 141,000 households have registered for their Climate Vouchers and about 54,000 vouchers have been utilised. To give households more time to utilise their current set of Climate Vouchers, we have extended the qualifying redemption period to 20 March 2024. Mr Ng asked if we will be expanding the programme to include more households and appliances. As announced by Senior Minister Teo, we will enhance the CFHP.
From 15 April 2024, we will expand the programme to all 1.1 million HDB households in Singapore, a more than threefold increase in coverage. This is to encourage wider adoption of energy- and water-efficient products.
Every HDB household will receive $300 worth of Climate Vouchers and the number of eligible product types will be expanded from three to 10, including four-tick washing machines. To Mr Gan's and Mr Ng's queries, other additions like direct current fans will help households keep cool in a more energy-efficient manner.
The 10 eligible products contribute to around 60% of an average household's electricity consumption and around 90% of water consumption. To make it more convenient for households to use the Climate Vouchers, more retailers will come onboard the programme, taking the total number of participating retailers to 14, with about 300 stores islandwide. With these enhancements, we hope to incentivise more households to choose resource-efficient options from the outset, or when their appliances and fittings are due for replacement.
HDB households who have used the $225 vouchers under the current CFHP can also claim the new $300 vouchers under the enhanced CFHP following its commencement. Unlike the current CFHP where the voucher amount is fixed for each eligible product type, the enhanced CFHP will allow households to have more flexibility in using their vouchers and select different denominations when purchasing eligible appliances.
The enhanced Climate Vouchers will be available from 15 April 2024 via the RedeemSG platform and remain valid until 31 December 2027. Members of the public who need support in claiming the Climate Vouchers online may call NEA's hotline for assistance. Chairman, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] The National Environment Agency (NEA) will enhance the Climate Friendly Households Programme to encourage more households to adopt more environmentally-friendly and sustainable lifestyles. In the long run, using more energy-efficient and water-saving appliances and fittings can help households save on utility expenses.
Through the enhanced programme, more households will benefit. The total amount of vouchers and the variety of eligible electrical appliances and fittings will also increase. All HDB households will receive $300 worth of Climate Vouchers. They can use the vouchers to purchase 10 types of energy-efficient and water-saving appliances and fittings, including direct current fans and washing machines, from participating retailers.
Starting from 15 April 2024, one member of each household can go to redeem.gov.sg to claim the vouchers. Elderly residents and those who face difficulties with Internet access can seek assistance via NEA's hotline.
(In English): Reducing waste will also reduce emissions and cut costs. We should thus seek to reduce wasteful consumption, which Ms Carrie Tan has spoken about.
Sustainable consumption involves the responsible management of packaging and products at their end-of-life. Let me provide an update on two of our priority waste streams, namely, electrical and electronic waste, or e-waste, and packaging waste.
On the e-waste Extended Producer Responsibility scheme, or EPR scheme, we are in our third year of implementation and have since collected over 16,000 tonnes of e-waste from over 800 collection points islandwide as of December 2023. This is a significant increase from the 9,000 tonnes collected as of December 2022.
Overall, collection rates have improved, thanks to the close collaboration with ALBA, retailers and Town Councils to publicise the scheme and encourage participation. However, we must continue to double down on efforts to achieve our target collection rates of 60% of large household appliances and 20% of other regulated consumer products' put-to-market weight.
Collection rates for lamps and household batteries have tripled to 4% and 10% respectively whilst the collection rate for ICT equipment increased slightly to 5%. However, the collection rate for large household appliances has declined from 18% to 15%.
To improve this, we will strengthen collaboration with retailers to further publicise their obligatory one-for-one takeback services to customers and continue to work with Town Councils through the quarterly collection drives. We seek everyone's continued support to deposit their e-waste via the various channels available.
Last year, we amended the Resource Sustainability Act to put in place the legislative framework for the Beverage Container Return Scheme (BCRS). We are working with stakeholders on scheme implementation and will share more details when ready.
Beyond BCRS, we are exploring other initiatives to manage packaging waste. In 2021, we implemented the Mandatory Packaging Reporting scheme. This raises awareness amongst companies on the amount of packaging they generate and spurs them to reduce packaging use.
Building on our current initiatives, we are exploring the feasibility of expanding the EPR approach to broader packaging waste types. We have awarded a consultancy study to review overseas best practices and recommend a suitable scheme for Singapore. We will consult stakeholders at an appropriate juncture. This study is expected to be completed by 2025.
Chairman, to reach net-zero, everyone must pitch in. The Government will play its part in greening the Public Service and supporting businesses and households to contribute. Let us all embrace going green, which is not just environmentally friendly, but certainly can also be wallet-friendly.