Economy & business

Dennis Tan Lip Fong asked if HDB has established vacancy thresholds or benchmarks for reviewing rental prices in its commercial properties and what those benchmarks are. Chee Hong Tat explained that HDB prioritizes sustained occupancy and a suitable tenant mix rather than maximizing rental income, using a Price-Quality Method for certain shops that emphasizes affordability and community initiatives. HDB does not set specific vacancy thresholds but tender vacancies promptly to minimize inconvenience, and the overall vacancy rate for rental shops was low at 1.6% in 2025.

Abdul Muhaimin Abdul Malik asked about the digital support provided under the SG Heritage Business Scheme for heritage businesses to modernize and grow. David Neo responded that the scheme offers branding visibility, marketing tools, and grants for transformation projects, including digital innovations like Augmented Reality applications and online games. Heritage businesses can also access additional grants for adopting digital solutions and expanding their market presence. The National Heritage Board plans to develop promotional campaigns, create an online register of designated businesses, and seek industry partnerships for further support.

Kenneth Tiong Boon Kiat asked about the possibility of creating a master database for all commercial sublet agreements and whether lodging these agreements with HDB could be mandated to support evidence-based policy-making on business costs. Chee Hong Tat indicated that this topic was previously addressed in a reply to another parliamentary question on March 2, 2026, referring to specific data related to rentals and licensing.

Yip Hon Weng raised concerns regarding Singapore's response to rapid changes in US tariff policy and its reliance on external demand, questioning the frameworks used for assessing legal and policy volatility. Gan Kim Yong explained that the Singapore Economic Resilience Taskforce (SERT) was established to enhance understanding of macroeconomic changes and support businesses and workers amid global uncertainties. SERT gathers feedback from industry partners and monitors key economic indicators to inform contingency planning for trade-exposed sectors. The government emphasizes diversifying markets, strengthening international trade linkages, and maintaining a rules-based trading system to bolster resilience. Additionally, SERT introduced the Business Adaptation Grant to assist affected enterprises in adapting to new challenges, with increased support levels announced in Budget 2026.

Kenneth Tiong Boon Kiat asked for an update on the AquaPolis programme, including its progress, budget utilization, and support for the fish farming industry's fingerling supply. Grace Fu Hai Yien explained that AquaPolis, established by the Singapore Food Agency, NUS, and Temasek Life Sciences, aims to drive innovation and collaboration in aquaculture. AquaPolis has launched an industry consortium, secured an $18.5 million budget for a three-year R&D programme starting in 2025, and is working on improving the quality of locally produced Asian seabass through ongoing research on parasite-resistant broodstock.

The Second Minister for Finance proposed adjustments to the Civil List under the Civil List and Gratuity Act 1970 to increase the budget for the President's office due to rising operational costs. The adjustments include raising Class 2 expenditures for the President's personal staff from $6,696,700 to $7,318,000 to accommodate manpower cost increases while re-categorizing some expenses. Class 3 expenditures for household expenses will increase from $3,342,200 to $4,542,000 to cover IT and event organization costs during the Istana's restoration. Class 4 expenditures will rise from $550,000 to $1,288,000 due to the new categorization of manpower costs for seconded public officers. The motion was put to a vote and agreed upon.

The Leader of the House, Ms Indranee Rajah, acknowledged the passing of the Supply Bill and Supplementary Bill, marking the conclusion of the Budget 2026 process, which is the largest annual budget at over $200 billion. She highlighted the impact of global geopolitical tensions on Singapore and emphasized that Budget 2026 aims to position Singaporeans for success, focusing on artificial intelligence, job creation, support for families, and addressing the low fertility rate. The debate involved significant participation from members, showcasing unity across political lines, and she thanked all members for their contributions, emphasizing the importance of constructive disagreement in parliament. Ms Rajah concluded by reaffirming the significance of strong governance in navigating a challenging global landscape and expressed gratitude to parliamentary staff for their support during the sessions.

The Second Minister for Finance, Indranee Rajah, presented a Bill for a Second Reading aimed at providing additional expenditure provisions as per constitutional requirements. The additional funds have been approved in the Supplementary Estimates of Expenditure for the financial year 2025-2026. The Bill successfully passed the Second Reading and was subsequently read a Third time and approved.

Indranee Rajah, the Second Minister for Finance, introduced the Supply Bill to seek legislative approval for expenditures from the Consolidated Fund and Development Fund for the financial year 2026-2027. The Bill includes Heads of Expenditure that have already been approved in the Main and Development Estimates of Expenditure. Upon approval, the Bill will authorize the Minister to issue warrants for the specified expenditures. The Bill was successfully passed after being read a Second and Third time.

The Parliament agreed to a budget allocation of $158,962,520,000 for Public Services under the Main Estimates for the fiscal year 2026-2027. A secondary budget allocation of $49,014,559,600 for Development Estimates for the same fiscal year was also approved. The resolutions were reported by the Second Minister for Finance, Indranee Rajah. The Chair confirmed that both resolutions were put to a vote and agreed upon in the House.

The Chairman addressed the remaining Heads of Expenditure without amendments on the Order Paper Supplement, proposing to take Heads B, C, D, E, G, and Z en bloc. The proposed sums for these Heads under the Main Estimates were agreed upon. The Chairman then discussed the Development Estimates, specifically Heads B, C, and E, which were also agreed upon as part of the Development Estimates.

The Committee of Supply session is in progress, led by the Speaker of the House. The specific focus of the session is currently unspecified as it pertains to budget considerations on the 7th allotted day.

Valerie Lee asked the Government about measures to promote AI adoption in the energy generation sector and support for businesses and households in energy conservation. The Minister of State for Trade and Industry highlighted the launch of a regulatory sandbox for Virtual Power Plants and the use of AI for optimizing energy management and forecasting. The Government is also focusing on developing specialized skills in AI for the energy workforce and is collaborating with industry and educational institutions to meet sector demands. Additionally, the Government is studying international use cases of AI in power generation and efficiency to learn from other countries' advancements.

Dennis Tan Lip Fong asked about the government’s assessment of Singapore's export potential in water recycling and management, and whether there are plans to enhance support for local water technology firms to compete internationally. The Minister of State for Trade and Industry emphasized Singapore's global recognition in integrated water management and ongoing government initiatives to support water tech companies, such as funding and international missions. Tan proposed several supplementary questions regarding the establishment of a circular economy export office, marketing integrated solutions to regional hubs, and the use of government platforms to support Singaporean water technologies in emerging markets. The Minister acknowledged these suggestions but noted there are no immediate plans for the export office, while reiterating the government’s commitment to enhance platforms for testing and validating water technologies.

Yip Hon Weng asked about the factors contributing to the Singapore dollar's weakness against the Malaysian ringgit, implications for Singapore’s labor market, and potential policy adjustments by MAS. Alvin Tan responded that the Singapore dollar has actually appreciated against the ringgit recently and that MAS focuses on a trade-weighted exchange rate rather than bilateral rates. He acknowledged concerns about the impact of the upcoming Johor Bahru-Singapore RTS Link on local businesses and outlined ongoing efforts to enhance local competitiveness, with plans for support measures to be announced.

Charlene Chen raised concerns regarding financial safeguards for private student care operators following a recent closure, asking about monitoring for financial distress and additional measures to protect children, parents, and staff. Desmond Lee referenced a prior parliamentary response that addressed these issues, suggesting that details on the governance of student care centres and disruption minimization were provided in an earlier session.

Lee Hong Chuang raised concerns regarding local businesses struggling with rising rents and operating costs, seeking potential support from the Ministry for small and medium enterprises (SMEs). Gan Kim Yong responded that the Government recognizes ongoing cost pressures and is providing support through a Corporate Income Tax rebate for 2024, 2025, and a further rebate for 2026, along with Community Development Council and SG60 Vouchers to assist heartland merchants. The Government encourages businesses to invest in long-term viability through various grants, enhancements to internationalisation schemes, and greater loan flexibility under the Enterprise Financing Scheme. He acknowledged that restructuring may be necessary for some businesses, and the Government aims to support them during transitions while helping workers.

Charlene Chen raised concerns about early detection mechanisms for wage or CPF payment defaults in the student care sector, the timeline for relief fund disbursement, and safeguards for employees facing abrupt insolvency. Tan See Leng responded that the Ministry of Manpower (MOM) and CPF Board have data-sharing processes to detect arrears across sectors. Employees experiencing payment issues are encouraged to seek assistance from MOM or related organizations, and the Short-Term Relief Fund can provide aid to eligible workers, typically disbursed within one to two months after claim verification. Various agencies offer job matching services and training for displaced workers, and the government will continue to review support measures for affected employees.

Dennis Tan Lip Fong asked about the stagnant 0.2% adoption rate of electric motorcycles and suggested introducing upfront purchase incentives like those for electric cars. Jeffrey Siow responded that there are currently electric motorcycles priced comparably to internal combustion engine models, and the low adoption is likely due to factors such as shorter driving ranges and insufficient charging infrastructure.

Assoc Prof Jamus Jerome Lim asked the Prime Minister about the existence of a formal framework for deciding on broad-based household payouts based on economic conditions. Jeffrey Siow responded that the Government considers multiple factors, such as the economic and inflation outlook, the size of fiscal injections, specific household needs, and fiscal sustainability when determining payouts. This approach enables the Government to respond responsively and share economic growth benefits with Singaporeans.