Economy & business

• The Network Capacity Factor (NCF) was introduced to address the gap between transport costs and fares by accounting for changes in network capacity relative to commuter demand, ensuring the public transport system's sustainability while keeping fares affordable.
• The government continues to provide significant subsidies for public transport infrastructure and services, with ongoing reviews of concession schemes to support low-income and elderly Singaporeans.
• While the new fare formula aims to balance cost recovery and affordability, concerns were raised about potential fare increases contradicting car-lite goals and the need for greater transparency and inclusion of service standards in the formula.

• The Customs (Amendment) Bill aims to amend the Customs Act and make a related amendment to the Road Traffic Act.
• The President’s recommendation for the bill has been signified and it was presented by the Second Minister for Finance, Ms Indranee Rajah.
• The bill was read for the first time and is scheduled for a second reading at the next available Parliamentary sitting.

• The bill was introduced by Senior Minister of State Chee Hong Tat on behalf of the Minister for Trade and Industry to amend the Singapore Tourism (Cess Collection) Act.
• The President's recommendation was signified, and the bill was read a first time with a second reading scheduled for the next parliamentary sitting.
• The debate focused on procedural approval for amending the legislation related to tourism cess collection, with no substantive policy objections raised in the initial speeches.

• The bill seeks to amend the Deposit Insurance and Policy Owners' Protection Schemes Act to enhance financial protection for depositors and policy owners.
• A related amendment is proposed to the Insurance Act to align regulatory frameworks and strengthen safeguards within the insurance sector.
• The Minister for Education introduced the bill and it was read for the first time, with a second reading scheduled for the next parliamentary sitting.

• Several MPs highlighted the need to support SMEs through transformation, improve infrastructure like HDB flats and community hubs, and foster a gracious, considerate society to overcome national challenges.
• There were calls to further liberalise MediSave use for outpatient treatments, exempt primary healthcare from GST, and expand MediShield Life coverage to include pregnancy complications and mental health conditions.
• Emphasis was placed on creating inclusive workplaces by supporting older workers and women through flexible work arrangements, while addressing social inequality and class divides in education through equitable school funding and admissions.

• Multiple MPs emphasized that tackling income inequality and social stratification is a top priority for the new generation of leaders, arguing that while meritocracy is a core value, the government must provide targeted support in housing, education, and employment to ensure a fair starting point and uphold the social compact.
• Several speakers highlighted the need for Singapore to undergo bold economic transformation, particularly by embracing the digital economy, investing in lifelong learning and skills upgrading, and preparing the workforce for technological disruptions and the rise of Southeast Asia's markets.
• Concerns were raised about specific groups being left behind, including low-wage workers, mature workers, freelancers in the gig economy, and single parents, with calls for more robust policies such as expanding the Progressive Wage Model and improving retirement and housing adequacy.
• MPs urged the government and tripartite partners to strengthen social mixing and inclusivity across different socio-economic groups through housing, education, and national service policies to prevent the formation of entrenched class divides.

• The debate highlighted the need for education reforms, including pilot programs for special-needs students, de-emphasizing academic excellence by valuing community involvement, and fostering soft skills and creativity from a young age to prepare students for a dynamic future economy.
• Speakers emphasized strengthening Singapore's global connectivity through trade agreements, digital infrastructure, and talent development, while urging a collaborative government-business approach to drive economic transformation and support workers in a changing job landscape.
• Discussions focused on addressing housing affordability for aged HDB flats, supporting women and seniors through targeted policies, and tackling the cost of living by differentiating needs from wants while promoting a culture of giving and volunteerism to build a more inclusive society.

• The Minister outlined Singapore's commitment to Research, Innovation, and Enterprise (RIE) as a driver for the future economy, highlighting the National Research Foundation's role in growing innovative companies, creating jobs, and improving lives, with the RIE 2020 Plan allocating $19 billion to key areas like Advanced Manufacturing, Health, Urban Solutions, and the Digital Economy.
• Singapore is recognised globally for its innovation ecosystem, with strong rankings and a vibrant startup scene, and the NRF aims to strengthen links between research and industry to translate R&D into economic and societal value, supporting sectors like Maritime, Aviation, and the Next-Generation Energy Grid.
• Investments will focus on digital and automation technologies, including robotics and AI, to aid economic transformation, while initiatives like SGInnovate and partnerships with agencies will support startups, deep-tech companies, and Smart Nation efforts in emerging fields such as Fintech and Digital Health.
• The NRF plans to grow a strong pool of researchers through scholarships, fellowships, and international collaborations, while working with SkillsFuture and educational institutions to develop talent for frontier skills, ensuring Singapore remains a global hub for technology and innovation.

• MAS’s monetary policy will support Singapore’s economic transition to higher value activities and moderate growth by keeping inflation low and fostering a stable environment for innovation and investment.
• MAS aims to grow the financial sector through the Financial Services Industry Transformation Map, targeting 4.3% annual growth and 4,000 net new jobs annually, leveraging regional opportunities, innovation, and talent development.
• MAS is enhancing regional connectivity and infrastructure, including with China, India, and ASEAN, to support trade, finance, and real-time payment linkages, while promoting Singapore as a global hub for asset management and FinTech.
• MAS is strengthening cyber resilience, surveillance, and supervision using advanced data analytics, and proposing guidelines to improve conduct and ethical standards across the financial industry.

• The Ministry of Communications and Information outlined its mission to grow Singapore’s digital economy, strengthen digital readiness, and secure cyberspace, while enhancing government communications and developing future-ready libraries.
• MCI will boost the Infocomm, Media and Design sectors through the Industry Transformation Map, expand digital support for SMEs, launch an Open Innovation Platform, and equip Singaporeans with skills via programmes like TeSA and Digital Leadership initiatives.
• To ensure inclusive participation, a Digital Readiness Blueprint will be introduced to assist vulnerable groups with basic digital access and literacy, while cybersecurity efforts will be reinforced through national strategies and international partnerships.
• The Ministry will also address online falsehoods through technology and info-literacy, transform government communications, celebrate the Singapore Bicentennial to reflect on national history, and modernise libraries and archives to foster lifelong learning.

• The Ministry of Manpower outlined a strategy to create an agile, inclusive workforce and progressive workplaces through tripartism, focusing on business transformation, worker adaptation to technology, and stronger retirement adequacy via CPF and work options.
• Support measures include scaling up schemes like Lean Enterprise Development and SkillsFuture for Enterprises, enhancing mid-career reskilling programs, and using technology to improve job matching through the MyCareersFuture portal.
• The ministry will extend employment protections, promote fair wages through the Progressive Wage Model, support flexible work arrangements for caregivers, and improve inclusivity for seniors, persons with disabilities, and ex-offenders.
• Foreign manpower policy will remain calibrated to support economic goals while protecting local workers, with efforts to transfer global expertise and build a complementary local-foreign workforce.
• Initiatives to ensure safe workplaces, support self-employed and gig workers, and strengthen retirement planning include amending the Work Injury Compensation Act, expanding the Return-To-Work programme, and enhancing CPF consultation services.

• The Ministry of Trade and Industry aims to grow a vibrant economy and create good jobs for Singaporeans by maintaining deep global connections, supporting open multilateral trade, and deepening linkages with ASEAN and other regions through agreements like the CPTPP and RCEP.
• Singapore will strengthen its physical and digital connectivity as a trusted hub for trade, investment, and innovation, leveraging its rule of law to attract companies and protect intellectual property while enhancing its role as a launchpad for enterprises tapping into Asia’s growth.
• The government will support enterprises of all sizes through tailored programmes, industry transformation, and partnerships among agencies like Enterprise Singapore and EDB, while equipping workers with digital skills and embracing global talent to drive innovation and competitiveness.

The Ministry of Finance is partnering agencies to strengthen Singapore as a Global-Asia technology and innovation hub by investing in innovation, deepening capabilities, and co-creating solutions with the private sector.
The government will support infrastructure development, including a carbon tax, to enhance Singapore’s smart, green, and liveable city status, while also promoting ASEAN financial integration as chair in 2018.
Significant investments are being made in social areas like education, healthcare, and housing to support individuals and families, alongside efforts to ensure lifelong learning and healthy aging for citizens.
To maintain a sustainable fiscal system amid rising expenditures and global tax changes, the government will adjust revenues, including a GST increase, while keeping taxes competitive and equitable.
The government will prudently manage reserves, explore new funding for large projects through borrowing, and ensure the long-term viability of Singapore’s financial position to benefit all citizens.

• The Ministry of Foreign Affairs will advance Singapore’s security and opportunities by focusing on ASEAN Chairmanship, strengthening regional resilience and connectivity through initiatives like the Smart Cities Network, and deepening ties with key partners including China, the US, Malaysia, and Indonesia.
• Singapore will promote free trade and economic integration by pushing for progress on the RCEP, EU-Singapore FTA, and other agreements, while expanding partnerships in emerging markets such as Sub-Saharan Africa, South Asia, and Latin America.
• The Ministry will uphold international law, support peaceful dispute resolution, expand capacity-building under the Singapore Cooperation Programme, and enhance consular support for overseas Singaporeans.

• The Carbon Pricing Bill introduces a carbon tax starting at S$5 per tonne of greenhouse gas emissions for facilities emitting 25,000 tonnes or more annually, with plans to increase to S$10–15 by 2030, to incentivize emission reductions and align with Singapore's climate commitments under the Paris Agreement.
• The bill establishes a measurement, reporting, and verification (MRV) regime, transferring existing reporting requirements from the Energy Conservation Act and requiring third-party verification for larger emitters to ensure transparency and accuracy.
• Parliamentarians broadly supported the bill but raised concerns about impacts on household costs, business competitiveness, and the need for support measures like grants and rebates, with the government emphasizing revenue reinvestment into energy efficiency initiatives and monitoring for unfair pricing.

• Leon Perera asked how Singapore's Gini coefficient after taxes and transfers compared to other major developed economies over the last five years.
• Heng Swee Keat explained that Singapore's Gini is calculated based on household income per member, while the OECD uses a different methodology, leading to different comparisons.
• Before taxes and transfers, Singapore's Gini is lower than many major economies, but after taxes and transfers, some countries show lower inequality due to higher taxes and social transfers.
• Singapore's approach focuses on low taxes and targeted support for lower-income groups, which differs from the broader redistributive policies of other countries.
• The comparison does not fully account for unique Singapore policies, such as subsidies for HDB flats, which contribute to housing affordability and quality of life.

• Patrick Tay asked whether employers must contribute CPF for apprentices and interns from various institutions including ITEs, polytechnics, universities, and private education providers.
• Lim Swee Say clarified that employers do not need to contribute CPF for students from ITE, polytechnics, or autonomous universities if the training is approved by their institutions.
• For students from private education providers or private universities, CPF contributions are exempt only if they are in MOE-subsidized full-time programs and the training is institution-approved.
• The list of approved MOE-subsidized programs is available on the MOE website.

The Competition (Amendment) Bill aims to strengthen Singapore's competition regime by addressing administrative gaps and aligning practices with international standards. It allows the Competition Commission of Singapore (CCS) to accept binding commitments for anti-competitive agreements and abuse of dominant position cases, similar to existing powers for mergers. The Bill also empowers CCS to conduct general interviews during inspections to streamline investigations, removing the need for separate written notices. Additionally, it formalises a statutory process for CCS to provide confidential advice on anticipated mergers, offering businesses greater clarity and assurance. The amendments are intended to enhance market efficiency while maintaining a balance between regulation and a free market framework.

• The Aviation (Miscellaneous Amendments) Bill seeks to amend the Air Navigation Act and the Civil Aviation Authority of Singapore Act to support the growth, safety, and financial sustainability of Singapore’s aviation sector, including enabling compliance with international carbon offsetting schemes and enhancing aviation safety and security.
• Key provisions include establishing an Airport Development Levy and a reserve fund to finance Changi Airport’s expansion, particularly Terminal 5, while also introducing an airport capacity management scheme to penalize slot misuse and improve operational efficiency.
• The Bill also expands security definitions, grants powers for managing unauthorised drone activities, and enhances airport by-law enforcement, though MPs raised concerns about environmental impacts and the competitive effects of new levies.

• The Second Minister for Transport moved the third reading of the Cross-Border Railways Bill, noting that the Select Committee had considered five written representations and recommended textual and editorial amendments.
• The Committee proposed amendments to clauses 23 and 28 to allow transfer or assignment of contracts with the Minister’s approval, balancing government oversight and commercial viability.
• The amendments address industry feedback that original clauses could deter private financing by preventing the use of future cash flows as collateral for the Kuala Lumpur-Singapore High Speed Rail Assets Company.
• The Bill was passed after the Question was put and agreed to by the House.