Economy & business

Yip Hon Weng asked about plans for a significant overhaul of NETS' QR system to create an open and interoperable payment experience for users. Gan Kim Yong responded that SGQR consolidates various payment schemes into one QR code, allowing merchants and consumers to choose preferred payment providers, fostering competition. He noted that making all payment schemes interoperable could reduce competition, impacting costs and services. NETS has partnered with other payment schemes to enable seamless payments for customers of 14 providers and supports cross-border transactions with seven international schemes. The Monetary Authority of Singapore will explore further improvements for consumer and merchant payment experiences.

Abdul Muhaimin Abdul Malik asked about the uptake of the Hawkers' Productivity Grant, the tracking of hawkers adopting automation and digital solutions, and plans to encourage technological adoption to reduce costs. Grace Fu Hai Yien reported that by the end of 2025, around 1,100 cooked food stallholders and 50 market stallholders have benefited from the grant, with two-thirds of stalls accepting e-payments. The Productive Hawker Centres programme supports automation through funding for centralised dishwashing, offering up to 70% in subsidies for existing centres, with implementation in 16 new and 10 existing hawker centres. NEA will continue to assess and enhance its programmes for stallholders.

Dr. Choo Pei Ling inquired about the long-term financial sustainability of Singapore's autonomous universities amidst global competition and the adequacy of current funding structures in volatile environments. Desmond Lee explained that the Government substantially funds the operating and capital costs of these universities and offers matching grants for donations to build endowment funds. The universities manage costs through manpower optimization, process enhancement, and digital transformation. This combination of funding sources and cost management efforts provides financial stability and resilience for the autonomous universities.

Abdul Muhaimin Abdul Malik asked about opportunities for local SMEs in Timor-Leste following its ASEAN accession and the support available for market entry. Gan Kim Yong stated that Timor-Leste is at the beginning of implementing its ASEAN membership roadmap and is reforming its economic environment. Specific opportunities for Singapore companies are not yet identified, but Enterprise Singapore will provide facilitation support for interested businesses. SMEs can leverage government schemes like the Market Readiness Assistance and Enterprise Financing Scheme to expand overseas, including in Timor-Leste.

The Minister of State for Social and Family Development, Zhulkarnain Abdul Rahim, sought consent to report on progress and request to reconvene. The Chairman granted consent, and the motion to report progress was resolved. Zhulkarnain reported that the Committee of Supply made progress on the Estimates of Expenditure for the financial year 2026/2027 and requested to sit again the following day.

Xie Yao Quan moved to reduce the budget for the Ministry of Social and Family Development, emphasizing the need to address social mobility and gaps in opportunities between higher- and lower-income families. The Minister for Social and Family Development acknowledged that while absolute social mobility is present, relative mobility is declining, urging a collective effort to support disadvantaged children and families. Various Members of Parliament raised concerns about vulnerable populations, including single parents, low-wage foreign workers, and families with persons with disabilities, highlighting the inadequacies of current policies and the necessity for more inclusive approaches. The Minister shared ongoing initiatives aimed at enhancing support for families, emphasizing the importance of collaboration across sectors and the use of technology to improve access to services and care solutions.

The Order for consideration in the Committee of Supply on the sixth allotted day was read. Mr. Speaker presided over the session.

Saktiandi Supaat raised concerns about US tariffs, seeking clarification on their scope, product coverage, and how they would affect Singapore's exports under the Free Trade Agreement. The Minister of State for Trade and Industry, Ms. Gan Siow Huang, reported that a 10% tariff under section 122 of the Trade Act of 1974 was recently imposed, with potential increases to 15% still uncertain. While the immediate impact on Singapore's economy is expected to be minimal, sectors reliant on the US market may face challenges. The government is closely monitoring the situation and is prepared to provide sector-specific support and guidance to businesses navigating this uncertainty.

The Minister of State for Health, Ms Rahayu Mazam, reported an increase in the Ministry of Health's operating expenditure, with a revised estimate for FY2025 of $18.49 billion, which is 9.7% higher than the previous year's actual expenditure. The trend of rising expenditure is expected to continue, with an estimated FY2026 operating expenditure of $20.04 billion. A correction was made to clarify that the FY2025 estimate is higher than the actual FY2024 expenditure, rather than FY2025 as previously stated.

Abdul Muhaimin Abdul Malik proposed the implementation of a Fixed Book Price scheme for Singaporean literature to support local authors. David Neo responded that the Ministry of Culture, Community and Youth reviews strategies to support Sing Lit and has noted mixed opinions on the effectiveness of such a scheme. Concerns were raised about a Fixed Book Price potentially limiting price competition and affecting accessibility for lower-income readers. Instead, the ministry plans to expand the SG Culture Pass scheme to include local literary works to promote Sing Lit.

Hamid Razak raised questions regarding the GST treatment of medically indicated medications that patients must obtain privately due to unavailability in public healthcare institutions. Ong Ye Kung responded that the government fully absorbs the GST for subsidized patients obtaining medications at public healthcare institutions. If a medication is unavailable at one institution, efforts are made to check other institutions or to procure the medication, reducing the need for patients to seek private options in most cases.

Yip Hon Weng questioned the Ministry of Health about enhancing public education on the appropriate coverage for Integrated Shield Plans and the possibility of publishing data on insurer profitability relating to private hospital insurance. Ong Ye Kung highlighted that a public education campaign was launched in 2025 to inform the public about the Integrated Shield Plans and the impact of riders. The Ministry also provides comparisons of plan benefits and lifetime premiums, and introduced the Health Insurance Planner tool for informed decision-making. Additionally, aggregate data on gross premiums and claims shows that most insurers are not profiting from their health insurance portfolios.

He Ting Ru asked the Prime Minister about the annual total value and number of green and sustainability-linked loans from financial institutions in Singapore over the past five years, the proportion of these loans for new corporate and small- to medium-sized enterprises, and a breakdown by borrower size. Gan Kim Yong reported that 261 loans totaling S$137.3 billion were taken up by Singapore companies between 2020 and 2024. The Monetary Authority of Singapore does not have borrower size breakdowns for these loans.

Gerald Giam Yean Song questioned whether the projected $0.62 billion underspending in the Ministry of Trade and Industry's development expenditure for FY2025 was linked to a reduction in the Enterprise Development Grant (EDG) support level and if the EDG support could be increased to promote productivity and innovation. Gan Kim Yong clarified that the underspending was not due to a reduction in the EDG support level, which has remained unchanged since April 2023, but rather due to delays in larger investment project reviews. The Government remains committed to supporting enterprises, with Budget 2026 announcing increased support levels for internationalisation grant schemes for both local SMEs and non-SMEs.

Assoc Prof Jamus Jerome Lim asked if the Government would collect data on capital gains income in national surveys to better measure household market income. Gan Kim Yong responded that there are no plans to do so, as capital gains are not considered part of household market income according to international standards and practices. He explained that capital gains are irregular and reflect asset value changes rather than recurring income available for consumption.

Fadli Fawzi asked whether the National Environment Agency would reconsider allowing supermarkets discretion in using funds collected from plastic bag charges. Grace Fu Hai Yien responded that supermarkets must annually publish details on the number of bags supplied, proceeds collected, and their allocation, ensuring transparency and accountability. Most funds collected have been directed towards environmental or social causes, and public scrutiny is seen as beneficial in encouraging responsible use of these proceeds. The government will continue to monitor and promote the appropriate use of the funds by supermarket operators.

Abdul Muhaimin Abdul Malik requested the Minister for Digital Development and Information to reconsider compensation for local authors and publishers as the Ministry previously declined a Public Lending Rights scheme for libraries. Josephine Teo responded that the National Library Board (NLB) supports local authors by purchasing books and promoting Singapore Collections to provide access to local literature. She emphasized that paying above market prices for books would limit the number of titles acquired, affecting the library's ability to meet user needs. Teo highlighted NLB's initiatives to promote local literature and authors through events and partnerships to strengthen Singapore's reading culture.

Gho Sze Kee raised concerns about the potential for the lower levy for Training Work Permit (TWP) holders to encourage misuse by employers deploying them in non-training roles. Tan See Leng explained that the TWP is a short-term pass for foreign trainees and students, with several safeguards in place, such as the requirement for trainees to be from related overseas companies and the non-renewable six-month validity for foreign students. TWP holders are also subject to Dependency Ratio Ceilings and higher skilled Work Permit levy rates. The number of TWP holders is low, and employers abusing the scheme face penalties and possible disbarment from hiring foreign workers.

Kenneth Tiong Boon Kiat raised concerns about the per-capita funding model for disability services and its impact on families accessing multiple service providers. Masagos Zulkifli B M M responded that the Ministry of Social and Family Development aims to ensure safe and effective services while keeping costs sustainable for families. The current model involves appointing service providers based on their capabilities and offering means-tested subsidies that follow the beneficiary. The Ministry cautioned against implementing portable subsidies and free market competition, noting that this could lead to inefficiencies and inequitable access, particularly for individuals with complex needs.

Lee Hong Chuang asked the Prime Minister about the possibility of requiring companies benefiting from tax deductions on AI tools to prioritize retraining workers over retrenchment and whether the government would monitor the effects of AI initiatives on local employment and wages. Jeffrey Siow responded that while companies can receive tax deductions under the Enterprise Innovation Scheme, there are no mandates on workforce impacts to keep the process manageable. However, there are other initiatives, like the Enterprise Workforce Transformation Package, that promote reskilling and job redesign while requiring companies to meet specific objectives for support.