Economy & business

Lee Hong Chuang asked the Minister for Digital Development and Information about tracking productivity growth instead of adoption rates for measuring AI strategy success, the conditionality of grant support based on a governance framework for AI tool purchases, and the establishment of a pre-approval list of AI vendors. Mrs. Josephine Teo stated that the Government tracks productivity impacts and will incorporate these assessments along with adoption rates. She emphasized the importance of effective AI implementation by pre-approving market-tested AI solutions and requiring milestones for grant disbursement. The Government aims to refine grant conditions while avoiding excessive rules that could hinder genuine advancement.

Kenneth Tiong Boon Kiat asked about the number of restriction orders issued under the Protection from Scams Act 2025 and their status. K Shanmugam reported that 12 restriction orders have been issued, with one lifted, two ceased, and nine still active. Most victims with restriction orders requested money withdrawals for daily expenses, which were approved promptly. Banks require significant system changes for graduated restrictions on transactions, and such developments are not currently prioritized.

The Minister of State for Health, Ms Rahayu Mahzam, requested consent to report progress and to be granted leave to sit again. The Chairman granted consent for progress to be reported. Rahayu announced that the Committee of Supply had made progress on the Estimates of Expenditure for the financial year 2026/2027 and sought permission to reconvene the following day. The Speaker granted the request.

Tin Pei Ling moved a motion to reduce the budget for the Ministry of Transport, emphasizing the need for strong global connectivity to ensure Singapore's economic vibrancy amidst challenges like trade disruptions. Significant investments are underway, including the construction of Terminal 5 and Tuas Mega Port, aimed at enhancing Singapore's position as a logistics hub. Members raised concerns about the effective deployment of these projects amid uncertain future demand and international conditions, with calls for clearer contingency planning. The importance of addressing the needs of an ageing population and enhancing public transport accessibility was highlighted, with suggestions for more comprehensive public consultation on land transport development. The government committed to ongoing improvements in transport services, including increased bus connectivity and better infrastructure for electric vehicles, while addressing workforce challenges in the transport sector.

Henry Kwek proposed a $100 reduction in the budget allocation for the Ministry of National Development, citing concerns about HDB housing policies, particularly regarding accessibility for various demographics like singles and families. He stressed the need for proactive involvement from the Ministry in addressing housing challenges for groups facing income restrictions and suggested enhancing support for town councils managing rising maintenance costs. Members also discussed improving connections between public transport and new HDB developments, the accessibility of services for seniors, and the affordability of executive condominiums. The Minister for National Development revealed plans to continue increasing public housing supply and enhance existing HDB support measures in response to changing demographic needs.

The Committee of Supply convened for its 5th allotted day to discuss budgetary matters. Mr. Speaker presided over the session.

Yip Hon Weng raised a concern about the potential for premium increases in Integrated Shield Plans and riders affecting seniors and middle-income households. The Minister of State for Health, Rahayu Mahzam, explained that these plans are private products influenced by market forces, and the government's role focuses on ensuring affordable and quality subsidized healthcare. Yip emphasized the need for a pricing council to enhance financial security and access for seniors amidst rising costs. Rahayu responded by acknowledging consumer concerns while reiterating the necessity to balance market considerations and mentioning ongoing efforts to improve consumer protection and pricing transparency in the healthcare sector.

Gerald Giam Yean Song questioned the Minister for Health about the factors behind a projected $0.31 billion reduction in the Ministry's FY2025 operating expenditure and how this aligns with increasing care demands due to an aging population. The Minister of State for Health explained that the reduction, approximately 1.6% of the initial budget, was due to lower-than-expected operating cost increases in public healthcare. Giam sought further clarity on specific operational cost reductions and raised concerns about potential compromises in patient care due to these changes. The Minister reassured that patient care has not been compromised and that the reductions were related to operational decisions rather than a decline in service quality.

Victor Lye raised questions about the impact of the revised Preferential Additional Registration Fee (PARF) rebate on car depreciation rates, new car demand, and COE renewal behavior, as well as the consideration of transitional measures for affected car buyers. The Acting Minister for Transport, Jeffrey Siow, explained that the PARF rebate changes aim to encourage a younger vehicle population while reflecting the increasing adoption of electric vehicles (EVs). The immediate implementation of these changes was to prevent market distortion, with fewer than 2,000 buyers likely to be affected, primarily those purchasing high-end internal combustion engine cars. Siow also noted the balance needed between ownership and usage pricing to manage road congestion and indicated that the changes support the goal of increasing EV uptake.

Dinesh Vasu Dash, the Minister of State for Manpower, clarified that the Workfare Income Supplement (WIS) qualifying monthly wage cap of $3,000 aims to assist Singaporean workers in the bottom 20% of earners, with some support for those slightly above this threshold. He also announced an increase in WIS payments to a maximum of $4,900 per year. Following a session on 3 March 2026, he issued a written statement to correct his earlier remarks to ensure clarity.

Valerie Lee asked about potential reviews or changes to the eligibility criteria for the SG Heritage Business Scheme and the total funding disbursed since its launch. David Neo explained the scheme recognizes heritage businesses that have strong community ties, have been in the same location for at least 30 years, and offer traditional goods or services. The National Heritage Board is reviewing the scheme's parameters to include more businesses outside the Central Area. No direct funding is provided; instead, support includes marketing guidance and tailored business consultancy, as well as access to other grants to enhance productivity and sustainability.

Valerie Lee asked about the usage of SG60 vouchers among Singaporeans, specifically their usage in digital or physical formats and by age group, as well as measures to increase utilization. Edwin Tong Chun Fai highlighted that the SG60 vouchers were introduced to celebrate Singapore's 60th anniversary and provide financial support to citizens. Statistics showed a high claim rate of 97.7% for vouchers, with $3.995 billion spent, primarily supporting local businesses. The People's Association and grassroots leaders are actively reaching out to seniors to encourage usage, while partnerships with merchants aim to further boost engagement.

Kenneth Tiong Boon Kiat asked about government spending from consolidated revenue on safer transport for migrant workers traveling to work sites over the past three years. Jeffrey Siow responded that tax revenues, including foreign worker levies, are not earmarked for specific purposes. He emphasized that the Government will continue to collaborate with industry and NGOs to enhance the safety of transport for workers.

Sanjeev Kumar Tiwari asked the Minister for Manpower about SME employment numbers for 2025 based on worker categories. Tan See Leng provided data from 2024, noting there were 356,600 SMEs with fewer than 200 workers. Of these, 94.7% (337,700) employed fewer than 25 workers, 3.1% (10,900) employed 25 to 49 workers, 1.5% (5,400) employed 50 to 99 workers, 0.5% (1,800) employed 100 to 149 workers, and 0.2% (800) employed 150 to 199 workers. Data for 2025 is not yet available.

Victor Lye requested information from the Minister for Education regarding the aggregate balances in Edusave and Post-Secondary Education Accounts (PSEA) and specific usage statistics over the past ten years. Desmond Lee reported that, as of February 2026, the balances were $0.5 billion for Edusave Accounts and $2.1 billion for PSEA. Over the past five years, the average utilization rate for Edusave was 50%, with an average transfer of $1,355 to PSEA, and about 2% of accounts had zero balance at transfer. Additionally, 59% of PSEA balances were unspent at the time of account closure.

Yip Hon Weng asked about Singapore's projected domestic demand for critical minerals and strategies for ensuring a steady supply amid global market changes. Gan Kim Yong explained that Singapore primarily imports products containing critical minerals rather than raw materials, and that local industries use these in sectors like semiconductors and energy storage. The government is taking a multi-pronged approach to enhance supply chain resilience, which includes fostering partnerships and encouraging diversification of sources. Local production capabilities may be explored when feasible, considering national priorities and regulations. Singapore is positioned as a trading hub for critical minerals in Asia, attracting global companies through its trade financing and logistics advantages.

Kenneth Tiong Boon Kiat questioned the Deputy Prime Minister about ASTAR's notable deep-tech achievements and potential reforms to enhance R&D spending effectiveness. Gan Kim Yong highlighted that ASTAR ranks 21st globally and has made significant breakthroughs, such as advancements in semiconductor technology. Over the past five years, ASTAR has helped create over 70 companies and facilitated collaborations that have led to 18 technologies with industry partners like Rolls-Royce. ASTAR has also supported local enterprises through various initiatives, showing increased revenue and employment for participating SMEs. Going forward, A*STAR aims to focus on sectors with strong capabilities and industry demand to improve innovation outcomes.

Victor Lye asked the Prime Minister if the Monetary Authority of Singapore (MAS) tracks revenue from Visa and Mastercard interchange fees, network incentives, and co-branding arrangements for Singapore banks over the past four years. Gan Kim Yong responded that card revenue, which includes these fees, has averaged around 3% of total bank revenue, indicating diversified income sources. MAS focuses on fostering competition in the payment services sector, offering merchants a variety of digital payment options with varying costs, highlighting that domestic schemes are generally cheaper than international card schemes.

Kenneth Tiong Boon Kiat raised concerns about commercial landlords imposing surcharges on utility costs to tenants beyond base rent and turnover rent. Gan Kim Yong responded that lease agreements are private and the government lacks data on the prevalence of such surcharges. The Fair Tenancy Industry Committee's Code of Conduct mandates that landlords pass through electricity costs without mark-up, but no feedback on other utility surcharges has been reported. Tiong was encouraged to report specific cases for further investigation.

Abdul Muhaimin Abdul Malik raised concerns about the rise in complaints against the beauty industry and proposed that businesses collecting prepayment package monies should place those funds in segregated accounts. Gan Kim Yong responded that the government collaborates with the Consumers Association of Singapore (CASE) to promote fair trading and informed consumer decisions regarding prepayments. Under the Consumer Protection (Fair Trading) Act, undue pressure on consumers and accepting payments when services cannot be provided are deemed unfair practices. The government has also established CaseTrust accreditation schemes for the beauty industry, which offer prepayment protection insurance for unused portions of purchases if a business closes. An independent Consumer Protection Review Panel has been formed to assess consumer protection adequacy, with findings to be released later this year.