Economy & business

Dennis Tan Lip Fong questioned the differences between the Pro-Enterprise Office (PEO) and the Pro-Enterprise Panel (PEP), including their mandates, staffing, and outcomes, as well as concerns about potential bureaucratic complexity. Gan Kim Yong explained that the PEP, formed in 2000, is a public-private panel focused on improving regulations through discussion with industry leaders. The SME PEO, established in March 2025, serves as a central coordination unit to address regulatory issues specifically for SMEs, managing feedback and monitoring outcomes across agencies. Since its inception, the SME PEO has engaged over 170 business leaders, resolved over 65% of the regulatory issues raised, and streamlined processes for developers, demonstrating its effectiveness without adding bureaucratic layers.

Abdul Muhaimin Abdul Malik raised concerns about the rise of cashless-only stores and asked whether the Ministry would consider requiring businesses to accept cash. He also questioned how the Ministry ensures that seniors and youths without bank accounts are not disadvantaged by digital payment systems, and how universal access to basic payment options is maintained. Gan Kim Yong stated that these issues had been addressed in previous discussions related to the Prime Minister's Office.

Gerald Giam Yean Song questioned the Minister for Manpower about the reasons for the 2016 separation of the Workforce Development Agency (WDA) into SkillsFuture Singapore and Workforce Singapore, specifically regarding structural barriers between the Ministry of Education and the Ministry of Manpower, and the projected costs and savings of a potential re-merger. Tan See Leng explained that the separation allowed each agency to focus on different aspects of workforce development, with SkillsFuture Singapore enhancing continuing education and training, while Workforce Singapore concentrated on employment facilitation. He noted that significant progress has been made since 2016, but changing economic conditions necessitate a new, integrated agency to better support workers. The merger will not require additional funding from the Ministry of Finance and aims for greater efficiency, rather than cost-saving, as it adapts to the evolving labor market.

Kenneth Tiong Boon Kiat raised questions regarding the assessment of quota circumvention through phantom worker arrangements and the potential abolition of nationality-based quotas in favor of a flat per-worker tax for local upskilling. Tan See Leng responded that the Ministry of Manpower investigates phantom worker issues via complaints and checks, leading to enforcement actions against around 100 employers for quota fraud. He stated that using Dependency Ratio Ceilings (DRCs) is essential for controlling foreign workforce numbers while linking foreign worker entitlement to local employment, which helps maintain a local workforce core. The Ministry has tightened DRC requirements to encourage automation and localization, resulting in positive trends in local employment and wage growth over the past five years.

Minister Grace Fu Hai Yien requested permission to report progress and seek leave to reconvene the Committee of Supply. The Chairman granted consent for this request. Minister Grace Fu reported that progress had been made on the Estimates of Expenditure for the financial year 2026/2027 and asked to sit again the following day. The Speaker confirmed the request.

The Committee of Supply discussion began with the order read for its fourth allotted day, with Mr. Speaker presiding over the session.

Lee Hong Chuang questioned the Prime Minister on whether the distribution of CDC vouchers to all Singaporean households, regardless of income, could worsen cost-of-living issues due to demand-pull inflation. Shawn Huang Wei Zhong responded that there is no evidence linking the CDC Vouchers Scheme to increased inflation, and noted that overall inflation has actually moderated. The government regularly assesses the effectiveness of its measures, including the Assurance Package, which has expanded to provide greater financial support during inflationary periods. Additionally, targeted support programs exist for vulnerable groups to help manage essential costs such as education and healthcare.

He Ting Ru questioned the Minister for Manpower about the public funding disbursed to the National Trades Union Congress (NTUC) over the past five years, specifically regarding grants, operational expenditure, and staff remuneration. Tan See Leng explained that NTUC, as a key partner in Singapore's labor movement, receives funding for various programs aimed at upskilling workers, such as employment facilitation and training initiatives. The government has allocated $300 million for NTUC's Company Training Committees to aid workforce transformation. However, the Ministry of Manpower does not track total funding across all government sectors and does not provide funds specifically for NTUC's staffing or executive salaries.

Fadli Fawzi asked the Minister for Manpower about the funding provided to NESST Singapore Limited, the total construction cost of NESST Tukang Dormitory, and its estimated annual operating costs. Tan See Leng stated that the Tukang Dormitory was built for $58 million and is owned by the Ministry of Manpower, while NESST operates it under a lease agreement. The Ministry has provided approximately $6.2 million to NESST since March 2023 for initial setup and innovation in housing. Operating costs for Tukang PBD could not be disclosed due to commercial sensitivity.

Kenneth Tiong Boon Kiat questioned the rationale for maintaining a 60% CPF and 40% cash Workfare payout ratio for workers aged 70 and above due to their shorter life expectancy, and suggested a differentiated payout ratio for older workers. Tan See Leng explained that the Workfare Income Supplement aims to support lower-wage workers by balancing immediate cash needs with CPF savings for the future. Despite the same ratio for older workers, the CPF contributions support medical expenses and retirement payouts. The Ministry plans to enhance total WIS payments from 2025, increasing cash amounts for seniors. Additional support measures for cost-of-living concerns include U-Save rebates and special cash payments for eligible households.

Valerie Lee asked about the principles guiding Singapore's defense expenditure and the frameworks for assessing the effectiveness of defense investments. Chan Chun Sing outlined key principles including prioritizing operational needs, considering life cycle costs, integrating systems, maintaining consistency in spending, building resilience, adopting a "best solution" mindset, and emphasizing operational readiness. He stressed that defense decisions are made to ensure effective resource utilization to address current and emerging threats while avoiding distractions from non-operational considerations.

Yip Hon Weng requested information on the contributions of non-employment sources to Singapore's median monthly household income rise in 2025, the change in income based purely on employment, and income disparities from rent and investments across income deciles. Gan Kim Yong revealed that for resident households in the fifth income decile, the average household market income per member increased by $287, with $183 attributable to employment income and $104 to non-employment income. Information on average rental and investment income across different income deciles is available in a specified table.

Kenneth Tiong Boon Kiat questioned whether EDB incentives need approval from both regional and global headquarters, and how commitments are maintained during executive rotations. He also suggested that requiring a global headquarters representative for incentive approvals could prevent orphaned projects. Gan Kim Yong responded that incentives are awarded to the Singapore entity responsible for the project and come with legal commitments and clawback provisions. He noted that personnel changes do not impact the company's legal obligations under the incentive award.

Dennis Tan Lip Fong raised questions regarding the lack of rental transaction data for privately-owned HDB shops and licensing data for outdoor refreshment areas, seeking justification and potential publication of such data for better assessment of rental pressures on local businesses. Chee Hong Tat explained that different government agencies, like the Inland Revenue Authority of Singapore (IRAS), collect aggregated rental data, ensuring transparency while protecting commercial sensitivities. He also highlighted that HDB plans to collect and eventually publish stall rent data for HDB-owned coffeeshops and is considering making Temporary Occupation Licence data for outdoor refreshment areas available to enhance transparency.

Yip Hon Weng raised concerns about the exits of several cultivated food firms, asking for an assessment of the reasons behind their lack of commercial success and the Ministry's future strategic direction for this sector in relation to food security. Grace Fu Hai Yien advised referring to a previous written response from February 2026 concerning the government's support and strategy for the alternative protein sector.

Dr. Wan Rizal questioned the Minister for Health regarding new requirements for Integrated Shield Plan (IP) riders, specifically about measures being studied to maintain healthcare affordability. Ong Ye Kung explained that the new requirements aim to moderate private healthcare cost escalation and that other measures include developing claim rules, enforcing claims management, and publishing benchmarks for healthcare charges. He emphasized that most Singaporeans use public subsidized healthcare and that enhancing subsidies and MediShield Life coverage is crucial for maintaining affordability, while highlighting the need for sustainable healthcare financing policies impacting taxes and out-of-pocket expenses.

Hazlina Abdul Halim questioned the Minister for Home Affairs about specific measures to address gambling-related risks associated with blind boxes, focusing on preventing compulsive behavior among minors, compliance enforcement for retailers, and penalties for non-compliance. K Shanmugam stated that details on the regulations will be shared around mid-2026, designed to mitigate risks such as excessive spending. He mentioned that additional measures, including age-based restrictions and probability disclosure, will be further considered as more time is needed for study.

Minister Desmond Lee sought and received consent to report progress on the Committee of Supply's work. He reported that the committee has made progress on the Estimates of Expenditure for the financial year 2026/2027. Desmond Lee requested to reconvene the discussion the following day, and the Deputy Speaker granted this request.

Saktiandi Supaat emphasized the need for Singapore to adapt to significant changes in the global economy, citing factors like geopolitical fragmentation and technological disruption. He highlighted the importance of supporting businesses through structural transitions and enhancing productivity, suggesting more targeted government schemes to facilitate genuine transformation in firms. Concerns about the challenges faced by SMEs and the need for a robust consumer protection framework were voiced, with calls for faster enforcement against unfair practices. Several members discussed enhancing the enterprise ecosystem, particularly by supporting the growth of high-value industries and improving the accessibility of government support for SMEs. The discussion also touched on the importance of energy security and the integration of sustainable practices in Singapore's energy strategy amidst global uncertainties.

The Committee of Supply for the third allotted day has convened to consider budget matters. Mr. Speaker is presiding over the session.