Economy & business

Shawn Loh raised concerns regarding the financial viability and operational sustainability of Student Care Centre (SCC) operators, seeking clarity on audits and government governance processes to prevent abrupt closures. The Ministry of Education (MOE) confirmed it is actively supporting students and families affected by the recent closure of Little Professors Learning Centre and is sourcing new operators for after-school care. The MOE acknowledged the need for improved monitoring of SCC operators and has begun reviewing existing safeguards to ensure operational resilience and better communication with parents. Assistance for affected staff and families regarding unpaid salaries and GP payments is ongoing, with investigations into financial irregularities in progress. Teachers who stepped up during the crisis will be formally recognized for their additional workload.

Jessica Tan Soon Neo raised concerns about the staffing challenges faced by hawkers and small food and beverage operators, suggesting that more graduated arrangements for foreign manpower and levy thresholds should be considered to meet their needs while ensuring fair wages. Dr. Koh Poh Koon acknowledged the unique challenges for small F&B operators and highlighted current policies that allow some flexibility in hiring foreign workers, emphasizing the importance of productivity over headcount. He pointed out that enhancing productivity through government support schemes is crucial for the sustainability of small operators. Tan reiterated the struggles faced by individual hawkers who work long hours and suggested that the Ministry should analyze their data to better support them. Koh concluded that while considering headcount is important, there is a broader conversation about food authenticity and business models that needs to be addressed.

Wan Rizal inquired about the possibility of extending the enhanced Matched Retirement Savings Scheme or introducing a new matching scheme for vulnerable workers facing career interruptions. Tan See Leng responded that vulnerable individuals can already benefit from the enhanced Matched Retirement Savings Scheme and other support measures like the Silver Support Scheme and Retirement Savings Bonus. The government prioritizes supporting younger Singaporeans in building their retirement savings and returning to work, offering various employment facilitation services and the Workfare Income Supplement for those returning to the workforce. Additionally, tripartite partners are promoting flexible work arrangements to aid those needing flexibility.

Wan Rizal asked about the take-up rates of the enhanced Matched Retirement Savings Scheme since January 2025, focusing on age, gender, and sources of top-ups compared to 2024. Tan See Leng reported that enhancements in 2025 led to a significant increase in grant recipients, from approximately 103,000 in 2024 to about 250,000. The age distribution revealed that 45% of recipients in 2025 were aged 55-70 and 55% were above 70, while all recipients in 2024 were aged 55-70. Gender distribution showed 62% of 2025 recipients were female, slightly down from 65% in 2024, and the sources of top-ups indicated 52% of recipients topped up themselves in 2025, compared to 53% in 2024.

Chua Kheng Wee Louis asked if the Ministry of Health plans to allow private healthcare providers to procure drugs not on the Healthier SG Medication List from the Agency of Logistics and Procurement Services. Ong Ye Kung responded that there are no plans for this as it could impact the pricing and availability of drugs in Singapore. He highlighted that centralizing procurement for private providers may lead to less favorable outcomes for subsidized patients and deter pharmaceutical companies from entering the market.

Chua Kheng Wee Louis requested information from the Deputy Prime Minister regarding the cess collected, government expenditure, and GDP contribution for the past four editions of the Formula One Singapore Grand Prix. Gan Kim Yong stated that from 2022 to 2025, an average of $30 million in cess has been collected annually, with estimated costs of $140 million for organizing the race. Since 2008, the event has generated over $2.2 billion in incremental tourism receipts, but the government does not evaluate individual events' contributions to national GDP.

Kenneth Tiong Boon Kiat asked about the feasibility of establishing rare earth processing capabilities in Singapore, focusing on their importance to aerospace and defense supply chains. Gan Kim Yong explained that Singapore primarily imports products containing rare earths rather than raw materials, and there are no immediate concerns from producers regarding supply. The government is taking a multi-pronged approach to supply chain resilience, involving international partnerships and encouraging firms to diversify sourcing. Any rare earth-related projects would need to comply with existing environmental and safety regulations, particularly concerning radioactive waste management.

Valerie Lee requested the Prime Minister and Finance Minister to consider reviewing and enhancing the Working Mother's Child Relief (WMCR) to better address rising childcare and household costs. Indranee Rajah explained that the WMCR aims to encourage married women to stay in the workforce and has transitioned from a percentage of earned income to a fixed dollar amount for equitable support. The government has also introduced various initiatives, including enhancements to the Baby Bonus and expanded subsidies for preschool and childcare, demonstrating their commitment to supporting families. Regular reviews of policies will continue to ensure they meet the needs of parents effectively.

Fadli Fawzi asked the Prime Minister about the proportion of Singapore's gold reserves stored outside the country and whether this will be reviewed due to recent geopolitical tensions. Jeffrey Siow stated that Singapore's gold reserves are diversified geographically to ensure accessibility and resilience against shocks. For security reasons, the exact proportion of gold stored in specific locations is not disclosed. The Government regularly reviews its gold portfolio for appropriate diversification amidst economic and geopolitical uncertainties.

Yip Hon Weng raised concerns about the expansion of foreign retail brands in Singapore, asking if the Ministry monitors market concentration risks, the potential for retail homogenization, and strategies to support local businesses. Gan Kim Yong emphasized that Singapore benefits from both local and foreign retailers, contributing to consumer choice and a vibrant market. The Competition and Consumer Commission conducts market studies but sees no current anti-competitive concerns; the Government aims to maintain a competitive market while supporting local retailers through grants, advisory services, and initiatives to foster innovation and differentiation. The Retail Maverick Challenge and Design Orchard Retail Singapore are two examples of programs designed to promote local brands and enhance their market presence. Additionally, heartland businesses receive support through Community Development Council initiatives and SG60 vouchers, which have significantly boosted sales for local merchants over the past four years.

Gerald Giam Yean Song questioned the Deputy Prime Minister about the persistence of declining job creation per dollar of investment and sought a breakdown of the types of jobs expected over the next five years. Gan Kim Yong responded that economic growth is becoming more challenging due to external factors and technological advancements, which affect employment numbers. The Singapore Economic Development Board (EDB) has secured significant investment commitments, but companies are being cautious with hiring due to uncertainty and the focus on more technology-intensive projects that require fewer workers. Most of the 15,700 jobs anticipated will be high-salary roles for professionals and managers, with two-thirds offering salaries above S$5,000, but a specific breakdown of entry-level versus senior management roles is not available. Additionally, these investments create positive impacts on the broader economy in terms of wages and employment.

Fadli Fawzi asked the Prime Minister and Minister for Finance about the income distribution of the top 1,000 earners among Singapore citizens for the Year of Assessment 2024. Jeffrey Siow provided the figures: the 25th percentile income is $2.5 million, the median income is $3.1 million, and the 75th percentile income is $4.5 million.

Eric Chua requested consent to report progress on the Committee of Supply and to resume discussions on Monday, 2 March 2026. The Chairman granted consent for this request. Eric Chua informed the Deputy Speaker that the Committee has made progress on the Estimates of Expenditure for the Financial Year 2026/2027 and reiterated the request to reconvene on the specified date. The Deputy Speaker confirmed the arrangement.

Yip Hon Weng proposed reducing the budget for the Ministry of Defence, referencing historical insights from Dr. Goh Keng Swee on the importance of national security. The debate highlighted concerns about the evolving global security landscape, calling for updates on Singapore's defence strategy and efforts to enhance readiness amidst new technologies and threats. Multiple MPs emphasized the significance of community engagement and Total Defence in fostering national resilience, as well as the need for strategic partnerships in a changing geopolitical climate. The Minister for Defence responded, affirming a commitment to developing the Singapore Armed Forces' capabilities while balancing civilian support for National Service and community involvement in national security efforts.

The debate began with the consideration of the Committee of Supply for the 2nd allotted day. Mr. Speaker presided over the session, indicating the formalities of the parliamentary process.

The Committee of Supply discussed the Supplementary Estimates of Expenditure for the financial year 2025-2026, with no amendments proposed. The heads of expenditure were agreed to en bloc, including the Supplementary Main and Development Estimates. A total of $1,087,355,800 was approved under the Supplementary Main Estimates, and $2,161,019,900 was approved under the Supplementary Development Estimates. The Second Minister for Finance reported the resolutions from the Committee and sought Parliament's agreement, which was granted.

Fadli Fawzi asked about the number of individuals granted permanent residency under the Global Investor Programme (GIP) from 2015 to 2025, along with investment breakdowns by options and industry sectors. Ms. Gan Siow Huang indicated that approximately 450 individuals received permanent residency, with investments distributed among the three options: 50% in business entities, 40% in GIP-select funds, and 10% in Single Family Offices. A total of S$500 million was invested in business entities, predominantly in Professional Services, Info-Communications, and Financial Services, alongside S$430 million in GIP funds. Fadli also raised supplementary questions regarding the citizenship application rates, retention rates, and changes in GIP applicant profiles due to recent modifications, but Ms. Gan stated that further data on those aspects was not immediately available.

The Prime Minister and Minister for Finance, Mr. Lawrence Wong, addressed concerns during the Debate on the Annual Budget Statement regarding the DRC (Differentiated Responsibility Criterion) for Food and Beverage (F&B) workers. He indicated that lowering the DRC could result in many F&B foreign workers taking on non-F&B jobs in Singapore. A clarification statement was issued to correct the wording in his earlier reply, changing "lower" to "looser" in relation to the DRC.

Fadli Fawzi asked the Acting Minister for Transport about the total amount collected from Vehicle Entry Permit and Goods Vehicle Permit fees in 2025 and the estimated annual collection after fee increases from January 2027. Jeffrey Siow responded that approximately $130 million was collected in 2025, noting that the amount varies each year based on the number of foreign-registered vehicles entering Singapore.

Yip Hon Weng raised questions about the Ministry of Sustainability and the Environment's decision to retain a 5% limit on international carbon credits, asking for flexibility and how environmental integrity concerns are balanced with the risk of company relocation. Grace Fu Hai Yien explained that the 5% cap on international carbon credits is designed to encourage domestic emission reductions while aligning with other jurisdictions like South Korea. The Government acknowledges the need for cost-effective low-carbon solutions and provides transitional carbon tax allowances for companies in emissions-intensive sectors to maintain competitiveness. Additionally, companies have access to grants for energy efficiency investments to support their decarbonisation efforts. The Government will monitor international trends to ensure a balanced approach to climate goals and economic competitiveness.