Economy & business

Alex Yeo questioned the Coordinating Minister for National Security about the status of Carousell's commitment to implement measures under the E-Commerce Code of the Online Criminal Harms Act 2023 by January 2026, particularly concerning the rise in e-commerce scams involving SingPass-verified accounts. K Shanmugam responded that the Ministry of Home Affairs is currently evaluating the effectiveness of Carousell's measures and will provide updates accordingly. The Ministry is also closely monitoring the scam situation on Carousell and will consider additional measures as needed.

He Ting Ru asked about the timeline for the six Indonesian projects with Conditional Licenses for 3GW of low-carbon electricity imports to become commercially operational and their potential impact on household electricity prices. Gan Kim Yong indicated that project developers aim to start commercial operations by the end of the decade, pending regulatory approvals and development milestones. Developers are negotiating power purchase agreements with large electricity consumers, and there are currently no plans to mandate the purchase of imported electricity, leaving retail options for households at the discretion of the developers.

He Ting Ru questioned the Deputy Prime Minister about the Ministry's efforts to assist Singaporean firms in dealing with US technological restrictions and China's rare earth export controls. Gan Kim Yong responded that the Ministry of Trade and Industry provides advisories and outreach programs to educate businesses on export controls, including specific advisories on advanced semiconductors and AI technologies. The Singapore Economic Resilience Taskforce was established to support businesses during global economic uncertainties, launching the Business Adaptation Grant to help firms adapt operations and improve supply chain resilience. The government is committed to monitoring global developments and reviewing support measures as necessary.

Kenneth Tiong Boon Kiat asked the Prime Minister about the metrics for measuring the success of collaborations between national R&D institutions and the private sector. Gan Kim Yong responded that these institutions work with private partners to conduct relevant research and commercialize technologies, contributing to the economy and the Research, Innovation and Enterprise ecosystem. The government tracks indicators like intellectual property licensing, innovative product development, and startup formation to assess success. These collaborations are beneficial as they enable researchers to commercialize their work, enhance private sector competitiveness, and boost R&D investments in Singapore.

Mariam Jaafar raised concerns about trends in fixed asset investments and job creation in Singapore, asking if the government sees a shift towards capital-intensive, technology-driven industries and how it plans to ensure job opportunities for Singaporeans. Gan Kim Yong responded that while investment commitments remain robust, fewer jobs are being created due to conservative hiring and a focus on high-value, capital-intensive projects. The majority of future job commitments are for higher-paying roles, with the government emphasizing a strategy to anchor high-value investments and strengthen local talent pipelines. Additionally, support for SMEs, job redesign, and worker reskilling will be enhanced to create good jobs and address the changing nature of work.

Mark Lee raised concerns about the 2025 Economic Survey indicating a divergence in economic performance, with rising unit labor costs in domestic sectors and uneven productivity in outward-facing industries, questioning the government's assessment of a potential two-track economy and its impact on competitiveness. Gan Kim Yong acknowledged the rising unit labor costs in domestically-oriented sectors and highlighted government support for small and medium-sized enterprises, including a Corporate Income Tax Rebate and Cash Grant. He emphasized the need for businesses to transform to maintain competitiveness and discussed initiatives like the Enterprise Development Grant and the Progressive Wage Model to enhance workforce productivity. The government aims to drive broad-based productivity growth to ensure sustainable wage growth for Singaporeans.

Hazlina Abdul Halim asked about the impact of Employment Pass (EP) qualifying salaries and foreign workforce policies on skills gaps and wage growth. Tan See Leng responded that these policies have enhanced Singapore's competitiveness, leading to good job creation and income growth, with real median income rising by 4.1% in 2025. The resident unemployment rate has been stable at around 3%, and there has been significant growth in higher-skilled jobs, with 357,000 more residents in PMET roles over the past decade. The Ministry of Manpower regularly reviews foreign workforce policies to ensure they complement the local workforce, including updating the COMPASS Shortage Occupation List to reflect changes in skills demand.

Charlene Chen inquired about the Ministry of Trade and Industry's collaboration with digital platforms to identify and remove misleading AI-generated content related to products and services. Gan Kim Yong confirmed that the Consumer Protection (Fair Trading) Act protects consumers from misleading claims, urging them to report such issues to the Consumers Association of Singapore (CASE). Thus far, there have been no complaints about AI-generated misleading advertisements received by CASE or the Competition and Consumer Commission of Singapore (CCS). CCS is actively working with e-commerce platforms to promote responsible practices, including guidance on AI use and revisions to industry codes. The Council for Estate Agencies requires property agents to accurately represent listings and disclose any AI usage in marketing materials, with ongoing reviews to improve regulations.

• The Budget debate focused on urgent issues concerning Singaporean workers, particularly regarding the impact of AI on job security, cost of living, and the need for better support systems for various groups, including young graduates, mid-career workers, and seniors.
• The Labour Movement highlighted the need for initiatives that empower workers to become AI-ready, emphasizing the importance of structured training, early engagement during transitions, and building confidence among workers, especially in the face of economic uncertainties.
• Concerns were raised regarding wealth inequality and the necessity of implementing more progressive tax measures, alongside calls for long-term structural changes in the education system to better align with future workforce needs influenced by AI.
• Various members expressed the importance of enhancing family support systems, proposing adjustments to existing financial aid structures and increasing accessibility for older children and vulnerable families, especially those impacted by cost-of-living pressures.
• The need for a cohesive national strategy that combines government, businesses, and unions to ensure equitable outcomes for all workers and evolve practices to accommodate the demands of an AI-driven future was stressed throughout the debate.

Assoc Prof Kenneth Goh raised questions about the differentiation of wealth in public versus private housing in measuring household wealth inequality and its impact on economic resilience. Mariam Jaafar inquired about measures to sustain upward mobility for children from lower-income households, referencing findings that a significant portion of these children moved to higher income tiers. The Senior Minister of State for Finance, Jeffrey Siow, addressed ongoing improvements to wealth data measurement and emphasized that the Gini coefficient does not differentiate between asset types or housing ownership in its calculations, as it represents a stock measure rather than liquidity. He outlined various government strategies aimed at supporting lower-income families, enhancing education access, and adapting to technological changes impacting job availability to ensure sustained social mobility. Finally, there was discussion on the balance of property taxation and its progressive nature, with considerations for asset-rich, income-poor seniors, as well as openness to exploring future shifts in tax burdens.

The speaker announced the fixed times for concluding the consideration of expenditure in the FY2026/2027 Estimates during the Committee of Supply. Reductions in Question Time to 30 minutes on those days and extended sitting times for the Committee of Supply have been factored into scheduling. Sittings from February 27 to March 6 will begin at 10:00 am. The speaker reminded Members about the "guillotine" times previously communicated and encouraged limited use of slides and videos to enhance the quality of debates. Order was called to proceed with Questions for Oral Answer.

Kenneth Tiong Boon Kiat questioned the Government about data on accident repair costs for rental and car-sharing vehicles that go unclaimed due to exceeding insurance excess thresholds. He also asked if regulations would be implemented to control rental operators' excess charges and protect hirers from exploitative practices. Jeffrey Siow responded that the Government lacks data on these costs and does not intervene in commercial agreements between rental companies and hirers, noting that any new regulations could raise costs for consumers.

He Ting Ru questioned the Minister for Digital Development and Information about the allocation of over $1 billion for public AI research from 2025 to 2030, specifically regarding the distribution among fundamental AI research, applied AI research, and talent development, as well as the guiding principles for these decisions. Josephine Teo emphasized that the funding aims to sustain long-term investments and maintain global competitiveness in research capabilities and talent. She noted that specific allocations are not disclosed to adapt to emerging opportunities, and funds will be managed under existing governance systems for research and development.

He Ting Ru questioned the Minister for Digital Development and Information about the effectiveness of AI manpower and capability development initiatives announced at SWITCH 2022, particularly regarding a US$50 million investment. Josephine Teo responded that the investment supported the AI Apprenticeship Programme and the National Research Foundation Fellowship for AI. The AIAP has successfully trained over 400 practitioners with more than 85% securing AI-related roles post-apprenticeship. Four NRF Fellowships have been awarded to early-career AI researchers, with ongoing tracking of their progress by the NRF.

Kenneth Tiong Boon Kiat questioned whether Enterprise Singapore (EnterpriseSG) relationship managers systematically direct SME grant inquiries to SME centres, and if they can provide direct assistance as a single point of contact. Gan Kim Yong responded that EnterpriseSG collaborates with SME centres to offer a variety of support beyond just grant inquiries, with business advisors assigned to help SMEs navigate their needs. For straightforward grant inquiries, SMEs can find information on the EnterpriseSG and GoBusiness websites, which offer eligibility criteria and application guides, serving as initial resources for SMEs.

Fadli Fawzi questioned the Prime Minister about the cost of minting five-cent coins over the last five years, the status of seigniorage, and plans to withdraw them from circulation if they are unprofitable. Gan Kim Yong, on behalf of the Prime Minister, stated that no new five-cent coins have been minted in the last five years and there are no current plans to do so. He noted that the cost of producing a five-cent coin is still below its face value, and there is ongoing public demand for these coins, as they are commonly used in pricing by retailers. The Monetary Authority of Singapore will continue to monitor the demand for five-cent coins to evaluate their future relevance.

Chua Kheng Wee Louis inquired whether the Value Meals @ South West initiative is funded by the Community Development Council (CDC) and requested details on costs and plans for expansion to all HDB towns. Edwin Tong Chun Fai clarified that the programme is funded by the Select Group as part of its corporate social responsibility efforts, with no costs incurred by the South West CDC. The initiative aims to provide affordable meal options for low-income residents through vending machines in community locations. CDCs collaborate with various partners to meet local needs while offering similar benefits to residents across different districts.

Chua Kheng Wee Louis asked the Minister for National Development about the number of instances where coffee shop operators failed to pass on the 5% monthly rental rebate to stallholders under the Budget Meal scheme since its extension. Chee Hong Tat stated that HDB operators are required to pass the rental discount fully to stallholders and must submit signed letters of undertaking. As of now, HDB has received no feedback from stallholders regarding any operators not passing on the discount.

Dennis Tan Lip Fong questioned whether Singapore's Extended Producer Responsibility (EPR) frameworks include incentives for producers to design durable, repairable, and recyclable products. Grace Fu Hai Yien explained that EPR frameworks transfer the responsibility for end-of-life product management to producers, but due to Singapore’s small market and reliance on overseas manufacturers, achieving specific design changes may be challenging. The government supports eco-design and circular economy initiatives through funding and partnerships to encourage local innovation in sustainable practices. Ongoing collaboration with industry stakeholders aims to promote eco-design and reduce waste.

Kenneth Tiong Boon Kiat questioned the Ministry of Trade and Industry on whether it tracks the long-term outcomes of recipients of the Productivity Solutions Grant and Enterprise Development Grant. Gan Kim Yong responded that the Ministry regularly reviews the effectiveness of solutions and vendors based on recipient feedback, with underperforming vendors being removed from the pre-approved list. The Ministry monitors approved projects to ensure compliance with committed milestones, and vendors breaching terms may face investigations and enforcement actions, including suspension or debarment from government schemes.