Economy & business

Assoc Prof Terence Ho raised concerns about the expected faster growth of non-domestic water demand and questioned how the Ministry for Sustainability and the Environment would ensure water affordability for households and whether industrial users should cover more costs. Grace Fu Hai Yien explained that water pricing reflects supply costs and scarcity, with heavier users, including industries, paying larger bills. The Government also offers targeted support for lower- and middle-income households, including U-save rebates and initiatives to promote water-efficient appliances, and provides Climate Vouchers to assist with these purchases.

Fadli Fawzi questioned when the CPF unconditional withdrawal limit of $5,000 for Singaporeans at age 55 was last increased and if the Government has reviewed this limit since 2023. Tan See Leng responded that the CPF withdrawal rules should be considered holistically and noted the $5,000 limit has been in place since 1995, highlighting other flexibilities for those aged 55 and above. He stated that while some members can withdraw excess savings above their Full Retirement Sum and others have flexibility in property and cash, the intent of the CPF system is to balance immediate needs with long-term retirement income sustainability. He cautioned that increasing withdrawal options may reduce monthly retirement payouts.

Mark Lee asked how the Government plans to support SMEs in participating in frontier sectors like space and quantum technologies, given the high entry barriers. Gan Kim Yong highlighted that these sectors build on Singapore's existing strengths in aerospace, microelectronics, and telecommunications, providing opportunities for SMEs. Initiatives such as the Singapore Space Community facilitate collaboration between aerospace companies and the space industry, while efforts in quantum technologies include education platforms like the Quantum Talent online learning resource. The government also provides support through programs like A*STAR's Technology for Enterprise Capability Upgrading and the Space Technology Development Programme, which funds R&D projects in the relevant industries.

Edward Chia focused on three key areas: enhancing support for seniors and young families, addressing anxieties of workers and employers due to economic transformation, and promoting preventive and precision healthcare as a growth strategy. He raised concerns about the unintended consequences of the Silver Support Scheme that can discourage intergenerational living, and highlighted the need for stronger support systems for both workers and SMEs adapting to technological changes. Ang Wei Neng emphasized the importance of prudently using the $15.1 billion budget surplus to address immediate needs by investing in AI training, improving ageing estates, and providing additional support for families through enhanced CDC vouchers. He also called for better resources for adults with special needs to ensure they receive ongoing support and care.

• The debate focused on Singapore's Budget 2026, emphasizing resilience through fiscal prudence amid ongoing global uncertainties, including the rise of AI and its impact on the economy and workforce.
• Speakers discussed the need for equitable access to education and technology, advocating for initiatives that prepare all Singaporeans for an AI-driven economy, including extending personal learning devices to primary students.
• Attention was given to the "sandwich generation," with calls for more support for families juggling caregiving responsibilities and the need for flexible work arrangements to facilitate career progression while managing family duties.
• The importance of supporting seniors and lower-income workers affected by technological changes was highlighted, with suggestions for job redesign and dedicated re-skilling programs.
• Overall, the Budget was viewed as a strategic opportunity to invest in people, enhance social cohesion, and ensure that economic growth translates into tangible benefits for all Singaporeans.

The debate on Budget 2026 highlighted several key themes and concerns among Members of Parliament regarding Singapore's fiscal strategy and societal challenges.

The budget reflects fiscal discipline and aims for long-term investment while addressing immediate concerns such as cost of living, job security, and healthcare affordability. Discussions included a focus on increasing productivity through AI while ensuring that small and medium enterprises (SMEs) are supported in their transformation efforts. Many MPs emphasized the need for equitable access to opportunities and resources, particularly for low-income families and the sandwiched class, to promote social mobility. Concerns were also raised about the potential impacts of geopolitical shifts on Singapore's economy and the necessity for maintaining a strong defense posture amidst global uncertainties.

A proposal was made to provide supplementary funding for additional expenditures for the financial year from 1 April 2025 to 31 March 2026. The recommendation was presented by the Second Minister for Finance, Indranee Rajah. The proposal was read for the first time and will be read a second time after the discussion on the Estimates of Expenditure for FY2026/2027. It will also be printed for further consideration.

A proposal was presented to facilitate the issue of necessary funds from the Consolidated Fund and Development Fund for the financial year from April 1, 2026, to March 31, 2027. The recommendation from the President was signified, presented by the Second Minister for Finance, Indranee Rajah. The proposal was read for the first time and will be read a second time after the Estimates of Expenditure proceedings for FY2026/2027 are concluded, and it will be printed.

Assoc Prof Terence Ho questioned the Minister for Manpower about the possibility of extending wage offsets or support to encourage the hiring of chronically ill individuals, like kidney dialysis patients, who may not qualify as disabled. Shawn Huang Wei Zhong responded that individuals with chronic illnesses require differentiated support, including flexible work arrangements and workplace adjustments tailored to their needs. He acknowledged the higher unemployment rates among kidney dialysis patients and noted ongoing efforts to raise employer awareness for inclusive hiring practices. The government provides resources, such as employment support services and workshops, to assist both employers and jobseekers in improving employment opportunities for those managing chronic conditions.

Diana Pang Li Yen questioned the Acting Minister for Culture, Community and Youth about the criteria used to evaluate the presence of heartland merchants when adding businesses to the CDC Vouchers Scheme. Edwin Tong Chun Fai explained that the CDC Vouchers scheme, launched in 2020, aims to assist households with expenses and support hawkers and heartland merchants. In 2023, a CDC Supermarket Vouchers category was introduced to help alleviate residents' costs further. He clarified that hawkers and heartland merchants are prioritized for the program, excluding merchants in commercial malls, with over 24,000 hawkers and heartland merchants already onboarded.

Dennis Tan Lip Fong asked the Deputy Prime Minister for data on complaints about blind box mechanisms reported to the Consumers Association of Singapore (CASE) since 2023, including referrals to the Competition and Consumer Commission of Singapore (CCS) and the outcomes. Gan Kim Yong responded that CASE received zero complaints in 2023, four in 2024, and five in 2025, all related to non-fulfilment of orders and defective items. None of these complaints were referred to CCS as CASE was able to resolve them directly.

Low Wu Yang Andre asked about the number of complaints related to difficulties in cancelling recurring subscriptions or unauthorized services over the past five years. Gan Kim Yong reported that the Competition and Consumer Commission of Singapore received very few complaints from 2021 to 2025, while CASE had 49 and 44 complaints in 2024 and 2025, respectively. Over 90% of CASE complaints were either resolved or required no further action after advice was given. The top sectors contributing to these complaints were telecommunications services, gym and fitness memberships, and food delivery platform subscriptions.

Joan Pereira asked the Prime Minister about requiring banks and card issuers to take full liability for unauthorized credit card transactions where 3-D Secure was not used, and about standardizing reporting and dispute resolution procedures across financial institutions. Gan Kim Yong responded that established card scheme rules already protect customers from liability for unauthorized transactions with non-compliant merchants if promptly reported. The Monetary Authority of Singapore mandates that financial institutions provide reporting channels and fair dispute resolution processes for unauthorized transactions. Customers can dispute charges without immediate financial impact during investigations and may seek further resolution through the Financial Industry Disputes Resolution Centre. Public reminders were issued to safeguard card information and monitor transactions closely.

Melvin Yong Yik Chye asked if the Monetary Authority of Singapore plans to amend the Insurance Act to enhance consumer protection as insurance firms partner with e-commerce platforms. Gan Kim Yong responded that financial institutions are required to ensure proper conduct and consumer safeguards when distributing products, including through e-commerce. All general insurance agents must be registered and comply with professionalism and competency standards set by the General Insurance Association. Current safeguards are deemed adequate, but there will be ongoing assessments for potential enhancements as the landscape evolves.

He Ting Ru asked the Deputy Prime Minister about the impact of time-limited vouchers and credits on the reported GDP growth for 2025. Gan Kim Yong responded that the 5% GDP growth was mainly driven by outward-oriented sectors like manufacturing and finance, which accounted for around 3.1 percentage points of the growth. He noted that support measures introduced to assist households contributed only about 0.04 percentage points to the GDP growth. The initiatives aimed to alleviate living expenses and share the nation's economic progress with citizens.

Assoc Prof Jamus Lim questioned whether the 10-cent bottle charge under the Beverage Container Return Scheme is used to offset costs for beverage producers and why there are no such offsets for NEA and town councils. Grace Fu Hai Yien clarified that the charge is a refundable deposit for consumers returning bottles and that Beverage Container Return Scheme Limited (BCRS Ltd), an independent not-for-profit entity, manages the collection and recycling of containers. BCRS Ltd is funded by producer fees and recyclables sales, and it is responsible for covering costs associated with reverse vending machines and payments to town councils.

Nadia Ahmad Samdin questioned how geopolitical tensions, climate change, and export restrictions impact the Global Partnerships pillar of Singapore Food Story 2.0. Grace Fu Hai Yien explained that these factors have led to increased fragmentation in food supply chains, highlighting the importance of international cooperation for food trade resilience. Examples of such partnerships include memorandum agreements signed with Vietnam and Thailand to enhance rice trade and a joint feasibility study with Brunei to develop an Agri-Tech Food Zone.

Dennis Tan Lip Fong asked about the government's plans to legislate mandatory and standardized disclosure of odds for blind box or "gacha" products in Singapore. K Shanmugam responded that the Ministry of Home Affairs and the Gambling Regulatory Authority are drafting regulations to manage gambling inducement risks associated with such products. Tan's suggestion regarding mandatory disclosure of odds and probabilities will be taken into account during the drafting of these regulations.

Kenneth Tiong Boon Kiat raised questions regarding the tax implications of the fixed-dollar Working Mother's Child Relief (WMCR) for working mothers with children born in 2024. Indranee Rajah responded that approximately 9,500 working mothers paid higher income tax in Year of Assessment 2025 due to the WMCR change, which aims to provide equal support for children regardless of income. The government anticipates spending nearly $7 billion on marriage and parenthood initiatives by FY 2026, significantly outpacing any additional tax revenue from the WMCR changes. Furthermore, projecting future tax revenue from the WMCR change is difficult due to various influencing factors.

Saktiandi Supaat raised concerns regarding profitability, rents, and business closures in the F&B and retail industries, seeking information on potential government support for small businesses. Gan Kim Yong responded that the number of F&B and retail entities has increased significantly from 2019 to 2025, outpacing business cessations, leading to heightened competition and declining profitability in both sectors. He noted that rental costs as a percentage of overall business expenses have decreased, indicating that other cost pressures, such as labor, are rising. The government has introduced various support schemes like the FoodX programme and tax rebates to help businesses innovate and manage costs, while also enhancing consumer patronage through community vouchers.