Economy & business

Gabriel Lam questioned the adequacy of Medisave withdrawal limits and MediShield Life coverage for patients undergoing long-term dialysis over the past five years. Ong Ye Kung responded that dialysis patients receive lifelong financial support through government subsidies, MediShield Life, and MediSave, which are regularly reviewed for affordability. He announced an increase in MediShield Life claim limits for dialysis from $1,100 to $1,750 per month starting in April 2025, alongside enhanced government subsidies since July 2025. Eligible patients can also access charity assistance and other support, ensuring no one is denied care due to financial constraints.

Chua Kheng Wee Louis asked about the dollar value of advanced computing and high-end AI chips produced in Singapore over the past five years, constraints in high-end chipmaking, and efforts to address them. Gan Kim Yong noted that Singapore's semiconductor output has increased from $100 billion in 2020 to $133 billion in 2024, but companies do not disclose specific production data. The high-end chipmaking sector is complex and competitive, with intense global competition and significant land and energy requirements impacting project selection. Efforts to enhance high-end chipmaking include expanding the manufacturing presence of global companies, promoting R&D activities, and establishing national platforms to support translational research in semiconductor innovation.

Low Wu Yang Andre asked about the review of Meta's acquisition of AI start-up Manus, the impact of such acquisitions on Singapore's AI ecosystem, and the adequacy of the current merger notification framework. Gan Kim Yong explained that Singapore has a voluntary merger notification regime that allows companies to self-assess potential competition concerns while minimizing compliance costs. The Competition and Consumer Commission of Singapore (CCS) is not currently reviewing the acquisition as it has not been notified, and there are no indications of potential anti-competitive issues. CCS will continue to monitor the AI market to ensure competitiveness and support innovation.

Hazlina Abdul Halim raised questions about Singapore's strategies for expanding trade relations amid rising geopolitical tensions and economic nationalism. Gan Kim Yong responded that Singapore is deepening cooperation with major economies and emerging markets, including through digital and green economy agreements. The country is enhancing regional engagements, such as upgrading the ASEAN Trade in Goods Agreement and fostering collaboration within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). New partnerships, like the Future of Investments and Trade Partnership, aim to address supply chain resilience and trade facilitation. Singapore is also pursuing legally binding agreements, such as the one with New Zealand, to ensure trade continuity during crises.

Gho Sze Kee asked about the potential impact of the Hainan Free Trade Port on Singapore and regional trade dynamics. Gan Kim Yong explained that the Hainan FTP provides zero tariffs, improved customs procedures, and tax incentives, promoting value-added processing in the area for tariff-free access to mainland China. The expected impact on Singapore is limited due to existing free trade agreements with China, which already eliminate tariffs for most Singaporean exports. The Ministry will continue to monitor trade patterns and adjust strategies as needed.

Shawn Loh raised questions regarding the government's plans to increase property taxes on non-owner-occupied properties to tackle wealth inequality. Jeffrey Siow responded that higher tax rates for non-owner-occupied residential properties, which are primarily investment properties, have already been implemented, increasing from 10%-20% to 12%-36% in 2023 and 2024. The government intends to keep reviewing property taxes to ensure a progressive and fair taxation system.

Shawn Loh requested that CDC vouchers be allowed for use at heartland merchants in addition to supermarkets, to support residents who do not shop at supermarkets. Jeffrey Siow explained that the CDC Vouchers scheme aims to assist households and support heartland merchants; originally meant only for heartland shops, the scheme was modified in January 2023 to allow equal use at both supermarkets and heartland businesses. The split approach addresses varied shopping needs and maintains high utilization rates for both categories. The parameters of the scheme will remain unchanged for now.

Elysa Chen raised concerns about future plans to improve long-term financial security and employment re-entry for individuals exiting the workforce for unpaid caregiving under the Caregiver Support Action Plan. Tan See Leng responded that caregivers can access employment facilitation and reskilling programs through Workforce Singapore and NTUC's Employment and Employability Institute, including Career Conversion and Mid-Career Pathways Programmes. Additionally, SkillsFuture support is available for training and course subsidies. Upcoming financial enhancements, including the Majulah Package's Retirement Savings Bonus and changes to the Silver Support Scheme, aim to improve retirement adequacy for seniors with caregiving responsibilities. Caregivers may also qualify for the Workfare Income Supplement and Earn and Save Bonus, which provide income and retirement savings support.

Saktiandi Supaat asked about Public Transport Voucher (PTV) take-up rates, evaluation of its effectiveness in alleviating commuting costs, and plans for further enhancements beyond the current $60 benefit. Jeffrey Siow reported that 360,000 PTVs were issued, representing a 72% take-up rate among eligible households, with improvements made to the application process to increase accessibility. PTVs are designed to offset half a year's worth of fare increases for a typical family, and additional support is available for households in need via Community Centres. The government allocates over $2 billion annually in subsidies for public transport, which has resulted in decreased public transport expenditure as a percentage of income for lower-income households.

Gabriel Lam raised questions regarding the Monetary Authority of Singapore's review of the Shared Responsibility Framework, particularly related to banks' accountability for unauthorized digital transactions and the adequacy of rules for reversing fraudulent transactions. Gan Kim Yong responded that most scams involve authorized transfers initiated by victims due to deception rather than unauthorized transactions. Banks are enhancing fraud detection systems and have protocols for blocking potentially fraudulent transactions, but distinguishing between legitimate transactions and fraud is challenging. The Shared Responsibility Framework requires banks to hold suspicious transactions for 24 hours, balancing user protection with convenience. Banks encourage customers to report fraud promptly, use account safeguards like kill-switches, and adopt protective measures to reduce risks.

Shawn Loh raised the question of making the Progressive Wage Credit Scheme a long-term measure to manage business costs while addressing the wage gap. Tan See Leng clarified that the scheme, initiated in 2022, serves as transitional support for businesses adapting to policies that benefit lower-wage workers. The government aims for employers to use this period to invest in employee upskilling, business transformation, and productivity improvements for sustainable wage increases. A review of the scheme is ongoing, with updates forthcoming.

Yip Hon Weng questioned the Minister for National Development about the structure of six-year rent commitments for HDB shops, specifically regarding the rationale for two three-year terms, the possibility of penalties for early lease termination, and protections for smaller businesses against displacement by larger chains. Chee Hong Tat explained that three-year tenancies align with market practices and that new tenants can maintain rents based on their bids upon renewal. HDB allows early termination of leases without penalties, provided tenants give one month's notice, acknowledging genuine business challenges. Additionally, small and medium enterprises have access to government programs to improve competitiveness and productivity.

Kenneth Tiong Boon Kiat raised concerns regarding Singapore's Reserves in relation to proposed changes to the US tax code, including assessment of exposure, representations to the US Treasury, and confidence in GIC's and Temasek's investment protection. Jeffrey Siow confirmed that the Government expects its investment entities to comply with laws in their investment jurisdictions and to monitor regulatory changes closely. He noted that GIC and Temasek can provide feedback on relevant regulatory changes and that the Singapore Government maintains regular engagement with the US Treasury on financial and tax issues. The Government remains confident in the risk management capabilities of its investment entities to protect Singapore's investment interests.

Shawn Loh and Liang Eng Hwa proposed the idea of a property tax deferral scheme for asset-rich, cash-poor Singaporeans and seniors facing cash flow issues. Jeffrey Siow highlighted concerns that deferring taxes could lead to significant liabilities during property transfers or inheritances. He noted that eligible property owners aged 65 and above can currently access a 24-month interest-free installment plan for property tax payments. The Government will continue to evaluate existing support measures and consider additional assistance if necessary.

Foo Cexiang raised a question regarding the need to ensure at least one budget meal option per stall at hawker centres managed by NEA in light of HDB's policy changes. Grace Fu Hai Yien responded that the NEA does not mandate budget meals at all hawker stalls but requires Socially-conscious Enterprise Hawker Centres (SEHCs) to offer value meals. SEHC operators must ensure at least one value meal is available per stall and consider operational costs in their pricing. The NEA will continue to require SEHC operators to implement measures that maintain food affordability and periodically review meal prices based on stallholder feedback.

Low Wu Yang Andre asked about the government's monitoring of foreign technology companies re-domiciling in Singapore to mitigate geopolitical risks and the potential reputational impact on Singapore’s status as a neutral tech hub. Gan Kim Yong responded that all companies in Singapore must comply with local laws and regulations, including foreign companies that must meet minimum requirements for substantive business activity. The government welcomes legitimate tech companies, emphasizing that this supports Singapore's open economy, job creation, and the growth of its technology ecosystem.

Saktiandi Supaat asked about the potential impact of the OECD's decision to exempt US multinational corporations from the global 15% corporate tax on Singapore's corporate tax revenues and medium-term fiscal risks. Jeffrey Siow explained that the OECD's arrangement allows US multinational enterprises to operate under their existing tax system while maintaining similar policy outcomes to the Pillar Two rules. Singapore will continue to impose its Domestic Top-up Tax, ensuring that all large MNEs, including US firms, pay the minimum 15% effective tax rate on their profits. Siow emphasized the need for Singapore to maintain competitiveness and invest in opportunities amid intensifying global competition.

Hazlina Abdul Halim asked the government when it would study the effectiveness of initiatives like the GSTV scheme and CDC vouchers in addressing cost-of-living issues and what cost control measures could be implemented for vulnerable Singaporeans. Indranee Rajah responded that the government regularly reviews these schemes and has enhanced the Assurance Package to offset inflation effects, increasing support from $6.6 billion in 2022 to over $10 billion by 2025. Structural supports, including Workfare and Silver Support, target vulnerable groups, while one-off assistance complements these measures. The government emphasizes broad-based wage growth, economic growth, and skill development as long-term solutions to cost pressures.

Assoc Prof Terence Ho raised concerns about the impact on budget meal options for lower-income residents following the decision to make budget meals optional for HDB coffeeshops, suggesting potential financial incentives for stallholders. He Ting Ru questioned the factors influencing the decision to discontinue mandatory budget meals and how the changes will be evaluated. Chee Hong Tat responded that while budget meals will be optional from January 2026, existing operators will continue to provide them until their tenancies end. HDB is increasing funding support for stallholders who offer budget meals and standardizing the scope of options provided. The new arrangement aims to balance sustainability for operators with the needs of residents.

Mark Lee raised concerns about the implications of the US withdrawing from UN climate processes on Singapore's carbon tax and sustainability goals and questioned the possibility of recalibrating carbon tax increases to alleviate pressures on local industries. Gan Kim Yong responded that the Government adopts a pragmatic approach to carbon tax, considering international climate actions, economic competitiveness, and decarbonisation technology progress. He acknowledged the necessity of decarbonisation for Singapore's long-term competitiveness, emphasizing the need for a high carbon tax to encourage investment in emission reduction solutions while taking into account global carbon pricing to prevent carbon leakage. The Ministry of Trade and Industry is actively engaging with businesses to address their challenges regarding the carbon tax and to offer support.