Economy & business

Sharael Taha questioned the Minister for Manpower about the effects of the Progressive Wage Model (PWM) on wages in sectors not covered by the PWM and its impact on business costs and competitiveness in affected industries. Tan See Leng responded that lower-wage workers benefit from the Local Qualifying Salary and Progressive Wage Mark accreditation, resulting in a cumulative 10.1% increase in real gross monthly income for the 20th percentile from 2021 to 2025. He acknowledged business concerns regarding cost increases, noting that lower-wage workers make up a small portion of overall manpower costs. To support sustainable wage increases, the government introduced the Progressive Wage Credit Scheme in 2022 to co-fund wage enhancements and the Workfare Skills Support scheme to assist employers with training costs for lower-wage workers.

Edward Chia Bing Hui asked about the Singapore Tourism Board's strategy in balancing the attraction of high-yield visitors versus the volume of visitors for broader employment in retail and tourism. Gan Kim Yong responded that the STB prioritizes high-spending visitors while ensuring sustainable visitor numbers to support tourism businesses. The strategy includes targeting high-growth segments like MICE and Active Silvers, as well as families, while developing innovative tourism concepts in partnership with the industry. STB aims to enhance its events pipeline, including MICE events and major leisure activities, to boost tourism.

Chua Kheng Wee Louis raised concerns about the decline of Singapore's equities market and highlighted the need for structural reforms to improve company fundamentals and investor confidence. He welcomed the government's initiatives, including the $5 billion Equity Market Development Programme, but emphasized the need for mandatory disclosures on shareholder returns to compel companies to improve. Assoc Prof Jamus Lim supported these points and proposed enhancing the capital raising life cycle to further strengthen the market. Minister Chee Hong Tat acknowledged the suggestions and reported positive trends in market activity, stressing the importance of continuous improvement and innovation to maintain Singapore's competitiveness as a global financial hub.

Dr. Janil Puthucheary clarified that producers of 80% of beverage containers registered under the upcoming scheme would experience a price increase of three to four cents per container, correcting a previous mention of 3% to 4%. He acknowledged the error and emphasized that all references should consistently state the price increase in cents. The Speaker then moved on to the introduction of Government Bills.

Denise Phua Lay Peng raised concerns about measures to moderate shop rental increases in heritage precincts like Chinatown and Kampong Gelam to support long-standing businesses. Fadli Fawzi questioned whether the government is aware of bidding wars driving up rents and what actions might be taken. The Senior Parliamentary Secretary, Syed Harun Alhabsyi, highlighted that retail rents have increased moderately (around 2% annually) and emphasized the government's ongoing efforts to support heritage businesses through the SG Heritage Business Scheme and collaboration with various agencies. Stakeholders' diverse interests and the need for a comprehensive approach to preserve heritage while balancing business needs were acknowledged. Suggestions for enhancing support and coordination among relevant agencies to maintain the character of heritage districts were discussed, including addressing non-rental issues faced by SMEs.

Poh Li San and other MPs raised concerns about the Beverage Container Return Scheme (BCRS), specifically regarding its implementation and potential consumer impacts. Dr. Janil Puthucheary provided detailed responses, emphasizing that the scheme is designed to enhance recycling and is based on successful international models. The initial rollout will include over 1,000 reverse vending machines, with plans to increase this number to 2,000 within a year. Measures are being put in place to support smaller producers and mitigate potential price increases, while monitoring will ensure the scheme operates efficiently and maintains consumer protection. The government aims for significant improvements in recycling rates as a result of this initiative.

He Ting Ru asked if the Ministry of Manpower would consider a statutory fund for providing financial support to workers of all nationalities during corporate liquidations and bankruptcies without means testing. Tan See Leng responded that the Government currently has schemes in place that offer means-tested financial support to unemployed workers, ensuring resources are allocated to those most in need. Local workers can receive temporary assistance through the SkillsFuture Jobseeker Support scheme, while lower-income households can seek help from Social Service Offices. Foreign workers can access financial support through the Migrant Workers' Centre.

Assoc Prof Jamus Jerome Lim inquired whether CPF LIFE members could opt out of using top-up amounts from their Retirement Accounts (RA) for paying CPF LIFE premiums, assuming they have enough balance for a minimum annuity payout. Tan See Leng responded that top-ups to the RA should be dedicated to long-term retirement needs, as they are meant to enhance monthly payouts through CPF LIFE for members' retirement.

David Hoe raised concerns about the impact of the expanded Partner Operator scheme on private preschools serving special needs children and the availability of funding for specialized services. Masagos Zulkifli B M M responded that the government has increased funding to preschools under the Anchor Operator and Partner Operator schemes to keep fees affordable. The Early Childhood Development Agency (ECDA) is ensuring access to Early Intervention services for children with developmental needs and has introduced support programs and resources for all preschools. ECDA also funds specialized Early Intervention programs to ensure necessary services are available for children in need.

Hazlina Abdul Halim raised concerns about the delayed climate reporting requirements for small and mid-sized companies listed on the SGX and asked about measures to support sustainability reporting during this extended timeline. Gan Kim Yong responded that Enterprise Singapore and the Economic Development Board are providing support through the Sustainability Reporting Grant (SRG), which has been extended along with the delay. Companies can also utilize the SME Sustainability Hub, a digital platform for resources on sustainability capabilities. Additionally, the Accounting and Corporate Regulatory Authority has developed guidance for training providers on sustainability reporting. The government will continue to review support measures to assist companies in preparing for a low-carbon future.

Dennis Tan Lip Fong asked if the Singapore Tourism Board (STB) is using AI and AR technologies for multilingual narration at tourist sites and how this affects licensed tourist guides. Gan Kim Yong confirmed that STB encourages innovative technologies, citing a 2024 AR pilot project and AI solutions to enhance visitor experiences. STB provides grants to businesses adopting such technologies and aims to upskill tourist guides to use these advancements effectively. An updated licensing framework for tourist guides, "Learn + Do," will start in March 2026, promoting continuous learning and technology adaptation.

Kenneth Tiong Boon Kiat requested data from the Prime Minister regarding Singapore citizens' transitions between tax residency statuses over the past decade, including demographic breakdowns. Jeffrey Siow explained that Singapore citizens residing in the country are considered tax residents, but specific transition data is unavailable. In 2020, there were approximately 1.6 million Singapore citizens with tax records, with around 1.4 million remaining by 2024; dropouts may be attributed to various life changes. The gender breakdown for the 1.4 million tax filers was about 55% male and 45% female.

Yip Hon Weng asked about regulations on home equity loans (HEL) to prevent over-leveraging beyond current loan-to-value limits and Total Debt Servicing Ratio (TDSR) requirements. Gan Kim Yong clarified that HELs, or Mortgage Equity Withdrawal Loans (MEWLs), follow Monetary Authority of Singapore (MAS) rules, ensuring total outstanding loans do not exceed applicable LTV limits. MEWLs are generally subject to TDSR, though exemptions exist if total debt secured does not exceed 50% of the property's market value, allowing borrowers some flexibility. MAS requires financial institutions to conduct comprehensive credit assessments for loan applicants, emphasizing the need for borrowers to manage their finances prudently, especially when considering loans for speculative investments.

Hazlina Abdul Halim asked about the review of MediSave withdrawal limits for private medical insurance premiums in light of medical inflation and recent changes to MediShield Life. Ong Ye Kung explained that MediSave is designed for basic healthcare needs, with premiums for MediShield Life fully payable by it, while Integrated Shield Plans (IP) are optional and have capped withdrawal limits. He emphasized the need to balance the use of MediSave for private insurance with the preservation of funds for basic healthcare. Individuals struggling with rising premiums should seek advice from financial advisors regarding their health insurance coverage.

Yip Hon Weng queried the Acting Minister for Transport about enforcement measures for the new cross-border taxi rules to prevent foreign taxis from making local trips, maintaining fair competition for local taxis facing higher costs, and negotiating access to subsidized fuel for Singaporean taxis operating in Malaysia. Jeffrey Siow stated that this question was already addressed in a written reply for a previous Parliament sitting, referring to a report on addressing cost concerns related to new cross-border arrangements for ride-hailing services.

Hazlina Abdul Halim asked about the Health Promotion Board's collaboration with stakeholders to enhance healthy food options at hawker centres and the potential for new financial incentives for businesses providing nutritious food. Ong Ye Kung emphasized the Healthier Dining Programme, which involves over 9,200 food establishments offering healthier menu options as of September 2025. The Healthier Ingredient Development Scheme supports F&B operators in using healthier ingredients by providing them at competitive prices. He encouraged consumers to request healthier options when dining out to increase demand and motivate stall owners to modify their menus.

Chua Kheng Wee Louis asked about the current number of ATMs in HDB towns and the collaboration between HDB, banks, and government agencies to ensure accessible cash withdrawal and deposit facilities. He also inquired about the historical data on off-premise ATMs and bank branches, and the measures taken by the Monetary Authority of Singapore (MAS) to ensure adequate banking services. Gan Kim Yong responded that there are over 1,600 off-premise ATMs and around 150 bank branches, with a gradual decline in their numbers due to increased online banking adoption. MAS monitors the ATM distribution and encourages banks to consider accessibility for customers while promoting partnerships with retail outlets for cash withdrawals.

Abdul Muhaimin Abdul Malik asked about measures to keep utility bills affordable for Singaporeans amidst rising energy costs and a shift towards greener energy. Gan Kim Yong explained that Singapore relies heavily on energy imports, and electricity prices reflect these import costs. The government encourages households to reduce bills by using energy-efficient appliances and offers financial support through Climate Vouchers and U-Save rebates, which can total up to $760 by 2025. Additionally, businesses are encouraged to invest in energy efficiency with government grants to support such initiatives.

Poh Li San raised concerns regarding high Certificate of Entitlement (COE) prices and suggested implementing shorter renewal durations, like annually or biennially, to provide affordable options for car owners extending ownership beyond 10 years. The Acting Minister for Transport, Jeffrey Siow, acknowledged the concerns but stated that allowing shorter renewals could exacerbate COE price fluctuations and reduce availability for new car buyers. Poh suggested considering shorter renewal terms specifically for commercial vehicles to support small businesses. Siow highlighted that commercial vehicle owners are already allowed to renew COEs for five years and emphasized maintaining fair competition for new business access to COEs.

Choo Pei Ling asked the Minister for Manpower about plans to reduce upfront costs for hiring migrant domestic workers (MDWs) for families with young children or vulnerable elderly and to enhance protections against misrepresentation and misconduct by MDWs. Shawn Huang responded that the median upfront cost is around $4,700, with measures in place requiring agencies to refund employers if MDWs leave within six months. Families with young children and elderly already receive significant subsidies, and the Ministry is committed to regularly reviewing protections for both employers and MDWs. In a follow-up, Choo requested benchmarks for agency fees to ensure affordability, to which Huang noted that prices are primarily determined by market forces while additional financial support is available for families in need.