Economy & business

• The Ministry of Sustainability and the Environment collaborates with the Singapore Agro-Food Enterprises Federation (SAFEF) to aggregate, brand, and market local produce, facilitating long-term contracts between farmers and retailers.
• Local produce, such as leafy vegetables and seafood, is marketed under brands like “SG Farmers' Market” and “The Straits Fish,” with significant sales increases reported since their launch.
• The collaboration has led to partnerships with various food businesses to incorporate local produce into their menus, enhancing consumer awareness and demand.
• Public response to these initiatives has been positive, with plans to expand the range of local produce available in retail and dining establishments.
• The Singapore Food Agency aims to continue driving demand for local produce to support food security and the growth of local farms.

• Sylvia Lim proposed expanding the definition of "relevant individuals" under the CPF Act to include uncles and aunts, allowing seniors without children to benefit from voluntary CPF fund transfers.
• Minister Tan See Leng emphasized that the CPF system is designed to ensure retirement adequacy and currently allows transfers only to immediate family members.
• The Minister noted that there are existing options for supporting extended family members, such as cash top-ups to their CPF accounts.
• He mentioned that extended family members could benefit from the Matched Retirement Savings Scheme if eligible, which provides additional financial support.

• Mr. Saktiandi Supaat raised concerns about recent rulings affecting capital allowance claims for quasi-structural assets, emphasizing their significance to Singapore's infrastructure and investment competitiveness.
• The Ministry of Finance conducts regular reviews of tax policies to ensure they align with business needs and economic objectives.
• Recent rulings have clarified which assets are ineligible for capital allowance, and the Inland Revenue Authority of Singapore will update its e-Tax Guide accordingly.

• Mr. Chua Kheng Wee Louis inquired about the financial and non-financial support provided by the Economic Development Board for a Swedish car R&D office in Singapore and the existence of clawback penalties after its closure.
• Minister Gan Kim Yong responded that companies receiving government support must achieve specific economic outcomes, and there are mechanisms in place to reclaim subsidies if these outcomes are not met.
• The government cannot disclose specific details about individual companies due to confidentiality and commercial sensitivity.

• Approximately 700 recipients of the Self-Employed Person Income Relief Scheme (SIRS) are still subject to payout clawback.
• The ongoing refund process is delayed due to recipients not responding to repayment requests, appeals for assistance, and extensions granted for repayments.
• The Ministry of Manpower (MOM) assesses individual cases for those facing difficulties in making repayments.

• The debate focused on the long-term impact of the Ministry of Education's (MOE) kindergarten expansion on the economic viability and diversity of Singapore's kindergarten sector.
• The government aims to provide affordable and quality preschool access, with around 90% of children aged three to six currently enrolled in preschool.
• MOE plans to increase the number of MOE Kindergartens to 60 by 2029, which have been instrumental in enhancing preschool quality and supporting lower-income families.
• The demand for half-day kindergarten services is declining, leading to a shift towards full-day childcare options, which the Early Childhood Development Agency (ECDA) is prioritizing.
• The Partner Operator scheme will not be expanded to kindergartens due to sufficient existing kindergarten places and the focus on meeting the demand for full-day childcare services.

• Mr. Shawn Loh raised concerns about the disadvantages SMEs face in negotiating rent hikes with landlords, particularly due to their sunk costs from renovations, which may hinder their growth and employment generation.
• The Deputy Prime Minister, Gan Kim Yong, highlighted the Fair Tenancy Industry Committee's Code of Conduct, which aims to ensure fair lease negotiations by prohibiting certain unfair practices by landlords.
• The Code of Conduct is mandatory for retail leases of one year or longer and was developed collaboratively by the government and industry stakeholders.
• The government will continue to monitor and update the Code to maintain fairness in lease negotiations between tenants and landlords.

• Mr. Foo Cexiang proposed expanding CareShield Life coverage to individuals under 30 or allowing exceptional coverage on appeal based on individual circumstances.
• Minister Ong Ye Kung explained that CareShield Life is designed for those aged 30 and above, as they are typically in the workforce and can afford premiums through MediSave.
• Extending coverage to those under 30 could lead to adverse selection, increasing premiums for all policyholders due to higher claim likelihood from younger enrollees.
• Young individuals with disabilities can access alternative government support schemes, such as the Home Caregiving Grant and MediFund, instead of CareShield Life.

• The Ministry of Education plans to assess the central kitchen model's effectiveness in 13 schools starting January 2026 before considering any expansion.
• Factors for potential expansion include operational efficiency, food quality, cost-effectiveness, and student satisfaction from the initial implementation.
• The central kitchen model aims to provide affordable meal options, with prices set at a maximum of $2.70 for primary and $3.60 for secondary students, comparable to traditional canteen prices.
• Financial assistance will be available for lower-income students through the MOE Financial Assistance Scheme, covering at least seven meals per week for primary and ten for secondary students.
• The Ministry will continue to support existing canteen models and assist affected stallholders in transitioning to other opportunities.

• Edward Chia Bing Hui inquired about government support for trade associations to enhance their secretariat talent for better sector collaboration and policy implementation.
• The government, through Enterprise Singapore and the Singapore Chinese Chamber of Commerce and Industry, offers programs like the Trade Association Committee Transformation Centre to provide shared secretariat services and support operational needs.
• Initiatives such as the TAC Fellowship Programme for Leadership Development and the TAC Knowledge Series workshops aim to develop the leadership and skills of TAC professionals, benefiting many participants over the years.
• The government also provides additional personnel to trade associations to strengthen their secretariat teams and support the implementation of key policies.

• Christopher de Souza raised a question regarding the potential increase of Day Activity Centre subsidies specifically for single-income households.
• Masagos Zulkifli explained that DAC subsidies are means-tested and designed to be progressive, benefiting lower-income families more.
• He mentioned that additional subsidies for long-term care services will be available starting July 2026.
• DAC operators may also offer extra financial support to families facing financial difficulties.

• Mr. Patrick Tay Teck Guan inquired about the Ministry of Manpower's plans to study productivity gains from AI adoption and its impact on wage growth for non-senior managerial workers.
• Minister Tan See Leng confirmed that the Government is actively studying the effects of AI on jobs, the labor market, and productivity.
• He noted the challenges in isolating productivity gains and wage growth specifically linked to AI due to the rapid evolution of technology and job tasks.
• Minister Tan emphasized that the full benefits of AI adoption will take time to be realized.

• Assoc Prof Jamus Jerome Lim inquired about the discrepancies between the budgeted and actual disbursed amounts for various nationwide voucher schemes from 2019 to 2024.
• Jeffrey Siow emphasized that the effectiveness of voucher schemes should be evaluated based on overall utilization rates rather than annual budget utilization.
• Utilization rates for different voucher schemes varied significantly, with some programs like the Community Development Council Vouchers exceeding 90% usage, while others like the Climate Friendly Households Programme Vouchers had only 23% utilization.
• The SG60 vouchers were noted to have been issued only in the current year, indicating a recent addition to the voucher schemes.

• The debate centered on the challenges faced by independent preschools in Singapore, highlighting a trend of closures and a perceived lack of support from government policies favoring larger, government-supported operators.
• Kenneth Tiong proposed a preschool voucher system that would fund children directly rather than schools, aiming to create a more equitable and competitive market for preschool education.
• The government, represented by Senior Parliamentary Secretary Eric Chua, emphasized its commitment to maintaining a diverse preschool sector and rejected the notion of nationalizing preschool education, while outlining existing measures to ensure affordability and quality.
• Tiong raised concerns about the impact of current funding models on educational diversity and quality, arguing that they lead to a "cookie-cutter" approach to early childhood education.
• The discussion concluded with a call for reforms to enhance transparency in funding and to support a wider range of preschool options for parents and children.

• The Civil Aviation Authority of Singapore (Amendment) Bill aims to establish a Sustainable Aviation Fuel (SAF) levy to support the adoption of SAF, which is crucial for Singapore's commitment to achieving net-zero carbon emissions in aviation by 2050.
• The proposed SAF levy will be applied to passengers and cargo flights departing from Singapore, with estimated additional costs ranging from $3 to $16 depending on flight distance, raising concerns about the financial impact on travelers and the competitiveness of Singapore as an air hub.
• The Bill includes provisions for a SAF Fund to manage the collected levies, which will be used to procure SAF and support the development of local production capacity, while ensuring transparency and accountability in its operations.
• Various speakers raised concerns about the economic viability of SAF, the need for a balanced approach to cost-sharing between airlines and passengers, and the importance of maintaining Singapore's competitive edge in the aviation sector amidst rising operational costs.
• The government plans to periodically review the SAF target and levy based on global developments, ensuring that Singapore remains aligned with international standards while fostering a sustainable aviation ecosystem.

• The Regulation of Imports and Exports (Amendment) Bill aims to amend the Regulation of Imports and Exports Act 1995.
• The bill was presented by Minister of State Ms. Gan Siow Huang on behalf of the Deputy Prime Minister and Minister for Trade and Industry.
• The bill was read for the first time and is scheduled to be read a second time at the next available sitting of Parliament.
• The text of the bill will be printed for further review and discussion.

• The debate centers on the Corporate and Accounting Laws (Amendment) Bill, which aims to amend the Accounting and Corporate Regulatory Authority Act 2004 and related legislation.
• The bill was presented by the Second Minister for Defence, Mr. Jeffrey Siow, on behalf of the Second Minister for Finance.
• The bill is scheduled to be read a second time at the next available Sitting of Parliament and will be printed for further discussion.

• The debate focused on amending the Income Tax Act 1947 and the Multinational Enterprise (Minimum Tax) Act 2024.
• A related amendment to the Goods and Services Tax Act 1993 was also proposed.
• The recommendation for these amendments was presented by the Second Minister for Defence on behalf of the Second Minister for Finance.
• The bill was read for the first time and is scheduled for a second reading in a future parliamentary sitting.

• The Singapore parliament debated the impact of the US's 100% tariff on pharmaceutical imports, focusing on its effects on Singapore's pharmaceutical sector and economy.
• Concerns were raised about the potential decline in pharmaceutical exports, job security in the biotechnology industry, and the long-term implications for Singapore's development plans.
• The Minister of State for Trade and Industry indicated ongoing negotiations with the US for preferential tariff arrangements and emphasized the importance of maintaining Singapore's attractiveness for pharmaceutical investments.
• The government is monitoring the situation closely and is prepared to provide support to local businesses affected by the tariffs, while also considering diversification strategies for the economy.
• There is uncertainty regarding the tariffs' impact on drug pricing and availability in Singapore, with assurances that healthcare will remain accessible and affordable for citizens.

Lee Hong Chuang asked about the Ministry of National Development's plans to encourage the use of advanced technologies in construction, especially for small and medium enterprises (SMEs), to enhance productivity. Chee Hong Tat responded that the Building and Construction Authority (BCA) supports SMEs in adopting technology and digital solutions through programs like the Built Environment Technology and Capability Grant and the Productivity Solutions Grant. These initiatives have led firms to implement Building Information Modelling (BIM) software, which helps in planning and coordinating work, optimizing material costs, and ensuring timely deliveries.