Economy & business

Nadia Ahmad Samdin queried whether the Ministry of Trade and Industry would consider extending the Global Talent Ready Programme to foreign multinationals lacking local shareholding or creating a new variant for supporting internships and workforce training with these firms. Gan Kim Yong responded that the Global Ready Talent Programme focuses on building a talent pipeline for Singapore enterprises, maintaining a 30% local shareholding requirement to support local businesses. He noted that there are existing internship opportunities available for students with multinational corporations and other firms, facilitated by various agencies and institutes to enhance students' employability and skill development.

Assoc Prof Jamus Jerome Lim asked whether the Monetary Authority of Singapore (MAS) requires banks to verify both account numbers and accountholder names during fund transfers. Gan Kim Yong responded that MAS is reviewing international practices and solutions with the banking industry regarding this issue. Currently, consumers who make erroneous transfers must report to their banks, which will then engage with the recipient's bank to initiate a refund process. Banks have protocols to handle such situations, and consumers are advised to remain vigilant against fraudulent transfer requests. Measures to prevent erroneous transfers include verifying account details before sending funds.

Foo Cexiang sought clarification on Kenneth Tiong's proposal for government partnerships with regional authorities to foster industry growth without crowding out SMEs, emphasizing the need to define specific sectors for collaboration. Tiong suggested leveraging sectors like healthcare and semiconductors for such partnerships, citing Malaysia and Vietnam as potential collaborators. Hazlina Abdul Halim expressed optimism about family, youth empowerment, and community unity, while seeking government support for diverse needs and the wellbeing of vulnerable residents, particularly seniors. The Senior Minister of State for National Development, Sun Xueling, discussed housing policies aimed at affordability and accessibility, and the plans to enhance public housing amidst rising demand. Finally, various MPs raised concerns about job security, the impact of AI on the workforce, and the need for supporting measures for seniors and families facing fertility challenges, emphasizing the importance of a holistic approach to community wellbeing and economic stability.

Poh Li San highlighted that young Singaporeans have access to advanced technology and resources, yet they face significant challenges in securing employment due to economic uncertainties and a weak job market. She proposed creating an AI Traineeship Programme to train young people in AI tools to assist SMEs in automating processes and increasing efficiency, thereby generating employment. Patrick Tay emphasized the need for workforce development, advocating for support schemes to protect workers amid technological disruptions, and calling for policy measures to support jobseekers, especially among professionals. Sylvia Lim discussed the importance of trust in Parliament, urging MPs to prioritize accountability and represent their constituents' interests effectively. Kenneth Tiong proposed building inherent capacity through local companies and industries to reduce dependence on foreign investment, advocating for policies that foster regional economic cooperation and development.

Valerie Lee raised questions regarding updates on clean energy solutions from the Pulau Ubin Micro-Grid, potential measures to lower electricity tariffs for residents and businesses, and the possibility of offering the regulated SP Electricity Tariff. Gan Siow Huang explained that Pulau Ubin's electricity demand is low, making connection to the mainland grid unfeasible, and the micro-grid currently provides electricity at rates lower than diesel costs. Lee expressed concerns about frequency of outages, tariff review mechanisms, potential penalties for exiting the arrangement, and equity in electricity pricing for Ubin residents. Gan confirmed that micro-grid users pay 80 cents per kWh and that the government is working to explore newer technologies for cost reductions while offering to assist vulnerable residents with potential financial relief.

He Ting Ru questioned the readiness of aggregated allowances for Emissions-Intensive Trade-Exposed sectors and their potential impact on Singapore's emissions reduction goals for 2035. Gan Kim Yong responded that the aggregated data on carbon tax allowances will be released in 2027. The government emphasizes that achieving its Nationally Determined Contribution involves a collective effort from all sectors of society to reduce emissions and adopt energy-efficient practices. The fulfillment of Singapore's climate commitments will also rely on international cooperation and advancements in decarbonisation technologies.

He Ting Ru questioned the rationale behind the five-year delay in climate reporting requirements for small and mid-sized SGX-listed companies, compared to the one to two years proposed by the Singapore Business Federation. Gan Kim Yong explained that supporting companies in climate reporting is part of Singapore's net-zero plan by 2050. The Singapore Exchange conducted reviews and surveys that indicated while progress has been made, smaller companies need additional time to develop the necessary capabilities for International Sustainability Standards Board-based reporting. The five-year delay aims to ensure competitiveness without overwhelming smaller businesses in a challenging economic environment. The government is committed to assisting companies in their climate reporting efforts.

Chua Kheng Wee Louis proposed the creation of an "Algorithm Committee" to oversee allocation mechanisms in e-commerce and ride-hailing platforms, ensuring fairness and transparency for suppliers and consumers. Gan Kim Yong responded that the government already has measures in place to promote responsible AI use and protect consumers from discrimination through the Competition and Consumer Commission of Singapore (CCCS). CCCS offers guidance on algorithm best practices and encourages consumer vigilance against exploitative practices. The government supports an open ride-hailing market and aims to balance the needs of platform workers, businesses, and consumers with established principles for fair earnings. The government will continue to monitor AI developments and consider forming an Algorithm Committee if new risks are identified.

Kenneth Tiong Boon Kiat asked about the percentage of jointly-created Intellectual Properties (IP) from joint public-private R&D Corporate Laboratories that generate zero or nominal licensing revenue and how the government ensures returns for taxpayers. Gan Kim Yong responded that around 80% of CL projects supported under the RIE 2025 plan are expected to generate licensing revenue. The projects aim to foster economic growth by developing new products, training a skilled workforce, and enhancing Singapore's attractiveness for corporate research and innovation hubs. He provided examples of successful collaborations, such as the Wilmar-National University of Singapore CL and the partnership between the Agency for Science, Technology and Research and Applied Materials, highlighting their contributions to job creation and technological advancements.

Yip Hon Weng asked about potential measures to stabilize rental volatility for privately-held HDB shops to enhance pricing transparency and support small businesses without implementing rent control. Chee Hong Tat suggested referring to a previous response from the Minister for National Development regarding rental trends and efforts to maintain affordability for HDB shops, highlighting ongoing discussions on the topic.

Low Wu Yang Andre asked about the metrics used to determine the affordability of new HDB BTO flats, specifically regarding household income percentiles, price-to-income ratios, mortgage servicing ratios, and loan tenures. Chee Hong Tat responded that the Government uses a holistic approach, considering various indicators like the house price to income ratio and mortgage servicing ratio, and applies market discounts and grants to keep flats affordable. In 2024, about 90% of first-time families could fully service their HDB loans with CPF, achieving a mortgage servicing ratio of 25% or less, which is below international benchmarks.