Economy & business

Yip Hon Weng questioned the Deputy Prime Minister about the high vacancy rates in business parks and the effectiveness of existing incentives to attract tenants. Gan Kim Yong responded that the occupancy rate for business parks is at 77.9% as of Q4 2024, with historical rates ranging between 75% and 85%. He noted an increase in supply due to the Punggol Digital District, where tenants will start moving in soon. JTC Corporation does not offer incentives for business park spaces, renting them based on market rates and actively engaging with businesses to remain relevant.

Yip Hon Weng asked about the Ministry's assessment of the Johor-Singapore Special Economic Zone's impact on Singapore's business park occupancy rates and measures to enhance competitiveness. Gan Kim Yong stated that the occupancy rate for Singapore's business parks is healthy at 77.9% as of Q4 2024 and it is too early to comment on the JS-SEZ's effects. He highlighted collaboration between Singapore and Johor to attract investments and create mutually beneficial outcomes. The JTC Corporation will continue to develop industrial parks in response to economic changes and industrial transformation.

Yip Hon Weng asked the Minister for Health about collaboration with the Monetary Authority of Singapore to enhance safeguards and transparency for riders under Integrated Shield Plans, particularly regarding changes in coverage and premiums. Ong Ye Kung referred to previous parliamentary responses for details on disclosure requirements and measures monitoring the impact on policyholders' affordability and access to healthcare. The government ensures universal access to subsidized healthcare, supported by various funding mechanisms, while noting that Integrated Shield Plans and Riders are private products that can lead to over-coverage and escalating costs. The insurance industry has been urged to reconsider policy designs to address issues related to over-coverage and rising premiums.

The Deputy Leader of the House sought consent to report progress and request to resume the session on Monday, 10 March 2025. The Chairman approved the request. Zaqy Mohamad reported that the Committee of Supply has made progress on the Estimates of Expenditure for the financial year 2025/2026 and reiterated the request to reconvene on the specified date. The Speaker confirmed the request.

Melvin Yong proposed a reduction in the budget for the Ministry of Social and Family Development, emphasizing the need to strengthen Singapore's social compact to support low-income families and address inequality. There were calls for better support for vulnerable populations, including updates on social service agency salaries and funding, as well as initiatives to engage volunteers and promote active citizenship. Concerns about early childhood education standards and teacher shortages were raised, alongside the proposal of a tiered caregiver payment model to recognize family caregiving as essential work. The debate also focused on the need for targeted services for persons with disabilities and neurodivergent individuals, highlighting the importance of inclusive employment and education systems.

Tan Wu Meng proposed a reduction in the budget for the Ministry of Health, advocating for reforms focused on right-siting healthcare closer to patients' homes, especially for those less mobile or terminally ill. He highlighted the importance of improved access to outpatient care, home medical services, and better financial support for treatments like fertility preservation for young cancer patients. Concerns were raised about the burden on junior doctors due to long working hours and suggested that coordination of care should be prioritized to alleviate stress on both patients and caregivers. Several MPs called for improved mental health services, regulations for psychologists, and enhanced funding for preventive healthcare initiatives, while the Minister for Health discussed plans for managing escalating healthcare costs and initiatives aimed at ensuring quality, affordability, and accessibility in Singapore’s healthcare system.

The Committee of Supply session is in progress, with Mr. Speaker overseeing the proceedings.

A proposal was presented to amend the Estate Agents Act 2010, Housing Developers (Control and Licensing) Act 1965, and Sale of Commercial Properties Act 1979 to implement recommendations from the Financial Action Task Force. The proposal was introduced by the Second Minister for National Development, Ms Indranee Rajah, and is scheduled for a second reading at the next parliamentary sitting. The proposal will also be printed for distribution.

Louis Ng Kok Kwang asked about the potential for direct caregiver grants to alleviate financial insecurity for caregivers and additional support plans from the Ministry of Social and Family Development. Masagos Zulkifli B M M highlighted ongoing government reviews and enhancements, including the Home Caregiving Grant and increased subsidies for long-term care services starting in 2026. The government aims to enable caregivers to balance work and caregiving through flexible arrangements, job placement, and skills support, while financial programs like the Workfare Income Supplement and various retirement schemes support caregivers’ long-term security. Other measures include enhancing parental leave policies and improving information access on caregiver services, along with mental health support for caregivers facing emotional challenges.

Usha Chandradas asked about the investment amounts in arts-related businesses in Singapore due to the Global Investor Programme (GIP) incentives and their proportion of total GIP investments. Gan Kim Yong responded that the GIP grants Permanent Resident status to eligible investors but does not provide financial incentives. He noted that there have been no recent GIP investors in arts-related businesses, and voluntary investments in the arts sector are not tracked.

Usha Chandradas asked about the criteria used by the Ministry for assessing additional income tax incentives for specific industries. Chee Hong Tat explained that tax concessions are aimed at promoting economic growth and entrepreneurship in Singapore. The Government conducts a cost-benefit analysis, evaluates the effectiveness of the concession, and checks its alignment with tax principles and policies. Additionally, the necessity of the concession is considered in relation to existing non-tax measures supporting the industry.

Usha Chandradas asked for the total value of donations to arts, cultural, and heritage Institutions of a Public Character (IPCs) qualifying for a 250% tax deduction under the Income Tax Act over the past five years. Chee Hong Tat stated that the requested information for 2019 to 2023 is available in the Commissioner of Charities Annual Reports and can be accessed publicly.

Usha Chandradas questioned the Prime Minister about the exclusion of expenditures on antiques and fine art from the section 14N tax deduction regime under the Income Tax Act. Chee Hong Tat explained that the section 14N deduction aims to assist businesses, particularly small and medium enterprises, in reducing costs related to renovations and upgrades to enhance service offerings. Expenditures on antiques and fine art were disallowed because they are typically viewed as investments rather than necessary business expenses under section 14N. Antiques and fine art may qualify for capital allowance if they are used as operational assets in a business.

Neil Parekh Nimil Rajnikant asked the Minister for Manpower about Singaporeans' preparedness for retirement, the possibility of a one-time $24,000 top-up to the CPF Retirement Account for those aged 55 and above, and increasing the annual interest rate on the Retirement Account to 6%. Tan See Leng reported an improvement in the attainment of the Basic Retirement Sum among CPF members, rising from 50% to over 70% in the past decade, with further increases expected. The Government has implemented various schemes to enhance retirement support, including the $9 billion Majulah Package introduced in 2024 for seniors, which includes bonuses to boost savings. CPF interest rates are pegged to market returns, with specific rates established to protect members from risks; currently, members aged 55 and above receive 6% interest on part of their balances. The Government will continue to review CPF policies to strengthen retirement adequacy.

Eric Chua clarified a supplementary question from the Leader of the Opposition regarding discrepancies in ComCare disbursement amounts reported in the FY2022 annual report and the MSF's Supporting Lower-Income Households Trends Report. He explained that the trends report is based on calendar year data, while the annual reports use financial year data. A correction was issued for the FY2021 and FY2022 ComCare reports due to an understatement of total payments. The corrected figures indicate that ComCare payments for FY2021 should be listed as $122.5 million instead of $112.5 million.

Zaqy Mohamad sought consent to report progress in the Committee of Supply and requested to continue discussions the following day. The Chairman granted consent for this motion. Zaqy reported that the committee has made progress on the Estimates of Expenditure for the financial year 2025/2026 and plans to reconvene tomorrow. The Speaker acknowledged the report and the request to sit again.

Dr. Tan See Leng reported on Singapore's post-COVID employment landscape, noting that resident unemployment dropped from a pandemic peak of 4.8% to 2.8%, and highlighted wage growth exceeding inflation, with lower-wage workers seeing significant income increases. The Ministry of Manpower launched multiple initiatives to support workforce transformation, career development, and enhance protections for vulnerable groups, particularly senior workers and lower-wage earners. In addressing manpower needs, he emphasized the importance of foreign talent in sustaining economic competitiveness and job creation, while also noting measures to balance local job opportunities with foreign employment. The debate included calls to improve workplace safety, address underemployment, and foster inclusivity for all workers, particularly seniors and persons with disabilities.

Desmond Choo moved to reduce the budget allocation for the Ministry of Manpower, highlighting MOM's significant reforms aimed at enhancing workforce quality and addressing the challenges of an ageing workforce and underemployment. MOM was urged to take decisive action to improve senior worker participation and women's workforce involvement through tailored support and initiatives. Various parliamentarians expressed concern over skill-related underemployment and the need for better tracking of resident jobs to address potential imbalances caused by immigration policies. Suggestions included implementing quotas for women in leadership roles, promoting returnship programs for women returning to work, and re-evaluating the Employment Act to better protect workers facing restructuring and dismissal issues. The need for an integrated approach to workforce transformation was emphasized, focusing on job redesign, skills upgrading, and the mental well-being of employees.

Gan Kim Yong presented a positive economic outlook for Singapore, with a GDP growth of 4.4% projected for 2024, following a successful year in 2023. He acknowledged the upcoming challenges posed by geopolitical tensions and potential trade wars, emphasizing the need for Singapore to remain competitive and innovative amidst a tough global landscape. The government aims to tackle domestic constraints in resources while also enhancing regional trade connectivity, particularly through initiatives like the Johor-Singapore Special Economic Zone and advancements in digital trade. Measures to support local enterprises include new financing schemes, an expansion of R&D facilities, and initiatives to bolster the workforce's skillsets for a more sustainable economy.

Yip Hon Weng asked about the possibility of extending the GST Voucher scheme to assist more middle-income households due to rising living costs, reviewing the income threshold for GST assistance, and providing more support for families with children under the qualifying income threshold. Shawn Huang Wei Zhong responded that the GST Voucher scheme supports lower- and middle-income households, with ongoing reviews of the income threshold. The government has introduced Cost-of-Living measures, including additional CDC Vouchers and U-Save for HDB households, alongside $500 Child LifeSG Credits for children under 12 and top-ups for Edusave accounts. Structural enhancements are being made to support families, such as reduced childcare fees and new childcare places, along with the Large Families Scheme that offers annual credits for families with multiple children.