Economy & business

• The debate is focused on the Estimates for the Financial Year from 1 April 2025 to 31 March 2026.
• The session is being conducted in the Committee of Supply on the second allotted day.
• Mr. Speaker is presiding over the debate.

• The debate focused on the Supplementary Estimates of Expenditure for the financial year from 1 April 2024 to 31 March 2025, as outlined in Paper Cmd 33 of 2025.
• The Committee of Supply proposed to take the Heads of Expenditure en bloc, with no amendments presented.
• The resolutions included a total of $3,883,986,000 for the Supplementary Main Estimates and $376,273,500 for the Supplementary Development Estimates.
• The Second Minister for Finance reported the resolutions and moved for Parliament's agreement, which was subsequently approved.
• The debate concluded with the resolutions being agreed to by Parliament.

• Louis Ng Kok Kwang proposed increasing the rebates under the Electric Vehicle Early Adoption Incentive (EEAI) scheme and extending it to the end of 2026.
• Senior Minister of State Dr. Amy Khor confirmed that the EEAI scheme, introduced in 2021, has successfully increased electric vehicle adoption, with one-third of new car registrations being electric.
• The Ministry of Transport plans to review the EEAI later this year, considering factors like EV adoption rates and cost differences between electric and internal combustion engine vehicles.

• The debate focused on strategies to revitalize Singapore's nightlife offerings to enhance tourism and local spending.
• The Singapore Tourism Board is promoting local bars and distilleries and collaborating with nightlife businesses on events to attract consumers.
• Rising wages and hiring challenges in the nightlife sector were highlighted, prompting calls for measures to support businesses, such as flexible work schemes and training grants.
• The government is working with the Singapore Nightlife Business Association to address challenges and support the sector's vibrancy and transformation.
• Changes in consumer behavior post-COVID, including increased online entertainment and health consciousness, are impacting the nightlife industry.

The Minister of State for Home Affairs, Ms Sun Xueling, addressed the proposal for a consolidated fund to help victims recover lost amounts due to financial crimes, stating that various proposals are under consideration. She acknowledged the challenges involved but emphasized the importance of compensating victims and returning recovered scam proceeds to them. A clarification was issued to correct her earlier statement, specifying that the focus is on returning scam proceeds rather than compensating victims directly.

Neil Parekh Nimil Rajnikant raised concerns about how recent changes to Integrated Shield Plans (IPs) by insurers have impacted policyholders' out-of-pocket expenses and access to healthcare. Ong Ye Kung assured that the government guarantees subsidized healthcare in public hospitals through various schemes. He noted that IPs are private products that insurers regularly update based on commercial considerations and emphasized that the Ministry of Health expects insurers to protect their policyholders' interests. Ong highlighted a rise in IP and Rider premiums, attributing this to increased claims due to comprehensive coverage, and stated that the Ministry will continue to provide information to help consumers assess their insurance choices.

Jean See Jinli asked about the utilization rates of SkillsFuture Enterprise Credit (SFEC) across different sectors and enterprise sizes since 2022, and how the Ministry plans to boost usage among employers in sectors with lower-skilled workforces and higher retrenchment rates. Gan Kim Yong reported that over 36,200 enterprises have utilized SFEC, totaling $122 million disbursed, primarily among smaller enterprises in the wholesale trade, manufacturing, and construction sectors. The SFEC has been enhanced multiple times to benefit more enterprises, particularly those employing lower-wage workers. The Government plans to redesign SFEC into an online wallet format to ease cash flow concerns for employers by allowing immediate offset of costs for eligible initiatives.

Leong Mun Wai requested information from the Prime Minister regarding the proportion of stamp duties collected from various property types for the years 2005, 2010, 2015, 2020, and 2024. Chee Hong Tat responded that the government cannot provide data spanning over two decades due to complexity. He explained that property sales involve Seller's Stamp Duty, Buyer's Stamp Duty, and Additional Buyer's Stamp Duty, with ABSD applying only to residential properties. He presented the proportions of stamp duties collected from HDB flats, private residential, and non-residential properties for 2019 and 2024, noting that 2020 figures were not used due to the pandemic's impact on the market.

Tan Wu Meng questioned the regulation of "pay later" contracts by telecommunications companies and inquired about customer feedback regarding heavy penalties imposed on defaults. Josephine Teo explained that these plans are common and regulated by the Infocomm Media Development Authority (IMDA), which requires consumer acknowledgment of terms and conditions before agreements are made. IMDA received 14 feedback cases over the last two years related to these schemes, all of which have been resolved with the assistance of telcos.

Gerald Giam Yean Song raised questions regarding the financial arrangements for hosting the 2025 World Aquatics Championships in Singapore, specifically about government financial support if sponsorships fall short, any set sponsorship targets, and accountability for organizers in securing sponsorships. Edwin Tong Chun Fai indicated that the queries were addressed by Senior Parliamentary Secretary Eric Chua in a previous session and suggested that Giam refer to that response for details.

Zaqy Mohamad requested to report progress and seek leave to reconvene on Monday, 3 March 2025, during the Committee of Supply. The Chairman consented to this request. Zaqy reported that the Committee has progressed on the Estimates of Expenditure for the financial year 2025/2026. The Speaker approved the request for the Committee to sit again at the specified date.

Liang Eng Hwa proposed a reduction in the budget allocation for the Ministry of Finance while highlighting Singapore's recent international accolades, including being named one of the world's Blue Zones and having the most powerful passport globally. Various members expressed concerns regarding housing prices, with Pritam Singh questioning the transparency of land pricing for HDB flats and suggesting public access to pricing methodologies. He Ting Ru raised issues about the sustainability of the Progressive Wage Credit Scheme, urging for clarity on its long-term impact. Louis Chua emphasized the need for increased transparency in sovereign wealth fund management and proposed adjustments to the CDC Voucher Scheme for more targeted assistance. Several members called for measures to improve government procurement processes to assist SMEs and startups, fostering better accessibility and efficiency.

The Committee of Supply is considering the Main and Development Estimates of Expenditure for Singapore for the financial year 2025-2026. A total of 600 amendments to the Estimates have been submitted this year. The Chairman reminded members about the time limits for discussion and the need to adhere to the set speech times during the proceedings. The discussion will begin with the Heads of Expenditure, starting with the Prime Minister's Office.

The Speaker completed the debate on the Budget Statement and announced a break until 2.55 pm. The time for the Committee of Supply has been revised to begin at 2.55 pm. The guillotine time for the Prime Minister's Office budget is set for 5.45 pm. Members will be informed of revised conclusion times for subsequent budget discussions. The sitting was suspended at 2.34 pm.

Usha Chandradas expressed strong support for the budget and discussed the Culture Pass and visual arts sector, raising questions about its administration and the benefits to artists. Carrie Tan highlighted the need for a paradigm shift in education to focus on personal fulfillment and proposed changes to reduce academic pressure, also addressing declining fertility rates and the need for a narrative shift towards the joys of parenthood. Mariam Jaafar emphasized the importance of resilience in a changing geopolitical landscape and urged investment in supply chain and climate resilience, while calling for diverse and well-rounded education to empower citizens. The Prime Minister responded to various queries about fiscal policies, the rationale behind financial strategies, and the importance of balancing fiscal responsibility with the immediate needs of Singaporeans.

Gerald Giam Yean Song questioned the Minister for Home Affairs about the restitution rates for financial crime victims, the proportion of scam proceeds forfeited to the state, and measures for ensuring victims receive restitution before funds are allocated to the government. The Minister of State for Home Affairs, Sun Xueling, explained the challenges in tracking and returning seized scam proceeds due to co-mingling with other crime-related funds. She noted that specific case inquiries, such as the recent $3 billion money laundering case, require separate parliamentary questions. Sun Xueling acknowledged the difficulties in establishing a fund for victim restitution, emphasizing the operational complexities in determining the rightful claimants from mixed proceeds and the limited amounts recovered compared to total losses.

Neil Parekh Nimil Rajnikant asked about government actions to support SMEs in protecting their intellectual property (IP) interests. In response, Low Yen Ling outlined the Singapore IP Strategy 2030, which includes the GoBusiness IP Grow platform launched in 2023 to connect enterprises with IP service providers and offer initial consultation sessions. The government has established over 15 enterprise touchpoints, supported by trade associations and chambers, to provide IP assistance to SMEs. Additionally, grants like the Enterprise Development Grant and Market Readiness Assistance Grant help offset IP protection costs. The government aims to continue supporting SMEs in leveraging IP for growth both locally and internationally.

Yip Hon Weng raised concerns about the rising use of Buy Now, Pay Later (BNPL) schemes among young consumers, asking about regulations, credit assessments, debt considerations, and financial education. The Minister of State Alvin Tan explained that BNPL transactions are currently small in volume but there is a BNPL Code of Conduct to mitigate risks and regulate lending practices, including credit assessments for large sums. The Total Debt Servicing Ratio does not include BNPL amounts, but MAS monitors the sector closely for any regulatory needs. Financial education initiatives are in place to teach responsible money management to youths, emphasizing the importance of spending within means.