Economy & business

The Deputy Prime Minister reported during the budget debate that Singapore's labour productivity rose by 3.1% annually from 2016 to 2023 and that the share of GDP from firms engaged in R&D increased from 14.8% in 2012 to 23.6% in 2022. Following this, he issued corrections, stating that labour productivity actually grew by 2.1% annually during the same period, while the R&D contribution to GDP figures remained unchanged.

Hazel Poa asked about the total funding provided by the Government to SPH Media Trust for FY2024. Josephine Teo stated that the Ministry of Digital Development and Information has allocated $260.6 million to SPH Media Trust for that fiscal year. Additionally, $28.9 million has been budgeted for Performance Linked Incentives, which will be awarded based on the trust meeting its key performance indicators.

Hazel Poa questioned the Deputy Prime Minister about the proportion of emissions from the refining and petrochemical sector that will receive carbon tax rebates in 2024. She also asked for the effective carbon tax rate per ton of emissions for that sector after rebates. Gan Kim Yong responded that the Government will provide aggregated information on carbon tax allowances later while considering commercial sensitivities.

Yip Hon Weng asked how the Monetary Authority of Singapore (MAS) is enhancing Singapore's appeal to investors amid regional competition for foreign investment. Gan Kim Yong highlighted that despite a challenging global environment, Singapore attracted $203 billion in foreign direct investment in 2024, reflecting its ongoing appeal. Key factors contributing to this attractiveness include political stability, a pro-business environment, and a skilled workforce. MAS's monetary policy aims to ensure price stability, which builds investor confidence and encourages long-term investments. MAS will maintain its efforts to solidify Singapore's position as a leading international financial center.

Yip Hon Weng asked how the Monetary Authority of Singapore (MAS) assesses the impact of a more gradual appreciation of the Singapore dollar on import prices and what measures are in place to support consumers. Gan Kim Yong responded that inflation has decreased since its peak in 2022-2023, with core inflation below 2% as of November 2024 and projected to ease further in 2025. The MAS expects imported cost pressures to remain contained due to favorable supply conditions and declining global oil prices. The Government is actively addressing cost-of-living pressures through diversifying supply sources and increasing support for Singaporeans, particularly in the upcoming Budget 2025.

Yip Hon Weng raised concerns about the dispute resolution options available for consumers dealing with non-CaseTrust-accredited renovation contractors. Gan Kim Yong explained that consumers can seek assistance from the Consumers Association of Singapore (CASE) for negotiation or mediation with contractors. If these methods fail, consumers can escalate the issue to the Courts or Small Claims Tribunals. The Ministry encourages consumers to engage with CaseTrust-accredited contractors, which provide safeguards like price transparency and prepayment protection. The government will continue collaborating with CASE and the industry to enhance business practices and consumer awareness regarding accredited contractors.

Yip Hon Weng raised questions about the possibility of enhancing accountability among renovation contractors and implementing a mandatory accreditation system in Singapore. Desmond Lee outlined existing measures by the Consumers Association of Singapore (CASE), including accreditation schemes designed to help consumers identify reliable firms and protect against unfair practices. Consumers have recourse under the Consumer Protection (Fair Trading) Act and can seek assistance from CASE for dispute resolution, while errant firms may be referred for investigation. The number of complaints against renovation contractors has decreased significantly from 2022 to 2024, highlighting improvements in the industry. Consumers are encouraged to use the CASE website to find accredited renovation firms before hiring.

• The Budget 2025 aims to support all Singaporeans amid rising costs of living and economic uncertainties, while emphasizing the importance of long-term growth and resilience.
• The government plans to enhance social safety nets for vulnerable groups, including lower-wage workers, seniors, and persons with disabilities, through initiatives like the Workfare Income Supplement and enhanced CDC Vouchers.
• There is a call for improving job security and conditions for workers, focusing on upskilling and transitioning support for mid-career professionals and those facing job disruptions.
• The emphasis is also on fostering partnerships between businesses, unions, and the government to ensure fair job opportunities and facilitate transition to sectors in need of talent, such as technology and sustainability.
• Discussions around the need for structural reforms to address income inequality and rising costs for average citizens were highlighted, advocating for policies that uplift the middle class and provide fair access to opportunities.

Gerald Giam Yean Song asked about the costs for constructing and dismantling the temporary competition venue for the 2025 World Aquatics Championships, as well as its potential future use after the event. Eric Chua provided insights on the expected attendance of about 40,000 international visitors and projected tourism revenue of approximately $60 million. He emphasized that the temporary venue would be explored for extended use beyond the Championships and noted that cost management is crucial, with efforts underway to secure sponsorships to support expenses. Giam expressed concerns about maximizing public resources and ensuring that temporary infrastructures contribute lasting benefits to Singapore's sporting landscape.

Tan Wu Meng questioned the Minister for Home Affairs about the number of police reports on fraudulent merchandise sold on e-commerce platforms and the reasons these cases might be classified as commercial disputes instead of scams. The Minister of State for Home Affairs, Sun Xueling, explained that the Police assess each case based on the surrounding facts and determine if a criminal offense has occurred, invoking the Trade Marks Act or Penal Code when applicable. Affected buyers can report to the Police and pursue recourse through the Consumers Association of Singapore, the Small Claims Tribunal, or civil proceedings; however, data on such reports is not tracked. Tan shared a specific case of a resident who faced challenges in obtaining redress after purchasing counterfeit merchandise, to which Sun suggested the possibility of legal action and seeking Legal Aid if assistance is needed for legal fees.

• The Farm-to-Table Recognition Programme (FTTRP) was launched in March 2023 to promote the use of local produce in food businesses, with participation growing from 11 to over 100 establishments by February 2025.
• While positive feedback has been received from participating businesses, it is difficult to directly link increased consumer preference for local produce solely to the FTTRP due to other influencing factors.
• The Singapore Food Agency (SFA) is monitoring the FTTRP's impact and is working with farms to enhance productivity and offer competitive pricing for local produce.
• Initiatives include co-funding technology adoption for farms and facilitating long-term contracts between farmers and food businesses, with some local products now available in major retail outlets.
• The Ministry is open to considering additional measures to improve the affordability of local produce for new food and beverage enterprises.

• Singapore plans to use 2.51 million tonnes of Internationally Transferred Mitigation Outcomes (ITMOs) annually to meet its emission reduction commitments from 2021 to 2030.
• High-quality ITMOs will be sourced as International Carbon Credits (ICCs) compliant with the Paris Agreement's Article 6.
• The government will obtain ICCs through an ICC Framework allowing carbon tax-liable companies to offset emissions and through procurement initiatives like a recent Request for Proposal for nature-based solutions.
• Singapore has signed Article 6 Implementation Agreements with Ghana and Papua New Guinea and is in discussions with over 20 other countries for similar agreements.

• The decline in global food commodity prices may not lead to immediate decreases in Singapore's food prices due to various domestic factors affecting costs.
• Domestic food prices are influenced by energy, freight, storage, and labor costs, which can delay the impact of global price changes.
• Although food inflation has moderated significantly, it is expected to continue decreasing over the long term as global prices stabilize.
• The Singapore government is actively monitoring food inflation and has introduced measures, such as additional vouchers, to support households facing higher food costs.

• The debate focused on the government's plans to promote local and heritage food and beverage operators in Singapore and internationally, particularly in the context of SG60 celebrations.
• Initiatives include showcasing local food culture at events like the Chingay Parade and the Singapore Pavilion at Expo 2025, featuring various local F&B brands.
• To support hawkers, the government is providing a one-off rental support of $600 per stall and issuing SG60 vouchers to citizens for spending at local hawkers.
• The Singapore Tourism Board is actively marketing Singapore's diverse dining offerings through campaigns and events, including the Singapore Food Festival, to enhance the global profile of local cuisine.

• Mr. Yip Hon Weng raised concerns about expatriate workers in Singapore paying income tax to their home countries and its implications for tax revenue in Singapore.
• He questioned the alignment of this practice with existing double taxation agreements and sought estimates on potential tax revenue loss.
• Chee Hong Tat responded that tax treatment for expatriates varies based on individual circumstances and applicable laws, including Singapore's tax laws and relevant double taxation agreements.
• The government expects compliance with double taxation agreements and has mechanisms in place for addressing any discrepancies through the Inland Revenue Authority of Singapore (IRAS).

• Singapore's partnership with Coldplay for the music video "Man In The Moon" is part of a strategy by the Singapore Tourism Board (STB) to enhance the country's global appeal as a tourist destination.
• The collaboration has generated significant online engagement, with over 12 million views and substantial social media interactions shortly after the video's release.
• The project provided job opportunities for over 100 local talents, facilitating skill transfer and development within the local production industry.
• STB plans to pursue more collaborations with international artists to further promote Singapore as a vibrant location for creative projects.

• As of December 2024, approximately $2.79 billion in assets related to the $3 billion money laundering case have been surrendered to the state, with $1.54 billion in cash or financial assets and the remainder in non-cash assets.
• A total of 54 properties, 33 vehicles, and 11 country club memberships have been liquidated, with proceeds from these sales to be paid into the Consolidated Fund.
• About $1.8 million has already been paid into the Consolidated Fund, with an additional $390 million pending payment in the financial year 2024.
• The Police incurred over $600,000 in costs for the safekeeping of these assets in the financial year 2023.

• Leong Mun Wai inquired about the proportion of property taxes from owner-occupied properties for the years 2005, 2010, 2015, 2020, and 2024.
• Chee Hong Tat responded that the government cannot provide data for such an extended period but shared that the proportions for 2019 and 2024 are 7% and 12.5%, respectively.
• The fluctuations in property tax contributions from owner-occupied properties are influenced by market conditions and annual property tax rebates.
• The year 2020 was excluded from the comparison due to the impact of the COVID-19 pandemic on the property market and tax revenue.

• Assoc Prof Jamus Jerome Lim clarified a previous statement regarding Nvidia's revenue contribution to Singapore, correcting the amount from $7 billion to $17 billion.
• He emphasized that the share of total revenues accounted for by Nvidia was accurately stated as 20%.
• The clarification was made during a personal explanation in the Singapore parliament.
• The Speaker acknowledged the correction for the official record.

• The Budget 2025 debate highlighted significant government initiatives aimed at addressing the rising cost of living, with various vouchers and support schemes introduced to assist families, particularly those with children and seniors.
• Concerns were raised about the effectiveness of these measures, with some parliamentarians arguing that ad hoc financial assistance does not address the structural economic issues facing Singaporeans, such as stagnant wages and high living costs.
• The debate also focused on the need for long-term strategies to enhance job security and economic resilience, particularly in light of technological disruptions and an ageing population.
• Several speakers emphasized the importance of fiscal prudence and questioned the necessity of recent tax increases, given the government's projected budget surpluses.
• There was a call for a more inclusive approach to policy-making, with suggestions for better tracking of social outcomes and the establishment of a dashboard to measure the effectiveness of government initiatives in improving the quality of life for all Singaporeans.