Economy & business

• The debate centers on the Supplementary Supply Bill for the financial year 2024, which aims to address additional expenditures from April 1, 2024, to March 31, 2025.
• The bill was presented by the Second Minister for Finance, Mr. Chee Hong Tat, and is recommended by the President.
• The bill will be read a second time after the conclusion of discussions on the Estimates of Expenditure for FY2025/2026.

• The debate centers on the Supply Bill, which outlines the necessary funds for the financial year from April 1, 2025, to March 31, 2026.
• The bill was presented by the Second Minister for Finance, Mr. Chee Hong Tat, and includes a recommendation from the President.
• The bill is scheduled to be read a second time after the discussions on the Estimates of Expenditure for FY2025/2026 are concluded.

• Gerald Giam raised questions about the allocation of peak-hour slots at Changi Airport, specifically the percentage allocated to low-cost carriers (LCCs) versus full-service carriers.
• He inquired about existing policies to ensure a fair distribution of peak-hour slots for LCCs and suggested the introduction of such policies to promote competition and consumer choice.
• Chee Hong Tat responded that as of December 2024, 33% of peak-hour slots were allocated to LCCs, which aligns with their overall share of passenger traffic at Changi Airport.
• The allocation of slots is managed by the Changi Slot Coordinator, which evaluates applications based on airport capacity and the potential contribution of routes to the airport's network.

• Mr. Chua Kheng Wee Louis inquired about the number and percentage of CPF members and active CPF members earning an extra 1% on their first $60,000 of combined CPF balances over the past decade.
• Minister Tan See Leng reported that from 2015 to 2024, the number of active CPF members receiving the maximum extra interest increased from 1.1 million to 1.6 million, rising from 54% to 74%.
• The total number of CPF members benefiting from the extra interest also grew from 1.3 million to 2.2 million, with the percentage increasing from 40% to 52%.

• Ms. See Jinli Jean urged the Minister for Manpower to consider making workforce training outcomes a requirement for business grants managed by government agencies to help workers adapt to technological changes.
• Minister Tan See Leng responded that government grants already require businesses to commit to specific workforce outcomes, particularly for those linked to workforce transformation.
• Examples of grants that require commitments to worker outcomes include the Company Training Committee Grant and Enterprise Singapore’s Enterprise Development Grant, which focus on aspects like wage increments and training for existing staff.

• Over 1,500 ex-offenders have benefited from the Uplifting Employment Credit (UEC) since its implementation in April 2023.
• The projected target of 3,000 beneficiaries annually is based on initial data and not a fixed target, as actual numbers depend on yearly inmate releases.
• The Ministry of Manpower plans to continue raising awareness of the UEC through Yellow Ribbon Singapore.
• Further details regarding the future of the UEC will be provided during the Budget and Committee of Supply 2025 discussions.

• Ms. Ng Ling Ling inquired about the annual operating costs for maintaining healthcare apps over the past three years, specifically HealthHub, Health Buddy, NHG Cares, and NUHS App.
• Minister Ong Ye Kung stated that HealthHub, the national health app, has an annual operating cost of approximately $18 million, which includes shared infrastructure costs.
• The combined annual operating costs for the three cluster-specific apps (Health Buddy, NHG Cares, and NUHS App) amount to about $3.6 million, representing a 20% increase over the costs of HealthHub alone.

• The SG Fresh Produce (SGFP) logos have increased consumer awareness and purchase of local produce, with recognition rising from 58% in 2022 to 75% in 2023.
• The effectiveness of the SGFP logos in boosting sales cannot be solely attributed to their use, as other promotional efforts also play a role.
• The Singapore Food Agency (SFA) has introduced the Farm-To-Table Recognition Programme to encourage food businesses to source local produce, with 101 businesses participating as of January 2025.
• Collaborative efforts with the Singapore Agro-Food Enterprises Federation have led to increased sales of local products in retail outlets, with significant sales growth reported for certain items.
• SFA plans to continue exploring initiatives to enhance demand for local produce.

• The debate focused on the implications of the US withdrawal from the Paris Agreement on Singapore's green investment strategies and low-carbon transition efforts.
• Singapore views climate change as an existential threat and remains committed to a multilateral approach to global climate action.
• The country has set ambitious climate goals, including a commitment to reduce emissions to between 45 and 50 million tonnes of CO2 equivalent by 2035 and aims for net-zero emissions by 2050.
• Singapore is actively collaborating with various global stakeholders to develop low-carbon technologies, support energy transitions, and promote green financing.
• Despite the US withdrawal, Singapore is determined to engage with like-minded partners to achieve a climate-resilient society and economy.

• Dennis Tan Lip Fong inquired about the percentage of Productivity Solutions Grant (PSG) projects audited post-disbursement, the total grants recovered from non-compliant companies, and specific enforcement actions taken.
• Gan Kim Yong responded that over 1,100 PSG projects, totaling $8.7 million, underwent post-disbursement audits in the last three years, with about 50% from the food and beverage and retail sectors.
• Approximately 3% of audited projects were found non-compliant, leading to grant clawbacks and enhanced scrutiny for future applications.
• Solutions deemed ineffective in improving productivity will be removed from the PSG list during regular reviews to maintain the program's effectiveness.

• There has been a net increase of 746 food and beverage (F&B) businesses from 2022 to 2023, indicating growth in the sector despite some closures.
• The median income for full-time employed residents in the F&B sector rose by 4.6% during the same period, reflecting positive wage progression.
• The Progressive Wage Model (PWM) was introduced in March 2023 to enhance local wages through skills development and productivity improvements.
• Companies in the F&B sector are now required to provide mandatory training under the Workforce Skills Qualification (WSQ) framework to support worker skill development.
• There is a call for a sectoral skills accreditation framework to help workers advance in their careers and wages amidst industry churn.

• Mr. Chua Kheng Wee Louis inquired about the availability of data on the expense ratios and relative returns of Temasek Holdings, GIC, and MAS over the past decade.
• Lawrence Wong responded that GIC and Temasek publish net returns after fees, while MAS reports both gross and net profits, reflecting its broader mandate beyond just investment management.
• Wong suggested that the member refer to previous discussions in the Hansard for more detailed information on related questions.

• The withdrawal of US support for the OECD's global corporate minimum tax raises concerns about Singapore's implementation of its domestic minimum top-up tax starting in 2025 and its implications for international tax cooperation.
• There are worries about potential fragmentation in global tax standards, prompting questions about adjustments to Singapore's tax strategies to maintain its pro-business environment and investment appeal.
• The Ministry of Finance is assessing risks to Singapore's competitiveness, particularly in attracting multinational enterprises, and is preparing for various scenarios in response to the US's actions.
• The government emphasizes that sustaining economic competitiveness and supporting multilateral rules can coexist, as a rules-based order fosters global cooperation and a level playing field for businesses.
• Singapore plans to enhance its business environment through workforce upskilling, innovation, and infrastructure development to remain competitive despite external challenges.

• The Prime Minister presented the Annual Budget Statement for the financial year 2025, emphasizing Singapore's resilience and progress over the past 60 years since independence.
• The budget aims to address rising costs for individuals and businesses, with measures including CDC vouchers, utility rebates, and enhanced support for lower-income households and families with children.
• Economic growth is projected to moderate, with a focus on advancing technology, innovation, and infrastructure to maintain competitiveness in a changing global landscape.
• The budget includes significant investments in clean energy, climate resilience, and social support systems, particularly for seniors, families, and persons with disabilities.
• The government aims to foster unity and inclusivity among Singaporeans, with initiatives to strengthen community bonds and support for various social causes.

• The spending on preschool education in Singapore increased from $1 billion in 2018 to $1.3 billion in 2023, attributed to higher enrollment in full-day childcare and inflation.
• The government has implemented various measures to enhance affordability, including basic subsidies for all Singapore Citizen children and additional subsidies for lower-income families.
• Fee caps for preschool services have been progressively reduced, resulting in a decrease in median childcare fees from $800 in 2018 to $720 in 2023.
• The household income ceiling for additional subsidies was raised from $7,500 to $12,000 in 2020, allowing more families to benefit from financial support.
• A median-income household now spends a lower percentage of their income on preschool education, decreasing from 4.9% in 2018 to 3.1% in 2023.

• Christopher de Souza inquired about additional measures to support small businesses and stallholders beyond current rent stabilization and financial grants.
• Dr. Koh Poh Koon confirmed that the Ministry has existing support measures and plans to announce further assistance for stallholders in the upcoming 2025 Budget.
• De Souza asked about the impact of Community Development Council (CDC) Vouchers on hawker businesses and whether they could be increased.
• Dr. Koh noted that while the CDC Voucher Scheme is not managed by his Ministry, there is anecdotal evidence suggesting it positively affects hawker stalls through increased spending by residents.

• Ms. Carrie Tan proposed the development of transformation and funding schemes for neighbourhood shops to create employment opportunities for persons with special needs and disabilities.
• The Senior Parliamentary Secretary, Mr. Eric Chua, highlighted existing government support for inclusive hiring through programs like the Open Door Programme and the Inclusive Business Programme, which offer job matching and financial incentives for businesses.
• Ms. Tan emphasized the potential of the 712 minimarts under HDB leases to provide local employment for persons with disabilities and requested a more systematic approach to facilitate this.
• Mr. Chua acknowledged the need for a coordinated plan to promote inclusive employment and expressed willingness to explore scaling up current initiatives with local businesses and community associations.

• Ms. Carrie Tan raised concerns about the impact of the Progressive Wage Model (PWM) on local micro businesses and inquired about tailored training programs and potential exemptions to alleviate their costs.
• The Senior Minister of State for Manpower, Mr. Zaqy Mohamad, acknowledged the challenges faced by businesses due to rising costs and highlighted government initiatives like the Workfare Skills Support and Progressive Wage Credit Scheme to support wage increases and training.
• Mr. Zaqy emphasized the importance of transforming business models and improving productivity, mentioning available grants and support for micro businesses to adapt to the PWM.
• Ms. Tan sought clarification on whether micro businesses were consulted in the design of training programs and requested an extension of credit subsidies to aid their transformation.
• Mr. Zaqy assured that the government engages with micro businesses through Industry Transformation Maps and offers various schemes to support their workforce and operational costs.

• The debate focused on the implications of US export controls on Singapore's semiconductor industry and the need for compliance among local companies to maintain Singapore's reputation as a reliable business hub.
• Concerns were raised about Singapore's classification as a Tier Two country under US AI export controls and its potential impact on attracting investments and maintaining its status as an AI development hub.
• The government emphasized its commitment to a robust export control regime and the importance of transparency and compliance with international laws to prevent companies from using Singapore to bypass US restrictions.
• The Ministry of Trade and Industry is actively engaging with US authorities to address concerns and facilitate access to advanced semiconductor technologies for local companies.
• The government reassured that it will continue to support local firms in navigating export controls while ensuring adherence to international regulations to protect Singapore's business interests.

Indranee Rajah, Minister and Second Minister for Finance and National Development, stated that the government's marriage and parenthood initiatives are expected to cost nearly $7 billion in FY2026, an increase from over $4 billion in 2020. This funding primarily supports the early childhood sector and upcoming parental leave enhancements, in addition to existing education and housing subsidies. A written statement later clarified that most of the funding increase is specifically for the early childhood sector and parental leave enhancements.