Foo Mee Har
Singapore
“What we need to ensure, therefore, is a better alignment of training and the graduates that we churn out. Loosening the criteria for entry, while simultaneously tightening the conditions for graduation will help keep our tertiary offerings nimble, since we need to worry less about how failing out already small intakes could pre-emptively…”
“Sir, strong R&D support has been central to attracting and retaining MNEs. MNEs have long been a cornerstone of Singapore's economy, driving innovation, investment and job creation. They contribute significantly to GDP, high-value employment, R&D and global trade connectivity.”
“Thank you, Mr Speaker, I have two questions for the Prime Minister. The first question is, with the generous support measures, including the SG60 vouchers, I would like to ask the Prime Minister what impact these measures will have inflation on inflation?”
“So, the Singapore brand has become so exceptional that it is well worth faking, much like a Rolex watch or a Louis Vuitton handbag. And, like these global brands, you know you have made it when imitation becomes the greatest form of flattery.”
“Thank you, Speaker. I thank the Minister of State for the details. I am encouraged to hear the usage but I would like to ask the Minister of State two follow-up questions.”
“Thank you, Speaker. I thank the Minister for his response. I have two supplementary questions for the Minister. First, how does the Ministry plan to leverage the insights from the PIAAC findings, to refine the SkillsFuture programme, particularly in identifying critical skills gaps and developing targeted interventions that enhance the re…”
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“What we need to ensure, therefore, is a better alignment of training and the graduates that we churn out. Loosening the criteria for entry, while simultaneously tightening the conditions for graduation will help keep our tertiary offerings nimble, since we need to worry less about how failing out already small intakes could pre-emptively decimate programmes. One may finally argue that removing the competitive entry could weaken the quality of our lauded universities, such as the National University of Singapore (NUS) and Nanyang Technological University (NTU). As suggested earlier, more flexible entry requirements do not appear to have undermined the standing of the best French, German and Californian universities. In any case, the suggestion is limited to the applied tier of our AUs, those that were less oriented toward academic accomplishment and research output to begin with.”
“The key difference is that students that would otherwise meet this threshold do not get rejected, simply because of their relative underperformance. Another objection is that system may be brutal and if students were to drop out, they could incur a debt burden with no degree to show for it. Relatedly, this also means that, at least in the earlier years, the system will require more funding to cater to a larger matriculating cohort. But this is precisely what the threshold criteria are for. Those should be chosen to ensure that any student that meets the minimum requirements should be able to successfully complete the course of study. And perhaps, more importantly, if you believe, as I do, that any Singaporean who qualifies for a local university should have the opportunity to pursue a degree, then we should not shy away from expanding the system and set aside the resources necessary to ensure that this is so. In the long run, this could even pay off economically, since employers would be able to hire workers that they need while reducing the cost of searching for talent from abroad. The third concern is that this liberal approach may end up churning out too many graduates. But in reality, there is a shortage of certain skilled professionals, especially in tech, and companies often rate skills over degrees. Yet, experts say that skills learned in our tertiary institutions do not necessarily align well with their needs on the job. Relevant skills are instead acquired with certification examinations, but the prerequisites or eligibility criteria for many of these certificates are actually incredibly accessible, often requiring only "O" or "N" level credits, and are not accompanied by a need for stellar grades.”
“In France, while entry into the private grande école system – and full disclosure, I teach at one such school – is indeed competitive and dependent on relative scores acquired in a national level exam, known as "concours", admission into the public university system is actually generally open to all who have passed the Baccalaureate, which is the equivalent of our local "A" levels. German universities also are more forgiving with entrance criteria with certain programmes, even practising free admission. Essentially, all applicants that fulfill basic university and entrance qualifications are let in. Standards are maintained by introducing tougher courses in the earlier stages and having students voluntarily drop out. And in the science, engineering, technology and mathematics (STEM) subjects, this could be as high as nine out of 10 students. And while the prestigious University of California system only guarantees a spot to high school graduates that fall within the top 9% of the state's high school cohort, admission into the next tier, what is known as the California State University system, is actually much more liberal and low-income residents who are first-generation, under-represented college students may even be assured entry into certain majors, subject to a commitment by the student that they complete their studies within four years. One instinctive argument against this proposal is that grades serve as a filter for whether the potential student is likely to make it into the desired course of study. But this is precisely why the proposal will retain minimum criteria for entry into programmes to ensure that those who embark on a certain course of study have a realistic chance of completion.”
“This has, we are told, necessitated the continued stream of foreign migrant professionals. At the same time, many in this House face a seasonal pattern of appeals after examination results are announced. Young residents, as well as their parents, often come to our Meet-the-People Sessions in a desperate effort to appeal for entry for their children into a given tertiary institution or programme of study. Often, this applicant actually possess the necessary scores required for entry. However, the limited number of spaces often mean that these local kids are unable to secure a spot, as spaces are filled by those who obtain grades better than their own. These two problems, while seemingly unrelated, are actually not. Essentially, almost a half century after the matter of a potential skills shortage was first identified, our local schools seem still unable to fill the nation's tech worker shortfall, despite possessing secondary school students that are sufficiently talented and willing to pursue technically-oriented tertiary education. One strategy we can consider is to alter the criteria for entry into certain autonomous universities, such as the Singapore University of Social Sciences (SUSS), Singapore Institute of Technology (SIT) and Singapore University of Technology and Design (SUTD), such that they can take in students so long as they meet absolute entry criteria, rather than relative to all applicants for a particular programme. The proposal is not as pie in the sky as one might imagine. Similar approach to tertiary education is used in other places, such as France, Germany and the state of California in the US.”
“Instead, it should be structured as a cumulative pathway to enable individuals to continuously learn and develop towards meaningful industry-valued credentials for specific jobs and professions. Switzerland's, again, work-study CET model provides a strong precedent, where employees undergo continuous training while remaining in the workforce, earning recognised qualifications that offers tangible employment and wage growth. In Singapore, I am encouraged with the recently announced pilot of CET-integrated degree programmes for in-employment diploma holders in advanced manufacturing. So, this offers a structured learning pathway where individuals can train and work concurrently towards a degree qualification. So, I encourage and strongly urge the Government to extend such structured CET pathways to other professionals, such as in finance, where many individuals already hold degrees but require systematic upgrading to deepen their expertise and stay competitive. By investing in a series of stackable, industry-relevant CET courses, finance professionals can enhance their skills in real-world while working. These practice-based courses should be purposefully designed to count as credit toward postgraduate qualifications, such as advanced certifications, postgraduate diplomas and Master's degrees. Minimum-entry Criteria Universities Assoc Prof Jamus Jerome Lim (Sengkang): Singapore has a skilled worker gap. Remarkably, the recognition that there could be such skilled worker shortages is not new. As far back as the 1980s, observers noted that demographic changes could threaten the viability of economic progress on our island if human resource needs remain unmet. Yet today, we still see reports attesting that as many as four in five companies face workforce talent shortages.”
“One, strengthening Accreditation Standards for CET Providers. Whilst we appreciate that SkillsFuture funds thousands of courses, the current system does not distinguish adequately between high-quality programmes and those with limited workforce impact. Employers and trainees struggle to identify which courses deliver strong job outcomes. Funding is distributed relatively evenly across CET providers. This one-size-fits-all approach weakens SkillsFuture's strategic effectiveness as a workforce development tool and risks diluting its impact. So, Madam, to address this, Singapore should establish a tiered accreditation system that categorises CET providers based on industry endorsement, their programme quality and workforce outcomes. Government funding should be directly tied to their level of accreditation, ensuring that providers with higher quality standards receive higher levels of support. Additionally, research funding currently available to Government-funded IHLs should be extended to qualified CET providers. This will support the development of a new generation of world-class CET institutions to develop thought leadership in their respective domains of industry practice. This will enable professionals undergoing CET from these world-class institutions to remain at the forefront of emerging trends, new technologies and evolving global standards. By integrating the latest research into CET programmes, we can equip workers with cutting-edge expertise that strengthens Singapore's workforce effectiveness. Two, making CET a cumulative pathway to meaningful qualifications. While individuals should have the flexibility to take standalone courses, CET should not be seen as short, unrelated training courses.”
“Mdm Chair, I declare my interest as chief executive officer of an education institute serving the finance sector with programmes eligible for SkillsFuture Credit. A decade ago, Singapore launched SkillsFuture with the foresight that CET must be a cornerstone of our growth strategy. We recognised that industry transformation, technological advancements and global shifts would continuously reshape job roles and skill demands. To future-proof our workforce, SkillsFuture was established to ensure that Singaporeans can adapt, thrive and seize new opportunities in an evolving economy. Over the years, SkillsFuture has been enhanced to encourage adoption and advance workforce impact. However, despite the strong efforts, training participation rate declined to 40.7% in 2024, the lowest in nine years. Many, both within and outside this House, question whether SkillsFuture is delivering on its full potential. To further SkillsFuture's impact, we must shift our focus from making training accessible with ensuring that it directly contributes to career outcomes. Switzerland offers valuable insights in this regard. The Swiss Federal Act on Continuing Education and Training establishes a structured framework to ensure high-quality, industry-relevant training. It mandates strict accreditation standards of CET providers, ensuring that courses meet rigorous quality and workforce relevance criteria. Crucially, CET in Switzerland counts towards formal qualifications that are integrated into hiring and career progression, ensuring that training translates into tangible employment outcomes. Madam, I would like to call on SkillsFuture to focus on enhancing two key areas to strengthen the CET framework, drawing lessons from Switzerland.”
“Chairman, I have two questions for the Deputy Prime Minister. The first one is relating to R&D. The Deputy Prime Minister spoke about R&D infrastructure in Singapore and how it is important as part of our economic growth. I spoke about this during my COS cut where I said that equally important is R&D being commercialised. 2.15 pm So, I would like to ask the Deputy Prime Minister how specifically local enterprises will benefit with all the R&D spent, how are we going to encourage them to take this up, how are we going to encourage and support them to really take this R&D and commercialise it into applications? That is one. The second one I just like to weigh in to hon Member Neil Parekh's comment. I probably take the other end of conservatism. He talked to balance the ambition; I think private credit is quite a science, related to a lot of risk management as well, if Government is going to go into this. Traditionally, when we co-fund, the bank comes in and you risk-share. But I would very much like to know that given that it is not small sum, $1 billion that the Government is going into, how is this going to be underwritten, in terms of risk management? How are you going to pick which company you are going to back pick? Because $1 billion will not go very far and we want to make sure that this is a good experience and that we can bag more companies? So, which agency is going to administer this and the partnerships?”
“Sir, strong R&D support has been central to attracting and retaining MNEs. MNEs have long been a cornerstone of Singapore's economy, driving innovation, investment and job creation. They contribute significantly to GDP, high-value employment, R&D and global trade connectivity. However, we must recognise the growing vulnerabilities associated with MNEs amid the shifting geopolitical dynamics. Rising protectionism, global trade realignments and economic nationalism are prompting some MNEs to reassess their global supply chains, restructure their Asian operations and diversify investments. These factors introduce uncertainties in the long-term business commitments and investment flows, posing challenges to Singapore's role as a strategic hub for global enterprises. Given these challenges, I ask the Minister: how will Singapore strengthen its value proposition to retain and attract MNEs? What long-term strategies will ensure that we remain a critical global business hub despite shifting geopolitical currents? Global Hub for Startups and Innovation”
“More importantly, how do we ensure these founders remain rooted in Singapore for the long term and contribute meaningfully to the broader enterprise ecosystem? Integration is key. How will we embed them effectively into our economy? We must ensure these global founders choose to scale with Singapore rather than to relocate to larger markets once their ventures take flight. Research and Innovation Ecosystem Chairman, Singapore's commitment to research and development (R&D) has been a cornerstone of our economic strategy, keeping us competitive in an increasingly knowledge-driven global economy. Through our annual budget, we have consistently invested in innovation as a driver of growth, with the Research, Innovation and Enterprise 2025 (RIE2025) plan allocating $28 billion – approximately 1% of GDP – to strengthen our technological and scientific capabilities. These sustained investments have positioned Singapore as a leader in key high-value sectors, including biotechnology and semi-conductors. Budget 2025 reinforces this commitment by further investing in R&D infrastructure. However, while world-class infrastructure is essential, its full impact depends on a skilled workforce, the ability to commercialise research and strong industry adoption. To fully realise the potential of these investments, we must address three critical factors. First, talent development. How will the Government strengthen our talent pipeline to support these R&D facilities? Second, commercialisation. What measures will help translate research breakthroughs into viable industry applications? Third, sectoral growth. How will these facilities drive broader industry development and create opportunities for local enterprises to scale and compete globally?”
“Chairman, Singapore is home to some of the world's most innovative companies. Over the years, we have built a strong reputation as a trusted, forward-looking hub for technology and enterprise. This is reflected in the World Intellectual Property Organization's (WIPO's) Global Innovation Index, where Singapore ranks fourth globally, behind only Switzerland, Sweden and the United States. To solidify our position as a global innovation hub, 2025 Budget introduced key initiatives to attract top entrepreneurial talent, deepen financial markets and drive research-led enterprise growth. These measures will build upon Singapore's strengths as a global startup hub, where a business-friendly environment, world-class infrastructure and commitment to innovation have fostered a thriving deep-tech, fintech and research-driven ecosystem. Our startup ecosystem continues to gain global recognition, with Singapore rising from sixteenth position in 2020 to seventh in 2024 in the Global Startup Ecosystem Ranking. However, to sustain this momentum, we must ensure that startups at every stage of growth have the capital needed to scale successfully from Singapore. While we have a thriving early-stage funding ecosystem, high-growth companies often face challenges in securing capital to scale and expand. I want to ask how will Singapore enhance venture capital participation, attract global investors and build a deeper late-stage financing ecosystem? How will the new $1 billion Private Credit Growth Fund contribute to nurturing high-growth enterprises and keep them anchored in Singapore? Sir, the Global Founder Programme, announced to encourage global founders to anchor and grow ventures in Singapore, is a welcome initiative. However, how will this programme be structured to qualify candidates?”
“Similarly, while charitable foundations come under the lighter touch grantmakers regime, they still face restrictions from a charity governance framework that inadvertently prevent foundations from engaging in venture philanthropy, as an example, to scale social innovations. Second, establish a corporate social impact benchmark. Corporations play a critical role in contributing to the communities in which they operate. For instance, India introduced a mandatory policy requiring companies of a certain size to contribute 2% of their net earnings to corporate social responsibility. Since then, this has catalysed US$6 billion into sectors, such as education, healthcare and social assistance, in India. Singapore can learn from this, not through regulation but by establishing a corporate social impact benchmark that sets an aspirational standard for corporate giving, a desired philanthropic spending target that would encourage businesses to integrate social impact into their strategies. Third, introduce a philanthropy alliance for action. A vibrant philanthropic hub requires a strong public-private-people coalition to shape strategic direction and drive ecosystem alignment. This coalition will provide strategic leadership and momentum to scale Singapore's role as a philanthropy hub. It could also be tasked with developing a national philanthropy roadmap, including a plan to align philanthropic capital with Asia's green financing commitments. Singapore's Agility and Competitiveness”
“By mobilising more capital through a holistic definition of philanthropy, one that includes impact investing, blended finance and catalytic capital, we can accelerate early-stage innovations in uncharted territory. Notably, this expanded approach has the potential to direct more patient and risk-tolerant capital toward climate initiatives to unlock breakthroughs in renewable energy, carbon capture and sustainable infrastructure. Sir, given the shifts in global philanthropy, Singapore is well-positioned to lead in this space. Our strong financial and regulatory environment, coupled with our reputation as a trusted wealth and asset management hub, provides a solid foundation for mobilising capital effectively. However, to fully realise our ambition of becoming Asia's leading philanthropy hub, we must expand our policy and partnership framework. I have three suggestions. First, harmonise regulations and incentives for philanthropy and impact capital. Philanthropy in Singapore currently falls under three separate Ministries' policy domains: the Ministry of Culture, Community and Youth, MOF and MAS. To strengthen our position as a leading philanthropy hub, we need to review and harmonise related laws and policies to ensure greater coherence and effectiveness. For example, existing tax incentives for philanthropy, such as PTIS and the Institution of a Public Character (IPC) scheme, apply only to grantmaking. However, as we broaden our understanding of philanthropy to include models like impact investing and blended finance, tax incentives should be extended to encourage these approaches while accounting for potential financial returns.”
“Chairman, I would like to declare my interest as CEO of the Wealth Management Institute, which hosts the Asia Centre for Changemakers, Asia's learning lab for impact philanthropy. Philanthropy has always been a part of Singapore's DNA. Singapore has long provided generous tax incentives of up to 250% for donations to local charities. More recently, as part of our ambition to be Asia's philanthropic hub, Singapore introduced the Philanthropy Tax Incentive Scheme (PTIS), which offers tax benefits for qualifying overseas donations to family offices. However, to truly cement our position as a leading philanthropy hub, Singapore must broaden its perspective on doing good beyond the traditional definition of donation and grantmaking. Philanthropy today has the potential to catalyse social innovation and drive systemic solutions to some of the region's most pressing social and environmental challenges. Reflecting global advancements in the field of philanthropy, impact investing and venture philanthropy have demonstrated their ability to generate meaningful and scalable impact. Another example is blended finance, which strategically combines concessional and commercial capital to unlock development opportunities that would otherwise remain out of reach. Through these innovative financing models, philanthropy is emerging as a unique asset class for social progress. With a higher risk tolerance, longer-term horizon and acceptance of below-market or zero financial returns, it is uniquely positioned to fund nascent social enterprises, de-risk high-impact ventures and bridge funding gaps where commercial capital is hesitant to engage.”
“Thank you, Mr Speaker, I have two questions for the Prime Minister. The first question is, with the generous support measures, including the SG60 vouchers, I would like to ask the Prime Minister what impact these measures will have inflation on inflation? The second question is, I think what the Prime Minister spoke about the uncertain environment globally that is actually unfolding; actually, that is really real. I would like to ask whether the Prime Minister can, indeed, elaborate more, what would be some of the worst-case scenarios that the Government is preparing for and how we, as a nation, should prepare ourselves?”
“So, the Singapore brand has become so exceptional that it is well worth faking, much like a Rolex watch or a Louis Vuitton handbag. And, like these global brands, you know you have made it when imitation becomes the greatest form of flattery. In an increasingly uncertain and fragmented world, the Singapore brand will be more valuable than ever. As businesses and investors seek stability amid volatility, our reputation for transparency, consistency and long-term planning will be our trump card. It is what justifies our premium cost position. Let us never take this hard-earned advantage for granted, but instead, build upon it to secure our place in an ever-changing world. Sir, I support the Budget.”
“Mr Speaker, my next point is on Singapore's commitment to climate change even as the global momentum on climate has slowed. Climate change is real, accelerating and unforgiving – nature waits for no one. Budget 2025 reflects Singapore's firm commitment to sustainability with a $5 billion top-up to the Coastal and Flood Protection Fund and other initiatives, such as the extension of climate vouchers to private properties. Staying the course is not just about mitigating risks. It is about seizing opportunities. The green economy represents one of the biggest growth frontiers in the coming decades. Renewable energy, green finance, sustainable infrastructure and carbon services are all high-value industries where Singapore can play a leadership role. By investing early and also decisively, we strengthen our position as a global hub for green innovation, attracting investment, creating jobs and securing long-term economic competitiveness. Sir, as we celebrate SG60, we must recognise that our greatest asset is not just our economic success, but the trust and confidence that the world has in Singapore. Over six decades, we have built a Singapore brand defined by trust, stability, unity and good governance. These values are what make Singapore stand out globally and they will be even more critical in the years ahead. It has even transformed what it means to be Singaporean. On my overseas travels, I have had bizarre experience of encountering "fake Singaporeans", including professionals, business owners, even tourists who claim to be "Singaporeans", even when they are of some other nationality. They do this so as to appear more trustworthy, more capable or more professional.”
“So, to fully tap the family office capital for a more diversified investor base, we should consider engaging the 2,000 family offices already established in Singapore. However, any adjustments to the rules must be carefully calibrated, timed and aligned with strategic asset allocation principles, ensuring that they do not impact Singapore's competitive position relative to other global family office hubs. Mr Speaker, Budget 2025 provides generous support for AI adoption, reinforcing Singapore's commitment to harnessing technology for economic growth. However, as AI adoption intensifies in the workplace, it is critical that we also address its impact on the workforce, particularly on less experienced workers who are most vulnerable to automation. As AI models continue to rapidly advance, they will not only boost productivity but also commoditise skills and automate tasks. It is often junior inexperienced staff or those involved in routine tasks who face the greatest risk of displacement. This raises urgent questions. How do we prepare new workforce entrants for a future where traditional entry-level roles shrink or disappear? How will they gain the necessary experience to progress in their careers if they struggle to secure their first job? Indeed, based on the latest Joint Autonomous University Graduate Employment Survey, we are already seeing fresh graduates' employment outcomes softening. AI adoption must go hand in hand with comprehensive strategies to manage job displacement, retraining, career redefinition and industry transformation, ensuring that workers are equipped to adapt and thrive in an AI-driven economy. For institutes of higher learning, exposure to industry AI tools must be integrated into all curricula.”
“An example is the new requirement under the Equity Market Development Programme, which mandates that all new single-family office applicants under the Global Investor Programme category eligible for Permanent Residency, allocate at least $50 million of their assets under management to equities listed on approved Singapore exchanges. While I agree that mobilising capital from family offices add vibrancy to Singapore's equities market, the implementation details require careful consideration. Sir, from a strategic asset allocation perspective, this new requirement represents a significant overweight to Singapore equities for Global Investor Programme family offices investing across global public equity markets, given the relative size and liquidity constraints of our market. Moreover, the historical performance of Singapore equities relative to the global benchmarks presents an implicit opportunity cost for investors. Additionally, the current investment options tend to cater to selected objectives, such as dividend stocks or yield plays. Unlike the US and China or Hong Kong markets, which offer a broader mix of tech, healthcare and high-growth innovation-driven firms, Singapore has relatively fewer such listings. As a result, any new capital inflows into the local market will likely benefit only a small subset of Singapore-listed stocks. Beyond these concerns, there are also questions regarding investment timeline, lock-in period and the consequences of non-compliance over time. Furthermore, I note from an answer to a PQ that only 200 individuals were granted Permanent Resident status through the Global Investor Programme from 2020 to 2022.”
“We manage land sales revenue prudently, investing the proceeds as part of our Reserves and spending only the investment returns through the Net Investment Returns Contribution (NIRC). This has provided Singapore with fiscal stability, allowing us to support economic growth and social development without being at the mercy of market fluctuations. Mr Speaker, some SMEs have voiced concerns that they have been left out in this year's Budget. However, while certain measures may not be explicitly labelled as SME-specific, I think many initiatives in Budget 2025 will directly benefit them. For example, providing CDC Vouchers instead of cash for SG60 Vouchers will strongly channel and boost footfall to local enterprises, ensuring that our SMEs benefit from increased consumer spending. Increase in co-funding levels for the Progressive Wage Credit Scheme and extension of Senior Employment Credit and Central Provident Fund (CPF) Transition Offset will help SMEs manage wage costs, easing pressures on their operations while ensuring fair wages for workers. Sir, the introduction of the Global Founder Programme, the establishment of the Private Credit Growth Fund and the launch of the Equity Market Development Programme are timely and strategic moves to drive investment, foster entrepreneurship and strengthen capital market vibrancy. These initiatives send a clear and confident signal that Singapore is serious about attracting world-class entrepreneurs, anchoring high-impact innovations and deepening our financial ecosystem to remain a leading global hub. However, for these initiatives to truly deliver on their promise, their design and execution must align with market realities.”
“In FY2025, this year, healthcare spending alone will grow by over 16% to about $21 billion, while defence spending will rise by over 12%. Other critical areas, including sustainability, trade and industry and social development, will see spending growth of around 20% and more. So, by any measure, this year's Budget is not just generous, but a demonstration of fiscal resilience, reflecting a financial strength that few economies can rival. Sir, our ability to sustain significant public spending growth while maintaining fiscal discipline is what sets Singapore apart. This has been made possible through years of strategic and disciplined adjustments to our tax system, ensuring a resilient and diversified revenue base. Hong Kong offers a stark contrast. Its over-reliance on land sales and property market cycles has led to ballooning deficits whenever the market turns, forcing the government to make painful fiscal adjustments. At its peak, Hong Kong's land sales revenue contributed 27% of total government revenue in FY2017. But in the last three years, it has declined to an average of less than 7%. So, as a result, it has recorded annual fiscal deficits exceeding the equivalent of US$20 billion in three of the past four years. So, Hong Kong just announced its Budget today and it is now taking painful steps to address deficits by cutting expenditure by 7%. Sir, let me remind this House that PSP and WP have long advocated a similar approach as Hong Kong: using land sales revenue to fund recurrent spending. Had we followed this path, Singapore could be facing the same fiscal vulnerabilities as Hong Kong today. Instead, we chose a more stable and forward-looking approach.”
“Mr Speaker, Sir, this year, as Singapore marks 60 years of Independence, we celebrate not just our remarkable journey but also our continued ability to plan with foresight and responsibility. Budget 2025 is a testament to this vision: a Budget that is both generous in addressing immediate needs and disciplined in preparing for a brighter future. The Prime Minister and Finance Minister has unveiled a landmark Budget to tackle cost-of-living pressures, support the development of workers and businesses and commemorate SG60. At the same time, it invests in Singapore's long-term needs, including climate resilience and energy security. Despite these comprehensive measures, the Finance Minister reported a surplus of $6.4 billion for FY2024, and a projected $6.8 billion surplus for FY2025. This unexpected surplus is primarily attributed to strong corporate income tax revenue. With 20/20 hindsight, there have been questions about whether we could have delayed the GST increase or been even more generous with the handouts. These reflections must be viewed in context. With geopolitical tensions and trade frictions intensifying, Singapore, one of the most trade-dependent economies, faces heightened risks from geoeconomic fragmentation. In this volatile landscape, it is absolutely prudent to maintain some fiscal dry powder to respond swiftly to unexpected economic shocks that may come our way. Moreover, this fiscal strength will give us the agility to seize opportunities as they arise in this rapidly changing world order. At the same time, we must recognise that Budget 2025 already provides substantial support across key areas. From FY2019 to FY2024, overall expenditure surged by over 50%.”
“Thank you, Speaker. I thank the Minister of State for the details. I am encouraged to hear the usage but I would like to ask the Minister of State two follow-up questions. First, what mechanisms are in place to evaluate the effectiveness of courses eligible for SkillsFuture Level-Up Credit, the thousands that the Minister of State quoted just now, particularly in addressing the unique learning needs of the mid-career working adults and how does the Ministry review these programmes to ensure they deliver maximum impact and relevance over time? And the second supplementary question relates to how does the Ministry ensure the credentials accredited or awarded under the programme are both industry recognised and valued by employers? So, it is good that they used it, but what is the tangible improvement in employability and job performance for participants? How do you evaluate that?”
“Thank you, Speaker. I would not repeat the same points my colleagues have already made, but I just wanted to reinforce that the frustration for high-rise littering remains a very significant one amongst my residents. I noted that the Senior Minister of State mentioned that for even very egregious cases where there are a lot of reports, the success rate for enforcement is only 30%. So, if I get the Senior Minister of State's statistics that she has just said correctly, you have a camera there, people report over and over again, because we have all walked the ground and we know where the cases are. In fact, for some cases, we even say, "It is this unit". But the enforcement success, so far has, not been there – if I understand the statistics correctly, it is 30%. I wanted to ask the Senior Minister of State what are the challenges? Why is it so difficult when we are already telling you exactly where and these are egregious cases, and there are many others. So, if the Senior Minister of State can shed some light and we can work together. I can assure the Senior Minister of State the grassroots and the community will do anything to get rid of that and take the perpetrators to task. So, if you can just tell us what would be helpful, we will do it.”
“Thank you, Speaker. I thank the Minister for his response. I have two supplementary questions for the Minister. First, how does the Ministry plan to leverage the insights from the PIAAC findings, to refine the SkillsFuture programme, particularly in identifying critical skills gaps and developing targeted interventions that enhance the relevance, accessibility and effectiveness of training for both current and emerging workforce needs. The second one, I would like to also continue on the point that the Minister spoke about skills atrophy. Related to that, I would like to ask the Minister whether he would consider lowering the age threshold for enhanced training subsidies under the SkillsFuture scheme, which is currently set at 40, whether he would bring it to 35, to enable workers to refresh their skills earlier and remain competitive in the fast evolving job market.”
“Thank you, Mr Speaker, for indulging. Since at this stage, the Minister of State is not able to reveal the findings now, I would just like to ask, depending on the outcome of the compliance report, whether the Government will consider insisting on a minimum standard of investment by these social media platforms in terms of the way they can respond your key performance indicators for them, leadership accountability, so that they do put in the necessary investment and capacity to take this obligation very seriously.”
“Thank you, Mr Speaker. I have two supplementary questions for the Minister of State. The first supplementary question relates to the assessment of the adequacy of the current framework. I think Singapore's implementation of the Code of Practice for Online Safety is our key legislative framework now. So, it depends on social media services such as Facebook, Instagram, TikTok to enhance social safety by a series of things they have to do. So, I want to ask the Minister of State what key insights have been drawn from the compliance reports that they have to submit as part of this framework, Code of Practice for Online Safety? I believe this was due by end of July 2024, so, they would have submitted reports to say what are the things they are doing and how do you think they are doing. Furthermore, I want to ask the Government whether you think these social media companies are investing adequately in infrastructure, resources, expertise and also leadership accountability to enhance their organisation's capacity to implement robust safeguards and also to respond effectively to incidents. So, this is all about depending on social media platforms doing their job. The second supplementary question pertains to community involvement to nurture safe online practices. Given the importance of digital literacy and community involvement in nurturing safe online practices, how does the Government view the role of community, particularly parents and also educators, in fostering such practices? What specific initiatives or frameworks does the Government consider critical to achieving this effectively?”
“Mr Speaker, I urge the relevant authorities to work closely with the industry to ensure that the implementation of new AML rules is well guided, well understood and implemented proportionately. Most businesses and investors are legitimate and checks must be risk-based, proportionate and considers the history of the relationship and transaction pattern. Mr Speaker, as we move forward with these crucial reforms, let us strike a careful balance between vigilance and openness. While we are resolute in our commitment in combating money laundering, we must also ensure that our actions reflect the same confidence and clarity that have long defined Singapore as a trusted global financial hub. By implementing these measures thoughtfully and proportionately, we reinforce that Singapore remains a place where legitimate business thrives and where the integrity of our financial system is safeguarded with both strength and wisdom. And in doing so, we send a strong message to the world: Singapore is open for business and we welcome those who seek to contribute to our shared prosperity under the rule of law. I support the Bill.”
“These measures are essential for upholding the rule of law and maintaining public confidence in our justice system. Mr Speaker, the AMLOM Bill will add to Singapore’s ongoing legislative efforts to strengthen Singapore's AML/CFT regime. Since 2023, a total of four Bills have been passed in this House to safeguard our systems from exploitation and enhance our defences to protect the integrity of our systems. There is also an ongoing Inter-Ministerial Committee on AML, with findings and recommendations expected in fourth quarter of 2024. Sir, the intensity of this legislative activity is a very clear testament to the Government's zero tolerance for money laundering. It underscores our commitment to staying ahead of evolving threats by ensuring our legal frameworks remain both robust and adaptive. We address risks head-on as soon as they come to light. However, Sir, we must ensure that these new measures do not come at the cost of jeopardising Singapore's reputation as a competitive global business and finance hub. I have received feedback and frustrations from affected parties that the account opening process is now protracted and delayed, with layers of checks perceived as disproportionate and not commensurate with the assessed level of risk. Some have expressed concerns that our banks have taken a knee-jerk reaction in the reviewing accounts, issuing retroactive requests for documents and information that are cumbersome and time-consuming to produce, often seen as unnecessary given the accounts' sizes, tenure of the relationship with the financial institutions and transaction patterns. Wealth owners shared that they no longer feel welcomed in Singapore. Bankers fear their clients are bringing their money to other centres such as Switzerland, Hong Kong and Dubai.”
“The unique nature of some seized assets, which can include luxury goods, rare collectibles and high-value personal items, requires specialised knowledge and handling to prevent significant losses during forced sales. Ensuring that these assets are appropriately appraised and sold through channels that can attract the right buyers at the best possible prices is essential. This not only maximises the return from these seizures but also reinforces the credibility and efficiency of our asset recovery processes. Therefore, I would like to ask whether the current procedures are robust enough to manage these complex and high-value assets effectively. For instance, how will the authorities market the collectible Bearbrick toy figurines or some 250 luxury handbags and watches to recover the best prices? Third, I strongly support the provisions in the Bill that allow for the continued seizure of properties in cases where the suspects have absconded and introduce significant barriers to claiming properties linked to these individuals. Dealing with absconded criminals presents substantial challenges, as jurisdictional issues and international legal complexities often hinder swift justice. The ability for authorities to seize and maintain control over assets even when the suspect is beyond our reach is therefore crucial. It disrupts the financial incentives for fleeing, for running away and makes it clear that evading justice will not protect one's ill-gotten gains. Moreover, by creating legal barriers to claiming properties associated with absconded suspected criminals, we strike at the heart of criminal networks, undermining their financial base and reinforcing the principle that crime does not pay.”
“I would like to ask how STRO plans to handle and analyse the large volume of data from different sources, especially as it already receives an average of 43,000 STRs annually. How will it update its methods, enhance the quality of its intelligence and leverage technologies, such as artificial intelligence (AI), to help agencies better connect the dots from these diverse sources? Furthermore, with improved detection capabilities, how well-resourced are our agencies to respond promptly and effectively to suspected illicit activities? It is crucial that our analytical capabilities and resources keep pace with the increased data flow to ensure we are not overwhelmed with the sheer volume of information, but rather, empowered to act swiftly and decisively. Second, the Bill expands the toolkit for law enforcement agencies to deal with seized criminal assets. I support the provision for early sale of seized assets to minimise the cost of property maintenance and preserve the value of these properties. By streamlining these procedures, law enforcement agencies can act swiftly to order the sale of seized properties, thereby avoiding depreciation or undue costs associated with maintaining these assets. The importance of these measures is underscored by Singapore's largest money laundering case to date, where the $3 billion in seized assets has already incurred around $650,000 in expenses for storage, maintenance and safeguarding. These provisions are therefore crucial for maintaining the efficiency and effectiveness of our law enforcement agencies and ensuring that justice is both swift and financially responsible. Mr Speaker, once the assets are seized, it is vital to ensure that the Government has processes in place to secure competitive prices in forced sales.”
“Mr Speaker, I rise today to express my support for the Anti-Money Laundering and Other Matters Bill – the AMLOM Bill in short. As a prominent global financial centre with substantial flows of capital, Singapore faces inherent risks related to money laundering. It is therefore imperative that our anti-money laundering regime remains dynamic and consistently ahead of the evolving tactics of criminals. These individuals are becoming increasingly sophisticated, employing advanced technology, intricate financial networks and cryptocurrencies to outmaneuver systems of detection and prosecution. Sir, I would like to raise three points in support of the AMLOM Bill. First, the amendments in this Bill will empower Government agencies to share tax and trade data with Singapore's Financial Intelligence Unit, the Suspicious Transaction Reporting Office (STRO). Additionally, amendments will allow STRs filed by entities regulated under CEA and ACRA to be accessed by relevant authorities. Data sharing across Government agencies is a significant step forward. It is the key to seeing the full picture of illicit activities. Like pieces of a puzzle, each agency's data may seem insignificant on its own, but together, they reveal the wider scope of money laundering's operations. The ability to corroborate different sources of data will empower enforcement agencies to identify real threats in the vast number of suspicious transactions filed. Without this collaboration, crucial connections are lost and our understanding of the threat remains fragmented. However, Sir, with the influx of additional data from various agencies, the capability to analyse and make sense of the information must be correspondingly elevated.”
“Thank you, Deputy Speaker. I thank the Minister for the many assurances of holding Income and Allianz accountable to their commitment for this deal. It is also comforting to hear NTUC also weighing in to give their commitment. I think what is in many people's minds is that with a minority shareholding, what would be MAS' regulatory powers? In specific details, how are they going to exercise that to make sure that the interests of policyholders are safeguarded? The Minister did touch on the composition of the board of directors, but can the Minister elaborate further, including maybe on regulatory levers like approving pricing strategies and monitoring the product offerings so that the parties can honour Income's existing policies and ensure essential insurance products remain affordable and accessible under the new ownership structure, should it come through?”
“Furthermore, it is imperative that industry leaders have a strong representation on the board of directors of these schools to ensure strong alignment of the schools' resources and outcomes to industry needs. In the development of this new ecosystem, the Government can assume a pivotal role by introducing a SkillsFuture quality accreditation framework. This framework could implement a differentiated funding model, based on several key factors: the curriculum's relevance to practice, the involvement of qualified industry trainers and instructors, industry and employer involvement and endorsement as well as employment outcomes. Industry-linked training providers that have a proven track record of delivering strong outcomes should, over time, receive support and recognition comparable to that accorded to publicly funded IHLs. Implementing such a measure would foster the evolution of a new generation of highly specialised schools, each with deep domain expertise in their respective industries. Sir, I am confident that the introduction of such a SkillsFuture framework will significantly boost both employers' and trainees' motivation for training. Knowing that their time invested in training has a real impact on boosting business performance and career growth will be a key driver for participation and commitment. Boosting Self-employed Persons' (SEPs') Prospects through Training”
“The learners should receive credentials that will demonstrate their ability to apply learned skills in real-world settings recognised and importantly, endorsed by employers. 11.15 am Fourth, the active participation of employers in the training design ensures direct relevance to industry requirements and that training is rooted in real-world applications than in theory. They should be involved in the identification and prioritising of training programmes that will address the most sought-after skills and competencies in the job market. The endorsement and commitment of employers to adopt these training programmes must be an integral part of the design and funding process of SkillsFuture. In countries like Sweden and Switzerland, industry-specialised schools are often led and governed by industry leaders, exemplifying this approach. Sir, we can actually see some of the elements I mentioned above already being practised selectively. So, to establish an ecosystem of training providers that will yield high employment outcomes, it is necessary to pivot SkillsFuture to support industry-linked training providers. These industry-linked training providers must be deeply integrated with the sectors they serve. Forming partnerships with the industry and employers is crucial to ensure their curricula are directly informed by current and future skills needs. The course offerings should undergo regular review cycles to remain responsive to evolving industry trends and skills demands. Additionally, the assessment of learning outcomes must align with industry relevance rather than concentrating on academic rigour, the assessment should prioritise skills acquisition and the performance of relevant skills and tasks in real world settings.”
“Chairman, I declare my interest as the Chief Executive Officer of the Wealth Management Institute, a training provider serving the finance sector with programmes eligible for SkillsFuture Credit. Sir, I agree that our current publicly funded IHLs can contribute to lifelong learning in addition to their core mandate of pre-experienced education. But I urge the Government to nurture a new generation of industry-linked training providers, specially designed to serve the unique learning needs of working adults. This is particularly important to ensure that we have SkillsFuture programmes designed specially to target skills upgrading and acquisition, rather than to achieve academic qualifications. By drawing lessons from similar setups in Sweden and Switzerland, these specialised training providers ought to be established with the following criteria. First, there must be assurance that training delivered is highly applied and practice-based, with clear reference to industry skills-maps. This approach ensures that the learners acquire practical skills and hands-on experience, making them job-ready upon completion of their courses. Second, it is essential for instructors and trainings to have strong industry experience. Educators with an industry background bring a wealth of knowledge, real-world insights and practical skills to the classroom. The teaching pedagogy for adult learners must be contextualised within the industry landscape, leveraging real-world case studies and use cases. Third, the credentials awarded upon training completion must translate into industry-recognised and valued qualifications, rather than merely reflecting academic grades.”
“Thank you, Chairman. I have two clarifications. The first one is for Minister Gan. In the area of promoting collaboration between larger companies and SMEs, I had asked whether the Government would consider integrating the involvement of Singapore-based SMEs as a positive criterion for MNEs and also the large corporations when they access Government grants. This is really to make sure that, especially in the area of high-value investments, such as R&D and innovation-related grants, the Government-backed programmes can extend to a broader ecosystem. So, if Minister can say whether we can insert that little requirement. My second clarification is to Minister of State Low Yen Ling. I join Member Liang Eng Hwa in congratulating her for her enthusiasm in promoting innovation in the heartlands. But I want to ask a more pointed question, specifically. I would like to ask the Minister of State, in light of the CDC Vouchers that the Government has been giving in successive tranches, I want to know, specifically, how much has the support gone to supporting heartland enterprises.”
“Chairman, in today's world, where large retail chains and online shopping platforms dominate the market, our neighborhood shops are facing unprecedented challenges. Yet, these small establishments offer something invaluable that transcends mere commerce – they are the lifelines of our localities. Our heartland enterprises provide a unique social value that nurtures the spirit of our communities. These are places where personal connections are made, where the shopkeepers know your name, family and preferences. These businesses, often run by families and local entrepreneurs, are deeply rooted in the community. They contribute to the local community, create jobs and frequently offer personalised services that larger stores cannot. Therefore, it is crucial that the Government proactively step in to support these vital community assets. I applaud the Government in launching various initiatives to energise and support our heartland shops. So, I would like to ask the Minister to share the progress of "Our Heartlands 2025" and "Heartlands Go Digital". These initiatives are crucial in helping our neighborhood shops sharpen their competitive edge and carve out a distinct role for them to thrive in the years to come. Support for Heartland Enterprises”
“How can the Government support SMEs to secure more favourable interest rates, more flexible security requirements and more favourable payment terms for those that are on EFS loans versus those that are on standard bank loans? Growing the Economy Over the Next Decade”
“Deputy Prime Minister Lawrence Wong rightly pointed out that, "We cannot force MNEs to choose only local suppliers, but we can and we will help Singapore enterprises to meet the high standards and to form win-win partnerships with MNEs." I welcome the expansion of the Partnerships for Capability Transformation scheme to encompass broader areas of collaboration. However, to further enhance this initiative, I propose that the Government consider an additional step – and this is an important step – by integrating the involvement of Singapore-based SMEs as a positive criterion for multinational enterprises (MNEs) and larger corporations when they access Government grants. This inclusion – to include SMEs in the application – should be particularly emphasised for high-value investments such as research and development (R&D) and innovation related grants. By doing so, it will not only incentivise large entities to collaborate with SMEs, but also ensure the benefits of such Government-backed programmes extend across the broader business ecosystem. Secondly, the Government Enterprise Financing Scheme (EFS) is designed to assist SMEs with various financing needs. A key feature is its risk sharing component, where Enterprise Singapore shares the loan default risk with participating financial institutions in the event of enterprise insolvency. The Government's risk sharing can reach up to 70%, therefore providing a significant safety net for banks. This arrangement should enable banks to take on more risk and provide more favourable terms to our SMEs. By offering this level of support, the Government is really in a good position to expect participating financial institutions to improve loan conditions for our SMEs.”
“Chairman, small and medium-sized enterprises (SMEs) forming the majority of our business landscape are currently navigating a myriad of challenges that threaten their growth and sustainability. The rise in manpower costs is a major concern. This, combined with the increased costs of raw materials, rents, utilities and other operational expenses is exerting immense pressure on their already thin margins. The heightened interest rates environment also adds further pressure on financing costs, adding challenges to SMEs' access to capital for growth and innovation. Sir, adding to all this, the manpower shortage has left many SMEs in a dire situation, unable to fill essential roles and sustain their operations, let alone the capacity to innovate and transform. The need for digital transformation has shifted from being a luxury to a necessity for survival and growth. Another pressing issue is the environmental impact and the increasing demand for green compliance. Many SMEs lack the knowledge and resources to transform towards greener practices, even as they face increasing pressure from counterparts and regulations requiring adherence to green standards. This gap further hinders their ability to compete effectively and sustainably. Sir, Budget 2024 Enterprise Support Package will provide SMEs with some relief immediately. But the most significant support measures are those tilted towards firms that can restructure and transform. Therefore, to support SMEs to embark on this transformation journey, I would like to ask the Government to double down on three fronts. First, we must strongly promote collaborations between larger companies and SMEs in the area of supplier development and co-creation.”
“Companies will increasingly be subjected to tighter sustainability reporting and regulations – particularly those with trading partners, such as those in the European Union, which have placed higher standards. Government support to build a framework to help companies comply with reporting requirements and compliance practices that are required by their counterparties will be critical. Finally, on green procurement. The Government's green procurement can significantly bolster green transition. By prioritising the purchase of eco-friendly and sustainable products and services, the Government sets a powerful precedent – encouraging suppliers to innovate and shift towards sustainable practices. I would like to ask the Government how it is progressing in its goals and targets towards green procurement? Scope 3 Climate Reporting Disclosures”
“Under this initiative, together with MAS, development finance institutions and philanthropies could provide concessionary capital in the form of grants, limited guarantees and debt or equity at below market rates of return. On the basis that concessionary capital has been put together, this creates the conditions for banks and institutional investors to crowd in private and commercial capital. When blended finance works well, the impact is significant. A global example is the Zero Gap fund established by the Rockefeller Foundation and the MacArthur Foundation, which committed $30 million in catalytic investments. As of 2022, this sum has, in turn, mobilised more than $795 million in private capital for projects aimed at achieving the Sustainable Development Goals. 5.45 pm However, the adoption of blended finance has been slow. Blended finance often involves complex structuring to balance the risks and returns for different types of investors. Many blended finance projects are in new and emerging markets, with relatively few historical precedents to demonstrate their viability and potential for success. This lack of proven track record can make investors hesitant to commit funds. I therefore call on the Government to build awareness and understanding of blended finance amongst potential investors. Sir, on climate disclosure regime. As the net-zero goal will increasingly become a pre-requisite in the expectations of customers, investors as well as regulators across the world, it is urgent that we support our businesses to take action to stay competitive and relevant.”
“Mr Chairman, the green transition, inherently complex, necessitates a catalytic role from the Government. It can help to mobilise funding and develop the right capabilities. By offering incentives, providing regulatory support and fostering a conducive environment, the Government's intervention will be instrumental in making the green transition a reality. Sir, on philanthropic capital. With the growing number of family offices in Singapore, philanthropy can be a promising avenue. With last year’s announcement of the Philanthropy Tax Incentive Scheme, philanthropy from Singapore is increasingly borderless and can be used to fund climate projects around the region. This geographical flexibility will help boost the impact of philanthropy. However, philanthropy alone is insufficient. Currently, it is estimated that less than 2% of the philanthropic dollars are allocated towards climate mitigation. We must find ways to rapidly scale this impact. Sir, the true gamechanger will be in mobilising private capital to fund climate projects. We will see real sea change when the trillions in private capital can be effectively directed towards climate solutions. However, private investors, who seek financial returns, say there is still a lack of sufficient bankable, investable and fundable deal opportunities on the ground. This is the main barrier. Many projects are sub-scale and are too risky for private capital to access. Innovative funding structures, such as blended finance, have been seen as a solution. Singapore has made consistent efforts to grow blended finance, for example, through the MAS’ Financing Asia’s Transition Partnership.”
“Firstly, the rate of drawdown of the various funds. Secondly, how the Government determines whether expenditures should be funded from funds and endowments, as opposed to operating budget. Additionally, I am interested in understanding how undrawn amounts are treated and how drawdowns are optimised across funds to smoothen out expenditures. Sir, with that, I support the Budget.”
“Sir, the introduction of the new ERS is a significant step toward closing the retirement adequacy gap for the middle-income earners, an issue I have persistently lobbied for over many years. While CPF LIFE should not be tailored to meet the needs of the affluent, it must and it must serve as a primary source of retirement income for our low- and middle-income seniors, ensuring they have financial security and peace of mind in their golden age. Finally, Sir, fiscal space and top up funds. Sir, in examining the budgetary position for FY2022 and FY2023, I would like to seek clarification on several fronts. Firstly, with regard to the Government's accountability on fiscal marksmanship. The final financial outcome for FY2022 diverged notably from the initial projections, going from an anticipated deficit of $2 billion into a surplus of $1.7 billion. For FY2023, despite a revenue increase exceeding expectations by 7.9% and surpassing $104 billion, the fiscal deficit for this year is, in fact, revised to $3.6 billion deficit. This represents a significant widening from the earlier projection of $0.4 billion deficit. In the light of these developments, I would like to ask how the Government projects revenue and expenditure to ensure a level of predictability that informs crucial decisions, such as the need to raise taxes to balance the budget. Secondly, a significant amount of funds totalling $24.3 billion for FY2023 and $20.4 billion for FY2024 are allocated towards topping up endowment and trust funds. While I appreciate the fiscal discipline demonstrated by setting aside funds that are committed for future programmes that we promise the people without burdening future budgets and generations, I want to seek clarification on several aspects.”
“This sudden unexpected change disrupts their retirement planning. As a policy move, it may be fairer if the Government could grandfather the SA scheme for existing 55 and older CPF members. Sir, the most exciting development within the CPF framework for me is the increase of the Enhanced Retirement Sum (ERS) to four times of the Basic Retirement Sum, reaching $426,000 in 2025. Over the years, I have advocated for a higher ERS, enabling CPF LIFE to better cater to the retirement needs of middle-income Singaporeans, especially for those considering CPF as their primary source for retirement planning. This is really important that the CPF serves middle-income Singaporeans. The rule of thumb for the income level required to maintain a similar lifestyle in retirement typically involves replacing a certain percentage of your pre-retirement income. It is commonly suggested that retirees will need approximately 70% to 80% of their pre-retirement income to sustain their lifestyle. This estimate of 70% to 80% as what they need in retirement, assumes the decrease in certain expenses, such as commuting, work-related expenses or mortgage payments, while anticipating an increase in others like healthcare or leisure activities. If we consider the current median monthly income of about $5,200 for full-time working residents in the middle-income group, the estimated monthly payout under the new ERS would be approximately $3,300. This represents a 63% replacement income versus the 70% to 80% recommended for middle-income earners. This is a significant increase from the current monthly payout of $2,530, which only replaces about 49% of our median wage earner's income.”
“Sir, even as I persist in urging the Government to intensify its efforts to stimulate adoption – a topic I will delve into during my COS speeches – it is ultimately incumbent upon companies and workers to seize these opportunities and to forge a brighter future for themselves. The support schemes available to us is a springboard, but the impetus to leap forward lies within us. Embarking on a journey of transformation is akin to preparing to scale new and uncharted mountains. This journey compels us to traverse unfamiliar terrain and to overcome obstacles that are inherent in scaling any worthy peak. We are comforted by the knowledge that, in this journey, we are not alone. The support schemes available are akin to tools, maps and safety gear, provided to ensure that our climb, our ascent is not only successful but also safe and secure. These resources are designed to assist us in navigating the complexities of change, offering guidance, training and support at every step. But, ultimately, it is only we who scale the mountain; the gear alone cannot do it for us. Next, retirement adequacy. Mr Speaker, Budget 2024 contains excellent initiatives to further boost retirement adequacy, such as the Majulah Package, enhanced support for Matched Retirement Savings Scheme, Silver Support Scheme Enhancement and others. But, unfortunately, the announcement to close the CPF SA for those aged 55 and older attracted the most attention. Whilst I support the rationale behind the Government's move, the sudden closure of SA accounts affects many middle-income seniors. Based on established CPF rules, they have systematically saved and trusted this scheme to build up their retirement nest-eggs. Many rely on CPF savings as a key source to fund their retirement.”
“This shift necessitates a profound change in our skills and capabilities, far beyond what has brought us success in the past. In an era dominated by rapid technological advancements, our focus must pivot towards nurturing skills in innovation, research and development (R&D), digitalisation and AI. These fields have transformative potential to boost our economy, but require a new breed of industries and professionals who are adept in these cutting-edge domains. The magnitude of this transition cannot be understated. We are not simply adopting new technologies; we are required to reshape our economic fabric. So, Budget 2024 rightly earmarked a substantial sum of $13 billion towards capability development – these include boosting productivity, research and innovation, green transition and AI transformation. Deputy Prime Minister Lawrence Wong announced the launch of a refreshed incentive toolbox with new fiscal schemes, such the new Refundable Investment Credit scheme and top-up of existing funds to further advance capabilities. This is 10 times the amount set aside to help companies cope with near-term challenges. However, Sir, many of the initiatives will only be effective to the extent they are taken up. Significant effort must be directed to boost usage in order to achieve the intended outcomes of the respective schemes. For example, even though SkillsFuture has been launched for close to 10 years, only three in 10 Singaporeans have used their SkillsFuture credits. The number of companies tapping into R&D grants is insufficient, and SMEs still struggle to decipher the multitude of schemes and the complexity and onerous application process.”
“Sir, I applaud the Government for their concerted attempt to shore up individual and company cash flows. However, we must be very careful to calibrate handouts to ensure that these are sustainable, as people may grow to rely on them over time. It may become a challenge to wean them off expectations of such broad-based support in the future. Also, the generous direct transfers to cushion residents from elevated inflation may, ironically, add to further demand and reverse early signs of moderation on inflation. Last year, I had raised similar concerns about Government handouts increasing demand and creating a vicious escalation in prices. Helping people cope with rising costs is a worthy policy but it must be balanced against the risk of prolonging inflationary pressures. After all, it would be unsustainable to dole out assistance to fight inflation if such help ends up keeping inflation higher for longer. So, I call on the Government to keep a close eye on this. Next, sharpening Singapore’s competitiveness. Mr Speaker, Deputy Prime Minister Lawrence Wong announced an ambitious target of two to 3% GDP over the next decade. The economy grew by only 1.1% last year, down from 3.8% growth the previous year. Real income declined 2.2% for the first time in over 10 years. Singapore’s continued growth in the new era of global development is not guaranteed. We face challenges in an international tax environment where global minimum tax regulations are upon us, and where countries around the world are fighting for high-quality investments. Sir, Singapore has evolved from a trading port to a global finance hub, logistics, and also for manufacturing. In order to succeed in our next phase of growth, we need to pivot towards high-value, innovative economic development.”