Gan Siow Huang
Singapore
“So, it is both regulatory codes and also review of existing regulations for us to move both new buildings and existing buildings toward higher adoption of solar as well as other environment sustainability measures. On the third question on strengthening our local ecosystem, that is a really good question.”
“Mr Speaker, BCA had conducted a public consultation to review various aspects of the Building Strata Management Act, and this includes the proposal to lower the resolution requirement for third-parties solar ownership models. They are exploring a reduction from 75% to possibly 50%.”
“This year, the Government has set aside $800 million under the Decarbonisation Grand Challenge, to support research and innovation in low-carbon technologies. This includes energy storage systems and grid modernisation.”
“I want to thank Mr Azhar Othman on his comments. I fully agree that data centres, they are energy guzzlers. In fact, data centres are also actively looking for alternative solutions that are more sustainable. Electricity imports, hopefully, if we can get that coming, using renewable energy sources.”
“Speaker, I would like to respond to Mr Fadli Fawzi's earlier question on petrol prices at the petrol stations. Singapore has a competitive and open economy, and prices naturally would fluctuate in response to various factors, including changes in global supply and global demand.”
“It is actually premature for us to give any meaningful and useful advice to companies that may potentially be affected by the Section 301 investigations. We are following up with the US authorities to try to better understand the reasons as well as the coverage of these Section 301 investigations.”
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“Mr Speaker, BCA had conducted a public consultation to review various aspects of the Building Strata Management Act, and this includes the proposal to lower the resolution requirement for third-parties solar ownership models. They are exploring a reduction from 75% to possibly 50%. This will be helpful and we are awaiting BCA's completion of this review. On the suggestion to have a starter kit for private property owners, especially residential owners, that is a very good idea. We will seriously consider it.”
“So, it is both regulatory codes and also review of existing regulations for us to move both new buildings and existing buildings toward higher adoption of solar as well as other environment sustainability measures. On the third question on strengthening our local ecosystem, that is a really good question. We have been working on that for a long time with our institutes of higher learning (IHLs), both for pre-employment training for the graduates as well as for continuing education and training for adults who have graduated from our IHLs. There is a skills framework for energy and power that is developed jointly by the Government, industry, the unions and the IHLs. Specifically, for solar, SkillsFuture Singapore also partners Sembcorp Solar as a SkillsFuture Queen Bee since 2024. This is to uplift other companies in this sector in training their workers and for us to be able to generate that talent pipeline that is needed to sustain this ecosystem.”
“Mr Speaker, the first two supplementary questions are somewhat related, so I will answer them together. Indeed, the Government agencies are working closely together to look at how we can make solar installation in Singapore easier and more cost-effective for the building owners. New buildings are required to meet standards under the Building and Construction Authority's (BCA's) Code for Environmental Sustainability of Buildings, with solar being recognised as one of the acceptable carbon-reduction measures under the Code. The broader theme is about sustainability. Solar installation is certainly one of the means. There are also other things that building designs can take into account, where it is more practical, for example, energy consumption, the building design and ventilation. There are several things that building owners can adopt and not be limited to just solar. Of course, we believe that solar, because of its cost effectiveness, going forward, there will be more adopters of this technology. We will continue to push the boundaries whenever possible and to explore more innovative solar deployments in Singapore, such as at car parks and bridges and even in between buildings. I also want to highlight another example of how our agencies are working together to simplify regulations to make it easier to install solar panels. Last year, the Singapore Civil Defence Force reviewed the fire safety requirement for one-hour fire separation for roof-mounted solar panel installations. The simplified fire safety requirements exempt more than half of all solar panel installations on metal-roofed buildings, and this basically allows eligible business owners to save up to 30% on total construction costs.”
“Even if you have a grant, it may not nudge them to go for the purchase. I think it is important that we understand the issue closely and look at what it takes for us to be able to effectively nudge private building owners to go towards solar installation.”
“Mr Speaker, as I have mentioned earlier on, the economic conditions now are actually very favourable for private property building owners to consider solar installation, primarily because the solar technology has improved in terms of efficiency and also the cost of installation has come down substantially. So, if you compare it with a few years ago, there was hesitancy in private building owners to adopt solar deployment, but now we are, indeed, seeing a much higher interest among private building owners, including residential properties. And we believe that the economics will drive faster adoption. Having said that, we will monitor closely the rate of adoption and the Government is prepared to consider additional measures, if necessary. On the point about EEAI, actually EEAI works in a certain way. It assumes that the consumer wants to buy a vehicle and is choosing between different types of vehicles. And in this case, the EEAI nudges the consumer to consider an EV, even though an EV could be more costly than an ICE vehicle. But for building owners, here, we are talking about catalysing a purchase, a new purchase. And there are various considerations. It is not just about the cost. It is not just about whether there is an incentive from the Government. But some of the private residential building owners have also expressed some other considerations. For example, some are concerned about whether it will affect the integrity of the waterproofing for the roof. Others have also said that they are unsure about the reliability of the solar panel installation vendors. And of course, there are some building owners who prefer to keep their rooftops for other purposes and preferring not to install solar panels.”
“With ongoing global uncertainty in energy prices, solar installation can provide building owners with savings and greater predictability on their electricity bills while contributing to Singapore's overall energy resilience. In recent weeks, some solar vendors locally have reported an increase in interest in solar panels among private building owners. This could be partly because of the recent increase in the regulated tariff for electricity and also perhaps some anticipation of further increase in the tariff. For building owners who may be concerned about the costs of installing solar panels, some solar vendors offer “rent-to-own” or “solar leasing” models that allow building owners to enjoy the benefits of solar installation with little to no upfront cost. Mr Kenneth Tiong has asked on the Electric Vehicle Early Adoption Incentive (EEAI). The EEAI was implemented in January 2021 to encourage the early adoption of electric vehicles (EVs) by reducing the gap in total upfront cost between an EV and equivalent internal combustion engine (ICE) vehicle. The EEAI parameters have tapered with narrowing upfront costs capped over the years and will cease from 1 January 2027. As of March 2026, more than 55,000 electric cars and taxis have benefited from the EEAI. The Government will continue to push for solar deployment in Singapore and will consider further measures if necessary to accelerate solar adoption in Singapore.”
“Thank you. Mr Speaker, there has been strong growth in solar adoption over the last few years. We have achieved two gigawatt-peak of installed solar capacity island-wide and have set an increased target of three gigawatt-peak by 2030. For private residential buildings, the number with solar panels has increased more than four times in the last five years, from around 1,400 in 2020 to around 6,900 in 2025. This corresponds to about 8% of all private residential buildings. The growth in solar deployment has been driven by favourable economics. Solar panel costs have come down over the years and the payback period for rooftop solar can be five years or even less. The Government has also introduced measures that can help to further reduce the payback period for eligible building owners. For example, eligible private buildings can tap on the Green Mark Incentive Scheme for Existing Buildings 2.0, which helps building owners lower the upfront cost of energy improvement works, such as solar panel installation. Depending on the overall carbon abatement achieved, eligible building owners can benefit from grant support of up to 50% of the cost of their energy improvement works, capped at $1.2 million. Some jurisdictions have made it mandatory for new buildings to install solar panels. In Singapore, we have no plans at this stage to mandate solar panel installation on buildings because some building owners may prioritise other rooftop uses, such as greenery, or their rooftops may not be suited to solar installation due to factors, such as shading from neighbouring tall buildings. The Government strongly encourages all building owners to install solar panels if this is feasible.”
“I want to thank Mr Azhar Othman on his comments. I fully agree that data centres, they are energy guzzlers. In fact, data centres are also actively looking for alternative solutions that are more sustainable. Electricity imports, hopefully, if we can get that coming, using renewable energy sources. That will give some alternative to the data centres. Of course, batteries, solar, these will also be options that data centres can consider. And micro-grids, as the Member said, are additional augmentations to complement our existing grid and we certainly would want to keep this in view as we develop our grid of the future. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Resolved, "That Parliament do now adjourn." (proc text)]”
“This year, the Government has set aside $800 million under the Decarbonisation Grand Challenge, to support research and innovation in low-carbon technologies. This includes energy storage systems and grid modernisation. These efforts reflect our commitment to building a resilient and innovative grid, and we look forward to more impactful and transformative partnerships with industry on this front. Mr Speaker, the Government is committed to ensuring Singapore’s power system remains resilient and reliable as we navigate the energy transition. We will continue to invest in grid innovation, study developments from around the world, and work closely with industry and researchers to deploy suitable, cost-effective solutions for Singapore. Together, we will build a strong backbone that powers Singapore's future.”
“A battery energy storage system is an alternative source of back-up power, although the upfront cost of deploying battery energy storage system is currently still higher than for diesel generators at the same power setting. A battery energy storage system also needs to be recharged, unlike diesel generators. As batteries become more cost-competitive, we expect more end-users to deploy batteries as off-grid solutions, if it meets their operational requirements and as a way of lowering their emissions. Mr Azhar asked about the Pulau Ubin Micro Grid. The Pulau Ubin Micro-Grid was launched in 2013 as an R&D testbed to reduce reliance on diesel for power generation on the island. It is powered by solar PV, supported by a battery energy storage system and diesel generators, and serves about 30 residential and business consumers. Some system reliability issues have surfaced in recent years, and the micro-grid operator, EDP Renewables, is working to upgrade the system to enhance its overall reliability. We will continue to study how micro-grids and other distributed energy resources can complement our existing measures to support Singapore's energy resilience. As we do so, we welcome partnerships with the industry on innovative new solutions that can be applied in Singapore, be it on micro-grids or other aspects of grid planning, development, and operations. Last year, EMA launched the Energy Grid 3.0 Grant Call. Research consortia were invited to submit proposals aimed at enhancing grid planning and operations capabilities, as well as solutions to manage new needs such as inertia. EMA will publish the results of the grant call soon.”
“We will have to study this further, because high power battery systems also have to comply with the Singapore Civil Defence Force's fire safety standards, which could require additional space and safety infrastructure in densely populated HDB blocks. Microgrid deployment also comes with real challenges. They could cost more to operate than larger grid systems and may offer lower power reliability if they lack sufficient reserves and redundancies. To be clear, this is not insurmountable. As technology matures and deployment models evolve, we expect many of these challenges to become more manageable over time. Today, microgrids are deployed in Singapore, primarily to support test-bedding of new technologies and in places where there are specific needs. The Singapore Institute of Technology has collaborated with SP Group to develop Singapore’s first experimental urban micro-grid on campus. The micro-grid will support test-bedding of new technologies and solutions in a controlled environment, while providing students the opportunity to work with industry partners and energy startups. In addition, decentralised off-grid energy solutions are commonly deployed by commercial and industrial users. Facilities with critical loads, such as data centres, may invest in on-site generation, battery storage or hybrid systems to enhance reliability, based on their specific needs and constraints. Diesel generators are an off-grid solution that is being used today. They are typically deployed as localised back-up for individual facilities, such as hospitals and data centres, to continue running their essential operations in the event of power disruption.”
“With more solar, batteries and electric vehicles coming online, the grid needs to be able to handle greater variability in both supply and demand. Flexibility is what allows the grid to absorb those fluctuations without compromising stability. EMA's Demand-side Flexibility Roadmap sets out how this will work in practice. Essentially, EV charging stations and smaller battery storage systems can participate in helping to stabilise the grid. For instance, by drawing less power or releasing stored energy when the system is under stress. EMA is currently piloting this with ComfortDelGro to test how it works in a real-world setting. EMA will also launch a Virtual Power Plant pilot. Virtual Power Plants are digital platforms that can aggregate and optimise distributed energy resources such as solar and batteries as a single power source to meet demand. Mr Azhar raised the idea of deploying off-grid and micro-grid power systems across Singapore to support grid resilience and also to serve as backup power in the event of potential disruptions. I thank him for sharing his knowledge and ideas. Indeed, microgrids are one of several distributed energy solutions that we will study further. If managed well, such distributed energy solutions have the potential to provide an additional layer of safeguard by providing energy, ancillary services, or demand response to smoothen peak periods. However, their suitability depends on the operating environment and specific needs, provided the safety requirements and technical standards are met. Mr Azhar suggested the possibility of deploying battery energy storage systems in HDB blocks and microgrids in every town.”
“We will have more distributed energy resources across the island such as rooftop solar panels and battery energy storage systems. Specifically for solar, power generation fluctuates with cloud cover and weather in the daytime. At night, there is no solar electricity. The intermittency brings new challenges to the system. On the demand side, Singapore's electricity demand is expected to increase significantly with the growth of electricity-intensive loads such as data centres and electric vehicles. There will be a greater impetus to manage load profiles to optimise usage of grid capacity. We therefore need to accelerate grid innovation to build a more responsive grid while ensuring system stability and optimising land use. Let me set out what we are already doing. First, we are planning ahead and putting the required infrastructure in place to support the grid of the future. EMA and SP Group developed the Future Grid Capabilities Roadmap last year to chart a clear direction for building new capabilities. One concrete outcome is the upcoming SP Technology Laboratory, which will focus on developing new tools and solutions for grid planning and operations. This is essentially the research and development arm that will help keep Singapore's grid ahead of the curve. Beyond planning, we are also deploying new physical assets to make the grid more resilient. Sembcorp's large-scale battery energy storage system on Jurong Island is one example. It can respond quickly to sudden shifts in supply, helping to keep the system stable when renewable energy sources like solar fluctuate. Second, we are making the grid more flexible and responsive to change.”
“Mr Speaker, I thank hon Member Azhar Othman for his energising Adjournment Motion. The power grid is like the backbone of our body. It holds the system together, connecting power generation sources and end-consumers. The Government recognises the importance of having a resilient and reliable grid to power our economy and our daily lives. A key factor underpinning our grid's resilience is its interconnectedness. The grid is connected to all our power stations. If any generating unit were to trip, other generating units can ramp up to meet the shortfall. The transmission and distribution network itself is also designed with some redundancy to minimise the impact in the event of any single equipment failure. We recognise that a centralised grid also means that upstream disruptions such as interruptions to fuel supply may have system-wide consequences. That is why we have diversified our sources of gas supplies and maintain fuel reserves in case of disruptions. Mr Speaker, we take our power system reliability very seriously. Singapore has one of the most reliable electricity grids in the world today. In 2025, the average power interruption time was less than one minute per customer on mainland Singapore and the average frequency of interruptions was about 0.02 times per customer. I would like to thank EMA, SP Group, and power generation companies (gencos) for the hard work that their engineers and workers put in tirelessly to achieve this. As we introduce more distributed energy resources and renewables such as solar, the grid design will become even more important. On the supply side, our energy mix will become more diverse as we scale up domestic solar and electricity imports.”
“Mr Speaker, I will answer the part about monitoring food prices. The Department of Statistics publishes monthly indices on the import prices of food products. This allows us to assess imported food cost pressures that may in turn feed through some of our domestic food inflation and food and beverage services inflation. The indices cover the non-cooked food price index as well as the food and beverage services price index. On whether we can have forward-looking indices, I think we will have to continue to monitor the situation and as best as we can, provide timely information to businesses as well as to local households.”
“Speaker, I would like to respond to Assoc Prof Kenneth Goh's question regarding price threshold. First, in the context of a petrol, which I mentioned earlier on, regulating or capping petrol or diesel pump prices will distort the market and actually will serve to benefit vehicle users and owners that consume more, and possibly people who are more well-to-do. This may not be a fair way of distributing our limited resources. It will also reduce the incentive for Singaporeans, as well as businesses to switch to more energy efficient modes of transport. Instead, the Government's approach is to ensure that our fuel market remains well-functioning and competitive, so that fuel companies are incentivised to compete, innovate and become more efficient. On electricity prices, on whether it is a price threshold, the electricity prices is something that the Government will continue to watch closely because it affects households and businesses directly. Again, our priority is to make sure that there are enough support measures, such as U-Save, CDC vouchers and targeted support measures for businesses that are more affected by the electricity price increase.”
“Speaker, I would like to respond to Mr Fadli Fawzi's earlier question on petrol prices at the petrol stations. Singapore has a competitive and open economy, and prices naturally would fluctuate in response to various factors, including changes in global supply and global demand. The Government does not dictate the prices or price changes of businesses, so long as the prices are set independently. Instead, the Government's approach is to ensure that the market remains competitive. For the petrol stations, we also know that there are several players in the market. At present, there is no evidence to suggest that the market structure is not competitive. The entry of Cnergy operated by Union Gas is also an encouraging sign, as it provides more choices to consumers. The Competition and Consumer Commission of Singapore will continue to watch closely the pump prices to make sure there is no anti-competitive behaviour by the businesses.”
“I will take the question on helium for semiconductor. For the semiconductor sector, helium is used mainly in wafer fabrication for heat management, cooling and process stability. By and large, the wafer fabs here have a multi-source strategy for helium supplies. And wafer fabs in Singapore, in particular, they have, so far, not expressed immediate operational impact, but have started to activate more alternative supplies. We will continue to work closely with the industry to monitor their needs.”
“I wish to give assurance to the Member that the Government, whether it is JTC, LTA or other organisations and entities that develop different parts of Singapore for industrial, residential and commercial purposes, will always look holistically at the impact not just on businesses and industrial land users, but also the residents around.”
“The answer is yes; we will be attending the hearings.”
“Economies that are subject to Section 301 investigations may choose to submit written comments, participate in public hearings and engage in bilateral consultation with the US Trade Representative. We also note the deadline for submission of written comments and requests to appear at public hearings for both the investigations will be coming up soon. To the question of whether companies will be attending or participating: no, they are not required to participate in the hearings. But we do encourage companies who have feedback or inputs to provide that to MTI so that we can represent them sufficiently.”
“On Singapore being investigated for import of goods passing through Singapore made for wholly or partially with forced labour, I would like to emphasise a few points. First, Singapore takes a strong stance – we also criminalise forced labour in Singapore under various laws, including the Penal Code and the Prevention of Human Trafficking Act. Forced labour is also prohibited under the Constitution of the Republic of Singapore. Relevant Government Ministries and agencies, such as the Ministry of Manpower, the Ministry of Home Affairs and the Singapore Police Force, play their part in investigating complaints of suspected breaches in these domestic laws. Preventing the importation of goods produced with forced labour requires an effective international regulatory framework to investigate and positively identify such goods. This issue is transnational in nature, and there is no international agreed available framework for such investigations at the moment. Singapore will continue to work with international communities through appropriate international platforms like the International Labour Organization, as well as bilaterally with like-minded partners, including the US, to address this issue.”
“This has been covered extensively at the recent Committee of Supply. It is still very relevant and current. In the interest of time, I ask that the Member refer to the details that were covered back then.”
“It is actually premature for us to give any meaningful and useful advice to companies that may potentially be affected by the Section 301 investigations. We are following up with the US authorities to try to better understand the reasons as well as the coverage of these Section 301 investigations. And in the meantime, for firms that require support, we ask that they give the feedback direct to MTI or through the trade associations and chambers, the Singapore Business Federation, for example. We have been keeping in touch with them. Also, there is a Business Adaptation Grant, which remains available to help companies understand the implications of the US tariffs on their businesses.”
“To the first and also the third question, the US has not given us reasons on why they have included Singapore under the Section 301 investigations and neither do we know if other countries might have similar perspective. It is, I think, too early for us to speculate on the reasons as well as the outcomes of the investigations. To the Member's second question, indeed, Singapore has been and will continue to strengthen the diversification of our trade linkages. This was covered at great length at the recent Committee of Supply debate under MTI.”
“The Government will also strengthen resilience of our trade-exposed sectors by helping companies diversify the markets that they serve and deepening Singapore's trade and investment linkages with like-minded partners.”
“On 11 and 12 March 2026, the Office of the US Trade Representative initiated two investigations under Section 301 of the Trade Act of 1974. The first investigation involves 16 economies for structural excess capacity and production in certain manufacturing sectors, while the second investigation involves 60 economies for not adopting or effectively enforcing a ban on the importation of goods produced wholly or in part with forced labour. Singapore and all the other 15 economies involved in the first investigation are subject to both investigations. The US Trade Representative's Federal Register Notice on the investigation into structural excess capacity had highlighted that Singapore enjoyed a bilateral trade surplus with the US in both goods and services amounting to US$27 billion in 2024. The Ministry of Trade and Industry (MTI) has clarified that it was the US which ran a trade surplus of US$27 billion with Singapore in 2024. The US Trade Representative has since removed this inaccurate statement from its Federal Register Notice. As the US Trade Representative's investigations are ongoing, we should not speculate on the basis for or outcomes of these investigations. It would also be premature to comment on the potential impact on our export sectors or workers at this juncture, as the details are not yet available. The Singapore Government will continue to engage the US constructively in the course of these investigations and will provide further updates when ready. In the meantime, the Section 122 tariff of 10% imposed on Singapore's exports to the US since 24 February 2026 remains unchanged. The Singapore Economic Resilience Taskforce will continue to gather feedback on how businesses are affected and address specific concerns as they arise.”
“I thank the Member for her question. Indeed, we have a lot to learn from other countries. We recognise that AI is a strong enabler in the power sector and that other countries could be more advanced than us in the adoption of AI. We are studying various AI solutions, which other countries have deployed for both energy generation and the grid network. Some examples include the use of AI for predictive maintenance of energy assets and the application of machine learning to enhance the operational efficiency of both traditional and renewable energy sources.”
“The Government is committed to growing our own pipeline of talent in the energy sector and helping workers navigate their careers in this exciting space. For example, we have the Skills Framework for Energy and Power developed by SkillsFuture Singapore, Workforce Singapore and EMA with industry and union partners, mapping out the key roles and required competencies, including digital and data skills. For niche skills, the Government will work closely with industry partners and educational institutions to update the curriculum and grow talent to meet the sector's needs. Can I ask the Member Ms Valerie Lee to repeat her second question?”
“Mr Speaker, Dr Choo Pei Ling's questions require very long answers, but I know that we are short of time. I actually suggest that she refer to my speech in the Ministry of Trade and Industry's (MTI's) Committee of Supply (COS). But just to highlight a few key points, Singapore will continue to safeguard and expand our economic space by deepening, diversifying and also defending our economic interest, and also our trade linkages with all our trading partners. We have a robust network of partnerships with like-minded countries that share our commitment to free, fair and open trade, and we will continue to deepen our collaborations with them. In addition to strengthening trade links with key trading partners, we are also pursuing closer trade relations with emerging markets, such as Latin America, South Asia, Middle East and Africa, and also furthering our cooperation in growth areas through digital and green economy agreements, such as the EU-Singapore Digital Trade Agreement. We encourage businesses to continue tapping on our 29 Free Trade Agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership. And as I mentioned at the MTI COS, we are strengthening our regional bloc-to-bloc engagements. These are all done very deliberately with a long-term interest of diversifying and deepening Singapore's network of trade relations.”
“Mr Speaker, we are watching the situation closely. And through SERT, we are keeping close touch with businesses and the workers and industry partners of various sectors to understand the impact and the implications of the tariffs and the great uncertainties. Indeed, like Mr Saktiandi said, there could be further changes to the tariff landscape. Just let me highlight that thus far, the tariffs' impact on Singapore's economy, we have assessed it to be rather limited. I think we are very thankful that there have been measures put in place and there is some resilience in various sectors. The Singapore Business Federation (SBF) is also doing its part, in partnership with the Government, to advise companies. For example, SBF has published a playbook to guide companies on key actions to take, such as how to sense-make the impact through risk-mapping, to take action, such as re-configuring their supply chains, and also planning ahead by digitalising and innovating to build long-term resilience. We stand ready to roll out further measures to support sectors that are affected, when necessary.”
“We will also continue to work with our tripartite and industry partners through the Singapore Economic Resilience Taskforce (SERT) to gather feedback on how businesses and workers are affected. For instance, SERT convened last week to discuss the tariff developments and preliminary sentiments of businesses and workers. The Government is committed to helping our businesses and workers navigate the changes arising from these tariff developments. In October 2025, SERT launched the Business Adaptation Grant (BizAdapt) to help businesses affected by the tariffs to evaluate the impact, optimise their supply chains and reconfigure their operations. The GRaduate Industry Traineeship (GRIT) was also launched as a temporary scheme to help fresh graduates gain industry-relevant experience and skills amid economic uncertainty, so that they are better equipped to transition into full-time employment subsequently. At Budget 2026, the Prime Minister and Minister for Finance announced that support levels under BizAdapt would be raised from up to 50%, to up to 70%. We stand ready to provide further support, as needed.”
“Mr Speaker, on 20 February 2026, the Supreme Court of the United States struck down the US' "reciprocal" tariffs that were imposed on the US' trading partners under the International Emergency Economic Powers Act. On the same day, the US announced a tariff of 10% under section 122 of the Trade Act of 1974 on all US imports for 150 days. The US Customs and Border Protection started collecting this 10% tariff from 12.01 am on 24 February 2026, US time. While US President Donald Trump announced via a Truth Social post on 21 February 2026 that the tariff rate would be raised to 15%, the US has yet to issue an official directive on this increase. The immediate direct impact of these tariff developments on Singapore's economy is not expected to be significant, given that the current section 122 tariff of 10% is broadly unchanged from the previous 10% "reciprocal" tariff that had been imposed on Singapore's exports to the US since April 2025. Those sectors with a greater dependence on the US for final demand and whose exports are covered by the section 122 tariff, such as the precision engineering cluster and some segments under the general manufacturing cluster, could see a greater impact from any tariff increase. There remains considerable uncertainty. It is unclear if the current 10% section 122 tariff will be raised to 15%. It is also unclear what the overall tariff landscape will be after the current 150-day timeline. At the same time, we may see sectoral tariffs under section 232, as well as tariffs imposed under different legal authorities in due course. We will continue to monitor such developments closely and engage our US counterparts to ensure that our economic interests are safeguarded.”
“Mr Speaker, I have also done my LPA. May I have your permission to answer oral Questions Nos 5 to 7 by Mr Saktiandi Supaat and Dr Choo Pei Ling, as well as the written question filed by Assoc Prof Terence Ho for the 10 March 2026 Sitting, as they all relate to the United States (US) tariffs.”
“Mr Chairman, I thank Mr Victor Lye for his clarifications on the idea of a Singapore industrial estate in the Johor-Singapore SEZ. It is an interesting idea and we will be happy to facilitate if there are interested commercial parties that are willing to invest in this estate. On creating arrangements for people to be able to live in the SEZ and be able to work seamlessly in both places, we are exploring a Digital Nomad Pass between the Singapore Government and the Malaysian government. And just for your information today, Malaysia already has an existing Digital Nomad Pass, which allows foreigners to reside in Malaysia without being employed there. So, there is already something that we can leverage and we are looking at enhancing it further.”
“We have also launched negotiations on the Green Economy Partnership Agreement with Chile and New Zealand. Lastly, we are actively strengthening our economic security through close collaboration with trusted partners. We are finalising a first-of-its-kind Agreement on Trade in Essential Supplies with New Zealand. This is to keep our trade in essential goods, like food and pharmaceuticals, uninterrupted even during global crises. We are partnering with like-minded countries to uphold and shape the open, rules-based multilateral trading system. We launched the Future of Trade and Investment Partnership, bringing together 16 small, medium and trade-dependent countries to address emerging challenges and opportunities in global trade and investment. We continue to expand high-quality regional agreements, like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership, while building bridges through inaugural dialogues between the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, EU and ASEAN. Mr Chairman, our efforts to expand our economic space and create quality industrial spaces enable Singapore to remain a competitive destination for firms and to catalyse innovation. My MTI colleagues and I have shared on our strategies to create growth and good jobs for Singaporeans, and this is crucial amidst a climate of uncertainties. We will strive to ensure that Singapore remains a trusted and dynamic hub for trade and capital, securing a brighter future for Singaporeans.”
“Meanwhile, we are enhancing our partnerships with other major economies. We are deepening our engagements with India in high-value growth areas, such as semiconductors, aviation maintenance, repair and overhaul services and space technology, positioning Singapore companies as early movers into India's market. Our Digital Economy Agreements with the EU and the European Free Trade Association are entering into force in early 2026. These will provide our companies with legal certainty in cross-regional digital transactions. Closer to home, we continue to push for deeper regional economic integration through ASEAN. Last year, ASEAN upgraded two landmark agreements which are used extensively by our traders. These are the ASEAN Trade in Goods Agreement and ASEAN-China Free Trade Area 3.0. We also concluded the Digital Economy Framework Agreement to work towards a single and trusted regional digital ecosystem. As Singapore assumes ASEAN Chairmanship next year, we will work with fellow members to build a more seamless economic community and accelerate growth in our digital and green economies. We are diversifying our economic links with emerging markets and growth sectors to unlock new opportunities for Singapore firms. We continue to work with our Latin American partners through FTAs with the Pacific Alliance and MERCOSUR, whilst venturing into South Asia, the Middle East and Africa with newer trade and investment agreements. This will boost our firms' confidence to invest across these dynamic markets. We are expanding participation in the Digital Economic Partnership Agreement. It will soon grow to six members with Costa Rica and Peru joining later this year, while China and the UAE are in accession discussions.”
“Its facility in Woodlands North Coast serves as a sales, innovation and R&D facility, whilst its Johor facility manufactures the components. As a crucial node in Edmund Optics' global footprint, this twinned ecosystem has helped the firm remain cost-efficient and competitive while providing jobs to people in both countries. The RTS Link will make this ecosystem connection even more seamless. I thank Mr Victor Lye for his suggestions on how we can better support our firms to seize the opportunities in the Johor-Singapore SEZ. MTI will study his proposals carefully. Mr Chairman, beyond providing quality industrial spaces, we must also safeguard and expand Singapore's international economic space. Trade is the lifeblood of Singapore's economy. With total trade exceeding three times of our GDP, global connectivity creates real opportunities for Singaporeans. However, we know that global trade is also fragmenting. Countries are prioritising economic security over open markets and competition for investments is intensifying. Mr Azhar Othman asked how we could better support our firms to access overseas markets. In this uncertain environment, strong international partnerships are more crucial than ever to help our firms internationalise. Our approach focuses on three strategies. First, we are deepening our economic ties with key partners. We continue to engage with the US and China as long-standing partners based on shared economic interests. We mark 60 years of Singapore-US diplomatic relations this year and we are expanding cooperation in AI, quantum and advanced nuclear energy technologies. With China, we continue to strengthen our economic partnership through flagship joint projects in Suzhou, Tianjin and Chongqing, which celebrated its 10th anniversary last year.”
“30 pm Another key pillar is PDD's Open Digital Platform, which collects district data and allows lifelike simulations. JTC is working with the Infocomm Media Development Authority, GovTech and SIT to enhance the collection and sharing of the data. The Open Digital Platform will link the innovations to PDD's infrastructure, such as gantries and lifts, to run real-world pilots. For instance, if a robotics startup like dConstruct Robotics wants to deploy applications, such as autonomous delivery, their robots can navigate buildings to deliver parcels or food to users, bringing greater convenience to the PDD occupants. Beyond catalysing groundbreaking developments here, our firms must seize opportunities regionally. ASEAN is projected to be the world's fourth-largest economic bloc by 2030 and we are building nodes including the Johor-Singapore Special Economic Zone and Batam Bintan Karimun. JTC is master-planning an exciting new Woodlands Gateway district around the upcoming Rapid Transit System (RTS) Link station, which will be our northern gateway to the Johor-Singapore SEZ. This mixed-use district, spanning up to 35-hectares, that is about the size of 50 football fields, will include a transport hub connected to the RTS Link and Woodlands North MRT stations. The first phase is expected to complete around 2030. Woodlands Gateway will offer commercial and lifestyle amenities for commuters, residents and people working in the Woodlands North area. It will also provide flexible industrial spaces. Given its proximity to the RTS Link, Woodlands Gateway will cater to firms siting manufacturing in Johor with their regional HQ functions in Singapore. Leading global precision optics supplier, Edmund Optics, demonstrates the benefits of this twinning model.”
“Deputy Prime Minister Gan had spoken earlier on establishing Singapore as an AI leader. Mr Saktiandi Supaat also suggested that our growth be supported by AI diffusion across sectors, among other productivity measures. It is crucial for our budding community of AI leaders and practitioners to have a space to share ideas and build new products. Kampong AI will meet this need. It comprises two adjacent seven-storey developments – one block with 14,500 square metres of business park units and event spaces accommodating around 70 companies. The other block will have 200 residential units. It will be developed through repurposing blocks in the extended LaunchPad, within walking distance of One-North and Kent Ridge Mass Rapid Transit (MRT) stations. While only fully ready by 2028, pilot workspaces will be available in LaunchPad @ One-North from 2026 onwards for firms that want a headstart. Moving on to another part of Singapore, JTC will be establishing a new LaunchPad at Punggol Digital District, completing it in phases from end of 2026. As a smart district embedded within the community, Punggol Digital District (PDD) is the ideal testbed for translating innovations in smart city, robotics and cybersecurity sectors into real-world solutions. It houses startups, industry, academia and the community under one roof. The growing ecosystem of companies and agencies in PDD include UOB, OCBC, GovTech, Cybersecurity Agency of Singapore and Singapore Institute of Technology (SIT). Training providers, such as SITLEARN, SIT's Continuous Education Training centre, will have a front-row view of innovation development to incorporate these new skills into its adult learning curriculum. 2.”
“A key highlight of the refresh, as mentioned in the Prime Minister's Budget speech, is a new AI park called "Kampong AI". This will be Singapore's hub and home for AI. It will be the first startup community in Singapore with work and living spaces under one roof. When ready in 2028, Kampong AI will be the place for AI startups and talent to congregate and exchange ideas. Startups can house their researchers and developers here, leveraging the events, speakers and demos happening at the same place. With your permission, Mr Chairman, may I ask the Clerk to distribute visuals of Kampong AI and other developments that I am sharing on. Members may also access them through the MP@SG Parl app.”
“Mr Chairman, Minister of State Alvin Tan has just spoken on how we can catalyse startup communities by availing capital to help them scale. I will focus on how we provide physical space and critical infrastructure to support startups in Singapore. Let me start with LaunchPad @ One-North. One-North by JTC is our main node for startups. It is a major knowledge and innovation district and it houses leading firms such as Grab, Razer, Sea and research institutions in A*STAR, the National University of Singapore (NUS), National University Hospital (NUH) and Singapore Science Park. Since JTC repurposed Block 71 Ayer Rajah Crescent and expanded the startup hub in 2015, LaunchPad @ One-North has supported over 2,400 startups, including tech unicorns Carousell, PatSnap and Nium. Today, it hosts over 30 incubators, accelerators and venture capital firms. Home-grown company Igloo is one such startup that LaunchPad has nurtured to success. Beginning with smart lock solutions in 2016, it has scaled to enterprise-grade access control software for property and facilities management. It has expanded to eight countries, including the US and China, with about 80 global distributors and 90% of its revenue coming from abroad. The Ministry of Digital Development and Information announced recently that it is extending its AI co-working space, Lorong AI, at Cross Street to LaunchPad. To create more space for next-gen startups such as those in Lorong AI, JTC will extend and refresh LaunchPad, making it Asia's flagship startup destination. This follows recent engagements with the startup ecosystem, including venture capital funds and accelerators. The refresh will essentially boost the vibrant environment for startups to work, live and play.”
“Closer to home, we have also refreshed our partnerships with China, Australia and Korea to conduct courses on topics, such as sustainable development and green economy. In addition, we launched a new training programme with New Zealand in 2025 for the Pacific islands on leadership training for the public service. We have also forged development partnerships with international organisations, just to name a few – the United Nations Children's Fund, UN Development Programme, World Health Organization, WTO, World Bank, International Civil Aviation Organization and International Maritime Organization. With the IMF, we worked with the IMF-Singapore Training Institute and IMF Pacific Financial Technical Assistance Centre to provide training for senior finance officials from the Pacific Island countries. We also started a collaboration with Google to tap on private sector expertise into our programme for AI Policy Leaders. Collectively, these efforts allow Singapore to play a part in the capacity-building needs of developing countries. This is especially salient today when there are fewer global resources available to support development assistance. Our programmes and partnerships profile Singapore as a responsible member of the global community and pave the way forward for further collaboration.”
“For example, MFA co-organised a two-day training programme last year, conducted in Dili by the Institute of Southeast Asian Studies (ISEAS)-ASEAN Studies Centre, on key ASEAN issues and ASEAN's work. Timor-Leste Prime Minister Xanana Gusmão said during his visit to Singapore last year that Singapore's support has made "a real difference" and reflected a friendship that was "measured in actions, not words". For the African region, our most recent development assistance programme, the Singapore-Africa Partnership Leading to Growth and Sustainability (SAPLINGS) Package, was launched by Prime Minister Lawrence Wong during his bilateral visit to Ethiopia in November 2025. Under SAPLINGS, we welcome African officials to visit Singapore on customised study visits and education programmes to learn about our development journey and also, to exchange learning points. Dr Hamid Razak asked about expanding Singapore's networks with middle powers and international organisations. We are working with like-minded partners to pool our strengths in delivering and developing assistance programmes to third parties. Such partnerships allow us to amplify our contributions and ensure that our development assistance is relevant, sustainable and impactful. We have nearly 30 third-country training programmes today. In Latin America, we are partnering Chile, Brazil, Mexico, Colombia and Argentina to deliver courses to officials in ASEAN, Latin America and the Caribbean, on digitalisation, food safety and disaster risk management. Our Regional Training Centres in Oman, Jordan and Qatar train officials from Middle East, Asia and Africa on topics, such as public governance and digitalisation.”
“We have revamped MFA's Development Partnership Directorate to better integrate Singapore's development assistance across Government agencies, international organisations and foundations to deliver the best possible outcomes. We are now better able to mobilise Singapore's full ecosystem – combining policy expertise, industry capabilities and practical know-how – and expand our focus to new domains, such as the digital economy and climate resilience. Our development partnerships span over 180 countries and territories. Altogether, we have supported more than 163,000 foreign officials through training and capacity-building programmes. The ASEAN region is especially important as 60% of the SCP's participants hail from Southeast Asia. Programmes such as the Initiative for ASEAN Integration, aim to narrow the development gap within ASEAN and enhance regional integration, while we tailor customised bilateral programmes for countries' specific development needs. Our capacity building initiatives in Southeast Asia extend to both major cities as well as cities in the provinces, such as Batam and East Java in Indonesia, as well as Hai Phong and Ho Chi Minh City in Vietnam. One of our key focus is supporting ASEAN's newest member, Timor-Leste, in its capacity-building. It is in Singapore's interest for Timor Leste to become a successful and contributing member of ASEAN. In 2025, we launched an enhanced Singapore-Timor Leste ASEAN Readiness Support (eSTARS) package. The eSTARS package helps to familiarise Timorese officials with important aspects of ASEAN, including key ASEAN economic agreements.”
“Mr Chairman, much has been said about the changing international order. Against the backdrop of a world that is marked by geopolitical competition and great power rivalry, MFA’s work has become more salient. To safeguard Singapore’s national interests, we need to expand our international partnerships and support a rules-based multilateral approach towards solving global challenges like climate change. I will talk about how Singapore supports the development of other countries and how MFA provides consular assistance to Singaporeans who need help overseas. At the 2025 S Rajaratnam Lecture, Prime Minister Lawrence Wong set out how Singapore must meet the challenge of an increasingly uncertain world. Rather than retreat, he urged us to “reach out; not to build barriers, but to build bridges”. 1.30 pm We believe in the transformative role of human capital in driving social progress and economic prosperity of a nation. This is Singapore's development story. It is a story that we are happy to share to help others in their development journey. This was why Singapore started the Singapore Cooperation Programme (SCP) in 1992, to enhance the capabilities of developing nations through capacity building and knowledge sharing. Through SCP, we built bridges that support and connect countries. To a large extent, the SCP is our way of paying it forward after having received assistance from our foreign friends during our early years of Independence. Our investment in development partnerships also forms a key part of our strategy to engage with the global South and create future opportunities for collaboration. Assoc Prof Kenneth Goh asked about strengthening our capacity-building platforms.”
“Also, for the question from Mr Fadli on the changes that were made to the scheme in 2023, whether we have since then seen a change in the profile and the volume of applicants for this scheme – since the scheme has been reviewed quite recently, we are not seeing a major change in the profile yet. In fact, I would say that prior to 2023, the GIP funds comprised mainly of local funds, and also the select funds were subsequently introduced. The applicants who have selected to invest under the GIP select funds are still going through the application process and have yet to confirm on their investments.”
“Mr Speaker, I thank Mr Fadli for the supplementary questions. I do not have on hand the figures on the number of PRs, or the proportion of PRs under the GIP scheme who subsequently applied for Singapore Citizenship, nor do I have the data on the retention of these investors as PRs. Subsequently, I invite Mr Fadli to file further Parliamentary Questions for that. But I would like to share that EDB works with the GIP recipients to ensure that they continue to fulfil the Government's specified economic and residency commitments during their stay. And GIP PRs are required to submit evidence of the Singapore-based companies that they have invested in. EDB will also conduct visits to these companies to assess the company's business activities. Only GIP PRs who meet both economic and residency commitments under GIP will subsequently have their so-called re-entry permit renewed for a further five-year period.”
“The answer is yes, we do look at various indices and indicators to understand the impact of inflation on different household income groups. For example, for the lowest 20% income household groups, we know that last year the CPI-All Items inflation for them was 0.6%. And this is different from that for the middle 60% income group of 0.9%. We do look into such details, so that we can provide targeted support to Singaporeans, especially those from the lower-income household groups.”
“Mr Speaker, Singapore's exports to the United States (US) are currently subject to a baseline "reciprocal" tariff rate of 10%. The US has also imposed various Section 232 sectoral tariffs that are applicable to Singapore, such as on steel and aluminum. Singapore's non-oil domestic exports to the US fell by 9.2% year-on-year from April to December 2025. The tariffs and corresponding decline in exports to the US are not expected to have a direct impact on Singapore's inflation. This is because the tariffs are paid for by the US importers. Nonetheless, there could be an indirect impact if higher prices in the US lead to an increase in the prices of its exports, including to Singapore, in the future. Thus far, we have not observed any tariff impact on Singapore's import prices, with our import prices falling in 2025. In turn, the decline in import prices helped to lower Consumer Price Index (CPI)-All Items inflation and Monetary Authority of Singapore's Core Inflation to 0.9% and 0.7% respectively last year. We will continue to closely monitor our import prices and inflation rates and the corresponding impact on Singaporeans, especially those from lower-income household groups, and we stand ready to provide further support if needed.”