Heng Swee Keat
Singapore
“In a world heading towards greater contest and fragmentation, amid rapid advances in science, technology and innovation, Singaporeans can play a valuable part as bridge-builders and connectors, and Singapore can be a trusted and neutral Global-Asia node of technology, innovation and enterprise.”
“The National Quantum Office has identified specific goals under the National Quantum Strategy (NQS), with resources and efforts directed towards specific quantum areas and technologies accordingly.”
“Mr Speaker, Sir, I would like to thank Member Ms Denise Phua for her comments because her comments reminded me of the tagline that I always said when I was in MOE – that you can learn from anyone, anytime, anywhere. In fact, peer learning is a very important aspect of that learning.”
“But I have laid out the strong basis for my optimism that a small and open economy like Singapore can continue to thrive and secure our next bound of growth. By serving as a trusted node and connector, we can create value by facilitating connections and building new linkages in today's fractured global landscape.”
“Secondly, one other very important thing the Member must bear in mind is that AI is a very rapidly developing field and it is something which our researchers are working hard on, to look at the different techniques of AI – it is not just GenAI, but the whole range of different AI systems that are being used – and how that can be used in c…”
“Assoc Prof Jamus Lim, you do not need an invitation. You are free to provide your suggestion. After all, are you not from WP? And by the way, let me make it clear that I have heard MPs on both aisles speaking about workers, and we have a very strong presence of our union MPs here and they will be speaking even more on this.”
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“While revenues are coming down, our expenditure will be going up, to enable us to respond effectively to the crisis. In the past few years, we benefited from unexpected revenue upsides, such as exceptional Statutory Board Contributions from MAS and increased stamp duty collections. We cannot hope to rely on a repeat of this. Instead, we must be prepared to bear the downsides when they happen. Because we have been prudent and did not decide to spend all of the surplus that we collected, we are ready to meet such downsides. We can expect significant volatility in the economy and in financial markets in the near future. We will need to continue to review our expenditure plans very carefully in this fluid situation. We must stay nimble and adapt our responses as new developments occur. We will adopt a nimble fiscal posture so that we can quickly channel the resources at hand to the most urgent and important needs of our people. All of us must remain prudent in the use of our resources. Because of the urgency of the situation, we are providing significant help to many groups in this Budget, in a broad-based manner so that we can reach as many of those who need help as possible and as quickly as possible. I hope that those who receive support will use the resources wisely and responsibly, or channel it to those who may need it more. At the same time, we will not hesitate to take action against any abuse. Mr Speaker, Sir, before I conclude, allow me to say a few words in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] The COVID-19 pandemic is progressing aggressively, causing significant losses to the global economy. In the past few weeks, the number of confirmed cases worldwide has increased exponentially.”
“] Let me caution that there remains a high level of uncertainty over the future course of the outbreak. Unlike the Global Financial Crisis or the Asian Financial Crisis, where both the causes and solutions were economic and financial in nature, this crisis is far more complex, with additional medical, social and psychological dimensions. The global economy is also more deeply intertwined with many complex inter-linkages. The COVID-19 situation is fluid and fast-moving, and nobody is quite sure how it will develop. But because we have prepared ourselves well, Singapore has the resources to meet this crisis with confidence. We will use our resources to get through this together. Once again, let me thank the President and Members of the Council of Presidential Advisers for your support. The Government will continue to monitor the situation closely and do more as and when we need to. Should it become necessary, I am prepared to propose to the President further draws on Past Reserves to deal with the situation. I trust that every Member of this House will deeply internalise the mission to be careful stewards of our reserves. The measures that I have announced today will raise the Overall Budget Deficit for FY2020 to $39.2 billion. Details are at the Annex. [Please refer to Annex C-2.] We are able to support this unprecedented deficit and still remain fiscally sustainable because we have been disciplined in the use of Past Reserves, tapping on it only in exceptional circumstances like this. The situation remains highly fluid and uncertain, with significant risks. Our fiscal position will be affected from both the revenue and expenditure sides. With a weak GDP outlook, our revenues will be affected. Sentiment-driven revenues may come down sharply.”
“The COVID-19 pandemic, and the multiple threats it poses to our nation, is the sort of event that we had accumulated reserves for. We have saved up for a rainy day. The COVID-19 pandemic is already a mighty storm, and is still growing. If over the years we had frittered the reserves away, on more immediate but less existential needs, big and small, as some in this House have pressed the Government to do, we would be in a much weaker position today. We are experiencing a confluence of multiple external shocks – a pandemic that has triggered many nations to shut their borders, limit exports and halt economic activities in order to fight this pandemic. The economic impact is magnified, as the global economy is already fragile and further weakened by a protracted US-China trade conflict and an oil price war. So, this is not a normal business cycle that we would have anticipated and dealt with using the revenues collected by each term of Government. It is a "black swan" event that comes only once every few decades. In view of the exceptional circumstances, the Government has sought the President's in-principle support to use Past Reserves to fund part of the package. Before my Ministerial Statement, Members heard the President's message to Parliament, delivered on her behalf by the Speaker. The Government has obtained the President's in-principle support to draw up to $17 billion to fund some of the measures to save jobs and the economy. These include the Jobs Support Scheme enhancements, the Self-Employed Person Income Relief Scheme, the Temporary Bridging Loan Programme, the enhanced Enterprise Financing Scheme and the enhanced Aviation Support Package. Details are at the Annex. [Please refer to Annex C-1.”
“Our founding fathers created a rigorous framework to ensure that such strategic assets are used only for the right purpose. We amended the Constitution in 1991 to provide for an Elected President who is the custodian of our Past Reserves. Under Article 148A of the Constitution, the President can withhold her assent to any Supply Bill if she is of the view that it is likely to draw on Past Reserves. Our principle is that each term of government must live within its means. Any additional spending that the Government of the day proposes must be funded in a sustainable manner – recurrent expenditures should be funded from recurrent revenues. Past Reserves can be drawn down only in exceptional circumstances, under a two-key system, if the President, after consulting the Council of Presidential Advisers, agrees with the Government’s proposal to draw on the Past Reserves in exceptional circumstances. Despite political pressure to dip into the reserves, the Government has scrupulously upheld the principle that Past Reserves are to be used only for exceptional circumstances. Until now, the Government has drawn on Past Reserves only once, during the Global Financial Crisis, when the President approved a draw of $4.9 billion to fund the Jobs Credit Scheme and special risk-sharing initiative. During that period, the Government also sought the President’s concurrence to use $150 billion of Past Reserves to back the Deposit Guarantee Scheme. I was in MAS at that time when we had to ask for this, and it took us a long time to deliberate on this before we even did that. As it turned out, the guarantee was not triggered, and there was no draw on the Past Reserves.”
“The Minister for the Environment and Water Resources launched the SG Clean campaign in February to drive higher levels of personal and public hygiene, not just during the COVID-19 outbreak, but beyond. To make a real difference to public health outcomes, we will need the collective action of businesses and individuals alike. The Government will help. We are already offsetting the audit and certification fees for tourism, retail, and food services businesses participating in SG Clean. We will also co-fund businesses to undertake professional cleaning of premises which have experienced a confirmed COVID-19 case. MEWR will share more details in due course. Together with the support that we are providing to workers and households, these will help to keep social bonds strong, encourage social responsibility and foster trust in our society. To summarise, even as we deal with our immediate challenges, we must keep our sights on the future. With our collective creativity and resilience, Singapore can emerge stronger from this, both as an economy and as a society. Let me now elaborate on our considerations for drawing on the Past Reserves in this Budget, and our fiscal position after the measures I have put forth to tackle the COVID-19 pandemic. Our reserves are our strategic asset, built up through the discipline and prudence of our people and political leaders, across generations. Our reserves serve as our bulwark against shocks and crises of an extraordinary nature. For a nation with no oil, no gas, no gold, no diamonds, or natural resources of any kind, it is remarkable that we have built this up. Our prudence and discipline in saving and growing our reserves give us the wherewithal to respond decisively when our nation faces extraordinary circumstances.”
“SSG has worked with Institutes of Higher Learning and Continuing Education and Training Centres, to allow Singaporeans to make early use of the base $500 SkillsFuture Credit Top-up for their courses from 1 April 2020, ahead of the full implementation date in October. I hope this will help many more workers, jobseekers, and self-employed persons make use of the downtime to learn, develop new skills and stay employable. Let me now touch on building social and psychological resilience. I mentioned earlier that we are spending over a third of this Resilience Budget to save jobs, protect workers and support households. This is ultimately about keeping our society strong. It is about giving us a sense that we are in this together, that we will look after those in need and trust in one another. But building a strong society is not just about giving more social support. It is also about fostering a culture of social responsibility. We will do what we can to encourage this. As the COVID-19 situation develops, we may need to introduce a broader range of safe distancing measures to stop the transmission chain. Everyone must play their part to comply with these measures, for the sake of others. But it may sometimes be costly for employers and households to comply with these measures. We will provide help where appropriate to mitigate the impact and support responsible behaviour. For example, we have provided support for the costs of quarantine accommodation, to mitigate the costs to individuals and families. The outbreak has also been a stark reminder of the need for good public hygiene.”
“Today, they can leverage the SMEs Go Digital Programme, the Productivity Solutions Grant (PSG) and the Enterprise Development Grant (EDG) to do so. I will further enhance these programmes to give businesses a boost during this period. First, I will enhance the SMEs Go Digital Programme to provide support for more digital solutions, from basic remote working tools, to more advanced systems. Second, I will raise the maximum support levels for PSG and EDG to 80% and 90% respectively to spur transformation. The enhancements to these three schemes will last until December 2020. To support our workers to stay resilient, we will enhance our support for skills upgrading. In our Unity Budget, we raised course fee subsidies and absentee payroll to 90% for the aviation, tourism, food services and retail trade sectors, to last until June 2020. I will extend the enhanced training support to the arts and culture and land transport sectors, starting from 1 April 2020. And I will extend the 90% absentee payroll rates to all employers, to provide additional cash flow relief when they send their workers for training, from 1 May 2020. The duration of the enhancements will also be extended to cover eligible courses starting before 1 January 2021. [Please refer to Annex B-9.] At the individual level, we can all continue to grow and learn in this time of disruption. The SkillsFuture movement is a big part of this. At the Unity Budget, I launched the Next Bound of SkillsFuture to further support our people in acquiring new skills.”
“This is currently used in nine local hospitals and has been sent to several countries including China, Myanmar and the Philippines. We will continue to make steady investments in R&D, under our masterplan for Research, Innovation and Enterprise. I will provide more details on this towards the end of the financial year. COVID-19 has also emphasised the importance of having resilient supplies of food and other essential items. We are building up our national stockpile of health supplies, including masks and hand sanitisers, so that we will continue to be well-stocked. Some may be concerned about the impact on our food supplies, arising from supply chain disruptions. We need not worry. We have in place a robust, multi-pronged strategy, to ensure that we continue to have a stable supply of safe food. As we did with water, we are strengthening our food resilience for the long term. Under our "30 by 30" vision, we aim to produce 30% of our nutritional needs by 2030, up from less than 10% today. At the industry level, all firms have a part to play in building economic resilience, as we prepare for recovery. This is why we introduced the SG Together Enhancing Enterprise Resilience (STEER) programme, which supports industry-led initiatives to help companies tide over today’s economic uncertainties and build longer-term capabilities. The Government will now match $1 for every $2 raised by Trade Associations and Chambers (TACs) or business groups for qualifying initiatives, doubling the earlier matching rate of $1 for $4. I encourage more TACs and industry groups to join us in helping the business community emerge stronger and better from this crisis. Businesses should continue to make use of this downtime to digitalise, restructure, and transform.”
“This will save jobs and support upskilling and digitalisation of the sector. First, we will provide additional support to major companies and leading arts groups, which are integral to our vibrant arts scene. This will help safeguard jobs and retain capabilities in our local arts ecosystem. Second, we will enhance the National Arts Council’s Capability Development Scheme for the Arts, to deepen skills and support the professional development of arts organisations and practitioners. Third, we will step up digitalisation efforts, by building the sector's digital capabilities, and establishing more digital arts platforms which can reach out to new audiences. MCCY will share more details later. The third thrust of the Resilience Budget is to build resilience in our economy and society, as we battle this downturn, and build capabilities for when the eventual recovery comes. Let us not face COVID-19 with fear and despair, but with a spirit of resilience. This means keeping our eyes on the future and staying the course, even in the face of hardship and adversity. If we prepare ourselves well today, we can emerge stronger, not only as an economy, but as a society. I will set aside $1.9 billion in this Budget to support this. We will build economic resilience at all levels. At the national level, we will continue to invest in our long-term capabilities for growth. The COVID-19 outbreak has reinforced the importance of investing in R&D to prepare for critical challenges – such as in managing pandemics and ensuring food security. Our investments in R&D have borne fruit. It has enabled Singapore to become one of the first countries to successfully develop COVID-19 test kits. An example is the Fortitude 2.0 kit developed by A*STAR and Tan Tock Seng Hospital.”
“Apart from the aviation sector, several other tourism-related industries, from hotels and attractions to travel agents and bus companies have had a difficult time. As mentioned earlier, I will therefore also enhance the Jobs Support Scheme for licensed hotels, travel agencies, tourist attractions, cruise terminals and operators, and purpose-built MICE venue operators, to offset a total of 75% of the first $4,600 of monthly wages. In addition, I will set aside $90 million to help the tourism industry rebound strongly, when the time is right. Beyond sectors that depend directly on international travel, sectors that involve a high level of human interaction will take a hit from the recently-announced safe distancing measures. Food services is one such sector, with more Singaporeans avoiding crowds and choosing to eat at home. As mentioned earlier, I will enhance the Jobs Support Scheme for F&B firms by providing a total of 50% wage offset, for the first $4,600 of monthly wages. Our taxi and private hire car or PHC drivers have seen their takings fall significantly, as more people work from home and as visitorship falls. To support them, we will extend and enhance the Point-to-Point Support Package. This will cost the Government another $95 million. Eligible taxi hirers and PHC drivers will continue to receive the Special Relief Fund payments of $300 per vehicle per month until end-September. We will also extend support to the taxi and PHC operators. To help private bus owners, I will provide them with a one-year road tax rebate and a six-month waiver of parking charges at government-managed parking facilities. This will cost the Government $23 million. For the arts and culture sector, we will provide an additional $55 million support package.”
“This will also allow Singapore to retain a minimum level of connectivity to the world even during the pandemic. This is critical to enable overseas Singaporeans to return home and keep our supply lines for essential goods open. The SIA Group sits at the heart of our aviation eco-system and anchors our position as an air hub. In 2019, SIA Group accounted for over half of passenger traffic and cargo tonnage in Singapore. As the main hub carrier, SIA links us to the rest of the world. Many foreign airlines chose to come to Changi because they can tap on SIA's connectivity to the rest of the region. A diminished SIA will undermine our air hub's ability to recover from the crisis. Air travel would eventually resume when COVID-19 comes under control. Until then, SIA will need liquidity to tide over this outbreak. In this regard, SIA will benefit from the Enhanced Jobs Support Scheme and the Enhanced Aviation Support Package which will help reduce its operating expenditure. Members will be aware that SIA requested a halt to trading of its securities this morning. I have been informed that SIA is considering a corporate action, supported by Temasek Holdings and will be making an announcement in due course. I welcome Temasek's decision to lend support to SIA. SIA is an outstanding airline and a strategic asset for Singapore. Through the Government's support for the aviation sector and, if necessary, more direct support measures, we will make sure that SIA is able to come through this in good shape. [Applause.] Ultimately, this is about preserving the status of our air hub so that it can emerge stronger from this crisis. Riding out this storm will require patience and adjustments. With resilience, I am sure our air hub will be able to emerge stronger.”
“It enables Singapore-based companies to access growth opportunities overseas, and catalyses investments and business location decisions by overseas companies here. The air hub supports other economic sectors, such as tourism, manufacturing and logistics, and anchors aerospace companies like Rolls Royce and Airbus here. The Changi Air Hub is an important pillar of our economy. The hub and its adjacent industries contribute over 5% of Singapore's GDP and employ approximately 192,000 people. It makes us an ideal Global-Asia node, where companies all over the world can access opportunities in Asia and companies in Asia can access opportunities around the world. Our aviation sector has significant linkages to the rest of our economy. If it collapses in a crisis, it will be very hard for the aviation industries to rebuild after the crisis is over, and the recovery of the rest of the economy will be impeded. We must, therefore, ensure that this temporary shock to our air hub does not become a permanent one. We will support our aviation sector to ride out the COVID-19 pandemic. To help businesses whose activities are based principally in the aviation sector retain their local workers, I will provide an enhanced Jobs Support Scheme. For every local worker in employment, I will provide a total of 75% wage offset for the first $4,600 of monthly wages. This will be paid in the same months as the main Jobs Support Scheme pay-outs. This enhancement will cost the Government more than $400 million. I also introduce a $350 million enhanced aviation support package to fund measures such as rebates on landing and parking charges, and rental relief for airlines, ground handlers and cargo agents.”
“COVID-19 is the single biggest shock that air hubs and airlines around the world have ever experienced. The International Air Transport Association projected that COVID-19 will hit worldwide airline revenues by up to US$250 billion this year. This is more than 40% of last year’s overall revenues. This will have a profound impact on the global aviation sector for years to come. Consolidation is expected. The better-prepared ones will emerge stronger. Against this backdrop, governments around the world are taking steps to support their carriers. For example, the US administration has indicated its intent to support both US airlines and aerospace manufacturers. State support for the private sector where there are critical national interests at stake is not unprecedented. During the Global Financial Crisis, the Americans and Europeans stepped in to support their key financial institutions and other companies in major sectors, to avoid wider contagion to the rest of their economies and preserve key economic assets. Air hubs and airlines with large domestic markets are under stress. Our air hub, with only international traffic, faces an even sharper impact from widespread international border closures. As of 24 March 2020, daily passenger traffic has fallen by more than 90%. The Singapore Airlines Group (SIA) has announced a 96% cut to their scheduled capacity up to end-April across their entire network. Global connectivity is of fundamental importance to Singapore. It links us to the rest of the world. We are connected by more than 100 airlines to some 380 cities in about 100 countries and territories worldwide. We are an open, globally-connected society. Air connectivity connects us to families and friends studying, working, and living abroad.”
“Concurrently, MAS is working with banks and insurers to see how best to help businesses and individuals facing cash flow challenges with their loan obligations and insurance premium payments. Details of these measures will be announced by MAS and the industry later. All these measures deal with helping people financially. But there is also an important and complementary part – giving people relief from legal obligations that have arisen because of the COVID-19 situation. It is no fault of theirs that they cannot perform these obligations. For example, people may have paid deposits for a big gathering that now cannot go ahead. It is not their fault that the gathering cannot go ahead. Should the deposits be simply forfeited? That would not be right. The Government is studying the issue, and the Minister for Law will present a set of measures to deal with this at the next Parliamentary sitting. On top of the broad-based support to help businesses address the three "C"s, I will provide additional help to specific sectors that are most directly affected by COVID-19. [Please refer to Annex B-8.] Sectors that rely on tourism and international travel have been hit the hardest. The sharp drop in international visitors has impacted the whole tourism eco-sector, from our airport and airlines, to hotels and attractions and their tenants, to travel agents and bus companies. The aviation sector sits at the core of this eco-system. I spoke earlier about countries enacting border control measures to curb the spread of COVID-19. Around the world, many airlines have responded with steep cuts to their capacity. Some have suspended operations. Many airlines unfortunately may not survive the crisis.”
“I will further enhance our financing schemes so that even the hardest-hit businesses can continue to have access to credit. I earlier enhanced the Enterprise Financing Scheme (EFS) – SME Working Capital Loan to alleviate SMEs' cash flow concerns, and introduced the Temporary Bridging Loan Programme (TBLP) for enterprises in the tourism sector. To support businesses’ trade financing needs, I will enhance the EFS – Trade Loan, by increasing the maximum quantum from $5 million to $10 million, and increasing the Government’s risk-share from up to 70%, to 80%. I also announce subsidies to businesses for loan insurance premiums under the Loan Insurance Scheme, from 50% to 80%. I will expand the Temporary Bridging Loan Programme (TBLP) to all enterprises, and increase the maximum supported loan from $1 million to $5 million. SMEs that require support beyond the TBLP can continue to tap on the EFS – SME Working Capital Loan. The maximum loan quantum for this will be further enhanced, from $600,000 to $1 million. In addition, we will work with Participating Financial Institutions to defer capital payments for one year on the EFS-Working Capital Loan and the TBLP loans if requested by businesses, subject to assessment by Participating Financial Institutions. [Please refer to Annex B-7.] In addition to these enhancements to our financing schemes, I will set aside $20 billion of loan capital in this Budget. This will help to support good companies with strong capabilities, and catalyse private sector loan capital. As the situation is fluid, we will seek to provide help where the credit needs are more acute.”
“] For 2020, qualifying commercial properties that have been more badly affected by the COVID-19 outbreak, including hotels, serviced apartments, tourist attractions, shops, and restaurants, will pay no Property Tax. This is a big enhancement, from the 15% to 30% Property Tax Rebate announced in the Unity Budget. Businesses in other non-residential properties such as offices and industrial properties are also affected by the COVID-19 situation. I will now grant a Property Tax Rebate of 30% for the year 2020. I strongly urge landlords to fully pass on the rebate to tenants, by reducing rentals, to directly ease the cash flow and cost pressures faced by tenants. Many businesses have pointed out that it will be a lose-lose situation if landlords do not support their tenants. After all, if tenants fail, the properties will be empty. So my message to landlords is: do your part, chip in, and give additional help to tenants who are more badly hit. The Government will lead by example in supporting tenants by enhancing rental waivers. [Please refer to Annex B-6.] NEA will give stallholders in hawker centres managed by NEA or NEA-appointed operators three months of rental waiver, up from one month announced in the Unity Budget. [Applause.] Other Government agencies, like HDB and the National Arts Council, will provide two months of rental waiver to eligible tenants, up from half a month announced in the Unity Budget. Beneficiaries include social service agencies and charities. All other non-residential tenants will receive half a month of rental waiver. In addition, as mentioned earlier, I will freeze all Government fees and charges by one year, from 1 April 2020 to 31 March 2021. The third "C" is credit.”
“By the end of May, a total of $5.6 billion would have been paid out under the Jobs Support Scheme and the Wage Credit Scheme. The agencies are working hard to bring forward an additional $500 million of wage credits under the enhanced parameters, from September to end-June. Altogether, the Jobs Support Scheme and Wage Credit Scheme will flow $16.2 billion into the hands of businesses by October this year. To further ease cash flow for businesses in the immediate period, I will grant an automatic deferment of income tax payments for companies and self-employed persons, for three months. No application is required. [Please refer to Annex B-4.] For companies, we will defer income tax payments due in April, May and June 2020. Instead, income tax payments will only be payable from July 2020. In other words, if you paid money last year and need to pay tax this year, you will delay paying for three months so you can use the cash to meet other urgent needs. For self-employed persons, the payment cycle for personal income tax for the Year of Assessment (YA) 2020 generally starts in May 2020. We will defer the income tax payments due in May, June and July 2020. So income tax payments will only start from August 2020. Employees may approach IRAS, if they need help with their income tax payments and wish to avail themselves of this arrangement. The second "C" is cost. Where the cost is within the Government’s control, we will do our best to help. I will, therefore, enhance the Property Tax Rebate which I announced in the Unity Budget, by raising the amount and covering more types of properties. [Please refer to Annex B-5.”
“] To help graduates who are worried about having to pay off their student loans while finding jobs in this economic climate, I will suspend all loan repayment and interest charges for one year, from 1 June 2020 to 31 May 2021. This will apply to all graduates who have taken a Government loan for their University and Polytechnic studies. I will also suspend all late payment charges on HDB mortgage arrears for three months, for those who are struggling with their mortgage payments during this difficult period. HDB will continue to exercise flexibility when providing assistance during this period, through existing measures such as deferring payment of loan instalments for six months. To summarise, we will protect jobs, support our workers, and protect livelihoods. We will do this by helping employees stay employed; stepping up support for the self-employed and lower-income; creating more opportunities for jobseekers; helping unemployed workers tide over this period; and helping our households with their expenses. We will continue to monitor the situation closely and are prepared to take swift action to do more if needed. The second thrust of the Resilience Budget is to help businesses overcome the immediate challenges. The Resilience Budget will address the three Cs on the mind of every business owner now – cashflow, cost and credit. The first "C" is cashflow. For businesses, "cash is king" and many have called for more timely assistance. As some have told me in Mandarin, "远水救不了近火", or "distant water cannot put out a nearby fire", we are doing our best to flow the payouts under the wage support schemes quickly. By the end of this month, more than $600 million would have been disbursed to employers under the former Wage Credit Scheme parameters.”
“Self-Help Groups and Community Development Councils (CDCs) have stepped up their efforts to help families and vulnerable groups through their own assistance schemes. I will support them to do more, and better meet the needs of their communities and residents. I will double the grant given to Self-Help Groups to $20 million over two years and increase the additional grant given to CDCs from $20 million to $75 million. Together with the other Care and Support measures announced during the Unity Budget, the enhanced Care and Support Package will cost around $4.6 billion. The Labour Movement is also doing its part to help our workers and self-employed persons. Last week, NTUC announced the $25 million NTUC Care Fund (COVID-19), which is jointly funded by NTUC, unions and the Government. The fund will provide one-off relief of up to $300 to low and middle income union members. Yesterday, NTUC announced a $4 million top-up to the Self-Employed Person Training Support Scheme, to give union members an additional training allowance of up to $1 per hour. This will be on top of the enhanced training allowance rates of $10 per hour which I announced earlier. Our social service agencies also do good work supporting vulnerable groups in our community. We will support them to adopt digital tools to continue to reach out and serve their clients during this period, through the existing VWOs-Charities Capability Fund. Social service agencies can reach out to the National Council of Social Service to apply. Third, the Government will exercise greater flexibility on its fees and loans during this period. The Government will freeze all Government fees and charges for one year, from 1 April 2020 to 31 March 2021. This will apply to all fees for Government services. [Applause.”
“] In total, I will set aside $145 million for the new schemes and increased flexibilities to ComCare. Many Singaporeans are concerned about how they will pay their bills and household expenses if their livelihoods are affected during this uncertain period. We will put more cash in the hands of all families to help them cope. First, I will enhance the Care and Support Package announced in the Unity Budget. [Please refer to Annex B-3.] I will triple the cash payout for all adult Singaporeans from the earlier announced range of $100 to $300, to a range of $300 to $900, depending on income. [Applause.] I will provide additional help for families with young children. I will triple the additional cash payout given to each Singaporean parent with at least one young Singaporean child, from $100 to $300. For lower-wage workers, the enhanced Workfare Special Payment I mentioned earlier will provide them $3,000 in cash this year for their household needs. To further help needy Singaporeans with their daily expenses, and in particular, the cost of food, I will triple the Grocery Vouchers given to them this year from $100 to $300. Together with the $100 which will be given to them next year, needy Singaporeans will receive $400 in Grocery Vouchers over 2020 and 2021. I will also provide the earlier-announced one-off PAssion Card top-up for Singaporeans aged 50 years and above in cash instead. This is to avoid the need to queue at top-up stations during this period. With these enhancements, a young family will now receive around $2,900, instead of $1,300, under the Care and Support Package. A three-generation family will receive about $6,700, instead of $1,800. Second, the Government will partner the community to strengthen the network of support around our workers and families.”
“These may come from businesses recruiting for the eventual recovery, or with short-term manpower needs due to disruptions in labour supply. I am heartened to see that companies, such as Micron and SMRT, have already come on board the SGUnited Jobs initiative. WSG will launch an SGUnited Jobs virtual career fair tomorrow with more than 2,200 job vacancies. This will focus on short-term temporary jobs that are immediately available. Jobseekers looking for longer term roles can consider the wider range of jobs advertised on my CareersFuture.sg. I encourage interested jobseekers to explore these. The best way to safeguard the well-being of our people is by supporting them to stay employed. But as the impact of COVID-19 on our economy deepens, some workers will lose their jobs or see their incomes significantly reduced. We will help them. Today, the ComCare scheme provides assistance to those who fall into financial hardships. We will exercise more flexibility when considering applications for ComCare during this period, to ensure that affected Singaporeans can get help. Some families may require help urgently, while waiting for the new help measures to kick in. We will set up a Temporary Relief Fund in the month of April, to provide them with immediate financial assistance. This will be available at our Social Service Offices and Community Centres. We will also introduce a COVID-19 Support Grant at our Social Service Offices from May to September this year, to help our workers who become unemployed due to COVID-19. Low- and middle income employees who lose their jobs can receive a grant of $800 per month for three months, to tide them over while they find new jobs or go for training. [Please refer to Annex B-2.”
“I will introduce the SGUnited Traineeships programme to provide our young people with opportunities to gain valuable work experience, while giving an added boost for employers to emerge stronger from this crisis. Under this programme, Workforce Singapore (WSG) will co-share manpower costs with enterprises that offer traineeships targeted at local first-time jobseekers this year. We are looking to support up to 8,000 traineeships this year, across both large and small enterprises. This will include science and technology traineeships in our R&D labs, deep-tech startups, accelerators and incubators. MOM will announce more details soon. I will also launch the SGUnited Jobs initiative to create about 10,000 jobs over the next one year. The public sector will take the lead. Our agencies have been planning our manpower needs early and there is a range of jobs which we need to fill in emerging areas. We will accelerate hiring plans to fill these roles, while giving our people meaningful employment opportunities. We will recruit for long-term roles in the public service and sectoral partner institutions, in areas such as social services, early childhood education, and ICT, so that we can enhance our provision of essential services. We will also offer short-term, temporary jobs to handle the increase in COVID-19 related operations, such as health declaration assistants, temporary management support officers and the Transport Ambassadors announced by the Minister for Transport earlier this week. At the same time, we are working with the Singapore Business Federation and Trade Associations and Chambers to identify private sector job opportunities.”
“I will set aside another $48 million to extend the Self-Employed Person Training Support Scheme to December 2020, and enhance the hourly training allowance from $7.50 to $10, with effect from 1 May 2020. The enhanced training allowance is on top of the already generous training subsidies, which cover up to 90% of fees. In addition, trainees will be able to tap on their SkillsFuture Credit to further offset the course fees. Through these schemes, and with our many partners, we hope to provide a safety net for the self-employed during this outbreak. Looking ahead, we will see how we can better support self-employed persons in strengthening their financial security. We will study this carefully. For lower income workers, including self-employed persons, we have been supplementing their incomes through the Workfare Income Supplement Scheme (WIS). In this Unity Budget, I announced that Singaporeans on Workfare in 2019 would receive a one-off Workfare Special Payment amounting to 20% of their 2019 payout, with a minimum payout of $100. In this Resilience Budget, I will enhance the Workfare Special Payment and increase the payout received by this group of Workfare recipients to $3,000 each, in cash. [Applause.] The Jobs Support Scheme, Self-Employed Person Income Relief Scheme and enhanced Workfare Special Payment will help to sustain the employment and salaries of our workers, with more financial support for workers who earn less. Apart from employees and self-employed, I will provide more help for jobseekers to find employment. In particular, first-time jobseekers may be concerned about the current job market. These include our students who have just graduated or are graduating from ITE, Polytechnics and Universities this year.”
“Over the last few weeks, I received feedback from the Labour Movement and many self-employed persons calling for stronger support for the self-employed, who have less income security and whose livelihoods may be worse affected during this period of economic uncertainty. This group has been harder to reach as they work in diverse industries, many occupations, with varying working arrangements. They include taxi and private hire car drivers, real estate agents, media and art freelancers, and sport coaches. In the Unity Budget, we were able to support some of them. For taxi and private hire car drivers, we partnered with NTUC, the operators and LTA to deliver help. They comprise the largest group of self-employed persons. We also introduced the Self-Employed Person Training Support Scheme to provide a training allowance of $7.50 per hour to self-employed persons attending courses under the SkillsFuture Series or select training programmes. In this Resilience Budget, we plan to provide direct cash assistance to more self-employed persons. Some of them have less means and family support, and need help to tide over this difficult period. I have discussed with the Minister for Manpower and NTUC Secretary-General on developing a Self-Employed Person Income Relief Scheme, or SIRS, for this period. Eligible self-employed persons will receive $1,000 a month for nine months. Overall, we expect to reach out to most of the self-employed persons who depend on self-employment for their livelihood and have less means and family support. I will set aside $1.2 billion for this. [Applause.] MOM will provide more details soon. I will also provide sustained support for self-employed persons to make full use of any downtime during this period to train and upskill.”
“For workers who are currently employed, our top priority is to help them stay employed. In the Unity Budget, I introduced the Jobs Support Scheme and enhanced the Wage Credit Scheme. Both are focused on preserving and enhancing jobs. The situation now calls for bolder and more aggressive moves to save jobs and keep workers in employment. I will significantly enhance and extend the Jobs Support Scheme to provide more impactful and sustained wage support. For every local worker in employment, I will raise the Government's co-funding of wages from 8% to 25%. Firms in the food services sector will receive higher support at 50% of wages and firms in the aviation and tourism sectors, which are the most badly affected sectors, will be supported at 75% of wages. [Applause.] I will raise the monthly qualifying wage ceiling from $3,600 to $4,600, which is the median wage in Singapore. I will also extend the Jobs Support Scheme for another two quarters till the end of 2020, so employers will receive a total of three tranches of payouts in May, July and October this year. With these enhancements, a total of $15.1 billion will be allocated to support more than 1.9 million local employees under the Jobs Support Scheme. This is more than twice the level of support provided during the global financial crisis. With this support from the Government, I urge employers to do your part to hold on to your workers. [Please refer to Annex B-1.] The enhancements to the Jobs Support Scheme and Wage Credit Scheme will support workers employed in our enterprises. The second group of individuals whom we seek to support is self-employed persons.”
“In economic terms alone, this will likely be the worst economic contraction since independence. This extraordinary situation calls for extraordinary measures. Last month, I committed $6.4 billion in the Unity Budget towards the Stabilisation and Support Package, the Care and Support Package and to support our frontline agencies. Today, I will introduce measures worth over $48 billion in this Resilience Budget to deal decisively with the situation at hand. This is over seven times of the first tranche. Altogether, we are dedicating close to $55 billion to support our people in this battle, amounting to 11% of our GDP. This is a landmark package and a necessary response to a unique situation. The Government has sought and obtained the President's in-principle support to draw up to $17 billion from our Past Reserves to fund part of the Resilience Budget. The Resilience Budget focuses on three key areas. First, save jobs, support workers and protect livelihoods. Second, help enterprises overcome immediate challenges. Third, strengthen economic and social resilience so that we can emerge intact and stronger. Before I get into the details, I thank NTUC, the Singapore Business Federation as well as many citizens and groups, who have given us valuable feedback. Your views have shaped our responses to the challenges posed by COVID-19. Our immediate priority is to save jobs, support our workers and protect livelihoods. Over one third of the Resilience Budget is dedicated to this. Even then, we cannot prevent an economic recession as the external health and economic situation will evolve beyond our control. But it will help us mitigate the extent of the downturn and more importantly, help save jobs and protect livelihoods.”
“The most badly affected sectors are our aviation and tourism sectors, as international visitor arrivals in Singapore have nearly ground to a halt. Consumer-facing sectors such as food services, retail trade and land transport have been significantly affected. The outward-oriented sectors such as manufacturing and wholesale trade have also been affected as external demand falls and supply chains get disrupted. I have spoken on the medical and economic fronts of the battle. The third front is social and psychological. COVID-19 is a test of our social cohesion and our psychological resilience. While people are understandably fearful, we must not surrender to this fear or panic. The Government will take all the social and economic measures we need to keep our people safe, keep our economy growing and prepare ourselves for the recovery. Now, more than ever, we need Singaporeans to be strong and ride through these challenges together. COVID-19 is a defining challenge for us. It is a public health crisis, an economic shock and a social test. It will challenge our resilience as individuals and as a society. In such extraordinary times, it is collective acts of kindness and courage that make a people extraordinary. How Singapore manages this, and whether we emerge stronger from this, will define us as a people and nation. My last Budget was called the Unity Budget. I have decided to call this Supplementary Budget the Resilience Budget. It reflects our determination that Singapore and Singaporeans remain resilient in the face of these challenges. Come what may, no matter how daunting the challenge at hand, we will bounce back, stronger and more united than ever, as we weather this storm together. Mr Speaker, Sir, we are facing an unprecedented crisis of a highly complex nature.”
“Consumer and business confidence is plunging in the face of growing uncertainties. Global growth forecasts for 2020 have fallen sharply compared to just a month ago. The International Monetary Fund (IMF) has downgraded its 2020 global growth forecast three times since January 2019 and flagged that a further downgrade is imminent in April. It added that it expects a recession at least as bad as during the 2008 global financial crisis. Global financial markets are being roiled by the mounting uncertainties and cutback in economic activity. Stock markets have come down from their peak some weeks ago. The S&P 500 Index took only 22 trading days to fall by 30% from its peak, making it the fastest drop of this magnitude in history. The key volatility indices in Europe and the US, which some call the "fear index", briefly reached levels last seen during the global financial crisis. Credit has tightened across the world, and the US yield curve has fallen below 1% for the first time in history. The disruptions around the world will significantly curtail global demand, disrupt supply chains and possibly lead to financial shocks. As an open economy that is highly integrated with the global economy, we will be deeply impacted by these global shocks. Based on advance Gross Domestic Product (GDP) estimates released this morning, in the first quarter, the Singapore economy contracted by 10.6% quarter-on-quarter, or 2.2% year-on-year, reversing the 0.6% growth in the previous quarter. This morning, the Ministry of Trade and Industry further downgraded Singapore's GDP growth forecast for 2020 from a range of -0.5% to 1.5% announced last month to between -4.0% and -1.0%. The outbreak has impacted broad swathes of our economy, with some more affected than others.”
“Ministers Gan Kim Yong and Lawrence Wong gave comprehensive updates on the further measures that we have put in place and gave us vivid and moving accounts in their Ministerial Statements yesterday. We thank Minister Gan and Minister Wong, and the members of the task force, for your leadership. On behalf of all of us in the Government and in this House, let us express our deepest appreciation to our dedicated and professional healthcare workers, and all our frontline officers, for working courageously and tirelessly. Let me also commend fellow Singaporeans for your care and support for one another, and for being so civic-minded. However, as much as we try, the Prime Minister and Senior Minister Teo have warned earlier that the COVID-19 pandemic is likely to take at least a year to be resolved, and the economic repercussions would last even longer. The world is seeing successive waves of infection and importation of infections. We must be prepared to take further tougher measures. Yet measures on the medical front to contain the pandemic, both in Singapore and around the world, have made the second front of the battle – the economic front, even more difficult. These public health measures have caused severe economic disruptions and uncertainties. As more countries implement their measures, the economic disruptions will be wider, deeper and more prolonged. The global economy is now facing both a supply and demand shock. On the supply side, supply chains have been disrupted as locked down workers are unable to work. With highly integrated global supply chains, a disruption in any one part of the chain or in any one country will have knock-on effects worldwide. On the demand side, aggregate demand has fallen as people stay home and curtail spending.”
“Mr Speaker, Sir, Members of this House have heard the President's message, delivered on her behalf by the Speaker. I thank the President for giving her in-principle support for the Government’s proposal to draw on the Past Reserves. I also thank the Council of Presidential Advisers for their deliberations. On 18 February, just five weeks ago, I started my Budget 2020 speech setting out what we must do to combat the threats posed by the COVID-19 outbreak. At that time, there were 800 confirmed cases outside of China. I said then that the Government was monitoring the situation closely, so that we can and are prepared to do more if the situation warrants it. The outbreak has escalated quickly. Three weeks after my Budget speech, on 11 March, the World Health Organization (WHO) declared COVID-19 a pandemic, recognising the severity and risk of further global spread. Today, the WHO estimates that the number of people infected has exceeded 410,000, across more than 190 countries. The COVID-19 outbreak is a battle on many fronts – medical, economic and social. First, on the medical front, countries are taking extraordinary measures to contain the spread of the virus, so their healthcare systems are not overwhelmed. Many countries have implemented lockdowns, while the US has declared a national emergency. In Singapore, we are doing everything we can to keep you and your families safe. We acted early and decisively. As the severity of the virus outbreak grew worldwide, we stepped up our measures. These have, so far, helped to keep the number of cases at manageable levels during the first wave.”
“Let us grow as a city of possibilities – an open, globally-connected city, where each Singaporean can live to the fullest, and bring our aspirations, hopes and potential to life. Let us continue to build a society of opportunity for all – where we have the freedom to determine our own destiny, based not on our starting points, but through our own choices and efforts. And let us continue to foster a caring and cohesive community, living as equals, uplifting the most vulnerable among us and taking care of our fellow men and women. All of this is within our reach, if we work as One Singapore. With collective action and leadership at all levels of society and with our diverse strengths and passions combined, we can build a society that we can all be proud of. This is the spirit of Singapore Together, and it is alive today, as shown by many Singaporeans, including Members of this House, who are leading change in diverse ways. Above all, let us never stop thinking for tomorrow. In the long and never-ending journey of nation building, each generation of Singaporeans are relay runners. May we always take good care of what we have inherited, run our best race and pass on a better future to those who come after us. This Budget is about one step in this long race, building upon the sweat and toil of generations who have run the race before us. It seeks to do right by Singaporeans, both present and future, through the financial plans and provisions that we make today. I thank all Members of this House for your support for this Budget. Let us unite and forge ahead as One Singapore, to build a better Singapore for tomorrow. "Singapore Together, Majulah Forever!" [Applause.]”
“We are able to do this because we have been prudent in managing our finances over the years, preparing for rainy days and setting aside sufficient funds. At the same time, we have been using our reserves in a responsible manner. The values conveyed by the Chinese saying, "前人种树，后人乘凉", remains a cornerstone of Singapore's long-term fiscal planning. We have to continue protecting and nurturing the tree planted by earlier generations, to take care of our future generations and ensure that generations of Singaporeans after us will have enough resources to face future challenges, seize opportunities and build a better Singapore. (In English): Mr Speaker, Sir, I will now conclude in English. Mr Speaker, Sir, I have spoken on the vision and mission of this Government, on the shifts we need to make to thrive in the world ahead and how we need to work together to reach our goals. We began our journey as a nation with a mission – seeking the welfare and happiness of Singaporeans, in a more just and equal society. Through rain or shine, we have never wavered from this mission. We live in a time of change and uncertainty today. But it is precisely in such times that our strength and resolve as a nation shines most brightly. Let us not be paralysed and divided by anxiety and fear, but let us be energised and united by optimism and a common vision for tomorrow. Let us rise to the occasion and overcome the COVID-19 outbreak together, stepping up to take care of one another in these trying times. Let us share the effort to build our future and nation together. Let us build a sustainable Singapore, where we and our children can live our best lives in a safe, green and livable environment, for all time and seasons to come.”
“To express our respect and gratitude, the Government will be providing up to one additional month of special bonus for frontline healthcare workers and public servants who are directly battling with the COVID-19 disease and facing higher risks. In addition, we will provide a one-off grant for Public Health Preparedness Clinics. During this difficult period, our Government leaders will stand in solidarity will all Singaporeans. This year, all political office holders will take a one-month cut in their salary, and all Members of Parliament will take a one-month cut in their allowance. President Halimah Yaacob is also supportive of the move and has volunteered to take a one-month pay cut. Senior public service officers will similarly take a half-month pay cut. As we progress, we will meet many challenges. Some will be for the longer term, while some will be more immediate. I can understand that Singaporeans are worried about the impact of the COVID-19 outbreak. However, as we tackle the immediate challenges, we must also set our sights on the future. Zaobao commentator Giam Meng Tuck aptly described this Budget as three prescriptions, namely "定心丸" (assurance pill), "润肺散" (lung moisturising powder, to ameliorate ill-effects) and "提神三味汤"(three-flavoured soup to invigorate the spirit). The Assurance Package for GST, Stabilisation and Support Package, Care and Support Package and Transformation and Growth Strategy constitute the multi-pronged approach that ensures that Singapore does not lose sight of the direction that we are heading towards, as we tackle immediate challenges. These measures will also allow Singaporeans and companies to prepare for the economic recovery during this period of economic slowdown.”
“I have announced that the GST rate will remain at 7% in 2021. But the Government will still have to raise GST by 2025. Not only does this allow us to increase revenue in a sustainable and effective manner, it also reflects our value of collective responsibility. As we raise the GST rate, we will ensure that our taxes remain fair. The permanent GST Voucher Scheme mitigates the impact of GST on lower and middle income Singaporeans. In addition, the Assurance Package for GST will offset at least five years' worth of additional GST expenses incurred for most Singaporean households. For lower income Singaporeans, the Package can offset about 10 years of the additional GST expenses. When we eventually increase the GST rate, tourists and foreigners residing in Singapore will pay the 9% GST immediately. In fact, a significant part of net GST is borne by foreigners and higher income households. Foreigners and higher income households are estimated to account for over 60% of the net GST borne by all households and individuals. In addition, we are also committed to ensuring that our future generations continue to enjoy a sustainable living environment. This is our commitment to Singaporeans. The risks brought about by climate change are one of the challenges that we must tackle. As an island nation, Singapore is highly susceptible to the impact brought about by rising sea levels and floods. Besides managing the impact of climate change, we must continue to build a liveable, caring and vibrant home for ourselves. The 2020 Budget is a Unity Budget. In the face of the COVID-19 outbreak, we must unite as one people. I would like to especially thank our frontline workers for their selfless contribution and for carrying out their duties steadfastly with professionalism.”
“This is how we should rise to the challenge of inequality in this day and age – by coming together as one people to uplift the less privileged amongst us, with the state providing strong foundations of opportunity and support. I do apologise that this is longer than what everyone had been expecting. But there have been so many good stories, I thought it is bears telling. So, thank you all for your patience in this Singapore Together effort. You sit together to listen to my long speech. Mr Speaker, Sir, let me say a few words in Mandarin before I conclude in English. (In Mandarin): [Please refer to Vernacular Speech.] There is a Chinese saying, "前人种树，后人乘凉", which means that the current generation plants the seeds which eventually grow into trees that provide shade for the next generation. Our reserves are akin to a tree planted by our earlier generations. Today, this tree is well-grown and we are able to take shelter under it, benefiting from the stable income that it generates for our country. The Net Investment Returns Contribution (NIRC) is already the largest source of revenue for our country, more than the revenue collected from corporate income tax, personal income tax or GST. Without the NIRC, even doubling the GST rate to 14% would not be enough to meet our expenditures. To draw on the reserves or become overly reliant on the NIRC to meet recurrent expenditure is akin to damaging or even cutting down the tree. Our recurrent expenditure, especially on healthcare, is increasing. We need to continue developing healthcare facilities and providing healthcare services to ensure that elderly Singaporeans are well taken care of. Such spending benefits all Singaporeans. Therefore, it is fair for everyone to bear some part of the cost.”
“Mdm Rahayu Mahzam shared about the passion among young people for a more inclusive, more compassionate society and reminded us of the importance of engaging young people as we build this nation. I thank Mr Pritam Singh for his support for the Singapore Together movement in his comment about MPs giving diverse views in this House. And I would say that we can go a step further, that the democracy of deeds means each of us taking action to realise the good. It is also very inspiring to hear how several Members of this House are taking the lead to serve our community in their own, diverse ways. Let me just highlight some of our Nominated Members of Parliament. Assoc Prof Walter Theseira, an economist, has been doing a lot of work on the labour market. Mr Douglas Foo leading the SMF effort. Mr Terence Ho, using the arts to enable and empower individuals from underprivileged backgrounds. Ms Anthea Ong, fighting to raise awareness of mental illness among us and to promote mental wellness; Ms Irene Quay, who has served the public passionately in healthcare, volunteering in a hospice despite her many commitments. Ms Yip Pin Xiu, who is inspiring young athletes and showing Singaporeans and the world what it truly means. Mr Mohamed Irshad, who is fostering religious harmony and helping to build a more caring society. Prof Lim Sun Sun for her work on the need to educate our young even better. This embodies the spirit of Singapore Together. And as Ms Denise Phua said, there are so many other areas that we can work together, to take action to build a better society and improve lives. She herself has taken so much action and devoted so much effort in uplifting people with special needs.”
“Miss Cheryl Chan, Dr Intan Azura Mokhtar and Mdm Rahayu Mahzam reminded us. This is why it has been my priority to support, enable and amplify the efforts of citizens and businesses to help those in need, through Singapore Together. These efforts are growing. In 2018, individuals collectively donated $2.1 billion through registered organisations, more than double the $960 million donated in 2008. Each donor gave on average about $660, which is more than twice the amount in 2008. In addition, one in two businesses in Singapore gives back through philanthropy and volunteering. Our social service agencies have been doing good work for the community. They too have been going through their own transformation journeys, building up technological capabilities to be more effective in helping those in need. For example, the Cerebral Palsy Alliance Singapore has invested in an anti-gravity treadmill, so that clients can practise moving and walking in a fall-free environment. Going forward, we will partner the community to support more of such capability-development efforts, through the Community Capability Trust that I announced in this Budget. Such investments and partnerships will help Social Service agencies to overcome the manpower constraints that Ms Joan Pereira spoke on. This good work is not just confined to organised sectors. Our democracy of deeds permeates every level. Many MPs have also shared stories embodying the spirit of Singapore Together. Mr Liang Eng Hwa and many others shared about the spontaneous and thoughtful acts in many housing estates, such as fellow residents coming together to bottle hand sanitisers and placing them at lifts for residents to use.”
“Last year, we also announced measures to support parenthood and care-giving, including enhancements to pre-school subsidies, and the Home Caregiving Grant under MOH's Caregiver Support Action Plan. Supporting and strengthening families will always be a priority for us and we will continue to look at how we can do so effectively. I thank Members for their suggestions. These issues will be discussed further at the COS. These measures come on top of the extensive subsidies that I mentioned earlier in education, healthcare and public housing. These benefit all Singaporeans, including the middle class. Middle income households – those in the middle 20% by household income – benefit substantially from this system. In 2019, they received $2 in benefits for every $1 in tax paid. Overall measures that we have put in place over the past decade to provide good jobs for our people, develop them at all stages of life and support the vulnerable, have made a decisive impact in narrowing the income gap. The Gini co-efficient after taxes and transfers fell to 0.398 last year, the lowest since 2001. This is encouraging, but our work is not done. We will always continue to look at practical, effective moves to tackle inequality and ensure that all Singaporeans progress together. Critically, business and community have growing roles to play. A caring and cohesive society begins with everyday acts of kindness, of philanthropy and volunteerism. These are better antidotes to inequality than the politics of class warfare that we have seen around the world. As Miss Cheng Li Hui put it, graciousness and kindness are indeed part of our Singapore spirit. There is much we can do to build an inclusive society for all, including those with special needs and persons with disabilities.”
“Assoc Prof Walter Theseira, Mr Zainal Sapari and Mr Png Eng Huat have spoken on the vulnerabilities of low-wage workers. The Care and Support Package, which includes Grocery Vouchers to provide help with daily necessities, will help them and their families. It builds on our efforts in recent years to strengthen social support and safety nets for low-income workers and their families through enhancements to Workfare, the Progressive Wage Model, and ComCare. The mayors and the five Community Development Councils (CDCs) have local assistance schemes to support the heartlands, as pointed out by Mayor Low Yen Ling. These local efforts, done in partnership with community partners, local merchants and many others, bring warmth and support from fellow Singaporeans and business owners who are also our neighbours. Second, there are retired seniors who had lower incomes in their working years, with little or no family support. We have announced substantial enhancements to Silver Support to benefit 100,000 more seniors and raised payouts by 20%. These enhancements go beyond inflation growth to provide stronger support. Third, Mr Melvin Yong and Mr Saktiandi Sapaat spoke about the stresses faced by middle-class families that are "sandwiched" financially because they have to care for both their children and their elderly parents. Mr Louis Ng, Ms Yip Pin Xiu, Mr Desmond Choo and Mr Darryl David also pointed out that they may face pressures in terms of time from balancing their care-giving responsibilities and work. Financially, we have given additional help for such families in this Budget by providing those with young or school-going children with an extra $100 cash payout per parent, more GST Voucher – U-Save rebates for larger households and PAssion Card top-ups for their parents.”
“By intervening upstream in these areas, we provide a foundation of broad-based opportunities that enable everyone to earn their own success. As a result, Singaporeans have been able to enjoy the fruits of progress. Now, I will show you another chart that shows resident-employed households have experienced sustained real income growth at the median, growing by 3.7% per year over the last decade. You can see the numbers for yourself versus other developed economies. While the data are not perfectly comparable internationally, the growth that we have experienced is higher than that of many advanced economies. In short, our approach in these changing times is to take structural measures to strengthen opportunity at every stage of life, with all – individuals, employers, unions – doing their part. For this to succeed, the change must come from within. For all the programmes that the Government puts in place, each individual will have to take responsibility for their own growth and learning. If we can all take on a mindset of growth and a spirit of resilience, we can be assured that we will emerge stronger and better to face the future ahead. I have spoken on our first two strategies of transforming our economy and developing our people to enable opportunities for all. But for all our efforts to maximise opportunities for everyone, there will be some who will continue to face difficulties. So, our third strategy is to strengthen our social compact by ensuring that all benefit from the fruits of progress. This Budget provides further support for those who may face greater pressures. First, some face difficulties with employment and ensuring that growth in their income keeps pace with inflation, despite their best efforts.”
“In all, by the time a Singaporean child reaches 16, he or she would have received more than $180,000 in education subsidies, including pre-school subsidies. Then, when they go on to an Institute of Higher Learning, which most students do, they get an additional $15,000 to $22,000 in subsidies per year. Students from lower and middle income households receive additional bursaries and subsidies on top of this, which I have enhanced in this Budget. We are now investing significantly more in affordable, quality pre-school education while giving low-income families additional support for early childhood development through KidSTART. We are also equipping young Singaporeans with skills they need for the new economy, including cross-cultural skills. In this Budget, I announced our "70-70" target, Asia-Ready Exposure Programme and enhancements to the Global Ready Talent Programme. Another key area where we invest upstream is housing, so that everyone has a home. We provide generous housing subsidies to keep HDB flats affordable. New HDB flats are sold at prices below their market rate. Over and above subsidies, we provide substantial housing grants depending on the income of the buyers. Eligible first-time buyers who buy resale flats get grants of up to $160,000. Today, a resale flat can cost less than five times the annual salary of a median-income household. This is much lower than international cities like Hong Kong, Sydney, London or New York. This chart compares the median house price as a ratio of the median household income in major cities before accounting for grants. The ratio will be lower with grants. You can see the numbers yourself.”
“Our Labour Movement is innovating and exercising collective leadership to strengthen individual workers' efforts, for example, the Job Security Council initiated by Secretary-General Ng Chee Meng as well as the Company Training Committees. The third prong of our tripartite approach is to get our enterprises to step up their own enterprise transformation and in tandem to re-design jobs and upgrade their workers. With this synergy, we can achieve more. As Ms Jessica Tan pointed out, leadership must come from employers. The Next Bound of SkillsFuture announced in this Budget therefore mobilises businesses to up-skill their workers and re-design jobs through the SkillsFuture Enterprise Credit and the expansion of the Productivity Solutions Grant for job re-design consultancy services. Enterprises who hire local workers aged 40 and above, with no upper age limit, through re-skilling programmes will also get hiring incentives. Mr Ong Teng Koon was concerned that it may be hard for SMEs to take workers away from the day-to-day business needs. In fact, there is no better time than now to do so. Many businesses are already use this downtime to accelerate change. This three-prong approach, building on our tripartite framework, is our structural response to the structural changes in the labour market. We are able to do this because we have been investing significantly in our education upstream, to build a strong foundation to enable our people's success. Investing upstream means supporting every child to reach their fullest potential. Today, over 90% of the total cost of educating our children from Primary to pre-University level is subsidised by the Government.”
“In this Budget, we have built on these initiatives, paying special attention to the needs of mid-career workers in their 40s and 50s by introducing the SkillsFuture Mid-Career Support Package. We are also increasing the capacity of our re-skilling programmes by providing a hiring incentive to employers and providing a special SkillsFuture Credit top-up of $500 to every Singaporean aged 40 to 60 in 2020. I would like to thank Mr Patrick Tay, Mr Melvin Yong and Mr Liang Eng Hwa for their suggestions on how we can help our mid-career workers and improve SkillsFuture. These will be discussed further during the COS. The second prong of this approach is to enable our workers to take ownership of their own learning and growth through the SkillsFuture movement. Initiatives such as the SkillsFuture Credit encourage each individual to take charge of their learning throughout life. Together with Government subsidies for CET courses, our workers can access quality programmes with low or zero out-of-pocket payment. Take, for example, a Big Data Engineering for Analytics course which costs about $4,500 before Government subsidies at a SkillsFuture Singapore-appointed CET centre. A Singaporean worker aged 40 or older enjoys a 90% course subsidy. The remaining $450 can be fully met from the worker's existing SkillsFuture Credit or the top-up that this worker will get in this Budget. So, the SkillsFuture Credit works in conjunction with the broader CET eco-system of support that we have built up. I hope this assures members like Mr Arasu Duraisamy and Ms Irene Quay, who raised queries on the credit and concerns about whether it can really make a difference.”
“And together with those provided by other training providers, our IHLs' CET courses provide a key pathway for individuals to gain skills and confidence to make career transitions and to realise their aspirations. The Government subsidises these courses heavily, with subsidy rates as high as 90% of course fees. Beyond education, we are enhancing our support to help workers make the transitions smoothly, and this is especially important for mid-career workers. Ms Sylvia Lim spoke about their anxieties. We must turn these anxieties into actions that improve lives. Our Adapt and Grow initiative helps workers find opportunities, refresh their skills and transition to new roles faster. Professional Conversion Programmes or PCPs, help workers take on new jobs roles and our career coaches give career guidance and help job seekers secure new jobs. When I visited Workforce Singapore's (WSG) Careers Connect last September, I met Mr Lam Kong Chai, 58 years old. Mr Lam had been job hunting for two years. With WSG's help, he was hired as Finance Director at Asia-Europe Foundation. His hiring manager herself had previously received career advice from WSG and approached WSG to fill the role that Mr Lam took on. In turn, Mr Lam worked with WSG to fill a vacancy in his team. So, all three individuals ended up getting jobs. The outcomes of our Adapt and Grow initiative are encouraging. About nine in 10 of those who went through our PCPs remained in employment 24 months after placement. And about seven in 10 also earned higher wages after starting their new jobs. Our coaches work with about 27,000 jobseekers every year. In 2018, they managed to place about seven in 10 jobseekers into new jobs within six months.”
“And if we can all move forward with this can-do spirit of initiative and partnership that we have shown in the past weeks, I am confident that we will build strong firms that can grow and compete in the global arena and create good jobs for all Singaporeans. As our economy undergoes structural changes, our labour market is also facing profound structural changes. As our population ages, our resident workforce will shrink rapidly, tightening our labour market. People are living longer and expect to have longer, even multiple, careers. And rapid advances in technology and business models will bring more frequent and disruptive changes to skills required at jobs. As Prof Lim Sun Sun and Mr Christopher de Souza put it, change is the only constant and we cannot run away from it. Our collective mentality towards up-skilling must change from nice-to-have to must-do, a point that Mr Teo Ser Luck also mentioned earlier. We are responding to these changes by taking a three-prong tripartite approach with the Government, workers and enterprises working in close concert to deal with these structural changes in our labour market. The first prong is for the Government to invest in critical enablers of skills upgrading and in career support. We have shifted our approach to education to one that enables learning throughout life. We are investing heavily in Institutes of Higher Learning, or IHLs, to build up a future-ready eco-system. Together with other training providers, our IHLs offer a large suite of Continuing Education and Training (CET) courses, many of which are industry-relevant.”
“Businesses must be willing to bear the transitional pains, to be creative and resourceful, and to seize opportunities where others see challenges. Encouragingly, we are starting to see the fruits of our moves to transform the economy. Productivity has grown in the last three years and our enterprises are entering new markets. We are also seeing continued confidence and investment in Singapore despite economic headwinds. Investment commitments attracted by EDB in 2019 amounted to $15.2 billion in Fixed Asset Investments and $9 billion in Total Business Expenditure per year. These show that we are taking steps in the right direction. Most importantly, our efforts are creating more and better jobs for all. Over the last 10 years, local employment has grown steadily, adding more than 41,000 jobs each year on average. Local unemployment has stayed low, at about 3.2% of resident labour force in December 2019, on a seasonally-adjusted basis. Above all, locals are benefiting from the jobs created. Earnings have increased. Since 2010, real incomes have risen by about 3% each year for the median full-time employed local worker. And more locals are employed in higher paying jobs. In 2010, 37% of full-time employed local workers earned a gross monthly income, excluding employer CPF, of at least $4,000 in today's dollars, adjusting for inflation. In 2019, 51% of local workers earned at least $4,000. So, 51% in 2019 compared to 37% in 2010. At its heart, economic transformation involves the courage to brave transitional pains as we change the way we do things.”
“Third, we are mobilising and partnering our industries and enterprises to take ownership of their own economic transformation. We have brought industry stakeholders together via Industry Transformation Maps across 23 sectors. But the success of each ITM comes down to the strength of leadership in our enterprises. Business leaders must have the mental agility and dynamism to experiment and the resourcefulness to overcome constraints. That is why, in this Budget, we are supporting business leaders through the Enterprise Leadership for Transformation (ELT) programme. Our Institutes of Higher Learning, such as SMU, have joined hands with Enterprise Singapore to support this effort. Enterprise Singapore will bring more partners on board the ELT programme in the coming months. And at the industry level, partnership among businesses is key. So, even as businesses compete with one another and seek to differentiate themselves, cooperation can help them do better, such as by forming alliances to capture opportunities overseas or collaborating to test-bed sector-wide solutions. And this is exemplified by the Singapore Manufacturing Federation, which, under Mr Douglas Foo's leadership, is making a concerted effort to transform the manufacturing sector. The Singapore Poultry Hub is another example. A joint venture between five poultry producers and processors, the Hub's smart factory will deploy emerging technologies to increase productivity by 26% and production capacity by 70%. By working together, these poultry producers were able to achieve the scale needed to transform a labour-intensive process. So, though they remain competitors, they certainly did not chicken out from working together! As Minister Josephine Teo reminded us, economic transformation is not painless.”
“To ride on Asia’s growth, we are working to position Singapore as a Global-Asia Node of Technology, Innovation and Enterprise, as a trusted and valuable part of the network of global cities that are driving innovation and growth globally. We have enhanced our economic connectivity through our network of trade agreements and avoidance of double taxation agreements. We have also created new linkages with other economies through digital agreements and new platforms and networks, such as the Networked Trade Platform and Global Innovation Alliance. These moves diversify our markets and supply chains and have made us more resilient in times of rising protectionism. Second, we are increasing the capacity of our enterprises and industries to innovate, grow and transform. As Mr Ong Teng Koon pointed out, building up strong local capabilities and eco-systems for innovation is critical to our economic success and resilience. We are, therefore, helping enterprises to deepen their capabilities at every stage of their growth. So, I am very happy to hear Mr Teo Ser Luck sharing his personal entrepreneurship journey by making use of the grant but cautioning that not to overdo it or you will destroy the spirit of enterprise. To strengthen our competitive advantages, we have expanded our R&D investments into new areas and technologies. Through these investments, we are harnessing the latest technologies to transform our manufacturing and services sectors and creating new growth clusters in areas such as urban solutions and sustainability, health and human potential and agri-food tech. We have brought industry and the research community together to experiment and collaborate with the Government in test-bedding solutions in areas like urban mobility.”
“We must continue to stay open and connected to the world. A Singapore turned inwards cannot survive. We must continue to foster trust in society, a point which Prof Yaacob Ibrahim spoke yesterday. Above all, we must stay united as one people. Our unity is what makes Singapore's story exceptional. Mr Lim Swee Say, in his trademark pithy way, said we need "Glocalisation" – both a globally competitive economy and a locally cohesive society. This calls for us to do three thing: to transform our economy to be globally competitive, to develop our people to seize these opportunities and to strengthen our social compact by ensuring that all benefit from the fruits of progress and no one is left behind. This will require us to put in place synergistic fiscal, monetary and structural policies. With sensible and prudent fiscal policies that promote growth and social equity, appropriate monetary policy to promote macroeconomic stability to maintain price stability and promotes steady growth, and structural policies that expand the capacity of our firms and labour force for growth. Let me touch on the actions that we are taking in our structural policies, starting with how we will transform our economy to keep it globally competitive. The global economy is undergoing tectonic shifts today and many countries face a new economic landscape. Singapore must move fast to secure growth and jobs in the next bound, or face irrelevance. We have, therefore, embarked on an urgent journey to transform Singapore's economy. We started our work four years ago, in 2016, when the Committee on the Future Economy was formed. First, we are moving quickly to secure our external economic space, to create new opportunities and room for manoeuver in an increasingly fragmented economic order.”
“If we take the long-term view and each generation plays its part, Singapore can face the future with confidence – confidence that we will always have the capacity to overcome every challenge – be it a virus outbreak, recession or rising sea levels; confidence that we will be able to provide for our families and community; and confidence that our children will have the best chance of a better life, come what may. [Applause.] I have not finished. I told you I have two files. Now, let me touch on how we will strengthen the social compact and continue to fulfil the promise of opportunities for all in changing times. Ms Denise Phua, Assoc Prof Walter Theseira and others spoke on the need to tackle inequality and preserve social mobility. Singapore was founded on a vision of a "just and equal society" – broad-based prosperity and equal opportunities for all – a society where every Singaporean, regardless of background and starting point, has a good chance to do better. Today, this remains this Government's mission to enable all Singaporeans to enjoy the fruits of growth. Over the years, we have made good progress in fulfilling this goal. But we will confront complex new challenges ahead, including the pressures of technological and demographic change and the growing inequality of starting points, as our society matures. Our response to these challenges will define us. A growing number of societies have responded by turning inwards from the world, even as they grow more polarised and divided within. For Singapore to stay successful, we must have the courage to take a different path. We must continue to anticipate and respond to change, plan for the long term, and find practical solutions to create better lives for Singaporeans.”