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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“Third, I am heartened by the Labour Movement’s forward-looking approach on bringing firms and workers together to ride the waves of change and emerge stronger. Technological advancements promise new possibilities as well as challenges. As Mr Melvin Yong starkly put, "every job is at risk". "Working from home" will also mean "Working from anywhere" – so job competition can come from any corner of the globe with an internet link. For our businesses, while e-commerce opens them to a global pool of customers, it also opens their customers to the global pool of sellers. As Mr Liang Eng Hwa highlighted, our $24 billion action plan over the next three years is about pursuing our medium to longer term economic imperatives, even as we tackle the immediate challenges. This seeks to give our workers and businesses a distinct advantage in the global marketplace. We will build an eco-system that fosters a virtuous cycle of innovation and knowledge transfer. This includes $4.4 billion of the on-going $8.3 billion Transformation and Growth strategy I announced at the Unity Budget last year, to deepen enterprise capabilities and upskill workers. Another $19.6 billion of fresh funding will go toward new digitalisation measures and enhanced enterprise development support, as well as worker support measures such as the extension of the SGUnited Jobs and Skills package to support jobseekers in upskilling and accessing employment opportunities. Together, these measures seek to stimulate private investment over a longer horizon and boost the supply-side capacity of the post-COVID economy. This will help Singapore capitalise on the post-COVID economic recovery and emerge stronger.”
“First, as Deputy Secretary-General Mr Heng Chee How mentioned, the way forward is as much about being Stronger Together, as it is about Emerging Stronger. A number of our businesses and workers will hold their own against the best in the world. But at the end of the day, we compete as one Team Singapore, not worker by worker, or enterprise by enterprise. It is the strength of our collective capabilities and connectedness, as an economy and as a society, that will determine how far we will go. Second, several Members, including Deputy Secretary-General Dr Koh Poh Koon, highlighted the synergies between firms and workers. The fortunes of businesses and workers are inextricably linked, more so today than ever. Demand shocks caused by COVID-19 have exacerbated labour market dislocations and skills mismatches. Coupled with the structural shift of shorter technology cycles, it will be increasingly difficult for firms to find candidates with the perfect skill sets. So, I urge businesses to look beyond hiring just "plug-and-play" workers, and see the potential within jobseekers to learn and grow in your firms. I am glad to see our local banking community leading the way in grooming new fintech talent like Ms Choo Cui Ling through career conversion. After working in IT audit, Cui Ling enrolled in the Technology in Finance Immersion Programme with OCBC Bank. A few months into her attachment, she was converted into a full-time employee. She now helps to coordinate information risk management for the bank in her role as Assistant Manager. At the same time, jobseekers should keep an open mind, be receptive to new and different job roles, and take the initiative to build new skills.”
“But we have kept our ship intact, with all hands on deck pulling together to navigate it out of the storm. In 2021, our suite of support measures, including the further extension to the JSS, the SGUnited Jobs and Skills Package, and targeted support for the worst-hit sectors, will continue to provide a stabilising effect on our economy, amid uncertainties and risks in the global economy. Domestically, the pace of border re-opening has slowed amid the global surge in COVID-19 cases and the emergence of new virus strains. Nevertheless, the COVID-19 situation within Singapore remains under control. Against this backdrop, the Singapore economic recovery over the course of the year is expected to be gradual and uneven across sectors. Outward-oriented sectors are expected to benefit from the pick-up in external demand, while domestic industries improve as activities safely resume. Overall, the GDP growth forecast for 2021 is estimated at 4% to 6%. Now is the time to chart our course, position ourselves to catch the winds of opportunity and sail boldly in a reshaped world. That is the focus of this year’s Emerging Stronger Together Budget. I thank Prof Hoon Hian Teck for his insightful comments on how this Budget has struck a balance between stabilisation and transformation. The COVID-19 Resilience Package continues to provide near-term support to safeguard lives, jobs, supply chains, and core capabilities. At the same time, we are also dedicating substantial fiscal resources towards raising the productive capacity of the economy in the medium to long term. I also applaud our Labour Movement, led by Secretary-General Mr Ng Chee Meng, for their excellent contributions to this debate. Let me underscore three important points from our Labour Movement.”
“Compared to the 2019 cohort, although full-time permanent employment fell by about 10 percentage points, overall employment rates for this year's fresh IHL graduates remained similar to past years. In particular, 94% of autonomous university graduates in 2020 found employment or got into a traineeship within six months, compared to 91% in 2019. The SGUnited Traineeships programme has contributed significantly to this outcome. It has placed close to 5,400 recent graduates into traineeships, to help them gain useful skills and industry experience, and prepare them for the recovery. Some have already landed full-time jobs. Mr Chen Jiahao embarked on a traineeship last year with Taiger Singapore, an Artificial Intelligence, or AI start-up. Although he had no prior experience in AI or data science, the traineeship enabled Jiahao to pursue his dream of working in deep tech. He picked up new skills quickly and developed a Natural Language Processing model to perform information extraction. Taiger was impressed by Jiahao's strong performance and hired him as a full-time Junior Software Engineer within six months of the start of his traineeship. In this Budget, I also extended the JGI to September 2021. I hope this encourages more employers to convert trainees to employees in a timely manner. Overall, we have managed to mitigate the impact of COVID-19 on our young. While unemployment rate amongst our young increased by two percentage points from September 2019 to September 2020, it remained well below that in EU countries. I would like to thank Members including Dr Shahira Abdullah for speaking on the importance of safeguarding the future of our youth, and I assure this House that this remains a key priority. Looking back, the waters of 2020 have been rough.”
“Close to 80% of them were placed into jobs. Of these job placements, six in 10 were long-term jobs. Growth sectors such as InfoComm Technology or ICT, healthcare, and manufacturing, accounted for most of the placements. We tilted support towards mature jobseekers, recognising the higher hurdles they faced with career transitions. Based on preliminary estimates, mature workers aged 40 and above accounted for about half of the first 110,000 JGI beneficiaries, and about half of the 76,000 locals placed in SGUnited jobs and skills opportunities. This includes more than 8,000 mature jobseekers placed last year on career conversion programmes, like the TechSkills Accelerator and Professional Conversion Programmes, or PCPs. These schemes enable trainees to reskill for jobs with good growth prospects. For example, about seven in 10 PCP participants earn higher wages after starting their new jobs. Mr Goh Che Yong has been in tourism for close to 24 years, dealing in traditional sales for walk-in customers. He witnessed the digital disruption to the industry. At 55 years-young, Che Yong embarked on the Professional Conversion Programme for Digital Sales Executive with Siam Express last March. Although he was still in the same travel industry, moving from traditional to digital sales was not easy. But with the structured training, he gained confidence. Che Yong now applies his newly acquired digital skills in his job and enjoys exploring new ways of packaging holidays for a post-COVID world. We averted a "COVID generation" of workers and students by preserving human capital and enhancing their employability.”
“For example, with the phased resumption of activities domestically since June 2020, the consumer-facing sectors, including retail and food services, saw a gradual recovery to around 85% of pre-COVID-19 output levels by Q4 in 2020. Many firms have made good use of the support we rolled out. In 2020, $18 billion worth of loans to 21,000 enterprises were supported by Enterprise Singapore's financing schemes. Almost all recipients were micro, small and medium-sized enterprises, or SMEs. Enterprise Singapore also supported more than 15,000 companies in raising productivity, going international and undertaking innovation projects. This is 54% more than in 2019. So, I am glad businesses were taking innovation more seriously during this COVID-19 period. Mindful Movement was one such beneficiary. When COVID-19 struck, the yoga studio halted on-site classes. After consulting an SME Centre, Mindful Movement tapped on the Productivity Solutions Grant to transit their classes online. Today, they continue to offer both online and physical classes, to provide clients greater choice and flexibility. For sectors that remain badly affected, I will continue to provide targeted relief and support to help them transform and reposition themselves for recovery. On the workers front, the SGUnited Jobs and Skills Package has helped to cushion the labour market fall-out and preserve the livelihoods of Singaporeans. Many jobseekers joined industries with a promising growth outlook through the Jobs Growth Incentive, or JGI, and drew the same or higher wages. The Ministry of Manpower will provide more details at the COS. Nearly 76,000 local jobseekers were placed in jobs and skills opportunities through the SGUnited Jobs and Skills package between April and December last year.”
“Economists also warn of possible scarring, with long-term GDP losses, rising public and corporate debt, higher hurdles on capital spending, and continued rise in unemployment levels. We disbursed a total of $27.4 billion in grants to provide relief, preserve jobs and help firms build capabilities to pivot to new growth areas – more than 18 times the amount disbursed in 2019. As many Members including Mr Liang Eng Hwa and Mr Desmond Choo thoughtfully reminded us, we narrowly averted a much deeper recession and scarring. Our fiscal and monetary policy measures are estimated to have prevented a further 6.6 percentage points in GDP contraction last year, and mitigated the rise in resident unemployment rates by two percentage points – or about 155,000 jobs. While our economy contracted sharply in the second quarter of 2020, compared to the fourth quarter of 2019, the rebound over the next two quarters recouped about 80% of the output lost. More details of our early findings can be found in the interim assessment of the COVID-19 measures that MOF released earlier this year. The impulses from last year's measures continue to flow through the economy to complement Budget 2021. The combined effects of the two years' Budgets imply a material support to GDP in 2021. Our calibrated strategy to support businesses and protect livelihoods has seen positive outcomes for firms and workers. We tilted support towards the hardest-hit sectors to help them retain core capabilities and prepare for recovery. Today, some of these sectors are starting to see light at the end of the tunnel.”
“Second, as the flow of people pulled back because of the lockdowns, the flow of digital information and knowledge spiked. There is potential for Singapore to ride on the rise of technology adoption and digital economy. Third, climate change is a threat for humanity. We must do our part, create new opportunities from the global interest in sustainable development. My Budget Statement laid out our strategic plan to capitalise on our strengths and to double down on our commitment to invest in connectivity, digitalisation, the green economy, and of course, our people. So, I will round up this Budget Debate by speaking on Members' contributions along three themes: our economic strategy to emerge stronger; a cohesive and liveable Singapore and a prudent fiscal strategy for the long term. Last year, I committed close to $100 billion to fight this crisis. Since then, I have heard many views on the appropriateness and adequacy of our economic response. Some have called for more support, while others have asked if we are doing too much. Let me recap the context. COVID-19 has caused the worst global economic crisis since the Great Depression. Globally, real GDP is estimated to have fallen by 3.5% in 2020, equivalent to a drop of close to US$ 5 trillion dollars in economic output. Many countries experienced full-year recessions in 2020. Sectors like aviation and tourism felt the brunt of the impact, with 1 billion fewer international arrivals in 2020 – a 74% drop. Labour markets were disrupted on an unprecedented scale, with 8.8% of global working hours lost relative to the fourth quarter of 2019. This is equivalent to 255 million full-time jobs.”
“It is a position that we have harnessed to maintain our relevance to the world amid the flux and changing tides of global political and economic developments. But we cannot take our standing in the world for granted. It is something that we have to painstakingly maintain, as the world and region evolve, so that we remain relevant. For some time, we have observed the gradual geopolitical and technological shifts. The world was slowly adapting to a rising China, which found its place alongside the US as an economic and military powerhouse. Inevitably, there has been some friction. Fortunately, the deep interdependence of markets and supply chains served as a stabiliser for world order, as well as international trade and commerce. But COVID-19 disrupted this tenuous equilibrium and accelerated bifurcation and change. Overnight, this virus revealed the vulnerabilities of inter-connected supply chains. The race for vaccines and the rush for economic recovery have also surfaced nationalist tendencies. These events will play a significant part in countries' and businesses' calculations, as they rebuild their value chains and business networks. Countries will seek for greater onshoring of their key industries for resilience. Businesses may re-think their globalisation strategy and approach, giving more weight to resilience and reliability. Singapore can capitalise on them to emerge stronger, become more competitive and remain relevant to the world. First, nations and businesses will place a high premium on partners and locations which are reliable and predictable in their dealings. This is where we can leverage the strong Singapore brand, globally trusted for long-term planning, openness and reliability.”
“Mr Speaker, Sir, I thank Members of this House for the 15 hours of robust debate, which saw 65 Members speaking. Normally, the Round-up speech is shorter than the Budget speech but this year, it may be different. I also want to thank Mr Christopher de Souza for his very moving and personal speech of what it means to be a Singaporean. And also let me thank Mr Liang Eng Hwa, Chairman of the Government Parliamentary Committee (GPC) for Finance and Trade and Industry, for laying out the big picture and key issues clearly. Mr Liang spoke about supporting our people through the immediate pain of the crisis and the need to take action to emerge stronger. Importantly, he did not shy away from the difficult conversation of how these important measures need to be funded and offered constructive suggestions. This sets the stage for this House to discuss the way forward. I also thank Ms Foo Mee Har who not only spoke passionately about supporting our people and businesses, but also suggested how to do so in a prudent and sustainable manner. Over the last few days, the passionate debate went along a few threads. Some Members elevated the debate to help Singaporeans appreciate the changing landscape and the need to act. Some Members highlighted the importance of our reserves, the bold and decisive response mounted and what it achieved. Unfortunately, some argued selectively without acknowledging the broader impact of COVID-19 and the outcomes of the Government's decisive interventions. Before I dive into the issues raised by Members, I want to situate Budget 2021 and Singapore's future within the larger forces sweeping the world. Singapore sits at the crossroads between the East and the West.”
“The Parenthood Tax Rebate and the Working Mother’s Child Relief are not aimed at bringing about a reduction in the rate of parenthood outside marriage. Hence, we have not done studies to measure the causal linkages between our tax policies and single unwed parenthood. Rather, both these tax reliefs are specifically granted to support parenthood within marriage, and to encourage married mothers to continue working after childbirth. We will continue to review our tax policies bearing in mind prevailing societal concerns and values.”
“Businesses have been doing their best to adapt and retain workers. Our healthcare and frontline officers have displayed great courage and dedication. Many charities and volunteers have stepped up their support for those with needs, despite many difficulties. The past year showed that our values as a people matter – the values of unity, resilience, solidarity and fortitude. The values of care and partnership, of adaptability and action, of working together. Our whole-of-society response is greater than the sum of its parts. In particular, the values of our founding generation – of prudence to save and prepare for the long-term – enabled us to build up our reserves, which provided us the strong support we needed. This sense of togetherness in turn rests on trust – trust in each other, in institutions and in our leaders. This trust is not just among Singaporeans, but with people around the world. The world is more deeply interconnected and interdependent than ever. But this pandemic has exposed and enlarged crack lines and fragmentation in many parts. A very successful overseas entrepreneur saw me recently. He saw Singapore as a key base to operate and grow, especially in a sustained global pandemic. He saw how we had worked together in Singapore, and with people around the world. We are a safe, trustworthy node and we look ahead. Let us continue to focus on what lies ahead and chart a clear direction forward. Let us continue to think long-term, tackle long-term challenges such as climate change and future pandemics, and forge partnerships with people around us, in Singapore, as part of Singapore Together, and with people around the world. Let us strive to emerge stronger together, as a united and shining red dot, trusted by all! Mr Speaker, Sir, I beg to move. [Applause.]”
“They continued to work over Chinese New Year and Valentine’s Day – so you see, this is a labour of love. I also thank the Nanyang Polytechnic students who did the illustrations in the slides accompanying my speech. Indeed, I extend the same admiration and thanks to all our frontline, healthcare and essential workers, who have been heroic in keeping our country running and keeping us safe through this crisis. Most of all, Mr Speaker, I wish to thank our people. For showing understanding, strength and care, and standing together as one. I speak on behalf of all of us who have worked hard on this and previous Budgets when I say: Your well-being has been our purpose, and your spirit has been our inspiration. In this Budget, I have outlined our plans to continue to tackle our immediate challenges and to emerge stronger in the new normal. The COVID-19 Resilience Package to re-open safely and sustain the momentum of our recovery. The Household Support Package for our families, with greater support for families who need more help. Our investments in economic and workforce transformation to emerge stronger. The Singapore Green Plan 2030 to enhance sustainability and do our part to deal with climate change. Mr Speaker, Sir, COVID-19 has put all societies through a severe stress test – on how we organise ourselves as a society and our values as a people. There are no textbook or model answers to deal with such a sudden, unprecedented shock. Instead, as the situation turns swiftly, we have to assess, adapt and innovate, to tackle the crisis on all three fronts – safeguard lives, jobs and businesses, and our future. Our people rallied together, to support one another. Everyone has been doing his or her part, to observe precautions, however inconvenient, to keep each other safe.”
“I would like to thank President Halimah for the in-principle support for the proposed draw of up to $11 billion on Past Reserves in FY2021. Over the past one year, our people cared for one another and fought against the pandemic together. Our forefathers managed the nation’s finances prudently, and saved up for rainy days in the future. Our reserves are critically important. These values (of prudence and care for our future) keep us united and resilient in face of adversity. To sustain this spirit, we need to keep up the mutual trust between our people and the Government. For Singapore to continue to be successful, we also need to forge trust with people around the world and collectively look for solutions to our future challenges. Let us put our hearts together and emerge stronger to build an even better future for our children. At the same time, we will make Singapore into a shining, red dot that commands the trust of all the countries in the world on the global stage. (In English): Speaker, Sir, I will now conclude in English. The first thing I must say is a heartfelt thank you. Thank you to the practitioners in our social, business, tax and academic communities for your very useful insights during our consultations. And also, to our Labour Movement and tripartite partners. I also thank the many Singaporeans who participated in our various consultation sessions, and officers in our Ministries and agencies who have contributed in the design of our schemes, and in ensuring that our programmes reach out to our people, workers and businesses. A special note of thanks to my very dedicated team of officers in the Ministry of Finance, and my personal assistants, who have been working non-stop since COVID-19 hit the world last year.”
“We want to ensure the sustainable development of Singapore and build a green home for generations of Singaporeans. The Government will work together with the people to advance the Singapore Green Plan to deal with climate change. We will also accelerate the development of electric vehicle charging infrastructure to better support the growth of electric vehicles and to reduce carbon emission. To encourage people to use less of vehicles that use petrol, the petrol duty rates will be raised today, but the Government will give various rebates to alleviate the burden of the people. All in all, our fiscal space will be further tightened. We must balance between our short-term and our long-term needs. I mentioned last year that I will not raise the GST rate in 2021. However, in order to meet our recurrent expenditures, the GST rate increase cannot be put off too long. It has to be increased during the period from 2022 to 2025 and it should be implemented sooner rather than later. As for the specific timing, we will decide based on our economic outlook. The Government will also introduce a Significant Infrastructure Government Loan Bill in Parliament this year, in order to facilitate financing for our major, long-term infrastructure projects. This approach will allow us to spread out the lumpy costs of such infrastructure investments more equitably across generations, avoid substantial increase in taxes, as well as embody the values of collective responsibility. In this Budget year, we will once again draw on our Past Reserves, to fund the Covid-19 Resilience Package. This is a very difficult decision. Our past reserves are the “blood-and-sweat” money accumulated by generations of people. Therefore, we must cherish it and put it to good use, carefully.”
“The Government will strengthen the connectivity between Singapore and Asia, as well as the whole world, to promote the flow of goods, talents, data and so on. To do so, the Government will provide various platforms to encourage more businesses to seek co-operation with other companies, and venture into the regional markets. The Government will also launch and extend our suite of capital tools and grant schemes to assist businesses in financing and help them transform and expand their operation. In order to encourage our people to upgrade their skills, and help businesses to re-design their jobs, the Government will extend programmes, such as the SGUnited Jobs and Skills package and the Capability Transfer Programme. On the other hand, we will also raise the salaries of our nurses and some other healthcare workers, and attract more to join this meaningful field. I would like to take this opportunity to express my heartfelt and profound appreciation and gratitude to our healthcare workers for their brave fight against this pandemic over the past one year. The Government will continue to strive towards forging a loving and inclusive society to cater for the needs of various groups of people. I will introduce a $900 million Household Support Package to provide our people with additional short-term relief. This includes a one-off GST Voucher - Cash Special Payment and the CDC Vouchers. For the next two years, the Government will also expand ComLink nationwide. This will benefit more families living in rental flats. In addition, I hope that everybody will uphold the SG Together spirit, and I encourage more people to give back to society and support the charity sector.”
“(In Mandarin): [Please refer to Vernacular Speech.] Last year, the Government committed nearly $100 billion for relief measures to deal with the pandemic. This has helped mitigate the impact caused by the economic recession and played a critical role in protecting our health, our businesses and our livelihood. Although the vaccine has been developed, various parts of the world are still facing the impact of the pandemic. The road to recovery is bumpy and full of uncertainties. The Government will set aside $11 billion in this year’s Budget for the COVID-19 Resilience Package to continue helping our people and the sectors which are still under stress. First, it will be used to protect the health of our people, and support the vaccination programme. I urge everybody to take the vaccine to protect yourself and the people around you. To assist businesses which are still under stress, the Government will once again extend the Job Support Scheme (JSS). For sectors which are most adversely affected, that is, aviation, aerospace and tourism, the JSS will be extended for another six months. Other sectors, such as retail, arts and culture, F&B and built environment, the extension will be for another three months. The sectors which are hit badly, such as aviation, land transport, arts and culture, and sports will receive additional assistance to help them maintain their core capabilities. The COVID-19 has also accelerated ongoing structural changes and introduced new areas of cooperation and competition. I will set aside $24 billion to encourage businesses to innovate, transform and seize opportunities in the regional and global markets, to create good employment opportunities for our people.”
“Even if the economic and fiscal situation turns out to be worse than expected, we must still press on to invest in new areas, so as to ride on the structural changes, transform and emerge stronger as an economy, and as a people. Should the public health and economic situation deteriorate and the need arise, the Government will seek the President’s consideration for the use of Past Reserves to support these economic investments to ensure Singapore emerges stronger from this crisis. We have briefed the President on the Government’s strategy and contingency plan, in the event of a prolonged impact of the pandemic on the economy. The President has expressed her understanding towards the Government’s approach, and will consider the Government’s specific proposals, should there be a need to draw on Past Reserves. Let me now summarise our overall Budget position. For FY2020, we expect an overall Budget deficit of $64.9 billion, or 13.9% of GDP. This is the largest Budget deficit since our nation’s independence. The deficit is driven by lower revenues due to dampened economic activity and the significant expenditures needed to mount a decisive response to COVID-19. For FY2021, our Budget position remains expansionary as we continue to tide Singaporeans and our businesses over this crisis with the COVID-19 Resilience Package. I have also explained our plans to emerge stronger by pressing on with economic and workforce transformation, strengthening our social compact and building a sustainable future for all. These measures will impart a considerable fiscal boost to the economy, and we expect an overall deficit of $11.0 billion, or 2.2% of GDP. [Please refer to Annex F-2.] Mr Speaker, Sir, let me say a few words in Mandarin before I conclude in English.”
“I have spoken about our approach for the immediate COVID-19 Resilience Package, and our differentiated approach to address recurrent needs through recurrent revenues and borrowing to finance major, long-term infrastructure. How we recover from COVID-19 in the next few years is critical. It will determine our nation’s long-term success. Beyond dealing with its immediate impact, we are making significant investments to position Singapore for our next bound of growth in the post-COVID-19 world. COVID-19 has disrupted business models and global supply chains, and accelerated trends such as digitalisation. To secure our future, it is crucial for us to seize opportunities in new growth engines, respond to structural trends and transform our economy. We will invest strategically in these areas over the next few years, so as to emerge stronger. I have announced some of these measures in this Budget, while others are being developed by the Emerging Stronger Taskforce, the various Alliances for Action and our agencies. Based on the current outlook, we expect that as the economy recovers, we will be able to balance our Budgets, and our revenues will be able to support projected expenditure for these measures. This assessment assumes that the global COVID-19 situation comes under control by next year, enabling economic recovery. However, if the global public health and economic outlook worsen, we may not be able to do so. We have carefully thought through the different scenarios. While we expect economic recovery in Singapore and globally, there is a wide cone of uncertainty.”
“This approach will allow us to spread out the lumpy costs of such infrastructure investments more equitably across generations. Having studied this extensively, the Government intends to issue new bonds under a proposed Significant Infrastructure Government Loan Act, or SINGA for short. The Government will table a Bill in Parliament later this year. These new bonds allow for a fair and efficient way of distributing the fiscal responsibility. Fair, because these payments are borne by the generations who will directly benefit from the improved infrastructure. Efficient, because they allow us to benefit from the current low interest rate environment. Prior to this, the Government has been issuing bonds to develop the domestic debt market and meet the investment needs of the CPF for Singaporeans’ retirement. With the proposed SINGA legislation, the Government will now issue bonds for an additional purpose of financing major, long-term infrastructure. The Government will use SINGA borrowing proceeds in a prudent and transparent manner. These proceeds will be used to finance assets that are crucial to Singapore’s long-term development and sustainability. These include new MRT lines and infrastructure to protect ourselves against rising sea levels. As a safeguard, we will set a limit of $90 billion for borrowing under SINGA. This is based on the expected pipeline of major, long-term infrastructure projects over the next 15 years. We will also include other safeguards in legislation, which will be open to Parliamentary and public scrutiny. We have briefed the President and obtained her in-principle support for the use of Government borrowing to finance major, long-term infrastructure. More details will be provided when the Bill is presented in Parliament later this year.”
“One aspect of a fair and resilient tax system is ensuring a level playing field for our local businesses vis-à-vis their overseas counterparts. This is especially relevant as e-commerce for sales of goods and services, is growing. In Budget 2018, I announced the extension of GST to imported services from 1 January 2020. I also shared that we would be reviewing international developments on how GST can apply on imported goods. Today, low-value goods imported via air or post are not subject to GST, to facilitate clearance at the border. In contrast, GST is paid on such goods purchased in Singapore. Several jurisdictions, including Australia, New Zealand and the European Union, have implemented or announced plans to implement the equivalent of GST on such goods. I will hence extend GST to imported low-value goods with effect from 1 January 2023. [Please refer to Annex F-1.] This change, together with the change announced in Budget 2018, will ensure a level playing field for our local businesses to compete effectively. Overseas suppliers of goods and services will be subject to the same GST treatment as local suppliers. IRAS will continue to work with the industry to ensure smooth implementation for the change. I will also make some tax adjustments to support businesses, and to maintain the competitiveness and resilience of our tax system. The details of these tax changes are in the Annex. [Please refer to Annex F-1.] In addition to meeting our recurrent spending needs, we have also been making significant investments to build Singapore and transform our economy, even before COVID-19. I had shared in previous Budgets that the Government is exploring the use of borrowing to finance major, long-term infrastructure that benefit current and future generations.”
“For lower-income Singaporeans, the offset will be even higher, with those living in one- to three-room HDB flats receiving about 10 years’ worth of additional GST expenses incurred. Over and above the transitional support, we already have the permanent GST Voucher scheme to defray GST expenses for lower- and middle-income households. This is a permanent feature of our system and will be enhanced when the GST rate increase takes place. Through this scheme, we are able to provide targeted support to those who need help most. Based on past collections, foreigners residing in Singapore, tourists and the top 20% of resident households are estimated to account for over 60% of the net GST borne by households and individuals. This is after taking into account the GST Voucher scheme and GST refunded under the Tourist Refund Scheme for goods bought locally for consumption abroad. If you consider our entire system of taxes and benefits, it is a progressive one. In 2020, the top 20% of Singaporean households paid 56% of the taxes and received 11% of the benefits; whereas the bottom 20% paid 9% of the taxes and received 27% of the benefits. At the same time, our tax system must remain resilient to withstand shocks. We are mindful of international tax developments and the downside risks to our revenues. There are on-going discussions to revise international tax rules under the Base Erosion and Profit Shifting, or BEPS 2.0 project. These proposals will adversely impact our corporate income tax revenues. As I have mentioned in this House previously, we are actively involved in these talks. If and when international tax rules are changed, we will consider if adjustments are required to our corporate tax system accordingly, in consultation with the industry.”
“This ensures that we spend in a responsible way – one that is fair for current and future generations. To finance our recurrent spending needs, I first announced in Budget 2018 that we would need to raise the GST rate sometime from 2021 to 2025. As announced in the Unity Budget in February 2020, in view of economic conditions then, the GST rate increase would not take effect in 2021. This remains our plan. However, we will not be able to put off the increase for too long. We will have to make the move sometime during 2022 to 2025, and sooner rather than later, subject to the economic outlook. Without the GST rate increase, we will not be able to meet our rising recurrent needs, in particular healthcare spending. While we are fortunate to be able to tap on our reserves to respond to the COVID-19 crisis, it is not tenable for the Government to run persistent Budget deficits outside periods of crisis. No Finance Minister likes to talk about tax increases, certainly not when the pandemic is still raging around the world. But we do this because we plan for the long term and do not shy away from explaining to fellow citizens why we need to make tough but necessary decisions to ensure that we have enough to provide for our nation’s future. Let me reiterate my commitment to all – that the Government will ensure that our overall taxes and transfers system remains fair and progressive. GST on publicly-subsidised education and healthcare will continue to be fully absorbed. And to help cushion the impact when the GST rate is raised, we have set aside $6 billion for an Assurance Package. This will effectively delay the effect of the GST rate increase for the majority of Singaporean households by at least five years.”
“7 billion from what we expected to draw from Past Reserves to respond to the crisis. The President has given her in-principle support for the proposed draw of up to $11 billion on Past Reserves in FY2021, to continue the provision of public healthcare and relief measures in the coming Financial Year. Once again, I thank the President for her support. This is the second consecutive Financial Year where we will be drawing on our Past Reserves. This is necessary, given the exceptional circumstances we are in. We are extremely fortunate to be able to tap on our strategic assets and deploy the resources required to deal decisively with COVID-19 and the considerable uncertainties that lie ahead. We should never take our reserves for granted. In the coming years, our fiscal situation is expected to be tighter. Prior to COVID-19, we were already expecting a structural increase in our recurrent spending needs, especially in areas such as healthcare. We have tripled our government spending on healthcare within a decade, from $3.7 billion in FY2010 to $11.3 billion in FY2019. Fellow Singaporeans have often expressed the desire to better care for our seniors, with quality yet affordable health and aged care services. This is possible only if we can muster the resources to do so. As our needs grow, we must plan for the resources to fund these, and target the spending in a fair and effective way. COVID-19 has also raised economic uncertainties for citizens and workers, which calls for stronger social safety nets to protect those who are disadvantaged or more vulnerable. This will mean higher recurrent spending going forward. We have maintained the principle that recurrent expenditure should be funded by recurrent revenue.”
“With our ageing population and maturing society, our recurrent needs in areas like healthcare and other social spending will continue to rise. We must meet these structural needs in a disciplined and sustainable way. Hence, beyond this crisis, we must return to running balanced Budgets. It was fiscal prudence and discipline that allowed us to accumulate our national reserves, which has enabled us to respond decisively to this crisis. Let me now explain our strategies to balance between our immediate and long-term needs. In the last Financial Year, FY2020, we were expecting to draw up to $52 billion from Past Reserves. With the effective response of our people and businesses in adapting to the changing situation, we have been able to bring the pandemic largely under control. Hence, our requirements for some areas such as public health turned out to be lower than what was provided for. Of the $52 billion, we expect to utilise $42.7 billion of Past Reserves. This means that $9.3 billion is not expected to be used in FY2020. For FY2021, we are committing $11 billion for the COVID-19 Resilience Package, to tackle the immediate and extraordinary challenges that COVID-19 continues to pose. This package is needed to safeguard public health, and support our people and businesses. Given the extraordinary and temporary nature of these measures, the Government proposes to fund the COVID-19 Resilience Package through a draw on our Past Reserves. Putting together the proposed draw of up to $11 billion in FY2021, and the $42.7 billion of Past Reserves that we now expect to draw in FY2020, the total expected draw on Past Reserves over FY2020 and FY2021 will be up to $53.7 billion. This is a net increase of $1.”
“This will help enterprises, especially SMEs, use resources more efficiently and develop new green products and solutions. MTI will announce more details later. Last but not least, I encourage all Singaporeans to play our part. I am glad that our youth have been especially passionate about this cause and want to be part of this effort. In the spirit of SG Together, the Government will partner Singaporeans and support ground-up projects which aim to build a more sustainable future. We have received more than 200 proposals from individuals, grassroots and businesses for the first SG Eco Fund grant call. These proposals seek to address a wide range of environmental sustainability challenges. I welcome all Singaporeans with ideas for sustainable development to step forward and make the difference. Ultimately, building a green Singapore will require a whole-of-society effort, and I hope that we can harness the ideas and energies of the public, private and people sectors. Together, we can build a sustainable home for all. I have laid out the Government’s priorities in the coming years: First, to continue providing relief in the immediate term. Second, to invest strategically for growth and press on with our economic transformation in the medium term. Lastly, to lay the groundwork to position Singapore for the long term, and build a caring and sustainable home for all. Our fiscal approach must strike a careful balance between addressing our immediate needs and meeting our longer-term structural needs in a responsible manner. In the immediate term, running a fiscal deficit to support targeted relief is warranted, considering the unprecedented impact of COVID-19. In the longer term, COVID-19 has not changed the fundamental drivers of our fiscal trends.”
“As a responsible member of the international community, Singapore will be expected to do more, along with other countries, as climate change issues take on greater gravity. We will therefore review the trajectory and level of the carbon tax, post-2023, in consultation with industry and expert groups. Up until 2023, the carbon tax level will be maintained at $5 per tonne of greenhouse gas emissions as previously announced. This will provide businesses with certainty in the current challenging economic climate. An appropriate carbon tax level is one of the key levers to spur the reduction of our carbon footprint, promote industry innovation and green growth, while maintaining Singapore's overall economic competitiveness. We will announce the outcome of the review at Budget 2022, to give time for businesses to adjust to any revision in the carbon tax trajectory. As demand for green products and technologies increase globally, businesses can seize new opportunities for growth. One example is Durapower, a battery technology and energy storage solutions company that I visited two weeks ago. Durapower is working with NTU as one of their global research partners to develop high-energy density lithium-ion battery cells that are lightweight, and have higher power density for fast charging capabilities in EVs. The batteries by Durapower are used in more than 45 cities in over 20 countries across the world. It is now diversifying into marine and stationary energy storage segments, and further expanding overseas. [Please refer to Annex C-4.] The Government will support our businesses to seize new opportunities in the green economy. We will be launching the Enterprise Sustainability Programme.”
“This will reduce 24 kilo-tonnes of carbon dioxide emissions, equivalent to the annual emissions of about 7,400 cars. The public sector will do more. As part of the Singapore Green Plan 2030, the Government will be committing to more ambitious goals under the “GreenGov.SG” initiative for the public sector. This gives renewed focus to the public sector’s contribution towards national sustainability goals, and reminds all public officers that sustainability must be at the core of our work. The Minister for Sustainability and the Environment will provide further details on the GreenGov.SG initiatives at the COS. I also urge businesses and households to play their part in protecting our environment. In Budget 2018, we announced a carbon tax level of $5 per tonne of greenhouse gas emissions from 2019 to 2023, to be increased to between $10 and $15 per tonne by 2030. Since then, the effects of climate change have intensified and global momentum to address climate change has accelerated significantly. Countries’ climate ambitions have increased, with the number of countries with net-zero targets increasing from four at end-2017 to 57 at end-2020, including Singapore. On Singapore’s part, we enhanced our 2030 Nationally Determined Contribution and submitted our 2050 Long-Term Low-Emissions Development Strategy under the Paris Agreement in March 2020. We are working towards achieving our long-term net-zero aspirations as soon as viable. This House has also acknowledged that climate change is a global emergency and has called on the Government to take stronger climate actions. So, we are in a new situation today.”
“The issuance will serve as a reference for the Singapore Dollar corporate green bond market, including the standards and framework applied, and yields achieved. As an international financial centre, Singapore can catalyse the flow of capital towards sustainable development, not just in Singapore, but in Asia. MAS has been driving Singapore’s Green Finance Action Plan to develop green finance solutions and markets for a sustainable economy. The issuance of green bonds by the Government will build on these efforts by deepening market liquidity for green bonds, attracting green issuers, capital and investors, and anchoring Singapore as a green finance hub. We have identified up to $19 billion of public sector green projects as a start. One such green project to be financed with green bonds is Tuas Nexus. Tuas Nexus integrates waste and water treatment facilities, and maximises energy and resource recovery in the solid waste and used water treatment processes. I have talked about two key enablers of our Singapore Green Plan – technology and capital. A third key enabler is the actions of our people – what you and I do, in our daily lives. The Government will lead by example. In fact, we have been doing so under the Public Sector Taking the Lead in Environmental Sustainability initiative. Ministries have charted out plans to meet resource targets, such as reducing their electricity and water consumption, and achieving Green Mark standards for our buildings. Some agencies, including the Ministry of National Development, Home Team Academy and Temasek Polytechnic are switching to low-global warming potential refrigerant chillers, ahead of the mandatory adoption in end-2022.”
“This is in addition to a one-year road tax rebate of 15% to all taxis and passenger cars using petrol. For goods vehicles and buses using petrol, I will provide a one-year road tax rebate of 100%. For cars using petrol, I will provide a one-year road tax rebate of 15%. All road tax rebates will take effect from 1 August 2021. The additional Petrol Duty Rebates for motorcycles, taxis, and Private Hire Cars will be introduced by the middle of 2021. More details will be released by LTA in April. Taken together, these measures will offset about one year of petrol duty increases for taxis and motorcycles, and about two-thirds for commercial vehicles and cars. Most of the expected revenue increase from the petrol duty changes in the coming year will be given out through the offsets, estimated to cost $113 million. Climate change is real and urgent. We must act now. Behavioural changes take time. COVID-19 has also given us an opportunity to change work and travel habits as remote and flexible working arrangements become more common. We must lock in these behavioural shifts. A car-lite society will continue to be our main goal. Public transport is after all the cleanest and most energy-efficient mode of transport. The Government has been investing heavily in public transportation and enhancing public transport connectivity. Within this decade, we will be spending more than $60 billion to expand and renew our rail network. Overall, these measures will work towards reshaping our transport footprint, towards cleaner transport. Sustainability efforts require capital. Green finance will be an important enabler. The Government will take the lead by issuing green bonds on select public infrastructure projects.”
“This enables mass-market electric car buyers to maximise the rebates from the EV Early Adoption Incentive. I will also revise the road tax treatment for electric cars, by adjusting the road tax bands so that a mass-market electric car will have road tax comparable to an ICE equivalent. The Minister for Transport will provide details at the COS. In tandem, we will further discourage the use of internal combustion engine vehicles. Singapore has taken steps to reduce vehicular emissions and we have seen positive outcomes. In 2017 and 2019, we restructured diesel taxes to shift away from an annual lump-sum tax towards a usage-based tax system. Taxi companies, in particular, have made strides in shifting towards petrol hybrid and electric taxis, with the proportion of diesel taxis in their fleets halving from 86% in 2015, to 42% in 2020. Usage-based tax has helped shape consumer behaviour towards a more efficient use of fuel, or environmentally-friendly alternatives. To build on the momentum, I will raise petrol duty rates: for premium petrol, the duty will be raised by 15 cents per litre; for intermediate petrol, the duty will be raised by 10 cents per litre. These changes will take effect today. To ease the transition for Singaporeans, especially for those who rely on their vehicles for their livelihood, I will provide these support. For motorcycles using petrol, I will provide a 60% road tax rebate to all motorcycles for one year. In addition, individual owners of smaller motorcycles up to 400cc will receive $50 or $80 in cash, depending on engine capacity. For active taxi and Private Hire Car drivers using petrol and petrol-hybrid vehicles, I will provide a Petrol Duty Rebate of $360, given out over four months.”
“One promising story of innovation by our entrepreneur is the Aquaculture Centre of Excellence, which has innovated and patented “Eco-Ark” with funding support from the Agriculture Productivity Fund. With advanced aquaculture technologies, Eco-Ark is able to produce 20 times more output than the average in coastal fish farms. This improves our food resilience, as part of the 30-by-30 goal. [Please refer to Annex C-4.] To continue supporting technology adoption in the agri-food sector, I will set aside $60 million for a new Agri-Food Cluster Transformation Fund. This will replace the Agriculture Productivity Fund. The Minister for Sustainability and the Environment will elaborate at the COS. Technology is also changing the future of transport. While we are going car-lite, we can further reduce emissions by switching to cleaner-energy vehicles. Electric Vehicles, or EVs, is the most promising clean-energy vehicle technology today. Last year, I announced the expansion of Singapore’s public charging infrastructure for EVs. We will accelerate the development of our charging infrastructure to better support the growth of EVs in the next decade. We aim to deploy 60,000 charging points at public carparks and private premises by 2030 – more ambitious than our previous target of 28,000. To catalyse partnership between the public and private sectors, I will set aside $30 million over the next five years for EV-related initiatives, such as measures to improve charging provision at private premises. To further encourage the early adoption of electric cars, we will narrow the cost differential between electric cars and internal combustion engine cars, or ICE cars. I will lower the Additional Registration Fee floor to zero for electric cars, from January 2022 to December 2023.”
“For example: MND is bringing even more greenery to our island home and transforming Singapore into a beautiful City in Nature, while building up carbon sinks by extending nature throughout our island. MOT is pressing on with our efforts to become a car-lite society by improving public transport, encouraging active mobility, while discouraging pollutive vehicles. MOE is strengthening our education on sustainability practices among our young. MSE and MTI are leading the push to become more energy- and resource-efficient, develop the green economy and jobs, and invest in urban solutions. This is a whole-of-society effort to meet a global challenge. But it is not without constraints and trade-offs. Costs and benefits of projects will change, as climate cost is factored in and as technology advances. We must continue to stay open and adaptive, and carefully balance our development objectives with sustainability considerations. Technology is one such game changer and will open new possibilities. We harnessed technology to overcome our water and land constraints, and will do the same for climate change. For example, under the Cities of Tomorrow R&D programme, researchers from A*STAR and HDB led the development of the Integrated Environmental Modeller. This is a tool incorporating wind, solar irradiance, shading and environmental noise, to forecast how these factors can affect thermal comfort for residents. It has been used by our urban planners in the planning of Tengah Housing Estate, to maximise thermal comfort for residents. Urban Solutions and Sustainability will be a focus area under RIE2025, with investments going towards research to help us build a more sustainable and liveable environment.”
“Mr Lee Kuan Yew emphasised the building of a Garden City in our early years and transformed Singapore from a polluted backwater with mucky rivers in 1965, to one of the cleanest and greenest cities in the world today. And we have continued to devote resources towards our environment. Over recent Budgets, the Government has put together plans to tackle climate change and translated them into action. To improve air quality, we restructured diesel tax in 2017 and 2019. We introduced a carbon tax, and passed the milestone Resource Sustainability Act in 2019, to encourage enterprises to reduce their greenhouse gas emissions and work towards becoming a zero-waste nation. And in 2020, we enhanced our Nationally Determined Contribution, a commitment to further limit our emissions as part of the Paris Agreement. We also announced our Long-Term Low-Emissions Development Strategy, which sets out our plans for mitigating and adapting to climate change till 2050 and beyond. We will build on our strong foundations and run a national movement to build a sustainable Singapore for all generations. As the Minister for Sustainability and the Environment said in our recent debate on the Motion to Accelerate and Deepen Efforts against Climate Change, sustainability is a journey, not a destination. Our work to achieve sustainable development is never done. Last week, we launched the Singapore Green Plan 2030. This is an ambitious long-term plan that builds on ongoing efforts, to secure a green, liveable and sustainable home for generations of Singaporeans to come. Various Government agencies are working in concert.”
“Apart from national level efforts, efforts by the community – voluntary organisations, corporate partners and individuals – enable us to meet the diverse needs of different groups who need support, especially at the ‘last-mile’. To provide greater support for bottom-up, innovative initiatives which address the needs of the community, the Government will provide three dollars for every dollar raised, for the CDCs’ Care and Innovation Fund. I will set aside $50m for this matching grant. The CDCs will share more details later. The tax measures are coming at the end, so I will see whether I can stretch it beyond 5.00 pm! I will now turn to how we embrace sustainability and build a sustainable home for generations to come. The COVID-19 pandemic reminds us that a pandemic can be an existential threat for humanity. Another existential threat is climate change. Unlike COVID-19, which was a sudden and sharp shock, climate change is a gradual and intensifying risk, year after year. It can result in extreme weather patterns, which threaten the world’s food and water supply, disrupt global supply chains, diminish biodiversity and upset ecological systems. Tackling climate change needs a global solution. Countries, no matter how big or small, must play their part and cooperate with one another. We will continue to support international and regional efforts towards climate action and play an active role at the United Nations Framework Convention on Climate Change negotiations. Our emissions may be just a small fraction of the world’s, but we must do our part. Sustainable development is a major priority for Singapore. This is not new to us. Our earlier generations of leaders laid the foundations of long-term planning and sustainable development.”
“The Minister for Social and Family Development will share details at the COS. Besides philanthropy, we also seek to encourage volunteerism. Businesses can play an important role in kickstarting their employees’ volunteering journey. Singtel is an example of a strong corporate advocate for employee volunteerism. From supporting children and youth with special needs, to enabling digital inclusion for the older generation, Singtel volunteers have been actively engaging the community they serve. This year, Singtel employees have been volunteering at Senior Activity Centres to teach seniors how to use smart phones and equip them with basic digital skills to stay in touch with loved ones online and make cashless payments. [Please refer to Annex C-4.] To encourage more corporate volunteerism, I will extend the Business and IPC Partnership Scheme for another two years, until the end of 2023. I encourage our corporates to partner our IPCs. Together, we can make a bigger impact to meet the diverse needs of our community. Despite the stresses that Singaporeans face in this period, we continue to hear many heart-warming stories of our people stepping up to make a difference. I recently met a group of Singaporeans who came together in the early days of the pandemic to set up N-Lab, a surgical mask manufacturing facility in Singapore. The core group served NS together. They put in close to $1 million of their own capital to design and manufacture masks, and donated many masks to the community. This is a good example of SG Together – where we come together to make a difference. It is also a testament to the enduring value of NS! [Please refer to Annex C-4.] I hope these acts of kindness will inspire more people to come forward.”
“To encourage Singaporeans to give back to the community and to provide strong support for the charity sector in this time of crisis, I will extend the 250% tax deduction for donations to IPCs for another two years, until the end of 2023. I will also extend the additional Government support for Tote Board’s Enhanced Fund-Raising Programme by one year. Charities can apply to receive dollar-for-dollar matching on eligible donations, which are raised from projects in FY2021, up to a cap of $250,000 per applicant. This includes donations raised through approved digital platforms. I hope the additional support will help tide our charities over the crisis, to enable them to do their good work to support the vulnerable in our community. In particular, Community Chest, or ComChest, plays a critical role in raising funds for many Social Service Agencies, including for programmes that uplift lower-income families, such as KidSTART. To encourage more giving during these challenging times, I will support ComChest in two areas: First, I will extend ComChest’s SHARE as One matching period to FY2023. The SHARE as One scheme provides dollar-for-dollar matching for new and additional donations through the SHARE programme, which enables corporates, employees and individuals to commit to regular giving. Second, I will set aside $20 million for a new Change for Charity Grant. There is potential for businesses to do more to facilitate spontaneous acts of daily giving, for example, by encouraging their customers to make donations at the point of transaction. The Grant will match ComChest donations raised through this new initiative. The grant also co-funds one-off development costs needed to integrate or enhance donation functions onto businesses’ payment platforms.”
“The COVID-19 crisis has increased a sense of vulnerability among our workers. The Government will continue to explore how we can better support our workers to meet the challenges arising from accelerated changes in the economic landscape. Next, let me talk about how we will emerge stronger as a community. [Please refer to Annex D-2.] COVID-19 has affected our people in different ways, both tangible and intangible. While safe distancing measures, especially during our circuit breaker, have enabled us to keep the virus from spreading, they have also caused feelings of loneliness and isolation in some groups. Our community partners, charities and Social Service Agencies have stepped up their support well, and the Government will continue to work closely with them. However, this sector is facing new challenges. Donations to certain platforms, such as Giving.sg, and for specific causes like COVID-19, have risen. But donations to many charities in general, and income streams for their recurrent programmes, have fallen. Some charities even had to dip into their reserves to keep operations going. This affects the help that goes to those who need it. I encourage individuals and corporates to do more for our charity sector if you can. The Government has been playing its part. We have a multi-pronged approach to encourage charitable giving. This includes tax incentives for donations made to Institutions of a Public Character or IPCs, and Government grants that match donations raised. As it stands, the current level of 250% tax deduction on donations to IPCs in Singapore is high, compared to other jurisdictions. However, this is set to lapse at the end of 2021.”
“] To provide holistic support to more families, I will provide resources for MSF to expand ComLink significantly – to a nationwide programme to eventually cover 14,000 families with children, over the next two years. The Minister for Social and Family Development will provide details at the COS. Besides vulnerable workers and low-income families, the third group we need to pay special attention to is our children with special needs. Over the years, we have enhanced our support for students with special needs, within MOE schools and in Government-funded special education schools. Children under seven with developmental needs can benefit from a differentiated approach to help them learn better. Building on these, we will look into piloting an Inclusive Support Programme. This pilot integrates the provision of early intervention and early childhood services for children who require up to medium levels of early intervention support. Many of these children are already attending pre-schools, and this programme will allow them to be more meaningfully engaged alongside other children. We believe this will benefit all children and help them develop social skills and social inclusion. Ensuring equal opportunities for all, and supporting the needy and vulnerable segments of our society are integral to strengthening our social compact. We will continue to identify and target groups who may need further support, including emerging groups of workers in more vulnerable areas. For self-employed persons, we will continue to study ways to enhance their job security and strengthen their retirement adequacy. The Government is working with our unions and various agencies on these efforts, including outreach to more self-employed persons.”
“The Ministry of Manpower will provide more details. Another segment of workers who may face greater challenges in securing or retaining jobs, are persons with disabilities, or PwDs. To encourage employment and training of PwDs, MSF announced two weeks ago, the creation of 1,200 new job and training opportunities for PwDs. This builds on the various initiatives to boost employment for PwDs, such as the Open Door Programme and the Enabling Employment Credit. I have touched on the segments of the workers who need more support. The second group of Singaporeans who have been badly affected by the pandemic are our lower-income families. MSF has been working to strengthen social service delivery and provide holistic support for our lower-income families. Community Link, or ComLink, is one such initiative. Introduced in 2019, ComLink has become one of MSF’s key initiatives to help families with children who are staying in rental housing. ComLink seeks to provide holistic support to low-income families. By mobilising community assets and galvanising local volunteering efforts, ComLink provides families with the tools and support to do better. MSF also ensures that ComLink is coordinated with other initiatives such as UPLIFT and KidSTART, to provide families with seamless, holistic support. MSF has made good progress. Since implementation, MSF is supporting about 1,000 families. Mdm Soo Bee Keow and her children are one of those who have benefitted from ComLink. Through this initiative, Mdm Soo’s family is able to benefit from a range of additional support, from grocery vouchers to back-to-school items which help to offset living expenses, to enrichment programmes for her children such as the kidsREAD programme. [Please refer to Annex C-4.”
“The third group are our children with special needs. Let me first touch on the first group – workers who need more support, starting with our lower-wage workers. Today, we adopt a multi-pronged approach in supporting them. This includes the enhanced Workfare Income Supplement scheme, Workfare Skills Support scheme, the Progressive Wage Model and Workcare. In October last year, the Tripartite Workgroup on Lower-Wage Workers was formed to explore ways to uplift the wages and prospects of our lower-wage workers. The Government’s aspiration is for every sector of the economy to have some form of Progressive Wages. The Tripartite Workgroup is making good progress. The Ministry of Manpower will provide details on the approach for expansion later. Next, our older workers may also need more support. The Government has been exploring ways to enable workers to continue working if they want to. The Prime Minister announced at the National Day Rally in 2019 that we will raise the Retirement Age and Re-employment Age to 63 and 68 respectively in 2022, with the Government and the Labour Movement effecting this a year earlier in 2021. To help businesses adjust, I introduced the Senior Worker Support Package in the Unity Budget last February. I am happy that the take-up rate for the Senior Worker Early Adopter Grant and Part-Time Re-employment Grant, two key components of the Senior Worker Support Package, have exceeded expectations. I thank our businesses for supporting your employees who wish to work longer. To support more companies to move earlier to raise their retirement and re-employment ages, I will increase the budget allocation for the Senior Worker Early Adopter Grant and the Part-Time Re-employment Grant by over $200 million.”
“Singaporeans’ sense of unity and discipline in observing the precautionary measures such as safe distancing and mask wearing has enabled our progress so far in combating the pandemic. The discipline and understanding of our local merchants and hawkers have also been important. However, they have been quite affected by the safety measures, especially during the circuit breaker. To thank all Singaporeans for their sense of solidarity, and to continue to support our heartland businesses and hawkers, I will partner the Community Development Councils, or CDCs, to give all Singaporean households $100 worth of CDC Vouchers per household, to be used at participating heartland shops and hawker centres. I hope that this new tranche of vouchers can bring more business to our hawkers and heartland shops. To resource this, I will provide an additional grant to the CDCs amounting to $150 million. More details will be announced by the CDCs later. Altogether, the Household Support Package will cost about $900 million. This Household Support Package provides some support to all families, with lower- to middle-income families receiving more. [Please refer to Annex D-1.] Our President, at the Opening of Parliament, spoke about the strengthening of our social safety nets. To strengthen our social compact, we must work together to address the challenges faced by the more vulnerable members of our society. The Government will continue to allocate resources in our annual Budgets for this. Beyond short-term relief, some Singaporeans have been more badly affected by the pandemic. I will highlight three groups that need more support. The first group are workers who are earning low wages or facing more challenges with employment. The second group are lower-income families.”
“For families, we provided the Care and Support Package and the Solidarity Payment, which benefited all Singaporeans regardless of income or housing type, with more for the less well-off. For workers, we implemented the COVID-19 Support Grant, the Self-Employed Person Income Relief Scheme and the Temporary Relief Fund. For the vulnerable groups, we disbursed the Workfare Special Payment to lower-income workers. Grocery Vouchers and additional GST Voucher – U-Save provided further support for lower-income families. As the economic situation remains uncertain, I will introduce a Household Support Package, to provide additional support to families. First, for lower- and middle-income households. All Singaporeans who are eligible for GST Voucher – Cash will receive an additional one-off GST Voucher – Cash Special Payment of $200. This is on top of the regular GST Voucher – Cash payment. I will also provide a GST Voucher – U-Save Special Payment to eligible HDB households, amounting to an additional 50% U-Save rebate over one year. Each household will receive additional utilities rebates of between $120 and $200 this year. Second, I will also extend the Service and Conservancy Charges Rebate for all eligible HDB households for another year. Third, for families with Singaporean children below the age of 21, I will provide an additional top-up of $200 per child through the Child Development Account, Edusave Account, or Post-Secondary Education Account, to further support parents as they invest in their children’s future. This will be on top of the annual Edusave top-ups for children in Primary and Secondary schools.”
“Home ownership enables Singaporeans to share in the nation’s growth, while ensuring a roof over their heads even in times of uncertainty like this. Strengthening our social compact will always be a work-in-progress. As we recover from this crisis of a generation, let us strive to emerge stronger as a society. In June last year, we launched the Emerging Stronger Conversations in the midst of the pandemic. I thank the 17,000 individuals who participated and shared their views. I am glad that many expressed their wish for a fair, equal and caring society, with more support for vulnerable groups, such as lower-wage workers and persons with disabilities. Last June, I also announced that we would form Singapore Together Alliances for Action, or AfAs. These will become a key approach to forging partnerships and cross-sector collaborations to pursue new growth areas, and to tackle complex issues, including those that have come up through the Emerging Stronger Conversations. Within eight months, 15 AfAs have been formed or announced, alongside other existing partnerships and collaborations. Going forward, the National Council of Social Service and SG Enable will also form an AfA on support for care-givers of persons with disabilities. This AfA will build on the good work of our community partners and individuals, and harness their resources and creativity to co-create solutions to improve support for care-givers. The Minister for Social and Family Development will announce details at the COS. We expect more AfAs to be announced in the months ahead. In the five Budgets last year, we brought immediate relief and support for families and workers, looking out especially for those who were more badly affected.”
“] This is in line with the tightening already underway in other sectors such as the Services, Construction, and Marine Shipyard and Process sectors. The move has been carefully calibrated, so that firms have one year to adjust, before changes are implemented. We will continue to review our S Pass framework, including the qualifying salary and levies, to ensure we maintain complementarity between the local and foreign workforces. I have touched on how we plan to emerge stronger as a workforce and as an economy. Beyond economic opportunities, what is fundamental is our sense of purpose and our sense of togetherness. Since our independence, we have been seeking to build a fair, just and caring society. We have been building strong bonds as a people and deepening our social compact. In this pandemic, we have seen how Singaporeans united in adversity and supported one another. Social cohesion does not happen naturally. Even before COVID-19, many societies were facing sharp divisions due to widening inequalities, increasing diversity of interests and voices, and growing distrust. The pandemic has deepened the cracks in many societies. Singapore is not immune to these challenges. We must continue to strengthen our social fabric and reject forces of division and discord. Over the years, the Government has been investing significantly in three key areas: We subsidise healthcare heavily to ensure that every Singaporean has access to affordable and quality healthcare. We invest in education to ensure that every Singaporean has access to opportunities to maximise their potential, regardless of their starting point in life. We promote home ownership, with significant subsidies for public housing.”
“This will allow us to add vibrancy to the local market, better serve international and regional markets, and enhance Singapore’s attractiveness to global investors. The Capability Transfer Programme, or CTP, is one of many programmes that supports such foreign-to-local skills transfer. As of end-2020, more than 140 companies, and over 970 locals have benefitted or are expected to benefit from 40 projects. I will extend the CTP up to end-September 2024. One Singaporean who has benefited from the CTP is Mr Mohamad Zaini Bin Selamat. He is a Technical Officer at SP Services who learnt skills from foreign experts in network support for the roll-out of advanced electricity meters. He is now performing higher-value work such as fault isolation and data analysis and supervising junior colleagues. [Please refer to Annex C-4.] To complement our local workforce, we also have the S Pass for companies to hire workers with the technical expertise. I had indicated at the Unity Budget in February 2020, that the Manufacturing S Pass Sub-Dependency Ratio Ceiling, or sub-DRC, would be cut when conditions allow. Manufacturing is a significant pillar of our economy. To achieve our vision of being a global advanced manufacturing hub, firms must make it a priority to develop a strong, highly-skilled local core in their workforce. We cannot do without foreign workers, especially those with deep skills. But we should moderate further our reliance on them, so as to focus on creating good jobs for locals. Therefore, we will reduce the sub-DRC for Manufacturing in two steps, to 18% from 1 January 2022, and to 15% from 1 January 2023. [Please refer to Annex C-3.”
“This sector provides many good skilled jobs that are noble, meaningful and make a difference to Singaporeans. We will enhance the salaries of our nurses and other healthcare workers such as support care staff. This will apply to workers across public healthcare institutions, and publicly-funded community hospitals and long-term care service providers. [Applause.] The Minister for Health will announce the details at the COS. I will now turn to manpower issues. Some Singaporeans are concerned about our reliance on, and competition from, foreign manpower. At the same time, many businesses and trade associations have said that it is difficult to hire locals, and asked for us not to tighten foreign worker quotas further, to remain globally competitive. The way forward is neither to have few or no foreign workers, nor to have a big inflow. We have to accept what this little island can accommodate. To strike a balance, we must focus on enhancing the complementarity of local and foreign manpower, and step up on industry transformation. In line with this, I will support the employment of Singaporeans while we deepen their capabilities and promote capability transfer, while moderating our reliance on foreign labour where we must. I will provide further help to support wage increments for companies to retain or draw in locals by extending the Wage Credit Scheme for a year, at a co-funding level of 15%. I urge employers to make use of this and other schemes to redesign jobs and upskill their local staff. For sectors, especially those in new growth areas, where we may be short of skills, we welcome expatriates with the right expertise to complement Singaporeans and help us build capabilities.”
“The NRF will be supporting about 500 Fellowships under the new Innovation and Enterprise Fellowship Programme, or IFP, over the next five years, to meet needs in areas such as cybersecurity, artificial intelligence and health tech. It will work with a range of partners, including accelerators, venture capital firms and deep tech start-ups. The first partner, SGInnovate, recently launched Power X (Robotics), the first programme under IFP, to develop local talent for the fast-growing robotics and automation sector. Trainees undergo a nine-month programme to learn and apply robotics-related skills on real-world projects, and are thereafter placed with their respective host companies to help drive innovation. The inaugural programme has 10 trainees in six host companies. One of the trainees, Mr Cheng Yi Chiao, previously worked in various MNCs and start-ups overseas. He returned to Singapore and was emplaced in an agri-tech start-up, Polybee. Working together with Polybee's team, Mr Cheng has learnt in a very short time how automation of pollination with micro drones works. These efforts are in line with the enhancement of food security in Singapore with deep tech. [Please refer to Annex C-4.] The host companies have welcomed this initiative to build up tech talent in Singapore. Next, I will touch on the healthcare sector. Our healthcare workers have, over the years, been working hard to provide us with the highest quality of care. Since COVID-19 hit, their exemplary commitment has shone through. Once again, let me express our deepest appreciation to all healthcare workers for your dedication in fighting the pandemic. Beyond the pandemic, the healthcare sector is set to grow as our people age.”
“Under the Jobs Growth Incentive, or JGI, an estimated 110,000 local jobseekers were collectively hired within two months from the implementation of the scheme. Looking ahead, as companies and industries transform, and new growth areas emerge, our people will need to have the skills and agility to move. To emerge stronger, our people will need new knowledge and skills. To enable our people to take on these new jobs, I will allocate an additional $5.4 billion to a second tranche of the Jobs and Skills Package, on top of the $3 billion allocated last year. Of this, $5.2 billion will be allocated to JGI, to extend the hiring window by seven months, up to end-September 2021. Companies hiring eligible locals will be given up to 12 months of wage support from the month of hire. However, those hiring mature workers, persons with disabilities and ex-offenders will be given up to 18 months of enhanced wage support. [Please refer to Annex C-2.] For workers who require additional support before landing a job, we will also extend the support for the SGUnited Skills, SGUnited Traineeships and the SGUnited Mid-Career Pathways Programmes. [Please refer to Annex C-2.] Through the next phase of the SGUnited Jobs and Skills Package, we have set aside the budget to support the hiring of 200,000 locals this year through the JGI, and provide up to 35,000 traineeship and training opportunities to continue to support jobseekers in upskilling and accessing employment opportunities. As we head into a more technologically-intensive and innovation-driven economy, we must also groom leaders in innovation and enterprise, especially in deep technology areas.”
“A Mercer survey last year showed that over 90% of employers globally saw similar or higher productivity despite employees working remotely. Over 80% of firms intend to implement more flexible working policies. These are global trends that our people will have to adapt to. ‘Working from Home’ is just a short step to ‘Working from Anywhere’. Yes, anywhere in the world – as long as you have a computer and Internet connection. Singaporeans may find more opportunities as the best firms source globally, but will also face stiffer competition from talents who may not even step foot in Singapore. But Singaporeans should not be fearful. There are many strengths in Singapore that will enable us to create good jobs here. But to access these, we have to learn and adapt. I met Mr Edmund Tang last September, when he was at the e2i Trade and Connectivity Career Fair looking for a job. He had been working on autonomous vehicles but decided to explore if his skills could be better deployed. An e2i career coach matched him with a job opening. Today, he is a Senior Business Development Manager in the Advanced Remanufacturing and Technology Centre, an A*STAR Research Institute. In his new role, he is able to build on his experience to develop new skills in a new area and role. [Please refer to Annex C-4.] The SGUnited Jobs and Skills Package is a key pillar in our industry transformation, to enable Singaporeans to learn and thrive, as our jobs and workplace change, and as businesses transform. It was first launched last year, to tackle the anticipated labour market fall-out from COVID-19. As of end last year, we have placed nearly 76,000 individuals into jobs, traineeships, attachments and skills training.”