Jeffrey Siow
Singapore
“These solutions have been installed for the Bukit Panjang LRT in 2023, and for the Sengkang-Punggol LRT in 2024. While physical and technological constraints have prevented the installation of platform screen doors at LRT stations thus far, this incident reminds us that we must never stop looking for better solutions.”
“The point-to-point transport sector in Singapore is market-based, which allows the needs of both commuters and drivers to be met. We have no plans to regulate ride-hail platform commission rates or passenger fares.”
“The amended route for Service 965 was designed to bring residents closer to amenities near Sengkang town centre, including schools, Sengkang General Hospital and the Sengkang Community Hub, compared to the alternative of routing through Compassvale Road.”
“The Ministry of Transport and the Ministry of Health (MOH) work closely together on transport options for healthcare needs. Our public transport network is barrier-free and wheelchair accessible. Taxis must accommodate foldable wheelchairs.”
“The Land Transport Authority (LTA) is the primary agency responsible for enforcing Active Mobility Act (AMA) offences on public paths, which comprise footpaths, shared paths and pedestrian-only paths. National Parks Board (NParks) officers are authorised by LTA to enforce AMA offences within NParks-managed parks and park connectors.”
“As earlier announced, the new bus stops, overhead bridges and lifts along the Tampines Expressway (TPE) will be completed between 2030 and 2032. Once works are completed, more residents in the northern parts of Rivervale estate will be within a 10-minute walk from a bus stop along TPE.”
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“The Expected Time of Arrival (ETA) system is required to undergo a risk assessment every two years. The last assessment on the ETA system was conducted by the Land Transport Authority in July 2024 and identified minor issues which were addressed prior to the recent disruption. Unfortunately, it did not pick up the issues that led to the disruption. We will review how we can improve the risk assessment for future iterations.”
“Road design and infrastructure are continually reviewed and enhanced by the Land Transport Authority to improve safety outcomes for all road users. For example, the Friendly Streets initiative introduced in 2023, improves the safety and comfort of walking and cycling commutes through reduced speed limits and the use of traffic-calming measures, such as 3D road markings and speed humps.”
“Tax revenues, including foreign worker levies, are not ringfenced for specific spending. The Government will continue to work with industry and non-governmental organisations to improve the safety of worker transport.”
“We plan to bring forward the renewal of the North-East Line power supply system by around three years, with works commencing in 2026. It is too early to determine the impact on service availability needed. The Land Transport Authority and the operator will minimise the impact on commuters and inform them early if service adjustments are needed.”
“We recognise the disruption that road closures can cause to drivers and commuters. The road closures along Loyang Avenue are necessary for the construction of Loyang Viaduct and the Cross Island Line Loyang station. When completed in 2030, these two major infrastructure enhancements will improve travel time and convenience for Loyang residents. To mitigate the impact on traffic and provide alternative options for residents, the Land Transport Authority (LTA) had pre-emptively enhanced roads around Loyang Avenue, such as Pasir Ris Drive 3, Loyang Way, Loyang Drive and Upper Changi Road North. The frequency and capacity of bus services have also been improved where possible, including the introduction of two peak period Loyang-Changi Shuttle services. Beyond the ongoing road diversions, additional road or lane closures will be needed during certain phases of work. Where possible, these will be carried out during off-peak periods to avoid further inconvenience to residents. Where safety critical works must be carried out continuously during the day, additional road signs and ground staff will be deployed to manage congestion. Traffic light timings may also be adjusted to improve the flow of traffic. LTA will continue to monitor the situation throughout the period of works and adjust the measures as necessary.”
“Contractors are required to provide advance warning signs at road worksites as prescribed in the Land Transport Authority's (LTA's) Code of Practice for Traffic Control at Work Zone. For example, for a road with a speed limit of 50 km/h, the earliest advance warning sign should be placed around 280 metres before the worksite. For roads with higher speed limits, the Code requires advance warning signs to be placed further away from the worksite. Action is taken against contractors for non-compliance.”
“We do not assess accident risk based purely on exposure metrics like distance travelled. Instead, we assess accident risk holistically, and the Ministry of Transport and the Ministry of Manpower work closely with platform providers to improve the workplace safety of drivers and delivery riders. For instance, taxi and private hire car drivers undergo training on occupational health hazards, including fatigue awareness and management, as part of their Vocational Licence course. Platform companies must also ensure their taxi and private hire car drivers and delivery riders using active mobility devices on public paths have adequate third-party liability insurance coverage during the course of their work.”
“Government agencies are expected to reply within 15 working days. More than 60% of feedback received by the Land Transport Authority (LTA) is resolved within five working days, while more than 93% of all feedback are closed within 14 working days. For complex cases where replies cannot be provided within this timeframe, LTA will acknowledge the feedback within the 15 days and keep the feedback provider informed of the progress.”
“As of February 2026, about 215,000 vehicles in Singapore are affected by the Takata airbag recall. More than 90% of affected vehicles have been rectified and about 16,000 vehicles are in the process of being rectified.”
“A total of about 500,000 vehicles registered in Singapore were affected by safety-related recalls from 2016 to 2025. Recalls are initiated by vehicle manufacturers and both vehicle manufacturers and motor dealers are legally obliged to notify owners of affected vehicles. Enforcement action is taken against motor dealers and vehicle owners for non-compliance. Most defects do not pose an imminent danger during normal operations. Where a defect poses serious safety risk, owners will be advised by manufacturers and motor dealers not to drive the vehicle until rectified.”
“The regulation of public transport fares is under the purview of the Public Transport Council (PTC). As the cost of concession schemes, including monthly passes and fare caps, is generally cross-subsidised by other fare-paying commuters, PTC will have to carefully consider any new fare products, to strike a balance between extending discounts to some commuters against the additional fares that will need to be borne by other commuters.”
“The Sectoral Manpower Plan for the public bus industry was launched in 2016 to strengthen the local workforce of the public transport sector. Since its launch, the public bus operators have introduced initiatives, such as improved remuneration, sign-on bonuses and more flexible work arrangements. Operators also made efforts to improve working conditions. The Land Transport Authority did not track the number of bus captain job applicants before mid-2020. From 2021 to 2025, the proportion of applications made by Singapore citizens varied between 25% and 50%. However, it is not meaningful to compare the number of applications made by Singapore citizens against the total number of applicants, as the number of applications made by foreigners is a function of the residual bus captain manpower needs after accounting for successful local recruitment, as well as the foreign worker quotas that each bus operator has.”
“Our gold reserves are diversified across geographies to ensure accessibility and resilience in the event of geopolitical and economic shocks. For security reasons, we do not disclose the proportion of gold stored in any particular jurisdiction. The Government regularly reviews its portfolio to ensure appropriate diversification through periods of economic and geopolitical uncertainty.”
“From 2021 to 2025, there was an average of about 60 cases reported annually under the Protection from Harassment Act (POHA) where a public transport worker was a victim of harassment by commuters while performing duties. We do not track the number of such cases that specifically involve allegations of online harassment. Under the Act, it is an offence to use any indecent, threatening, abusive or insulting words or behaviour towards a public transport worker. Commuters who contravene an offence under POHA may be liable upon conviction to fines and/or imprisonment. We take a zero-tolerance approach towards commuters who harass or abuse our public transport workers. The Land Transport Authority and the public transport operators will work closely with the Singapore Police Force to investigate any reported incidents. We will also continue with public education efforts to remind commuters to treat public transport workers with respect.”
“We regularly review measures to improve the safety of workers transported on lorries, in consultation with industry and non-governmental organisations. Specialist trades typically use smaller vehicles that can transport a few workers with equipment. We are studying options that can make their operations safer for workers while minimising disruption.”
“Bus captains receive structured training by bus operators and the Singapore Bus Academy to ensure that they have a common set of skills to handle their work responsibilities. The Land Transport Authority also works with bus operators and the National Transport Workers' Union to review career progression pathways so that bus captains have the opportunity to progress into training or mentorship roles or manage other aspects of bus operations. To attract more locals to join the industry, the public transport operators have introduced sign-on bonuses of up to $20,000 and have been improving working conditions through better rest facilities as well as optimisation of duty rosters. They have also introduced more flexible work arrangements and part-time opportunities to cater to a more diverse profile of prospective bus captains. The Government is also reviewing starting salaries to improve recruitment of new drivers.”
“Bicycle-sharing operators are required to ensure their shared bicycles are parked at designated bicycle parking spaces, rather than indiscriminately parked and obstructing public spaces. In 2025, 95% of shared bicycle trips ended at designated parking areas. Operators must integrate the Land Transport Authority's QR code parking system with their mobile applications, remove indiscriminately parked bicycles within a stipulated timeframe, impose a fee of $5 on users who fail to park properly and ban repeat offenders. If they fail to do so, operators can have their fleet size reduced or their licence suspended or revoked entirely. They may also face financial penalties of up to $100,000 or 10% of their annual turnover, whichever is higher. Operators' applications to renew their licence and expand their allowable fleet size are also assessed based on their track record in managing indiscriminate parking.”
“This question has been answered in the answer to Question Nos 1 and 2 in the Parliament Sitting on 25 February 2026. [Please refer to "Differentiating between Wealth Held by Households in Public Versus in Private Housing, and Measures to Sustain or Improve Upward Mobility Rates", Official Report, 25 February 2026, Vol 96, Issue 19, Oral Answers to Questions section.]”
“For the Year of Assessment 2024, the 25th percentile, median and 75th percentile income of the top 1,000 earners who are Singapore citizens are $2.5 million, $3.1 million and $4.5 million respectively.”
“All Electronic Road Pricing (ERP) 2 On-Board Units (OBUs) are compatible with the existing Electronic Parking System carparks. However, motorists may sometimes encounter problems accessing such carparks because the OBU antenna in their vehicles are not within range of the carpark antenna. This can be remedied either by repositioning the vehicle, or in other situations, recalibrating the position of the affected antenna. This issue exists for ERP 1 as well.”
“About 90 cases of noise-related feedback were received in 2023, and about 230 per year in 2024 and 2025, arising from the construction of Loyang Viaduct and the Cross Island Line stations at Loyang and Pasir Ris East. For these cases, the Land Transport Authority's (LTA's) contractors have engaged residents to address their concerns. Where noise measurements have exceeded acceptable levels, LTA has also directed contractors to implement further mitigation measures. In severe cases, contractors have been taken to task.”
“There are no plans for a continuous Transit Priority Corridor in the north-east region along the North East Line, as there is insufficient road space. Nonetheless, the Land Transport Authority has been implementing features, like continuous bus lanes, wider footpaths and dedicated cycling paths or shared paths, where feasible.”
“The Land Transport Authority will review if additional road safety measures are required after the outcome of the Traffic Police's ongoing investigations.”
“Data used to support bus planning, including travel times and occupancy rates, is generated by a different fleet management system. This system was not affected by the recent technical issues involving the Estimated Time of Arrival system.”
“Learning points from the recent disruption to the Expected Time of Arrival system will be used to strengthen the availability and accuracy standards of the system. The defective software which caused the recent disruption has been fixed and the system has stabilised. Critical systems that directly affect train and bus operations must meet higher reliability standards and undergo more rigorous testing before being deployed.”
“In 2025, about $130 million of Vehicle Entry Permit and Goods Vehicle Permit fees were collected. The fees collected vary year-on-year, depending on the number of foreign-registered vehicles entering Singapore.”
“This question has been answered in the answer to Question Nos 1 and 2 in the Parliament Sitting on 25 February 2026. [Please refer to "Differentiating between Wealth Held by Households in Public Versus in Private Housing, and Measures to Sustain or Improve Upward Mobility Rates", Official Report, 25 February 2026, Vol 96, Issue 19, Oral Answers to Questions section.]”
“In addition to the existing training provided by bus operators, the Land Transport Authority will require all bus captains to go through a new course on operating electric buses safely and confidently. The course is being developed by the Singapore Bus Academy and NTUC LearningHub, with input from the National Transport Workers' Union and bus operators, and will be launched later this year.”
“The increase in the Goods Vehicle Permit (GVP) fee is intended to narrow the cost difference between the Singapore-registered and foreign-registered goods vehicles due to ownership and usage costs in Singapore. We periodically review the fees for foreign-registered vehicles entering Singapore to account for changes in ownership and usage costs of Singapore-registered vehicles. Whether companies bear the increase in the GVP fee or pass this on to their end users is a commercial decision.”
“I thank Mr Tiong for his clarification. I think he is referring to a specific case in 2022 against a specific F&B establishment. Indeed, IRAS takes a firm stance against businesses who levy nominal service charges without genuine reason, other than to avoid displaying GST inclusive prices. However, it does not mean that the existing concession is no longer relevant to businesses. As I explained in my speech, we will indeed review this and do a discussion and exploration with businesses as well as consumers, on whether or not they would prefer for us to move in a different direction.”
“Finally, Mr Victor Lye spoke about strategically leveraging Temasek's global investments to create more opportunities for Singaporeans. Temasek's mandate is to deliver good, sustainable long-term returns. Their returns contribute to the annual Budget via the Net Investment Returns framework. 7.30 pm As a principle, we want Temasek to operate on a commercial basis and optimise their returns. As Mr Lye acknowledges, the Government does not prescribe specific areas of investment or dictate Temasek's individual investment decisions. Nonetheless, Temasek is indeed a valuable partner for the Government in our economic growth strategies. And we work together whenever there is alignment on the three pathways that Mr Lye highlighted: identifying strategic areas for investment, growing our local champions and developing Singaporean talent. Mr Chairman, in an increasingly competitive global landscape, being pro-enterprise is essential to Singapore's continued economic relevance. MOF is systematically improving our regulatory environment to reduce compliance costs and respond to business needs. We will continue to closely partner businesses, industry associations and unions to maintain Singapore's position as one of the best places in the world to do business.”
“More details on the timeline and support provided will be released by IRAS and IMDA. Turning to personal taxes, Mr Saktiandi Supaat asked about reviewing the $20,000 threshold for personal income tax exemptions. While the personal income tax exemption threshold has not been changed for some time, this threshold should be seen together with our overall system of tax rates, tax reliefs and rebates that applies to all individuals. Under our current system, one in three resident workers do not pay any personal income tax at all. And among those who do, about eight in 10 have an effective tax rate of less than 6%. So, I would like to reassure Mr Saktiandi that we will regularly review our income tax system to ensure that it is progressive and resilient, and that the tax burden is kept low, particularly and especially for middle- and lower-income. Mr Ng Shi Xuan suggested providing tax credits to recognise our NSmen and caregivers. As Mr Ng pointed out, we do have various tax reliefs in place to recognise NSmen and caregiving, or caregivers. To complement the tax reliefs, both NSmen and caregivers are also eligible for cash grants and credits. Cash grants and credits are administratively simpler and more progressive than tax credits which are tied to payable taxes. For example, we provide up to $18,500 in LifeSG credits and top-ups to CPF and Post-Secondary Education accounts via the NS Home Awards for operationally-ready NSmen, and we also have provided one-off NS LifeSG credits in 2022 and 2024. Caregivers can also apply for the Home Caregiving Grant to defray the cost of caregiving. We will continue to review the support provided to NSmen and caregivers, whether through tax deductions, cash grants, or other means to recognise them for their contributions and sacrifices.”
“By using InvoiceNow, this business can automatically issue e-invoices and populate accounting records, without having to spend time on manual data entry. Many businesses and trade associations have given us positive feedback that they were able to reduce invoicing errors using InvoiceNow. For businesses with overseas operations, cross-border B2B transactions will also be easier through InvoiceNow as its underlying e-invoicing standard is internationally accepted. For these reasons, the Government has been nudging more businesses to use InvoiceNow. We provide newly incorporated businesses with one year of free InvoiceNow services. Since 1 November 2025, newly incorporated companies that voluntarily register for the GST are required to transmit invoice data to IRAS via the InvoiceNow network. Such companies have benefited from faster GST audits and refunds. As more businesses come onboard the InvoiceNow network, the network benefits and efficiency gains will only increase further and so in consultation with SBF and other trade associations, we are now ready to take the next step to push for greater adoption of e-invoicing. We will require all GST-registered businesses to submit digital invoices to IRAS via InvoiceNow by April 2031. This will bring on 90,000 more businesses to the InvoiceNow network. We will do this progressively. We will prioritise the onboarding of smaller businesses so that we can support them better in their transition. First, we will make a suite of InvoiceNow-Ready software: solutions available to businesses free-of-charge. Second, we will provide new cash grants to defray any operational costs of adopting InvoiceNow-Ready software up to $1,000 for smaller companies and up to $5,000 for larger companies.”
“The ASEAN Single Window enables the exchange of documents for cross-border trade across ASEAN member states. The onboarding of ASEAN Member States to the ASEAN Single Window has reduced paperwork, shortened clearance times and improved predictability and transparency for traders and exporters. This has facilitated trade by reducing cross-border friction. Singapore chairs the Steering Committee for the implementation of the ASEAN Single Window. We are now exploring ASEAN Single Window 2.0, to strengthen interoperability and to expand electronic trade-related document exchanges to partners, such as China, Japan and South Korea and this could include adopting standardised technologies that allow for more types of electronic documents to be exchanged. These improvements to cross-border clearance processes will make it even easier for businesses to use Singapore as a launchpad to grow and expand internationally – in line with the recommendations from the ESR. Mr Saktiandi Supaat and Ms Tin Pei Ling asked about how the Government can help businesses catalyse innovation and enhance processes to be more productive. We encourage businesses to use more technology to increase productivity. For instance, SMEs that do not have large back-office teams can digitalise their processes to reduce paperwork and errors. A recent study by Deloitte estimated that using digital invoices can save small businesses up to $20 per invoice. To support this effort, the Infocomm Media Development Authority (IMDA) launched InvoiceNow, Singapore’s e-invoicing network, in 2019. Today, over 63,000 businesses are on InvoiceNow. One such business is I Interior Design.”
“So, for example, Mr Kenneth Tiong asked if IRAS can review the concession for F&B establishments and hotels to display prices that exclude GST. The purpose of this concession is to simplify processes for establishments that impose service charges, which includes both F&B establishments as well as hotels and this is because service charges are variable and may be waived or reduced. This concession has been in place for the last 30 years and it has become the accepted norm. Making an industry-wide change will require such businesses to incur additional costs when the industry is currently facing cost pressures. Nonetheless, we will review this in the future, to take into account technological improvements as well as business and consumer preferences. Mr Edward Chia and Mr Shawn Loh suggested that the Government review the frequency of the Progressive Wage Credit Scheme payouts, citing how annual payouts may result in cashflow constraints for smaller businesses. MOM annualises Progressive Wage Credit Scheme payouts because the wages of workers in the Progressive Wage Model sectors can vary throughout the year. Smoothening the payout on an annual basis ensures that we provide sufficient, fair and consistent support to companies that are implementing wage increases to uplift our lower-wage workers. So, it is not a technical issue, it is a policy issue. We, nevertheless, recognise that smaller businesses face cost pressures and cashflow constraints, which is why we have provided the Corporate Income Tax Rebate and Cash Grant to support more companies in this year's Budget. Ms Tin Pei Ling asked about the ASEAN Single Window and I managed to hear all of her cuts before her mic was cut off.”
“Mr Chairman, let me start by addressing Ms Tin Pei Ling's question on the Government's efforts to support businesses by streamlining regulatory requirements. The Economic Strategy Review (ESR) committees have engaged many business leaders to gather feedback on Singapore's long-term economic strategy. Many business leaders, here and abroad, have emphasised the importance of Singapore's reputation as a well-governed, stable place for doing business. Our clear and consistent rules and laws are a competitive edge for us, especially in today's uncertain global economic environment. Besides the ESR, I am also part of the Inter-Ministerial Committee on Pro-Enterprise Rules Review chaired by the Deputy Prime Minister, which oversees efforts to improve regulatory efficiency. MOF agencies are strongly supporting the Inter-Ministerial Committee’s efforts. For instance, Customs is considering extending the validity period of certain licences from three years to five years, so that businesses need not renew them as frequently. Customs is also shortening the time for businesses to obtain some licences to within 30 working days, so businesses have greater certainty in their planning and operations. The Accounting and Corporate Regulatory Authority (ACRA) will consult businesses and the audit community later this year on whether to exempt more small enterprises from having to audit their financial statements. This will reduce their cost burden and improve cash flow. While we do want to keep compliance requirements proportionate, some regulations which balance between business and consumer interests require a little bit more careful consideration.”
“About 20% of our current public bus fleet is equipped with the Passenger Information Display System (PIDS) for buses which features visual displays and audio announcements of upcoming stops. Another 20% of the fleet have internal speakers that provide audio announcements. All new buses will be equipped with PIDS, and by 2030, around 70% of the fleet will have at least one of these systems as we refresh our fleet. Older buses were not designed to include such systems; it is not practical to retrofit them with visual displays, speakers and cabling. Apart from technological solutions, bus captains are trained to assist commuters with additional wayfinding needs. Commuters who are deaf or visually impaired can request for bus captains to alert them when the bus is arriving at their stop. We also encourage commuters to assist their fellow passengers if they need additional wayfinding assistance, such as through the "Please alert me when I am approaching my stop" card in the Helping Hand scheme.”
“Where cumulative noise levels exceed regulatory noise limits for the North-South Corridor, the National Environment Agency will work with the Land Transport Authority and its contractors to coordinate construction schedules to minimise overlapping activities, where practicable. Enforcement action will be taken against individual sites that exceed regulatory noise limits. Noise barriers must be installed for construction projects within 75 metres of noise-sensitive premises, including residential buildings. Localised noise impact assessments must also be conducted before and during construction, and if needed, contractors would have to implement further noise mitigation measures.”
“Most Government schemes rely on employment income for means-testing. There are no immediate plans to change this. That said, where appropriate, we already take into account other relevant indicators. For example, ComCare adopts a holistic assessment of an applicant's financial circumstances, including all sources of income. This ensures that assistance is directed towards those who genuinely require support to meet their basic needs. The Government will continue to review the parameters of our social support schemes to ensure that they remain effective in supporting their intended beneficiaries.”
“Let me just go back to the issue on investment property, so that I can explain that a little bit more clearly because I have not done so very well. What we do is that for household wealth, we do include both liquid and illiquid assets, because this is in line with international guidelines. All property owners, including those who own HDB flats, can rent out their property for income, and to sell it and keep the proceeds. So, it is a store of wealth. And so, it is up to how people manage it, how they activate this store of wealth that they can use. And so, there is no real need for us, and it is not in international best practice for us to separate out investment versus non-investment properties or owner-occupied versus non-owner-occupied properties. This is in line with international best practices and we will try to continue to do that, particularly since in Singapore, our approach is to encourage owner-occupation, and to encourage and make sure that Singapore has broad-based ownership, particularly through the ownership of their HDB flats.”
“Mr Speaker, for property, in terms of methodology, we have treated them the same, through property values. Because property value captures a broad range of different property characteristics, whether owner-occupied or not, as a store of value. The wealth Gini coefficient is not a measure of liquidity. It is a measure of the stock of wealth. So, that is the first point I would like to make. Second is that for property, the way we have implemented it in Singapore is that we have taken a broad-based approach to ensure that Singaporeans have broad asset ownership, through HDB flats. And as a result, we should not necessarily compare what we do in Singapore, in terms of including housing, with other countries. So, it is a different metric. On whether or not we have done simulations on separating investment of property from owner-occupied property, we have not done so. As I have explained, it is because we treat property as a store of wealth. There is no real need for us to do so and that is something at the moment that we will not do. On tax burden, whether or not we will shift from work to wealth taxation, I think, we remain open. Today, we have an approach that works on the whole. The outcomes of the past decade, in terms of our policies, have been positive. We have been able to achieve real income growth. We have been able to achieve a decline in inequality and we have been able to achieve a balance using both wealth taxation, as we explained, as well as income taxation. As our society ages and we move towards an older society where there is more asset owning, that is something we can consider, whether or not we need a shift. But we have to do this carefully so that we know that the outcomes that we want to achieve can be done so without too much social perturbation.”
“We recognise the concerns of the group that Mr Yip spoke about – the asset rich and cash poor retirees. Our property tax system currently is progressive. Investment properties and higher-value properties are taxed higher and homeowners with only one property are taxed lower and they receive property tax rebates when necessary. But we nevertheless understand the concerns that individual property owners may face different financial circumstances, particularly on cash flow. So, for asset rich but income poor seniors, we have deferral mechanisms for property tax payments to ease their cash flow pressures. For instance, eligible seniors and retirees can apply to pay via extended interest-free instalments.”
“As for AI, the current crop of Singaporeans and the concerns about how they will need to adapt, I think the key is really through ensuring our Singaporeans are skilled, are able to adapt quickly, take on the new jobs that will be created in this new economy. This will generate wage growth and hopefully then, in that way, they will be able to maintain a strong standard of living and continue to progress in life. It is a basket of pressures. I think we have to work hard to lean against the structural pressures that will happen as our economy matures and develops, so that Singaporeans can succeed regardless of background. We have to remain vigilant and to refine our policies when needed so that we can remain socially mobile over the long term.”
“Thank you, Mr Speaker. The findings of the Occasional Paper indicate that the social outcomes in the past decade have been positive. I think it suggests that our strategy of combining inclusive economic growth with targeted and progressive support has had tangible impact. But we do not take these outcomes for granted. As our society ages and new generations come onboard and the economy matures, structural pressures on inequality will naturally emerge and sustaining mobility will become more challenging. So, to Ms Mariam's question on younger cohorts, we do not yet have good data on younger Singaporeans because they are still in the early stages of their careers and their earnings have not stabilised. But we are encouraged that the increasing proportion of younger Singaporeans have attained higher levels of education and skills, and that will put them in good stead to be able to do well in life. On her second question on the bottom quintile, the issues are more complex. The families, in particular in the bottom quintile, have multiple needs and need multiple support. And that is why we have been working on a package of various measures, including the enhancement of ComLink+ which the Prime Minister spoke about in his Budget Speech. We are also working very hard to make sure that children in those households have a good start in life through preschool and that is part of the KidSTART programme, which we have initiated many years ago. Sustaining social mobility will indeed be a challenge. We will have to work extensively on families in the bottom quintile, knowing that the challenges to overcome are more complex and more difficult.”
“Thank you, Mr Speaker. Wealth is notoriously hard to measure, particularly data on overseas assets and unlisted assets. This is not unique to Singapore. The current estimates, both wealth as well as income, are our best efforts, in line with best practices in other countries. We have done so to our best effort, combining both survey data with administrative data, as I have explained in my speech. This is the first time we are measuring the wealth Gini coefficient and we are open to improving it over time. We will take into account some of the suggestions that are made by Members on what we can do. In terms of household income trends, we already publish that data regularly, annually, in the Key Household Income Trends Report. But for the wealth Gini coefficient and wealth data, it is dependent on the main source, which is the household expenditure survey, which we do every five years. I think the next cycle is in 2028. And so, when that data is obtained, we will try our best to put out something regularly. We intend to track this data, as I have explained. In terms of what we would do with this data, I think the important part is to look at the trending. The absolute numbers are an indication of where we are, relative to other countries, but the trending is also important, whether or not wealth Gini is going up or going down, in the right direction. The enhanced data and methodology that we have used for both income inequality as well as wealth inequality will improve our understanding of the states of inequality in Singapore, which will better help us develop more evidence-based and targeted policies to improve Singaporeans lives.”
“Our schools provide a strong foundation with more support for those from disadvantaged households. SkillsFuture provides continuing learning opportunities for adults, including enhanced support for mid-career workers. The Progressive Wage Model and Workfare raise earnings and strengthen career pathways for lower-wage workers. For families facing complex challenges, ComLink+ provides more intensive, coordinated support in partnership with community organisations. Overall, Singapore remains in a stronger position than many advanced economies. But we do not take this for granted. Tackling inequality and improving mobility requires sustained investment across generations. We will continue to review and update our fiscal measures to ensure they remain effective and sustainable. We remain committed to ensuring every Singaporeans can start well, progress in life and share in our nation's success.”
“However, these estimates should be interpreted with caution, due to sample size limitations and potential under-reporting in survey responses at both ends of the distribution. Wealth inequality is higher than income inequality in all advanced economies, as wealth accumulates over the life-cycle. In Singapore, a significant part of household wealth, especially among lower- and middle-income households, is held in owner-occupied housing and CPF savings. Our housing and CPF policies have enabled many Singaporeans to build their assets over time. This broad-based asset ownership helps to moderate inequality while strengthening long-term security and social stability. Mr Yip and Mr Giam asked whether we have considered other forms of wealth taxes beyond property tax. Our approach is to tax wealth in ways that are less susceptible to cross-border movement and tax planning, while preserving competitiveness. This is why we focus on less mobile assets like property and motor vehicles. These taxes are progressive, with higher-value assets taxed at higher rates. We are mindful of inter-generational balance. Younger households who are still accumulating assets should not be unduly burdened. At the same time, higher-value property owners should contribute more. For asset-rich but income-poor seniors, we provide deferral mechanisms for property tax payments to ease cash-flow pressures. We fully agree with Ms Mariam Jaafar on the need to sustain upward social mobility for current and future cohorts. Our strategy is to intervene early, provide support through life and ensure wage progression. We have expanded access to affordable and quality preschool education to give children from all backgrounds a good start.”
“We have progressively improved the coverage and quality of wealth data captured in the Household Expenditure Survey. We will continue to study how data collection methods can be strengthened. Like many other advanced economies such as the United Kingdom (UK), Japan and Germany, we rely primarily on survey-based approaches. We have no plans at this point to seek additional legislative or administrative powers to require more granular asset disclosures solely for inequality measurement. This is our first compilation of the wealth Gini coefficient and we do not have a historical series. We intend to track this measure over time. The next cycle of the Household Expenditure Survey is planned for 2028. And we will consider whether additional indicators, which Members have suggested, can be provided. Members asked for further breakdowns of wealth inequality – such as by asset type, housing type or age cohort. The Gini coefficient is measured at the household and not individual level. Hence, we do not break it down by age cohorts. We do not compute Gini coefficients by asset type, as households can and do convert their wealth from one asset type to another. We also do not differentiate between public and private housing, or between owner-occupied and non-owner-occupied housing, in computing the wealth Gini, as this a stock measure of net worth and not a measure of liquidity. We do not have sufficiently granular data at the moment to provide the breakdown between local and overseas holdings. Mr Gerald Giam asked about wealth concentration at the top. The top 1% hold about 14% of total household wealth, while the top 5% holds about 33%. These levels are broadly comparable to advanced economies with similar wealth Gini coefficients.”
“My response will address related oral and written questions on wealth inequality and wealth data filed by Mr Yip Hon Weng, Mr Gerald Giam1,2,3 and Mr Louis Chua scheduled for subsequent Sittings. If Members are satisfied with the response, they may wish to withdraw their questions after this session. Mr Speaker, Sir, over the past decade, real wages have risen across all income levels, with wage growth highest for lower-income workers. Income inequality has decreased. Social mobility between generations remains strong. These outcomes reflect sustained policies to uplift lower-income workers and foster inclusive growth, supported by a progressive system of taxes and transfers. Most countries face challenges in measuring wealth inequality accurately. Certain assets such as unlisted businesses, private equity and overseas assets, are inherently difficult to track and value. Financial confidentiality provisions further constrain data collection. We have made our best effort by combining survey data from the Household Expenditure Survey with administrative records. The survey captures information on assets such as bank deposits and unlisted assets, including overseas assets, and liabilities such as household arrears and bank loans. We augment this with administrative data on properties, Central Provident Fund (CPF) accounts, Singapore Savings Bonds, shares and securities held in Central Depository accounts and the CPF Investment Scheme Special Account, life insurance policies, balances in the Post-Secondary Education Account and Edusave accounts, and Housing and Development Board (HDB)-administered loans. Property values are estimated based on their fair market value.”
“Mr Speaker, may I have your permission to answer Question Nos 1 and 2 in today's Order Paper together?”