Jessica Tan Soon Neo
Singapore
“Thank you, Mr Speaker, and I thank the Senior Minister of State for his comprehensive reply. I am also very happy to hear that the Ministry of Manpower (MOM) will continue to review that. I agree with the writer that structurally, there are some challenges, and productivity is important.”
“And as global supply chains re-organise, how are we positioning Singapore as a trusted, stable hub so that businesses continue to choose Singapore, create good jobs and keep our economy strong?”
“Caregiving is not only a financial load. It is a time load and a well-being load. Employers have a role to play as well. Incentives for caregiving friendly workplace policies, such as caregiving leave, flexible hours and phased return-to-work schemes, would encourage more companies to adopt practices that keep caregivers employed and prod…”
“I thank the Senior Minister of State for her reply. The reason I am asking this is because I have seen an increasing trend of appeals with regard to these kinds of issues, especially mould caused by continuous use of air-conditioning by neighbours.”
“Mr Speaker, I do have a clarification for the Senior Minister of State. He says that the AV is not relevant for retirees. I would say it is relevant with regard to CareShield Life premium because the assumption is that people only retire at 67.”
“Yet, we must ensure that Singaporeans understand that CareShield Life does not stand alone. It is complemented by a suite of targeted schemes like MediSave Care, which allows monthly withdrawals for care expenses; the Home Caregiving Grant, which offsets informal caregiving costs; and the ElderFund, which provides discretionary support fo…”
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“Given the volatility as well as the fragmented and fast-moving world we face, we need to continue to have such platforms and I am very heartened to hear Prime Minister Lawrence Wong talk about this deeper engagement, deeper engagement with Singaporeans to be able to co-create policies together. Some may pooh-pooh. Some may actually say, "That is too hard, it takes too long." But I think that it is worth the effort and we have seen the policies from Forward Singapore, ideas and feedback from Singaporeans coming to life in our policies already today and I encourage every Singaporean, especially our young, but every Singaporean to really make the effort to come forward and be involved. Unity in Singapore has never been about sameness. It is about shared purpose. And that purpose must evolve as we do, grounded in empathy, trust and courage to change together. Let me touch on the point of the need for a strong economy. If we want growth, we do need to have a strong economy to attract talent and investments. With the current uncertainties and structural shifts that are affecting Singapore, we must support the efforts that Deputy Prime Minister Gan Kim Yong has shared about refreshing Singapore's economic blueprint and keeping Singapore's economy strong and resilient by enhancing Singapore's value as a base for leading firms, a key global business hub and a vital connector to the global economy. The strength of our economy lies not in discrete moments of growth, but in sustainable progress. This will then lead to opportunities for businesses and the creation of jobs that are relevant to the new world order. But more importantly, strong sustainable growth will create quality and meaningful jobs for Singaporeans. Economic growth is not just about numbers. It is about people.”
“Residents did not just give their feedback but worked together with grassroots leaders, community partners and agencies, research and design teams from Singapore University of Technology and Design, SingHealth and Changi General Hospital to co-create, design and transform the space under the MRT viaduct near Simei station. From booths and programmes run by residents, seniors and youths, students and teachers from our schools and tertiary institutions, hospital and healthcare professionals, kopi chat with the Police and movie under the stars, VIASTA! has become a celebration of shared ownership and provides a space that comes alive to benefit the well-being of our residents in Changi Simei. Although the process required several months to collect residents' feedback and collaboratively utilising AI to visualise the desired VIASTA!, it enabled meaningful participation from both residents and stakeholders. They could see their ideas come to life. This approach ensured that all perspectives and expertise were incorporated, fostering an inclusive environment for co-creation and effective decision-making. We now have had three iterations of VIASTA! in the last one year, where residents, community partners and agencies came together to bring VIASTA! alive. The fourth VIASTA! is scheduled for November this year. On a national level, Forward Singapore provided a platform that brought together citizens, employers, communities and Government to co-create policies that reflect evolving aspirations around work, family, education and purpose.”
“These changes are deeply personal. They shape how we see ourselves, how we relate to one another across age, income, race, religion, cultures and education. People are experiencing Singapore differently. Some feel secured and heard, others feel left out, or unsure where they fit in. If we do not respond to these lived realities, unity becomes fragile not because we disagree, but because we stop feeling part of. So, how do we move forward together? We need to refresh our social compact. This means rethinking the roles we each play. Government, employers, individuals and building a culture of shared responsibility. It means designing policies that reflect real lives, not just averages. Designing for lived experience and not just aggregated outcomes. And it means ensuring that opportunity is not just promised but felt. We must design systems that are truly inclusive. Housing, education, work, digital platforms, they must work for everyone across life stages and backgrounds. We need to support transitions, whether it is a mid-life career shift, a young person finding their voice, a first-time home owner getting a flat or an older adult staying connected. It is not sufficient just to take feedback. We must create space for real dialogue. Not just consultation, but co-creation. We need platforms where people can speak honestly, listen deeply and shape the future together. Trust grows when people see that their stories matter and that their feedback leads to change. Let me give you a small example from our community in Changi Simei, what we call VIASTA!. What began as a simple idea to activate the under-utilised space under the Mass Rapid Transit (MRT) viaduct to promote residents' well-being has blossomed into a vibrant festival.”
“Mr Speaker, President Tharman's address at the Opening of this Parliament underscored an urgent need for unity and shared responsibility, rooted in trust, transformation and resilience for Singapore and Singaporeans to thrive in a complex and fragmented world. In my speech today, I will speak on two points that President Tharman highlighted in his speech: a more pronounced need for unity; and a strong economy – the need to transform and innovate to enhance our value as a trusted hub to ensure opportunities for all Singaporeans. For Singapore, our people and the ethos of unity and progress for all, regardless of race, language or religion is the cornerstone of the success of our improbable nation these last 60 years. Our leaders have been intentional in forging our unity while celebrating our diversity through integrated housing policy, education, meritocratic governance, shared values and long-term stewardship. But Singapore's unity and identity is not static. It is changing, shaped in what is happening in our everyday life in Singapore and globally. So while vital, forging our unity today is no longer just around integrating and celebrating our diversity of race, language or religion. Our population is ageing. Our society is more diverse and younger Singaporeans are voicing new hopes for fairness, autonomy and purpose. Digitalisation is reshaping our daily lives. Differences in access can result in who gets access to services, whose voice travels, and what "truths" feel credible. Hence, people may end up living in different realities even when they are under the same space. Personalised feeds cluster people into like-minded bubbles, reinforcing beliefs and isolating them from shared facts, where information we consume fragments our shared realities.”
“Thank you, Speaker. I just have two supplementary questions for the Minister. One on the point on after the GRIT programme, are there any specific measures to map some of these vacancies to these trainees who have completed the programme? Because the host organisations would have provided GRIT exposure, experience and training, which some of our small and medium enterprises (SMEs) may not be able to provide, and these graduates would then be more ready for the roles. The second question is that if the entry level jobs are really going away, and in some cases they are, will this traineeship programme – after the completion, even if it is a 12-month programme, but your traineeships are three and six months – will it lead to a cycle of the trainees going for another cycle of traineeship?”
“Thank you, Speaker. I have two supplementary questions. One, while I understand, this is a very complex environment in terms of bullying, there is a whole spectrum of it and we do want to give the schools autonomy in terms of managing that because two cases are never the same. But how would MOE ensure that there is some consistency and accountability of all parties, whether it is victim, bully, family or even the educators across institutions, whether there is some consistency, because the Minister talked about best practices. So, in terms of the actual best practice implementation, is there some consistency and accountability across all institutions? And second, while it is extremely difficult, what training or help is given to both students and teachers in terms of early identification of bullying cases? It is extremely difficult in some cases, but is there training or support given so that there could be early identification and therefore, early intervention?”
“A critical factor in advancing AI capabilities is the development of a strong talent pool. The landscape of AI expertise and capabilities is dynamic and rapidly evolving, with countries around the world making significant investments in AI research, development and talent acquisition. So, how is the Government ensuring a strong pipeline and retention of technical expertise and AI capabilities, within the public sector and the wider Singapore ecosystem? Considering Singapore's limited resources, how are we building these capabilities and what are the key consideration in helping us leapfrog in AI innovations? In a global competitive landscape for AI talent, how is Singapore progressing in the development and attraction of top AI expertise and capabilities?”
“The landscape for businesses in the drive to adopt AI solutions is both promising and challenging. So, how is the Government creating an enabling environment to support businesses to actively, and I emphasise the word "actively", embrace and implement AI solutions to enhance competitiveness and to drive growth? How are Singapore businesses progressing in the digital adoption and embracing of AI solutions for their businesses? A significant challenge for businesses in their adoption of AI solutions is the shortage and competition for skilled AI professionals. Businesses will also need infrastructure and resources. These include computing power, data storage and cloud services. Having access to high quality data is also essential for successful AI adoption as data is an essential building block for training AI models. As AI adoption grows, businesses must ensure that they use AI responsibly and ethically, including how they handle data privacy, bias and transparency. This is crucial in building and maintaining trust. The new Enterprise Compute Initiative of $150 million announced in Budget 2025 aims to address these challenges that businesses face in adopting AI solution. How can businesses tap the Enterprise Compute Initiative and what are the eligibility criteria to qualify? Digital and AI Expertise and Capabilities Singapore's vision for a Smart Nation and our commitment to digital transformation for sustainable growth require us to have a strong talent pool of digital expertise and capabilities. A key pillar of Singapore's digital strategy is accelerating AI development and deployment. The latest iteration of the National AI Strategy (NAIS) 2.0 was launched in 2023. An important enabler of that is talent.”
“Thank you, Chairman. With the increasing adoption of digital technologies and services and Singapore's Smart Nation ambition, ensuring digital resilience is essential in building and maintaining trust, amongst citizens as well as businesses. Our cybersecurity ecosystem, the Next Generation Nationwide Broadband Network (NextGen NBN) and infrastructure development, our education and workforce development, digital governance and innovation play pivotal roles in Singapore's digital resilience strategy. As digital technologies become more pervasive, the risks of cyberattacks and sophistication of cyber threats are increasing. The demand for skills in cybersecurity, AI and emerging technologies continue to grow, both public sector and businesses are facing talent shortage. To ensure robust digital infrastructure, Singapore will need to invest in infrastructure upgrades and readiness. The rapid pace of technological advancements will require the regulatory and policy frameworks to be agile and adaptable, to ensure that regulations are supportive of innovation while still providing the necessary safeguards. So, how is Singapore preparing to stay ahead of emerging digital threats and having an adaptive digital strategy? And can MDDI share what the strategic priorities for enhancing our digital resilience in Singapore is? Growth Opportunities with AI Mr Chairman, the adoption of AI and innovation offer substantial growth opportunities for businesses across sectors. By adopting AI solutions, businesses can unlock new revenue streams, enhance customer experiences, optimise operations and mitigate risks. As shared in the Ministry of Trade and Industry's (MTI's) COS yesterday, AI adoption is increasing across different industries.”
“Thank you, Mr Speaker. Can I just ask two clarifications from the Minister of State? It is with regard to the higher median salary in the third question of my original PQ. What is driving the higher median salary? Is it a demand for higher skills? Just as the hon Member, Mr Xie had highlighted, is there a skills gap, because there is greater demand in certain sectors for jobs, and employers are facing difficulty filling those. At the same time, our fresh graduates are facing problems. So, is there a skills gap? And also, what is driving the higher median salary?”
“Thank you, Mr Chairman. My clarification relates to supporting SMEs in terms of internationalising, and it is for Minister of State Tan. He shared on SGProtein and how it has enhanced its competitiveness in the Korean market by tapping the FTAs, and he has also shared on the many FTAs that we are working on. Can more be shared on how the Government and SBF are working together to support our SMEs in terms of better tapping these FTAs and getting access to new markets?”
“Mr Speaker, while the report did not indicate that there was any malicious intent or wilful action, the findings of the review panel did indicate that the Government's internal rules on data management policies were contravened, and Senior Minister Teo touched on the point of public trust. As Government agencies store, access and handle personal information of Singaporeans in engagements and provision of various Government services and with digitisation, what assurances can be given to Singaporeans on the proper handling of personal data by Government agencies? Because it is not just about policies, it is not just about rules; it is about that balance. I actually worry that it may come to the point of everyone being so afraid to move forward because of that. But it is a difficult challenge. Given this incident and the learning from this instance, it may lead to everyone being overly cautious. I need to understand what will be done across the Government to help our officers move forward and be able to make that right judgement call. It is not an easy problem to address.”
“As a small resource constraint country, Singapore imports almost all of our energy needs. Ensuring stable and secure energy sources while transitioning to clean energy is a challenge. Singapore is committed to achieving net-zero emissions by 2050. Singapore has made significant actions through strategies outlined in Long-Term Low-Emissions Development Strategy (LEDS) and Singapore Green Plan 2030 as well as the implementation of measures, such as the carbon tax and electrification of transport. Can MTI provide an update on the measures to transition to a low carbon economy, including decarbonising the power sector? What trade-offs will Singapore need to consider as we transition? In Budget 2025, Prime Minister Wong announced that to meet our growing energy needs and to reduce carbon emissions, Singapore will study the potential of deploying nuclear energy and build capabilities in nuclear energy with a focus on small modular reactors. Can MTI share more details on Singapore's nuclear strategy and plans including safety, reliability and environmental impact of the deployment of nuclear. Energy Fund”
“Mr Chairman, businesses, especially SMEs can benefit from AI adoption to enhance efficiency by streamlining business processes and reducing the need for manual interventions. AI tools can enable the analysis of vast amounts of data to provide insights to allow businesses to uncover trends and valuable insights to better understand customers, predict market trends, optimise supply chains. This allows for more informed decision-making and operational efficiency. AI can help catalyse innovation and provide competitive advantage by creating new products, services and processes that drive growth and competitiveness. But AI adoption can be challenging for SMEs as it can be expensive, and SMEs have limited budgets and lack specialised skills and may not have quality data and large datasets. For businesses to truly reap the benefits of AI solutions, fostering a culture of innovation is essential. It is imperative to rethink and redesign processes and implement new workflows. There are many schemes to support businesses to adopt AI. What is the rate of utilisation of these various existing support schemes and adoption of AI by businesses in Singapore. What impact has AI helped to achieve for businesses? For the new Enterprise Compute Initiative announced in Budget 2025, what are the criteria for businesses to be eligible? Helping SMEs”
“Mr Chairman, Enterprise Singapore has several schemes to help companies including SMEs in the internationalisation efforts. In Budget 2025, several of the schemes, such as the enhanced Market Readiness Grant, that helps SMEs defray the costs of overseas market promotion, business development and market setup and the Double Tax Deduction for Internationalisation scheme that allows businesses to claim a 200% tax deduction on qualifying market expansion and investment development expenses, have been extended. The Enterprise Financing Scheme has also been enhanced. Can MTI share how many companies have utilised these schemes and how successful their internationalisation efforts are? Geopolitical uncertainties and trade tensions will have a significant impact on SMEs as they look to internationalise. The threat of increased tariffs and regulatory compliance will mean higher cost and complexities for SMEs in their internationalisation efforts. Trade disputes will impact market access and cause supply chain disruptions. How will MTI ensure that the schemes remain relevant to support our local enterprises and what can be done to help SMEs mitigate the risks of internationalisation amidst the geopolitical uncertainties and trade tensions?”
“Mr Chairman, regulatory requirements are important for maintaining a stable and trustworthy business environment in Singapore. Hence, to operate a business in Singapore involves compliance with several ongoing regulatory requirements. Depending on the business sector, there may be additional sector-specific mandatory compliance requirements. With businesses, especially smaller businesses, facing increasing business costs, what efforts are being made by the Government to simplify and streamline rules and regulations to reduce compliance costs for businesses? The IMC for Pro-Enterprise Rules Review was established in April 2024 to improve regulatory efficiency and to ease compliance burdens, especially for SMEs. MTI also announced the establishment of the SME Pro-Enterprise Office (PEO). Can MTI provide an update on the IMC for Pro-Enterprise Rules Review and the SME PEO? Update on SME Pro-Enterprise Office”
“Mr Chairman, geopolitical tensions, trade policy shifts and technological advancements are driving significant changes in the global trade landscape. The concept of reglobalisation is emerging as businesses seek to create more resilient and adaptable supply chains. This involves strategies like nearshoring and friendshoring. The US-China trade dispute has significantly impacted global trade as trade between the two countries has decreased. Companies are also diversifying their production capacities to other markets. Apart from tariffs, weather conditions, geopolitical conflicts and cybersecurity concerns have made supply chains increasingly complex. Against this geoeconomic landscape, businesses need to adapt. They need to rethink their sourcing, production and delivery strategies. They are diversifying their supplier base, investing in more stable regions if there is something more stable these days, and adopting innovative strategies to build more resilient and responsive supply chains. This is reshaping Singapore's manufacturing sector. What impact will this have on the future of Singapore's manufacturing sector, and what are MTI's plans to ensure that manufacturing continues to be a key pillar of our economy? Global Shifts – Impact on Manufacturing”
“Mr Chairman, amid increasing geopolitical uncertainties and trade tensions among major powers, forging connections with middle powers can strengthen Singapore's diplomatic, economic and strategic flexibility, as well as foster innovation and cultural exchanges. Given Singapore's size and geographical position, middle powers can offer diversified trade opportunities and investment channels which are crucial to Singapore's open economy. However, navigating the diverse interests of middle powers can also be challenging for Singapore. As Minister Balakrishnan had shared in his speech earlier, Singapore has significant partnerships with several European middle powers. In 2024, there were several high-level exchanges between Singapore and European countries. These included then-Deputy Prime Minister Lawrence Wong's visits to Germany and France in April, the President's Official Visits to Italy and Estonia in June, and the State Visit by Swedish King Carl XVI Gustaf to Singapore in November. How have these interactions advanced the interests of Singapore, and what can Singapore do to enhance the relationships with European middle powers? Middle Powers, Free Trade and International Law”
“Mr Chairman, Singapore and the US share a strong and multifaceted relationship, and this has grown over many decades. The bilateral ties between our two countries are defined by strong economic, defence, innovation and people-to-people connections. The US is one of Singapore's largest trading partners. In line with its current trade policy, the US has demonstrated a readiness to impose new tariffs on various countries. Singapore's economy is highly dependent on trade and any disruption to global trade can have significant impact on Singapore's economic growth and stability. As a small and open economy, Singapore is susceptible to global supply chain disruptions and trade tensions. What potential impact can such tariffs, direct or indirect, have on Singapore? How can we strategically position ourselves to mitigate this impact?”
“Mr Chairman, participating in Government tenders present both opportunities and challenges for our SMEs. Tender Lite was introduced by MOF and implemented in April 2024 to make it easier for companies, especially SMEs, to bid for Government contracts higher than $90,000 and not more than $1 million. To date, can more information be shared on how many Tender Lite contracts have been awarded to SMEs since the implementation? Projects involving emerging and advanced technology innovations are valuable opportunities for startups and smaller businesses with innovative solutions to participate in. However, these companies often face challenges in meeting the financial requirements for Government tenders and providing a proven track record. For such projects, will MOF consider measures to enable these companies to participate and in support of innovation? Cash flow is critical to SMEs in managing their operational expenses. Suppliers for Government contracts are able to submit invoices electronically to track and receive notifications on payment. Has this helped to ensure timely payment to suppliers? Can MOF provide an update on what percentage of payments are made on time to suppliers who participate in Government tenders?”
“So, extending these benefits do provide support for sustainable living and essential home improvements as our seniors age. So, I thank the Prime Minister for including that, because they were very happy. In fact, many of my residents were very, very happy. Mr Speaker, Budget 2025 is a Budget that has listened. Taking feedback from the Forward SG conversations as well as the many feedback from all channels. It is inclusive, with more given to those with less. It is a Budget for all Singaporeans and I am confident it will help us move onward together for a better tomorrow. Mr Speaker, I support this Budget.”
“Based on how the current eligibility criteria are applied, those with no income and are living in a property with AV greater than $21,000 will not be eligible for any subsidy or grant. With the increase in property value, most of the residents living in even small condo units and landed terraces in my constituency in Changi-Simei will not be eligible. Many are retirees who bought their homes long ago and are asset rich but may be cash poor. The cost of eldercare services is not insignificant. Depending on the level of care needed, without subsidies, daycare services can cost from $945 to $1,430 per month. Nursing home from $2,200 to $4,200 per month, without subsidies. So, indeed instead of 0% or no support for those with no per capita household income and they live in properties with AV greater than $21,000, could consideration be given, or at least a tiered support? Over the weekend, I met one of my residents who is in her 70s, taking care of her mother who is in her 90s and she shared that it would really be helpful. She is retired, she is living in a small terrace and she said it would really be helpful if she got some help for nursing home care, because it is getting so costly and it is an ongoing cost. But I must thank Prime Minister Wong for not forgetting this group of residents and extending the Climate Vouchers to all Singapore Citizens households living in private property as well as the Enhancement of Active Seniors programme. Residents in private properties have not been eligible for many support schemes as has been discussed many times, but many of our senior residents living in private properties are sometimes asset rich and may be cash poor.”
“This really requires both sides: one to say, "I'm prepared to do it", but the other has to be able to give the opportunity. And so it really is also not just about policies, not just about processes, not just about support, but mindsets. Let me now move on to nurturing a caring and inclusive society. I am heartened by the measures announced by Prime Minister Wong to nurture a caring and inclusive society to make Singapore a place where people aspire to call home and have families. Many of the measures in the Budget will help the sandwich class as they care for both their children and parents. There are too many measures for me to discuss in my speech and I am quite sure Speaker will be happy that I am not going to touch on all of them because that will take too long, so I will focus on the enabling of our seniors to age well and long-term care services. With a rapidly ageing population. The enhancements to the grants, that is, the Home Caregiving Grant and the Senior Mobility Enabling Fund and the Assistive Technology Fund, and increases in the subsidies for residential home and community long-term care services, as well as the raising of the maximum qualifying per capita household income to $4800, will indeed help many families as they care for their seniors. Last year and the year before, I made the appeal in the Budget debate for the review and refinement of the means test criteria for senior long-term residential and non-residential care. I am now sounding like a broken record, but as Annual Value (AV) continues to be a means test criterion to determine eligibility for those with no per capita household income, I am asking for a refinement of how AV is used as the primary criterion to determine eligibility in this instance. I am not asking for no means testing.”
“Jobs will be disrupted, so while workers must continue to upskill and employers will train their workforce and build new capabilities, there still needs to be more direct job matching and more targeted industry specific reskilling to help workers transition when they are in their jobs, to new and growth sectors, and to address the challenges faced by both workers and businesses. So, this is not going to be easy, but it is something that we all have to do because the disruptions will happen on both sides. I do welcome the setting up of the Tripartite Workgroup on Senior Employment to conduct a comprehensive and longer-term review of senior employment policies to improve the employability of seniors and availability of jobs that better suit their needs. I do hope that the work will also consider senior employability in the context of an inter-generational workforce and how to tap the potential of matured workers in a diverse workforce, because they do not work in a vacuum. It is not just about finding suitable jobs for seniors, but how our economy can tap this resource of talent. For employers, hiring of seniors will require a mindset change. While employers may not necessarily or consciously discriminate for age, there may be concerns or unconscious bias in the consideration of hiring of matured workers. I have received feedback from residents who have been retrenched that they face situations where potential employers inform them that although they are suitable for the jobs, they are reluctant to hire them, even when they are prepared to take a lower pay than their previous salary, because the concern is that the worker may not stay because they are so used to a certain level of jobs.”
“The demand for specialised skills, technology and innovation, such as AI, data, analytics, cyber security, digital marketing will continue to grow. Companies are facing challenges in finding and retaining talent with the relevant expertise, especially in new and emerging technologies. Despite Singapore's high employment rate, the pace of change and technological changes has led to job insecurity and anxiety. A recent Insight article in The Straits Times cited Institute of Policy Studies' 2023 report and a 2025 survey on economic sentiments by the NTUC, highlighting respondents' concerns of jobs not existing in the future or losing their jobs as companies transform and restructure. And most recently, we have also heard of companies talking about reapplying for even the jobs that you are in. The measures to strengthen SkillsFuture and encourage lifelong learning in Budget 2025, together with the SkillsFuture Level-Up Programme and the new SkillsFuture Workforce Development Grant, will support and encourage workers and employers to upskill and to build new capabilities for the longer-term as businesses transform. But I do, however, worry about workers who lose their jobs due to disruptions, especially matured workers and their finding appropriate employment. In my engagements with residents during house visits and most recently last weekend during a dialogue on the Budget, concerns were raised about getting a job when their jobs are disrupted, especially among our matured workers. Many shared that they made multiple job applications and either did not get a response or an opportunity to interview. With the rapid changes and tech transformation that companies need to make.”
“It will enable businesses to access AI tools, computing resources, as well as specialised expertise from global cloud services providers, which would otherwise not have been available or be too costly, especially for our smaller businesses. But to truly reap the benefits of AI, businesses will have to do their part. What will be key for them is not just the adoption of AI, but the transformation of their business processes and integration – and I think we need to recognise this is not easy. The schemes to support businesses announced in this year's Budget together with existing schemes are significant in helping them adapt and grow. Although I must say that in our meeting with business leaders, many did say not enough, but I think more importantly they did acknowledge after a little bit of reminder that there are loads of scheme. The feedback from business leaders is that while support is available, it can be quite complex to navigate, to apply and utilise. There are resources and support available to help businesses utilise these schemes, but the ease of utilisation does vary based on the specific schemes, as well as the businesses' familiarity with the process. Business leaders are asking for streamlining of the support schemes and it would be of great help to companies if they could engage a single point of contact for more integrated and coordinated support as they apply and utilise the schemes. Let me now touch on jobs. Why do we need sustained growth and successful businesses? It is really for quality jobs and opportunities for Singaporeans. But the labour market is changing rapidly. The changes are impacting both companies and workers.”
“The $1 billion in R&D infrastructure will support the development of advanced facilities and equipment to attract top researchers and foster collaboration between academia and industry in the biotech and semi-conductor sectors. The additional $5 billion into the Future Energy Fund is significant. It reflects the commitment to driving Singapore's energy transition and securing cleaner power sources such as hydrogen, electricity imports and the feasibility of nuclear. The Government has committed to sustained investment in R&D to about 1% of GDP. RIE2025 announced in 2020, with the $3 billion top-up in last year's Budget, totals to $28 billion. With the additional $1 billion R&D infrastructure in this year's Budget, it will amount to $29 billion. It is now almost five years since the launch of RIE2025 and given the importance of the investments in R&D for growth and in innovations, it would be opportune to have an update on the progress and achievements of RIE2025 and an understanding of the framing of the next phase of investments. Budget 2025 includes several measures to support businesses cope with rising costs. These include the enhancements to the Progressive Wage Credit Scheme, corporate income tax rebates and cash grant, and enhancements to the Enterprise Financing Scheme, the redesign of the SkillsFuture Enterprise Credit Scheme from a reimbursement to a digital wallet with the additional 10,000 credits for companies that hire at least three resident workers, will definitely help companies offset out of pocket expenses for workforce transformation initiatives. The $150 million Enterprise Compute Initiative to support companies adopt AI solutions introduced in this Budget is timely.”
“Mr Speaker, Budget 2025 is indeed a Budget for all Singaporeans that provides generous support for individuals, families as well as businesses to address current cost pressures. I am glad to see further steps announced by Prime Minister Wong on nurturing a caring and inclusive society. I will touch on a few points on this, later in my speech. I will first focus on the longer-term investments in the Budget that look to strengthening Singapore's growth, giving Singaporeans quality jobs and helping Singaporeans be ready for the future of work. This gives hope for the future and will make Singapore a place where our people are proud to call home and want to nurture their families here. In order to have opportunities, it is vital that Singapore continues to grow sustainably and is ready to handle future challenges. It is worth noting that Budget 2025 is allocating funds to signal the continued investments in technology and innovation engines as well as to address Singapore's resource constraints. These are critical for Singapore to continue to grow. While Singapore has strong fundamentals, being an open economy, global political tensions and escalating trade conflicts, and disruptions to supply chains pose challenges. Singapore must adapt to evolving conditions and uncertainties. It is therefore important that we continue to create and sustain value for companies both local and foreign to want to anchor the businesses in Singapore. Prime Minister Wong announced the substantial top-up of $3 billion to the National Productivity Fund. The fund will support businesses as they drive initiatives and commit resources to adopt new technologies, modernise and upskill their workforce.”
“Thank you, Mr Speaker. First of all, I would like to thank the Minister for the details and what he has shared, in terms of the approach. I just have two supplementary questions because my concern is not so much the exact scores, but the trend of what we are seeing and that the atrophy of skills is in the very basic area of adaptive skills, which is very important if we look at the environment of fast change. So, it is not so much specific skillsets and picking up specific skillsets. From the insights in the report, is there going to be any curation, in terms of how we work with organisations? For the age group that is concerning, it is the 35-and-onwards group. Most of the people will be in the midst of their careers, not so much what age they are, but more in the midst of their careers. They are very busy, really just doing their work and so, many times, they neglect their development. While we can talk about all parties being responsible to take up development, they also have to do their work. So, how do we look at the work itself and working with employers and all stakeholders to say, do we curate it in a way that allows people within the workforce to be able to do their continuous learning? It is not easy, but it is something that I think we need to rethink, perhaps the approach of learning. It is not just about going to attend courses. As the Minister has rightly said, if you do not use it, even if you learn it, it is not going to be effective. And it is concerning because the trend is worrying – it is adaptive skills, it is the very basic core skills of literacy which affects ability to learn. So, I hope that the Minister can give assurance about the approach that we will take and if there is going to be any refinement in what we do.”
“Mr Speaker, thank you for your indulgence. I had not meant to speak on this Bill. I am very supportive of the Bill. But on hon Member Mr Louis Ng's point about equalisation of parental leave – as for in maternity and paternity leave – I totally agree with him that we should in-step move towards that, because the joint involvement of both parents is very important for child development and care. But he was so adamant on this, so, I want to ask him this clarification because he kept talking about maternity leave and paternity leave and childcaring and child rearing, which is important. I just want to ask him this clarification: does he recognise that maternity leave is not just about parenting and childcare? Maternity leave also involves the recovery of the mother and – in case he does not realise – nine months of carrying a child and then going through childbirth is quite tough. So, I hope that he will agree with me that as he advocates for this, he also advocates for time for the mother to recover. The father having more paternity leave is definitely welcome because then, he can also help to take care of the mother a little bit more as well.”
“While the proposed amendments strive for effective dispute resolution amongst neighbours, with the hope of building a stronger, more gracious and harmonious home for all in the community, it will require all of us to continue to work on strengthening our bonds in the community and friendships amongst neighbours. This will help facilitate issues getting resolved early amongst neighbours and not develop into long standing disputes. There is a role for CMC, CRU and CDRT for the exceptions; and I say exceptions and severe disputes, but we must not let it become the avenue for all neighbour disputes. Mr Speaker, I support the Bill.”
“As the proposed CRU will be a pilot that will run for a year starting with Tampines, I would like to seek clarification on whether CRU will also be available to assist with severe cases in other towns and those living in private apartments facing severe neighbour disputes. While like the others in the House, who have asked for the expansion of the CRU to be able to handle other severe cases, unlike others, I am actually hoping that we do not have to scale the CRU too much. Because if we do, then it really means that society and neighbourly relations are really breaking down. The proposed amendments are significant. These include the new CRU with the authority to investigate cases, including the ability to order noise sensors to be placed in homes to get objective evidence of noise levels and to issue warnings or abatement orders. At the same time, the amendments will also enable HDB to compulsorily acquire any HDB dwelling where the owner or authorised person has been convicted of an abatement offence or exclusion offence. So, these are quite severe actions. So, I do like to ask the Senior Minister of State, what measures will be put in place to safeguard against the abuse and ensure that the powers are exercised appropriately? Mr Speaker, while I am supportive of the proposed amendment, as there is a need to resolve cases of severe neighbour dispute, I must admit that I am, at the same time, somewhat concerned. Are bonds amongst neighbours in our communities so broken that we now need to resort to having the Government step in to resolving neighbourly noise disputes? I do not think so, as I regularly witness many examples of strong and healthy relationships amongst neighbours.”
“This will allow the CDRT to consider relevant evidence that CRU officers have gathered, issue interim orders facilitating faster relief as well as MTOs for those believed to be causing disturbances due to mental health conditions. I do, however, have some clarifications regarding the amendments to CMC, the new CRU and CDRT. Will the proposed enhancements to the mediation process and framework, that is, mandatory mediation and, if mediation settlement is reached, registration of the settlement with CDRT, be effective immediately to all cases attending mediation, if the Bill is approved? Will the enhanced CDRT processes and powers be available for current CDRT cases? Let me touch on the framework for resolving high-rise neighbour disputes. I hope that the proposed enhancements to the mediation framework and the work of the new CRU will provide learnings and insights on neighbour disputes and resolution, especially noise disputes. In densely-populated Singapore, most of us live in high-rise homes, both public HDB flats and private apartments in condominiums. With the insights from CRU and the strengthened mediation and CDRT process, I hope that it will give better understanding of how to manage noise in daily living in high-rise homes and the causes of noise disturbances in such living conditions. With a better understanding of the causes of noise disturbances, hopefully, this can better inform those living in high-rise homes and lead to empathy and consideration from all parties. Insights gleaned will also guide HDB and private developers in the design and types of materials to use to minimise noise between units in high-rise apartments. So, I hope the insights will be made available to the relevant parties.”
“One, is the enhancements to the mediation process and the processes and powers of CDRT; and, two, the framework for neighbour noise dispute resolution for high-rise living. I welcome the proposed enhancements to the mediation framework to allow CMC or the proposed new CRU to make mediation mandatory. Currently, attending mediation is voluntary. For many of the cases, I have shared, the other party does not respond to mediation or refuses to attend mediation. The problem then drags on. The proposed amendments also gives the CRU authority to investigate severe noise nuisance cases, including the ability to order noise sensors to be placed in homes and to get objective evidence of noise levels to issue warnings or abatement orders. This strengthening of the mediation process will ensure that neighbours attend mediation, the collection of objective data if needed and require the parties to take appropriate action to resolve the noise situation. The proposed enhancements will also allow neighbours who have reached a mediation settlement to register the agreement with CDRT. Once registered, the settlement, as the Minister has said, will give more bite to the order and it must be complied with. This will give more weight to the mediation process. With the proposed strengthening of the mediation process, I am glad that CDRT continues to be the avenue of last resort. This is currently the case, as cases to go to CDRT must have gone through the mediation process first and had fail to be resolved. The proposed amendments also enhances the CDRT processes and gives it more power.”
“They are prepared to sell their flat despite only recently moving in to the unit and having spent quite a large sum to renovate the flat. As they must fulfil their Minimum Occupation Period, they do not have the option to sell or move out of the flat and must continue to live in such conditions detrimental to their health. For another household, the noise disturbance they face is affecting their sleep and impacting their concentration at work. They have tried to engage their neighbour and, again, the noise persists. A few weeks ago, another resident came to see me at our Meet-the-People Session for help. The issue she is facing is sudden door slamming that happens in the middle of the night. This disrupts her sleep. She shared that this happens several times through the night and has been going on for quite some time. I was shocked, because when I looked at her, her eyes were really black and she had rings around her eyes, clearly the result of lack of sleep. In all these cases, attempts were made to reach out to their neighbours for an amicable solution. However, their neighbours denied making the noise and HDB's help was also sought to assist, but the source of the noise was not easy to determine, especially as it happens late at night or in the early hours of the morning. Residents were advised to go to CMC for mediation. If their neighbour does not agree to the community mediation, they have the option, of course, to take the case to CDRT. The problem for many of my residents is that they do not feel comfortable escalating the case to CDRT because they feel that taking the legal route will be too confrontational and will make the situation even more complicated. I will discuss two areas in my speech today.”
“Mr Speaker, I rise in support of the proposed amendments in the Community Disputes Resolution (Amendment) Bill. Most of us in this Chamber have received appeals from our residents for help to resolve disputes amongst neighbours. The most common dispute I receive, is that of noise disputes. In the last few years, although not in large numbers, I am seeing an increased number of appeals from residents for assistance to resolve severe or persistent noise disturbances. Some of these cases have dragged on with no resolution, despite attempts to engage neighbours to seek mediation. These cases are not one-off or occasional incidences, but happen almost daily and usually late at night or in the early hours of the morning. The noise range from sudden loud bangs caused by objects being dropped abruptly, dragging of furniture, slamming of doors, sounds from banging of walls, loud and heavy footsteps. Residents facing such situations have sleep disruptions and suffer from sleep deprivation. Residents come to seek help because they are unable to resolve these issues with their neighbours, either because their neighbours deny causing the noise or do not even respond when attempts are made to engage. For one of my residents, the noise disturbance happens daily at night and affects his brother and his sleep. The situation has resulted in a worsening of their chronic conditions, including their heart condition. He has tried to engage his neighbour, but the neighbour denies making the noise and after approaching the neighbour, the noise has instead got louder! He and his brother are finding it unbearable to continue living in the flat as they cannot get proper rest each day.”
“This would not only lower healthcare costs which is what we are talking about today but also improve the quality of life for individuals. The proposed pilot to allow those over 40 years of age to redeem premium discounts with Healthpoints via the Health Promotion Board's (HPB's) Healthy 365 app is a refreshing approach and a good nudge to promoting a healthy lifestyle. So, I hope to see how this will work out as it goes, as it is implemented. Mr Deputy Speaker, when the MediShield Life Scheme was first introduced in 2015 by then Health Minister, Deputy Prime Minister Gan Kim Yong, he reminded us that, I quote, "MediShield Life Scheme is the embodiment of Singaporeans' aspiration for a more inclusive, caring and progressive society". The proposed amendments are in line with the aspiration and principle to ensure that quality healthcare is accessible and affordable to all Singaporeans who need it. Mr Deputy Speaker, I support the Bill.”
“But the cost of IP really is quite high as one ages. Finally, on premium subsidies and MediSave top-ups. With the higher claim limits, expansion in coverage and increased benefits, premiums will increase and there will be a cap on the average about 22% on average with a cap of up to 35% over the three years. The proposed premium subsidies and MediSave top-ups are needed and will help the affordability of premiums and will cushion the impact of the increase for most Singaporeans. For the Enhanced Mean-Tested Premium Subsidies for Singapore Citizens, I would like to ask MOH if they would review and consider eligibility for the lower- and middle-income individuals who live in properties with annual value (AV) greater than $25,000 but do not own the property they live in or any other property? This is not a bIanket approval that I am asking for but to be able to look at it on individuals that may need it and why I say this because we do have residents who cannot afford to own their own homes and they have on the goodwill of their relatives been able to stay with their relatives. And some of them live in residences that are valued higher than $25,000 and AV is what is used for means-testing and so some may require support for the premium but given their residential address, will not be eligible for the subsidies. So, I hope that MOH would look at this when appeals of such requests come up. So, in conclusion, Mr Deputy Speaker, while it is important that healthcare remains affordable and there is adequate medical coverage, paradoxically, our goal should be to stay healthy and not to have to use it often. In the spirit of Healthier SG, we should all do our part and lead healthy lifestyles.”
“I know this is again not part of the Bill, but at the end of the day, when you look at MediShield Life and you look at coverage, it is about treatment that is received and the institutions where they are received – and our public hospitals are held in very high regard for the quality of their services. Let me talk about more support and guidance on IPs. With the increase in the claim limits and expansion of coverage and benefits of MediShield Life, will MOH consider providing more support and advice to Singaporeans on the appropriate coverage for healthcare insurance? And why I am saying this is because it was reported that about half of patients with IPs for private hospitals still end up using subsidised care at public hospitals. So, what it means is that they are paying for healthcare insurance that they do not even use. This is costly and unnecessary expense and put financial strain especially for seniors as IP premiums cost a lot more. While there is a lot of information on IP including cost comparisons, the fact is that so many are paying for what they do not use and that shows that more can be done to help Singaporeans make the right decisions on their healthcare insurance. For some, the proposed amendments with the increase in claim limits, expansion of coverage and benefits could mean that MediShield Life may indeed give adequate coverage and the decision could be to give up their IPs which cost more as one ages. We do need however to understand that the decision for one to give up an IP needs to be considered carefully as eligibility to purchase coverage for IPs require one to be in good health and with no pre-existing conditions. So, if they give it up, they would problems getting back on. Those decisions are quite serious.”
“But given the intent of MediShield Life to ensure affordability for larger medical treatments, can there be an option in MediShield Life for those who require coverage for pre and post-hospitalisation treatment to pay an additional premium for the coverage. While there could be adverse selection and this will increase premium payable for those who do select the premium, it will be more affordable than having to make out-of-pocket payment for pre and post hospitalisation charges. I know this is a very difficult decision because at the end of the day, it is about over-consumption as well as coverage, but I hope that some serious consideration can be given to that, especially now that more treatments are outpatient, moving towards outpatient treatments given the improvements in medical technology. I have also received feedback from our residents – and it was also reported in Forum of The Straits Times in August this year – that getting appointments to see specialists at public hospitals may take time, sometimes as long as a few months. For some who have an Integrated Shield Plan (IP) that covers pre- and post-hospitalisation charges, the reason they have cited for having IPs to enable them to be able to get an earlier appointment to consult a specialist either at a public hospital or private hospital but usually they do it at the public hospital and the feedback is that as a non-subsidised patient, it is easier to get an earlier appointment to see a specialist at the public hospital and to have the appropriate tests and diagnosis. So, apart from coverage of medical expenses, on the other side is the capacity of specialist consultation and tests at public hospitals and this will need to also be balanced and reviewed.”
“The increase in MediSave withdrawal limits will help patients pay for the increase in deductibles. Deductibles are an important feature of MediShield Life to prevent overuse or overconsumption of healthcare spending and to ensure that coverage of MediShield Life is for specifically larger medical bills. Before patients can claim for MediShield Life payouts, they need to pay deductibles. So, while deductibles are an important feature to manage, as I said, the overuse and can be paid with MediSave, the proposed increase for inpatient deductibles and the introduction of a new outpatient deductible may place a financial strain for some, for example, for those who are unemployed and have no income or low balances in their MediSave. If faced with such circumstances, what help can they seek? On pre- and post-hospitalisation coverage, in the consideration for expansion of coverage for MediShield Life to cover large medical bills, was consideration given to include pre and post-hospitalisation treatments prior to the need for inpatient services? Maybe I should have asked this question of the Review Committee rather than of the Minister of State. But the reason why I am asking for this is because usually, most patients, prior to admission will require several consultations and scans or tests to be done to ascertain their condition and early-stage treatments which are usually outpatient. After discharge from hospitals, they may also require recovery treatments, and these can add up and sometimes cost more than a hospital stay. I understand that there is always trade-offs and balances of what gets covered and premium affordability.”
“Currently, some patients do opt for inpatient care at hospitals for treatments that may not require hospitalisation as claims or coverage for these treatments are not covered for outpatient treatments or day surgeries, leading to unnecessary costs and wastage. When one is ill, being able to afford and have access to appropriate treatment is not only important for the well-being for persons who are ill but also gives peace of mind to the patient and their family members. Thus, having appropriate and sufficient healthcare insurance to handle unexpected or sudden health situations that require surgery or major treatments and hospitalisation will help ensure affordability for all, for treatments and for large bills. So, while I support the proposed amendments, there are a few points I would like to speak on and seek clarification in my speech today and the focus is on how these amendments may impact the individual. I know that the Bill is meant to handle the specific frameworks for the implementation of MediShield Life, but ultimately, MediShield Life touches lives and touches individuals so I would like to touch on these points. So, first, on higher deductibles and affordability; second, on more support and guidance on Integrated Shield Plans and decisions on Integrated Shield Plans; third, on pre and post-hospitalisation coverage; and fourth, premium subsidies and MediSave top-ups. Let me now touch on higher deductibles and affordability. While the proposed amendment includes premium assistance provided to the lower- and middle-income individuals in older age groups, the recommendations do include an increase to inpatient deductibles and the introduction of a new outpatient deductible of $500. This may be financially challenging for some.”
“Thank you, Mr Deputy Speaker. With an ageing population and people living longer, healthcare needs and costs are rising. The proposed expansion of MediShield Life coverage and benefits will manage healthcare costs especially for larger bills and make them more affordable for Singaporeans. The higher claim limits for hospitalisation and inpatient care as well as existing outpatient treatments, the inclusion of new benefits to cover additional outpatient treatments including mental health, community and home-care treatments, and the extension of MediShield Life coverage to new, potentially life-saving therapies that are proven safe, clinically and cost effective such as Cell, Tissue and Gene Therapy Products, recognise and provide for the shifts in healthcare and patient needs especially for larger bills. I do note that the Minister of State in her speech did share about the fact that these new treatments are only for approved medical institutions and only for the approved scope of these medical institutions. If this is the case, I think it will be also very important that this is clearly communicated to patients when they do seek these treatments, so that we will not have a situation of the assumption that it will be covered and then we have a situation where they are not covered, they are not eligible. With increasing healthcare cost, these proposed changes are welcomed as it will help patients manage large medical bills. The increase in claims for existing outpatient treatments covered by MediShield Life and the inclusion of additional new patient treatments will hopefully encourage more appropriate and right-siting of care.”
“As explained by Minister Edwin Tong in his Ministerial Statement and as shared by Minister Chee Hong Tat in his speech earlier, the Government recognises that insurance co-operatives are a special category of insurers with a social mission and the proposed amendments to the Insurance Act are necessary to allow MAS to consider the views of the Minister overseeing co-operatives and for the Minister-in-charge of MAS to withhold approval for the deal, if it is in the public interest to do so and for the reasons that Minister Edwin Tong had explained in his Ministerial Statement on Monday. So, I believe that the decision taken and the proposed amendment to the Insurance Act is a balanced one. It is a balanced approach to preserve the unique role of co-operatives and their social mission in Singapore while staying open to the appropriate structures that will allow the strengthening of co-operatives or entities linked to co-operatives, to enable them to continue to meet its social mission in a sustainable manner. I must say that co-operatives operate in a very unique way in Singapore and the very reason why we are taking the measures that we are taking today and we are here to debate this is because of their special nature and the recognition of that. So, I do believe that it is a calibrated approach and it is a balanced one. Mr Deputy Speaker, I support the Bill.”
“Hence, the decision not to approve the deal in its current form and the Ministerial Statement made in Parliament on Monday this week, to inform Parliament of the decision. And it is the right decision. Let me talk about the proposed amendments to the Insurance Act. Like many, I am also very concerned because Singapore is a recognised financial hub with many financial institutions operating in Singapore. Businesses invest in Singapore because of the confidence in Singapore and our regulatory process and the certainty and predictability of the environment. The role that MAS plays in the supervision and the development of Singapore's financial services sector, providing stability for businesses. The life insurance market in Singapore and the insurance market, as a whole, is active and competitive with numerous players vying for market share. The industry is regulated by stringent requirements under the Insurance Act and regulatory capital requirements. So, as this is an urgent Bill, it is appropriate that the proposed amendments are scoped and not broad-based so as not to impact the larger insurance market in Singapore or cause undue anxiety amongst insurers in an already regulated sector. I support that the amendment is specific and applies only to a licensed insurer that is the subject of an application under sections 26 and 27 of the Insurance Act and where the licensed insurer is a co-operative or linked to a co-operative. This calibrated approach makes it clear on the reasons for taking such an approach and, therefore, to some extent will give some assurance to the business community.”
“The hon Member Mr Saktiandi had also mentioned this, that the process that we are currently going through has allowed the decision to halt the deal and the fact that we are here today to debate and approve the amendments to the Insurance Act for MAS to consider the views of the Minister-in-charge of co-operatives, demonstrates that due process works and that it supports the making of sound and the right decisions. I want to commend the work of the officers from both MAS and MCCY. There has been some questions on the silos. We have got to be fair to our officers. They are doing their work. I am glad that when they spot an important information that is required, they have the courage to speak up and bring it up; and the process allows for that. So, let us not put too much criticism on this process because it might instill an opposite behaviour. We need to protect this as well. When Allianz announced the offer to buy 51% stake in Income in July this year, Members of Parliament, from both sides of the House, filed Parliamentary Questions. This allowed for clarifications, even as the relevant agencies, in this case MAS and MCCY, were reviewing the deal. Work to assess the details of the deal and the due diligence on the deal by MAS and MCCY continued, even after the clarifications in Parliament. This has allowed Minister Edwin Tong to be appraised of the right information and, therefore, inform us that given the context of the exemption from section 88 of the CSA granted to Income when it was incorporated in 2023, there were concerns that these terms and the structure of the deal and the ability of Income to fulfil its social mission would be impacted.”
“Mr Deputy Speaker, I would like to declare that I am Advisor to the Singapore Insurance Employees' Union. Mr Deputy Speaker, thank you for allowing me to join in the debate on the Insurance (Amendment) Bill. The proposed amendment will allow MAS to consider the views of the Minister charged with the responsibility for co-ops to withhold approval for an application to obtain effective control or to become a substantial shareholder of an insurer that is a co-op or linked to a co-op, if it is in the public interest to do so. For the reasons set out in the Ministerial Statement by Minister Edwin Tong on 14 October 2024, I support the Government’s decision that it is not in the public interest for the Income-Allianz deal in its current form to proceed. The amendment is required if Minister Edwin Tong, as Minister in charge of CSA, views on the deal are to be considered, as Income is not a co-op but a corporation. As a corporation, the approval for the deal rests with MAS under the Insurance Act. There are a few points I wish to touch on in my speech. One is the effectiveness of the due process for review and approval of the deal, and that the interest of Singapore and Singaporeans is protected. Two, that the amendment proposed is targeted and scoped to address the co-op. This upholds the stability of Singapore as a key financial services hub, which includes insurance, a key asset class for businesses that invest in Singapore. Let me now touch on due process.”
“Let me touch on the point of cost recovery. The Bill proposes amendments to allow EMA to recover costs for introduction of initiatives and services that strengthen energy security, develop a competitive market or decarbonise the power sector. The cost recovery will be from entities and persons who benefit from the initiatives or services. This will increase cost for the entities and persons and, possibly, lead to higher energy and electricity prices. Can the Minister share more information on what would trigger the decision for the need for such cost recovery, the framework for such cost recovery and the lead time that will be provided to both organisations and households that cost will be recovered from? Mr Speaker, strengthening Singapore's energy security, ensuring our energy markets are cost-competitive and efficient and transitioning to decarbonise our power sector for energy sustainability, are existential priorities for a small country like Singapore. It requires strong commitment and action from all stakeholders and not just the Government. The efforts are not straightforward and will take time to achieve. The proposed amendments in the Bill are timely. But how we move forward and execute is equally important.”
“While the set-up of the FEF is important, I would like to understand how the FEF will encourage and attract the right investments and what are the criteria on which projects will be selected for funding. While the Minister did say that there will be no limit on what we study and all the possible low-carbon energy projects and sources, and while the technology is also very nascent, I would ask if we have identified promising technologies that are aligned with our larger energy masterplan, given the fact that our runway is really quite short. This transition will require investments, infrastructure upgrades and enhancements. This may lead to higher energy and electricity prices. This is a point I will discuss in my later clarification on cost recovery. Let me touch on centralised gas procurement. About 95% of Singapore's electricity is generated by natural gas. The Bill proposes setting up the CGE, or referred to as "Gasco", to centralise gas procurement. The amendment will require power generation companies to procure gas solely from the Gasco and to empower EMA to regulate the Gasco. As outlined by the Minister in his speech, with demand aggregation, the intent is to derive cost competitive benefits for our gas supply, diversify our energy sources and ensure sufficient supply of gas to meet our power needs. The centralisation of gas procurement will reduce the flexibility of the power generation companies. Therefore, the success of the Gasco in achieving its mandate is critical for Singapore's energy security and price competitiveness. On that point, I would like to seek an understanding of how EMA will measure the Gasco's effectiveness in securing sufficient gas supply for our power needs and in providing competitive pricing to the power generation companies.”
“Mr Speaker, I rise in support of the proposed amendments in the Energy Transition Measures and Other Amendments Bill. The proposed amendments seek to enhance Singapore's regulatory regime for energy markets and related infrastructure. Singapore imports most of our fuel, which makes us vulnerable to global supply and demand shifts and price fluctuations. While Singapore has worked hard to strengthen our energy resilience, the supply disruptions and volatility experienced during the 2021/2022 global energy crisis has highlighted the need for further safeguards to ensure Singapore's energy security. With increasing digitalisation and economic growth, our energy needs will only further increase. The challenges brought about by climate change have driven our ambition to achieve net-zero by 2050. To do this, we need to transition, or as the Minister has said, to transform, to renewable energy. While I am supportive of the proposed amendments in the Bill, I do wish to seek clarifications on three of the proposed amendments: first, the FEF; second, centralised gas procurement; and third, cost recovery. Let me now touch on the FEF. The Bill proposes the establishment of the FEF under EMA with an initial amount of $5 billion to support Singapore's adoption of low-carbon energy sources. EMA and MTI have highlighted that such energy sources will likely involve nascent technologies, large-scale projects that require higher capital expenditures and exposure to significant commercial and geopolitical risks. I support the setting up of the FEF as it is crucial that Singapore invests in, builds know-how and taps on new sources of low-carbon energy for the transition of our power sector and for our energy security.”