Lawrence Wong
Singapore
“Sir, we will provide more information. I see the value of getting Ministries to put out more information, to share more about how their resources are being used and what outcomes they have achieved.”
“Sir, I agree fully with Mr Azhar that human capacity, human capital is critical. In fact, I would say the long-term potential of Singapore, how far we go really depends on us being able to maximise our human potential. That is key and that is why we have long invested in education. And it is not just about the investments.”
“Sir, we have been maintaining that commitment of 1% for some time now. I do not think it is about saying that we just have to do more and spend more. As many have highlighted, we want to ensure good outcomes from our R&D spending as well. So, we will continue if the outcomes are good.”
“This has never been the case. Temasek, when it started, was always very clear about its mandate from the very beginning – commercial, not doing national service, focused on commercial outcomes.”
“Sir, the MOF economists when they look at fiscal projections use Government's forecast of the economy, which is also published. We would typically use the mid-point of the range and then, of course, because these are in nominal terms, you have to factor for that. And the projections are done on those basis.”
“Sir, I was relieved that Mr Loh said he only has one question, but he asked the most difficult question. To answer the question, we will continue to monitor cost of living across all segments of society.”
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“One day, it will want to take over from the PAP as the ruling party, even if it may not say so openly now. That is the nature of political competition. But in the end, be it the PAP, WP or any other political party, we are all servants of the people. The final word rests with them. And I believe Singaporeans are discerning voters. They will decide which parties deserve their trust, both in Government and in opposition. If any party falls short of the public's high expectation and standards, there will surely be consequences. Privilege given today can easily be taken tomorrow. So, let us all conduct our politics with seriousness, with integrity and with a deep sense of responsibility for the longer-term interests of our nation. And that is how I hope our politics will evolve and our democracy can strengthen over time. Besides welcoming diverse views in Parliament, the Government will do more to engage and involve Singaporeans outside of this House. As I said in the National Day Rally last month, we do not just want to do things for Singaporeans. We also want to do things with Singaporeans. So, I invite all Singaporeans to join us, to connect, collaborate and shape our future together. We already have many channels for public consultations. We will continue with all these. But, we will also go further. We will open up new opportunities for Singaporeans to have deeper conversations and engagements. To shape the character of our neighbourhoods and estates, for example. To be directly involved in policy-making, through Citizens' Panels, as one possible channel. And to help set new norms on major issues, like education, multi-culturalism or how we raise our children in this digital age. In particular, we want to involve our young people.”
“So, we must find ways to guard against this and have to see how all of us, as Members of this House, can reaffirm our commitment to serve all Singaporeans, regardless of race or religion, and foreswear the use of racial and religious appeals in elections. Mr Speaker, "one united people, regardless of race, language or religion" is not just a line in our pledge. It is the foundation of our independence. It is the reason why Singapore became Independent. It is the bedrock of our nationhood. Let us all never forget this. [Applause.] Our unity and the trust we have in one another also depends on how we conduct our politics. The way we debate, disagree and decide as a country. That is what constructive politics in Singapore is about. Our society is maturing and our politics will evolve, too. And so, I welcome the opposition presence in Parliament. In this GE, Singaporeans have chosen to send both PAP and WP Members of Parliament (MPs) here, and both sides have a duty to serve Singaporeans faithfully. For the PAP, we do not assume we are automatically entitled to govern, just because we have done so since self-government. Our right to lead must be earned, by working hard and delivering results that improve the lives of Singaporeans. Doing well in one election does not guarantee success in the next. Every election is a new test and we must take nothing for granted. In this term of government, I fully expect WP to keep us on our toes – raising questions, scrutinising our policies and holding us accountable. This is their role as the opposition, and I am sure they will play it vigorously. The WP will try to build up its ranks and grow its presence in Parliament over time, as any political party would.”
“In one instance, they attacked the credibility of certain candidates because these candidates allegedly failed to advocate the rights of a particular religious community. In another instance, they praised a candidate for arguing against the separation of religion and politics. But it was not just foreign interference. At home, we also had Singaporeans who exhorted certain groups to vote along racial and religious lines. They said, "Vote for this candidate because he or she is a better representative of your race or religion". Or they compared candidates and said, "Vote for this person because he or she has been a more vocal champion for your race or religion". These narratives were not just seen online, but they were heard on the ground. And that is why I spoke out then, in the middle of the campaign, not as a party leader, but as Prime Minister, to make clear that race and religion must never be weaponised in our politics. [Applause.] Thankfully, many Singaporeans rejected the calls to vote along racial and religious lines. They voted for the candidate that they felt was best for Singapore, regardless of race or religion. But make no mistake. Had the election outcomes rewarded those who had pushed people to vote for racial and religious reasons, it would have caused a serious fissure in Singapore society. Other racial and religious groups would have mobilised to protect their own interests in the future elections. This would have jeopardised the harmonious, multi-racial and multi-religious society that took us 60 years to build. Looking ahead, as elections become more tightly contested, the temptation to play this card will only grow.”
“We have merged Residents’ and Neighbourhood Committees into Residents’ Networks, so that people from public housing and private property can interact more freely. And as a Government, we will continue to work hard to build up our social capital, to bind communities together, to connect us each to each, regardless of race, language or religion – and I might add also, regardless of socio-economic background. At the same time the whole society must make an effort. Singaporeans need to step out of our comfort zone, learn from more other cultures and interact with people from different backgrounds. These may seem like small steps. But over time, they help to strengthen our social fabric. Because trust grows from these everyday encounters – eating together, celebrating one another’s festivals, or simply knowing your neighbour. There is no doubt that our shared Singaporean identity has grown stronger these last 60 years. In his speech, the Leader of the Opposition Mr Pritam Singh said that being a member of a racial and religious group and our identity as Singaporeans are both "equally important". Indeed, we all have multiple identities and we celebrate these. But we should be clear-eyed about our present realities. In fact, a recent Institute of Policy Studies (IPS) survey showed that among some groups of Singaporeans, their religion ranks higher than their Singaporean nationality in determining their self-identity. That is why race and religion, if exploited, can easily arouse passions and tear apart the very fabric of our society. We see this happening in so many other countries and Singapore is not immune to these powerful forces. In fact, we had a close call in the recent General Election (GE). External elements sought to exploit our differences to divide and weaken us.”
“And over the decades, through painstaking and patient effort, we have built up this social capital. And today the bonds among Singaporeans are stronger than ever. But we cannot be complacent. And I will share with you findings from recent surveys. They show, for example, that only one in three young Singaporeans had ever volunteered. That more than half said that most of their friends were from the same socio-economic group or race as them. We worry about these trends: because if we know less of one another, if we have less in common, then we risk seeing each other not as fellow citizens, but as competitors, as people from different tribes. And competition can easily turn into envy, resentment and division. So, we must work harder to create more spaces and opportunities to mix and interact – be it at school, in the workplace, or in our neighbourhoods. It will take the concerted effort of everyone, generation after generation, to make sure that our diversity adds and does not subtract. Sometimes we overdo it, and the efforts become contrived. The older Members of this House will remember when People's Assocation (PA) started the Community Games back in 2012, it required teams to include members of different races. That was the rule to take part in a community game. But some groups signed up "phantom players" just to meet the quota. The intent was good, but the outcome fell short. And it is easy to look back and laugh at what happened then. But we all know that fostering more of such interactions is very hard to do and at the same time, it cannot be left to chance. Since then, we have learnt better how to do this. Today, PA organises more sports and activities that more naturally bring residents together, regardless of age, race, or background.”
“As we work towards a fairer society, we must also accept a basic truth: not every journey will reach the same destination. Even if we succeed in levelling the starting point for everyone, some skills and talents will always be more in demand than others. Some jobs will command higher pay. That is reality. And that is why those who do better must never forget this: no one succeeds alone. Opportunities do not come from individual effort alone. They come from the broader system – from the teachers who nurtured you, the workers who keep our city running, and the safe and stable environment that society as a whole provides. So, every successful and fortunate person in Singapore owes a debt to the community. Those who are more successful should therefore contribute more, not just in taxes, but also in compassion and care. Because no taxation system, however progressive, can legislate the spirit of solidarity. That must come from within each of us, it must come from the heart and it must be nurtured by a culture that puts "we" before "me". That is why I spoke about a "we first" society. It is one that strives for the collective good, not just self-interest; it is one that values solidarity even as we recognise our individual differences. To be clear "we first" doesn’t mean surpressing the "me". It means the "me" can only thrive when the "we" is strong. So, we need to embrace our individuality and help everyone be the best possible versions of themselves. At the same time, we have to look out for one another and lift each other up. Only then can we be greater than the sum of our parts. This "“we first" spirit of solidarity is not new. This is how our forefathers of different origins, languages and religions came together to forge One Singapore.”
“] All of these measures are helping to bring down income inequality in Singapore. Our Gini coefficient is now at its lowest in more than two decades. Previously, the Gini was measured only on income from work. The Department of Statistics has since updated the measure to include income from all other sources, like rental and investments. The full data will be published soon. But I will share the headline finding with this House first. The revised Gini coefficient comes out higher. We are talking 0.38 as compared to 0.36 after taxes and transfers. We had expected this but what matters more is the trend. Even with the revised measure, the Gini continues to move downwards. So, inequality in Singapore is narrowing. And we are determined to keep it that way. We have ways to mitigate wealth inequality in Singapore. A large share of household wealth here is tied up in property. So, we have taxes on property, progressive taxes on property and stamp duties on property transactions to ensure those with more contribute more. But it is not just on the tax side. We also have transfers, wealth transfers for those with less through public housing to help lower-income families own their homes, through regular top-ups to CPF accounts and through new initiatives like the ITE Progression Award, which gives a head-start to ITE graduates who complete their diplomas. So, taken together, our measures are helping to narrow both income and wealth inequality and we will press on, and continue to innovate in our social policies. So, that at every stage of life, Singaporeans feel assured, supported and confident about the future. So that opportunities and progress will always be fairly shared across our society.”
“There are still concerns around housing, but I am confident the situation will steadily improve with the additional supply. So, we will not only catch up with demand but build ahead of it so there will be more BTOs with shorter waiting times and we will be able to give Singaporeans greater assurance when planning for their homes. At the same time, we must update our system to reflect demographic changes, especially increased lifespans. I spoke about healthcare at the National Day Rally. And we will have lots to do in this area through Healthier SG, Age Well SG, and Age Well Neighbourhoods. In this term, we will also take steps to strengthen retirement adequacy. We are studying what further moves we can make. In particular, we want to help Singaporeans save more during their working lives, so that they have enough to meet their basic retirement needs for life, for a longer life. And for those who despite their best efforts cannot build up a sufficient nest egg, we will provide additional support so that every Singaporean can retire with dignity. We will also continue to strengthen our safety nets for those who need more help. For children with special needs, we will provide more support in their education and help make their transition to adulthood and work smoother. For people with disabilities, we will give them more opportunities to pursue their aspirations and lead fulfilling lives. For those who encounter setbacks, we will help them get back on their feet because setbacks are part of life and in Singapore, everyone is due second and third chances. That is why we introduced programmes like the SkillsFuture Jobseeker Support Scheme. It has just started, but we will make this a far better scheme than the unemployment insurance found elsewhere. [Applause.”
“And fail spectacularly. When they do, there will inevitably be calls for the Government to step in – I am sure from both sides of the House – from the Workers' Party (WP) and the PAP asking the Government to do more. And perhaps from time to time, we will. But if we try too hard to shield every company, we risk ending up with more "zombie firms" – propped up artificially, stifling renewal and enterprise dynamism. And that is not the path we want to take. So, we must be prepared for more churn. And we should not only celebrate success stories but also learn to embrace failures and setbacks. Because it is only through constant experimentation that more innovative companies can emerge. The process will be uncomfortable, even unsettling. But it is necessary to create new value, and ultimately to create new and better jobs for Singaporeans. So, let me be clear: our focus must always be on the worker, not the job. Companies may fail. Jobs may disappear. But every worker matters, every citizen matters; and no one will be left behind. [Applause.] In this fast-changing world with greater churn, we also need to offer Singaporeans sufficient assurances so they can deal with the disruptions with a greater sense of confidence and security. And that means making sure that their essential needs are taken care of – quality education, healthcare and housing, for example, must remain accessible and affordable. Housing was one of the biggest concerns in the last term. Because COVID-19 disrupted construction and the supply of new homes. But since then, we have ramped up supply. Today, there is a healthy pipeline of new BTO flats as well as land for new private properties.”
“A broader and more inclusive meritocracy that encourages excellence in every field, that values a diversity of abilities and talents, that accords dignity and respect to all forms of work, and to the people who carry them out. That is how we keep social mobility alive, so every Singaporean can rise on the strength of their contributions and will be respected. The shift towards more pathways to success must be underpinned by a strong and dynamic economy. To be clear, economic growth is not about chasing GDP. It is about uplifting lives and creating a wide range of good jobs and opportunities for all Singaporeans. We will redouble our efforts to keep our economy competitive and vibrant. This is even more urgent in an increasingly fragmented global economy, with more barriers to trade. That is why the Singapore Economic Resilience Taskforce and the Economic Strategy Review committees are studying how Singapore can navigate the challenges that have come thick and fast in the past few months. For the last 60 years, multi-national enterprises have been a key driver of our economy. They remain critical anchors in sectors like electronics, pharmaceutical and finance. We have to keep attracting new investments from leading global companies, so that Singapore can stay plugged into the frontiers of innovation. At the same time, we must work harder to energise our enterprise eco-system. We want to make Singapore a more attractive place for startups and emerging companies, be it here or overseas. These can be home-grown firms looking to venture abroad, or overseas growth companies seeking a base in Asia. These are the companies that will shape our future success. And to do this well, we will need a different approach. Because not all enterprises will succeed. Some will fail.”
“For example, we have substantially raised the salaries of pre-school teachers and allied health professionals – vital roles that were once undervalued. We will continue to professionalise other skilled trades, including those that are considered “blue-collar” work. Together with the Labour Movement, industry, and Institutes of Higher Learning, we will create more structured career and learning pathways so that tradespeople and essential workers can advance, grow their skills and be recognised for their contributions. Pay matters, but ultimately this is not just about pay. It is also about mindset, a whole-of-society mindset. Much depends on how society as a whole views the different pathways that people choose. Let me give you an example. In the past, parents resisted when their children wanted to pursue careers in fields like sports and culinary arts. Many young people would take a more conventional path first to please their parents, then only chased their passion later. I know of many friends who did that. Today, more parents embrace such choices, because society now celebrates our athletes, our chefs, and our artists. We take pride when their achievements put Singapore on the world map. So, yes, progress has been made. Yet we all know that there remain vocations where pay is not the main issue. Rather, it is societal recognition and respect that continue to lag behind. So, while the Government will do our part, the deeper change must come from society. We must move from a narrow meritocracy based solely on grades, to a broader and more inclusive one. Step which we have been making already over the years, but we must continue to move more in this direction.”
“We will miss out the many other competencies and intelligences that exist amongst us and that are just as important. So, we are changing. Take the Public Service, for example. Academic results are no longer the be-all and end-all. They are just one part of the overall assessment. For recruitment, we are using more skills-based assessments. In some roles, we have stopped looking at grades altogether. For example, GovTech engineers are recruited through coding and problem-solving tests and interviews – because what matters is not your paper qualifications, but whether you can do the work. Once you enter the Public Service, how well you do does not depend on your grades or school. It depends on your qualities, your contributions and your performance on the job. The private sector is changing too. One CEO shared with me: he used to insist on top academic credentials, focusing on school, universities, ticking all the right boxes. But he soon realised that academic credentials did not predict subsequent success in the company. What was more important was the individual’s attitude and mindset – their ability to learn, adapt, and work with others. So these changes are happening, but clearly there is still a long way for us to go. Nevertheless, step by step we will move more towards skills-based hiring and progression, because what matters most is not where you started from, but what you can do and how far you are willing to go. Valuing every job also means narrowing the gaps in how different professions are recognised and rewarded. This too is not easy, but we have been working on this for some time, and we too, have been making progress.”
“So, why we will do more in this term to reduce the stakes of single exams, to further broaden our definitions of success and to give every child the chance to discover and develop their strengths – be it in languages, sciences, sports, arts or technical skills. I feel strongly about this as a result of my own personal experience. My friends and I in school did not grow up with family advantages or a head-start in life. But education was our great leveller. It gave us opportunities that we would not otherwise have had, the courage to dream and the chance to pursue our aspirations. I want every parent and every child to feel the same – that education is not a burden, but a springboard. A place where our children can learn, grow, discover their strengths and reach for better opportunities. But education reforms alone are not enough to accomplish the transformation we seek. Because if employers still cling to narrow academic criteria to judge ability, then the arms race will simply shift from schools to workplaces. Parents will continue to feel that grades are the only ticket to success. I remember when we had the “Our Singapore Conversation” some years back, someone told us: “I am glad you are trying to make every school a good school, but you cannot succeed unless every job is a good job”. And that person is right. We must change how we hire and promote. This is not at all an easy task, but we have already started. It means recognising that people have different gifts and strengths. Some may excel in mathematics but not in languages, or vice versa. Others may struggle in written exams, but thrive in practical problem-solving. If we only use general academic results to sort out talent, we will undervalue many capable Singaporeans.”
“We will expand KidStart and enhance ComLink+ – so that more families get help earlier, and more children gain a stronger footing in life. We will deepen support for children from disadvantaged backgrounds. Today, enrolment in preschool is near universal. But attendance is less regular among the children from lower-income families. We will redouble our efforts and work closely with parents, preschool operators and social service agencies to ensure these children get the consistent support they need to thrive. We will not only do more, but we will also take actions across agencies with a more integrated family-centric approach – which several Members also spoke about. In schools, we will continue to press ahead with reforms. We have changed how the PSLE is graded. It is no longer graded on a curve, as Members know. It is about your own achievement, not about how well you did relative to your peers. In secondary schools, we have replaced streaming with Full-Subject Based Banding. Students are in mixed-form classes. They take subjects at different levels, according to their abilities. But I know for many parents, education still feels like an arms race. It is the PSLE season now. We all know of friends who are taking leave from work to help their children prepare for their PSLE. When you speak to each parent, they often tell you the same thing: they wish they could cut back on the endless tuition and give their children more space to grow up and play. Yet everyone hesitates to take that step. Why? Because deep down, they worry: what if my child loses out? So, many families feel they are stuck on a treadmill, running harder and harder, in a bid to avoid falling behind. We must break this cycle.”
“To strengthen our safety nets, so that no one falls through the cracks. To deepen our sense of solidarity, so we bridge differences and remain one united people. Let me elaborate on each of these in turn. First, we will do more to keep the escalator moving and help every Singaporean realise their full potential. We have seen how other societies have become more stratified, increasingly, with privilege becoming more entrenched. In extreme cases, your caste and your social class determine who you are, what you can do and what you can become. Even in meritocratic societies, we see admissions to universities or top jobs in public and private sectors dominated by those from privileged backgrounds. Governments everywhere try to rectify this. For example, I read recently in the UK, the government announced that civil service internships will be reserved for students from “lower socio-economic backgrounds” – defined as what jobs their parents did when they were 14. So, if you come from a working class family, you get the civil service internship. Otherwise, you do not get the chance. These are well-intentioned efforts. But they often fail to work as intended. Sometimes, they even create new distortions. Fortunately, Singapore starts from a stronger position. But we cannot stand still. We have to tilt the balance continually and keep opportunities open at every stage of life. We will invest more in the early years. Because as several Members have highlighted in this debate, opportunity gaps are opening up earlier – due to the advantage that better off parents confer on their children. And if we do not close these gaps quickly, they will only widen.”
“The external environment is more contested, more unpredictable and more challenging for small states like Singapore. Our economy is maturing and our population is ageing, so growth will inevitably slow. Many young people worry that they may not do better than their parents. In the past, when education levels were lower, securing paper qualifications was seen as a sure ticket to success. Now almost all have tertiary education, and half the cohort have university degrees. So, competition has intensified. Young people sometimes feel like they are trapped in a relentless rat race – from classroom to the workplace. They also worry that society is becoming more stratified. That the rich and wealthy are pulling ahead, while others struggle to keep up. Social media amplifies these anxieties, triggering constant comparisons and envy. All this is not unique to Singapore. Across the world, younger people are reporting higher levels of anxiety, and responding in different ways. In China, there is the phenomenon of tang ping or lying flat. In Japan, they talk about hikikomori, not leaving the house. In Europe and America, there is “quiet quitting”, “downshifting”, or the “great resignation”, and so on. Here in Singapore, we must do everything we can to defy this global trend. We cannot let our young people down. They are our future. My team and I make this pledge to our youths, and to the generations that follow. We will build Singapore with you in mind. We will strive to create more fulfilling lives for you. And not just for a few among you, but for all of you. We have new ideas and plans to achieve this. Through Forward Singapore, we have set out our shared goals. To keep social mobility alive, so the escalator keeps moving, and everyone has the opportunity to rise over time.”
“Mr Speaker, Sir, hopefully, everyone is more attentive and energised after that extended break. This new term of Government marks the beginning of a new chapter in the story of our island-nation. Singaporeans have placed their trust in me and my People's Action Party (PAP) team. They have returned my Government with a strengthened mandate. They have chosen all of us to be their voices in Parliament. It is now our duty and our responsibility, on both sides of the aisle, office holders as well as backbenchers, to live up to that trust. President Tharman has set out the challenges ahead and the key priorities for this term of Government. Members have raised many issues in this Debate and also shared useful ideas and suggestions. The Government will study all of your feedback. Today, I want to take a step back and speak about the larger mission before us. As we move beyond SG60 and as the world around us undergoes profound changes, we must ask ourselves: what kind of Singapore are we building? What kind of future do we want? How do we ensure better lives for our children and grandchildren? The past 60 years have been a miracle. When our founding leaders embarked on the journey of an independent Singapore, it felt like the most unpromising of startups. They would have been astonished at what Singapore has become today. From third world to first, we have lifted the lives of Singaporeans beyond the wildest dreams of our pioneer generation. We created opportunities for all and improved living standards across the board. We enjoyed decades of peace and progress, of stability, harmony and unity. Some now ask, can this miracle continue? We know the headwinds are stronger.”
“We are also piloting Age Well Neighbourhoods, which bring senior-friendly infrastructure and services into existing estates so that seniors can age well in familiar communities. We will continue to review and strengthen our schemes to ensure that all seniors, especially those living alone, can age with dignity and peace of mind.”
“The Government has recently enhanced several subsidy schemes for healthcare, social support, and housing. These schemes support seniors living alone, especially the lower-income or those with little or no family support. For healthcare, seniors benefit from substantial subsidies at public hospitals and polyclinics, and for long-term care services. At Budget 2025, the Government announced enhancements to long-term care subsidies and grants, including additional subsidies for older cohorts born in 1969 or earlier. For social support, seniors who had lower incomes during their working years and who now have less in retirement receive quarterly cash payments through the Silver Support Scheme. From 2025, eligible seniors can receive up to $1,080 each quarter, up from $900 previously. Other measures such as the permanent GST Voucher scheme, which includes cash payments, MediSave top-ups, U-Save and rebates for Service and Conservancy Charges, provide additional help. On housing, a range of options from shorter-lease 2-room Flexi flats to Community Care Apartments are available. Seniors who right-size to smaller flats may also benefit from the Silver Housing Bonus, which will provide a cash bonus of up to $40,000 from December 2025. Within their homes, the Enhancement for Active Seniors (EASE) programme subsidises home fittings to help seniors live safely. Beyond subsidies and financial support, we are also strengthening community and estate-level support for seniors. The Silver Generation Office conducts outreach to all Singaporeans aged 60 and above to identify seniors with needs, and connects them to appropriate care and support services, while Active Ageing Centres provide programmes and social support to help seniors stay connected.”
“We will take onboard the lessons learnt to continually improve our processes, controls and systems, and strengthen responsible management of public resources.”
“The Government takes the Auditor-General's findings seriously and has implemented measures to strengthen financial governance, procurement practices and information technology (IT) controls. These measures include: a. Improving the knowledge and capabilities of public sector officers to better handle financial, procurement and IT control tasks in accordance with established policies and procedures. In response to the Auditor-General Office's (AGO's) findings, we are updating training programmes and other learning resources to better equip officers to identify key risk areas when evaluating or managing contracts. We are also stepping up the training of information and communication officers, including on threat modelling and privileged account management, so that they are better equipped to perform their roles. b. Enhancing IT controls and monitoring. Agencies are expected to regularly assess risks to their systems and implement appropriate mitigating controls. Systems with more significant impact are subject to more stringent requirements on the IT controls that should be in place. Where there are critical gaps or vulnerabilities identified, GovTech guides agencies to put in place more robust safeguards, including stricter access rights validation and tapping on automation to reduce human error in account management. In response to all AGO observations both past and present, agencies take steps to identify root causes, rectify gaps and tighten internal controls. Agencies' internal auditors track the implementation of corrective action, provide independent assessment of the robustness of agencies' controls, as well as raise issues to be remediated in a timely manner. Areas for improvement are shared across public agencies.”
“Between Financial Year 2020 and Financial Year 2022, Singapore drew about $40 billion from the Past Reserves to support COVID-19 measures to safeguard Singaporeans' lives and livelihoods during the crisis. We do not expect to be able to put back the amount drawn from the Past Reserves during COVID-19. As previously explained by the Prime Minister in the debate on the Budget Statement 2025 in response to a similar query by Ms Tin Pei Ling (then the Member of Parliament for MacPherson), this is because we expect our spending to increase in the coming years, and we will have to deploy our fiscal resources to meet this increased expenditure in order to keep within our means and maintain a balanced Budget over the medium term. [Please refer to "Debate on Annual Budget Statement", Official Report, 28 February 2025, Vol 95, Issue 155, Budget section.] We will nevertheless continue to be responsible and prudent with our finances, and any surpluses accumulated at the end of the term of Government will be protected as Past Reserves. In light of the foregoing, the matters in paras (b) and (c) of the Member’s query do not arise for answer.”
“Yes, the Government has been actively exploring the use of technology, including artificial intelligence, in procurement, and has started to use them in suitable areas to reduce errors and increase efficiency.”
“U-Save rebates are intended to offset households' utilities expenses only. U-Save rebates have no expiry date, and unused rebates can be rolled over to offset households' future utilities expenses. For Service and Conservancy Charges (S&CC), eligible households will receive the Goods & Services Tax Voucher – S&CC Rebate, which offsets between 1.5 and 3.5 months of S&CC in Financial Year 2025.”
“Under Forward Singapore, we introduced major moves – the Majulah Package to strengthen retirement adequacy, a new public housing framework to improve affordability, new SkillsFuture programmes to uplift workers and initiatives to encourage a family-friendly Singapore. In this term, we will build on these efforts. We will invest across all life stages, so that more opportunities are open to all Singaporeans regardless of starting points. We will keep public housing and healthcare affordable and accessible, enable our seniors to age well with peace of mind and strengthen support for caregiving. We will also enhance support for vulnerable groups, including persons with disabilities and those with special needs. By encouraging volunteering and charitable giving, we will nurture our culture of mutual care. We will continue to support initiatives in the arts, sports and community that strengthen the bonds which hold us together as one people. We will work with agencies to strengthen governance across finance, audit, procurement, grants management and risk management. We will continue to adopt best practices, strengthen central systems and processes, and build capabilities across the Public Service. This will ensure that Government spending remains effective and delivers value for money. MOF will steward fiscal resources prudently and effectively to enable Singapore and Singaporeans to overcome challenges and seize new opportunities in a changing world.”
“In this uncertain world, we will continue to invest in our defence and security to safeguard our way of life. We will also deepen our cooperation with key partners, especially in the Association of Southeast Asian Nations, and broaden our relations with other countries. All of these efforts will require more resources. But they are essential to advancing national interests and protecting Singapore’s ability to chart our own course. MOF will play an active and constructive role in regional and international economic and financial fora to support a rules-based multilateral system that promotes shared prosperity and protects the global commons. Growing a vibrant economy that provides good jobs for Singaporeans remains our foremost priority. Through the Singapore Economic Resilience Taskforce and the Economic Strategy Review, we will work with agencies and stakeholders to navigate global uncertainties and keep Singapore competitive. We will continue to invest in our productive capacity – helping businesses, especially small and medium-sized enterprises, to innovate and harness AI and other technologies, and supporting Singaporeans to reskill and upskill through SkillsFuture. By ensuring a stable and efficient tax, customs and regulatory environment, we will keep Singapore among the best places in the world to do business. This will promote enterprise dynamism and growth and in turn contribute to job creation. We will make longer-term investments in our infrastructure to enhance our connectivity, support the green energy transition and build up our climate resilience. We have begun setting aside funds for these critical needs and will continue to do so to prepare for the future. We will continue to strengthen our social compact and provide assurance to Singaporeans.”
“Our fiscal policies aim to ensure a dynamic economy and a strong social compact. This provides assurance and opportunities and enables a higher quality of life for all Singaporeans. We face a more dangerous and uncertain world. The rules-based global order is weakening, with growing barriers to trade and cooperation. New technologies like artificial intelligence (AI) are reshaping industries, bringing disruption but also significant opportunities. We must adapt quickly and harness these technologies to secure good jobs and higher incomes for Singaporeans. With the faster pace of change, we must also strengthen social support and ensure that every citizen shares in our nation’s progress. Fiscal discipline and strength are Singapore’s strategic advantages. The Ministry of Finance (MOF) will allocate resources judiciously and evaluate programmes rigorously, to maintain sound and sustainable finances. Our system of taxes and transfers will remain fair and progressive: everyone contributes and the better off contribute more, and everyone benefits and those with greater needs receive more. With rising needs, Government spending in this term will increase as a share of gross domestic product. This is why we made earlier tax changes to strengthen our revenue base and structure. The Government will continue to spend within its means and maintain a balanced budget over the medium term. We will continue to steward our reserves responsibly. Our framework enables GIC and Temasek to pursue long-term investment strategies that generate sustainable returns. This provides a continued stream of revenue for the Budget, while maintaining our reserves as a strategic buffer against future shocks.”
“Sir, Ms Ng is correct. Communications are important. Engagements are important. So, we will not just stop at putting out clips on social media or discussing this in Parliament because we are facing real threats, real dangers that all Singaporeans should be aware of. And so, beyond discussing these issues in this House and sharing them on social media, we will be engaging different engagement sessions with young people, with Singaporeans from different segments. We do that each time we encounter threats, dangers or deal with a crisis. We have done that during COVID-19 when we had to repeatedly engage Singaporeans to address the concerns and to help them understand the nature of the threat and how we are to respond. In the same way now, when we are dealing with a new situation that poses very real economic threats to our livelihoods and jobs, we will do the same in engaging Singaporeans, young and old. 2.20 pm”
“Sir, we share the same concern. This is precisely why there is so much uncertainty in the world today. Who is going to step into the vacuum? There is no clear answer. While Singapore can try to do our best to speak up, to carrel and to engage like-minded countries, let us be realistic. We are not going to be able to fill the vacuum ourselves. We need other big players to step in. So, we are engaging all of them in Europe, in Asia, in the Middle East and hopefully, together as a coalition or as a broader, wider group of countries, there will be enough voices that share a common interest in keeping the WTO system going, updating it and maintaining our rules-based trading system. These are efforts that we will continue to press on.”
“There are will be a coalition of like-minded countries which we will be amongst them, identifying new opportunities for ourselves, finding ways to retain key elements of the multilateral system and seeing how we can evolve and shape a better global system together.”
“Sir, on investments coming in to Singapore, I think these are still early days. At least in previous crises and slowdowns, we have continued to be able to attract a good and healthy pipeline of investments because Singapore's reputation as a trusted business hub is strong and companies do want to do more activities out of Singapore. We hope this will continue to be the case, but it is still early days. It is hard to tell. We will continue to engage the key MNEs. What we do hear, for now, is that many are holding back – not so much that they do not want to come to Singapore, but they are just holding back on new projects, precisely because of the uncertainty that I highlighted just now. That is why the concern is not just about tariffs alone, damaging though they are, but the wider uncertainty about potential changes in rules, which is causing companies everywhere to hold back on new projects, hold back on taking decisions. All that can easily tip the world into a slowdown. On opportunities, Sir, I highlighted we are engaging our countries in ASEAN to see what more we can do as ASEAN to make ASEAN more competitive. There is renewed, I would say, emphasis and a strong desire to do more, particularly in this new environment. So, we are hopeful that we can push through some of these ASEAN initiatives. There are other like-minded countries who believe firmly in a rules-based trading system, in open and free trade. We are in touch with them, engaging them to see what more we can do together. As I mentioned in my Statement, even if the US has chosen to abandon the WTO, to reject WTO rules and to go in a more protectionist path, the rest of the world does not have to follow.”
“Sir, our companies as well as our sovereign wealth funds have major investments in America today and continue to see opportunities in US projects. They operate independently, as the Member said. They operate strictly on a commercial basis. They evaluate projects strictly on their own merits, not for diplomatic or political considerations. So, they will continue with that approach and if indeed, the continued investments that we are making, that Singapore as a whole is making in the US, help to advance a bilateral relationship, so much the better. But we will not compromise our key principles of investing on a proper basis, commercial basis and evaluating projects on the basis that they are fundamentally good investment projects for Singapore. On the second question on supporting companies, again, we have gone through that. We understand that there will be an impact on our local businesses. We will engage them more, understand better how exactly they are affected by the tariffs. A lot of this is still evolving, as many Members recognise. And so, as we get better information, as we drill down into some of the details, we will be in a better position to shape our responses.”
“So, I take no comfort at all in us being in the lowest tier and I think that we have to brace ourselves for a much bumpier ride ahead.”
“Mr Speaker, certainly, we welcome all ideas. We have said it repeatedly. And the Government will continue to engage all stakeholders to build a better future for everyone in Singapore. On the questions that Mr Leong raised, in fact, some of them were already addressed in my speech. I did say that today's order is eroding and a new order is coming in place. And indeed, America's actions may accelerate this move. But we are in a period of transition, one that is uncertain, unsettled and increasingly unstable. Transitions are always unstable until you eventually find a new equilibrium – and we have no idea what that new equilibrium will be or when we will get there. Will the tariffs be up temporarily? I also mentioned this in my speech just now. There are some hopes that the negotiations may bring down the higher tariffs. But I think we have to be realistic, not sure that this can be done. And when tariffs are raised, it is usually, as you look at the historical record, very hard for them to come back down again. And in any case, the administration has already indicated the base tier is not for negotiation. For now, that is their position. We are engaging them, but if that is truly their position, then these are not temporary tariffs at all. We are not going back to the previous status quo. We are in a new phase with higher trade barriers. Should we take comfort that we are in the lowest tier? Well, I suppose if you want to see silver linings in dark clouds, you can say so. But certainly, for us as a country, so reliant on trade for our growth, on external markets for our living, this new environment will be detrimental to Singapore's longer-term prospects.”
“On the first question about negotiations and whether we are going to do this bilaterally or collectively as ASEAN, I think the ASEAN member states, each one of us, bilaterally will already engage America – we will certainly do so and I am sure other countries are doing so as well. The Member would have read that about that in the media. As for what position ASEAN takes as a whole, the ASEAN Economic Ministers are meeting soon and they will discuss further. But one key step that we can take, quite aside from engaging America as a collective, is really to redouble our efforts, work even harder to reduce non-tariff barriers within ASEAN itself. ASEAN's tariffs are already largely removed, but to reduce further non-tariff barriers, to facilitate better trade within ASEAN and to ensure that ASEAN remains even more attractive and competitive, I think those are actions that we certainly want to do.”
“Sir, I thank Mr Mark Lee for sharing the very real and genuine concerns amongst businesses. We have heard similar feedback amongst our businesses. It is not just businesses based in Singapore who are impacted because, as Mr Lee says, some businesses have diversified, expanded and built factories in places like Vietnam, China, and now they are hit with even higher tariffs. And so, it will have impact on their operations and in the end, all this will spill over and impact growth this year and also our prospects for future growth. That is why we are concerned. That is why we think the concerns have to be dealt with quickly. And so, Deputy Prime Minister Gan's task force will continue to engage businesses to better understand the full extent of the impact, because this situation is still unfolding; and eventually, to work out what additional measures we need.”
“Sir, we do so best by upholding that strong base of trust, mutual trust and understanding that we have developed over so many decades amongst our tripartite partners – working closely together, engaging one another, being upfront with the concerns we all share and addressing the problems together. So, in the near term, whatever issues there are, whatever information the Government has, we will share with the unions, with the businesses, with workers through the task force and other mechanisms. If there are specific concerns, we will try our best to deal with them. And if we feel that the Budget measures we have or existing measures are not adequate, we will certainly be ready to introduce new measures. I think it is that spirit of working together which has enabled us to overcome previous crises and it will enable us to get through the current difficulties as well.”
“Sir, in the near term, if global demand slows down, it may actually mean less inflationary pressures, because global demand is coming off. It is the reason why you see oil prices coming off in the near term. But as I mentioned just now in my response to Mr Liang Eng Hwa, overall, if the entire global economy is going to be configured on a less efficient basis, it must mean higher cost; and this will impact Singaporeans as well, so we are watching for that and we will continue to monitor that closely. The impact on Singaporeans, the impact on business and as the Member Mr Yip said, what additional measures may be needed. For now, we think that the Budget measures are adequate, but the task force chaired by Deputy Prime Minister Gan will monitor, will assess and will put up recommendations when ready.”
“So, structurally, we are in for a more difficult ride, not to mention that if economic activities are going to be configured in a way that is not so much based on efficiency, but security, geopolitical and political considerations, then cost will be higher and at the end of the day, the world ends up operating on a higher cost base. So, these are the harsh realities that we have to be prepared for.”
“Sir, we will actively engage members of the US administration to better understand their concerns about our trade relationship, to see if we can address any misperceptions about our bilateral trade with them, and then to discuss what is the best way forward. Of course, if the US decides that the baseline rate is universal across all countries, then it is a different consideration altogether, it is not bilateral. It is their view of the world and they have decided that every country should at least have a 10% tariff. But we are continuing to have these conversations with the US administration and also with other countries. On the other aspects of our overall relationship with America, they continue to be important. We value the relationship. We believe the US values it too. In areas, like security and defence, we have such a close relationship built up over many decades and we will continue to maintain that; and we will also discuss cooperation in new areas, like critical new technologies, as well as energy. So, these areas of cooperation remain and we certainly want to continue advancing them as well. On where else will there be new markets for our exports, well, we will continue to find export markets. We will help our companies identify new markets, including areas that they may not be so familiar with, and that is why we are redoubling our efforts to strengthen our links, including in areas in the Middle East, in Latin America, areas where we may not have such close links, but we think there is potential and opportunities to do more. But fundamentally, we have to be prepared that if trade barriers around the world are higher than they were before, then, ultimately, we are entering a world where there will be slower growth, less demand for our goods and services.”
“Sir, we are certainly going to be taking steps to build capabilities. It is an ongoing endeavour and in this year's Budget, we set aside more resources to doing so, especially to strengthen our economy, to build up our capabilities in innovation and new technologies, which are the key drivers for any economy to be strong, dynamic and vibrant. At the same time, we are building capabilities in our people, investing in human capital, investing in our workers, upgrading the skills of our workers through SkillsFuture, and we are putting significant resources into this effort to make SkillsFuture a key part and a key pillar in our social compact. So, the capability-building efforts will continue, in fact, we will redouble our efforts in this area. And the key reason why we are able to do all this is precisely because we have the fiscal resources to set aside. It is because we have, over many decades, exercised discipline and prudence in managing our resources, and that is why in these difficult times we are able to put in place the resources to build up the necessary capabilities to see us through the storms ahead. On the task force, I may also ask Deputy Prime Minister Gan Kim Yong to say a little bit more later. But certainly, we are going to engage industries. We will continue the review and the monitoring of the global situation and if there is a need, we will provide further updates to Singaporeans as and when we are ready, and as and when there is a need to. Perhaps the Deputy Prime Minister Gan can elaborate.”
“We have forged a strong compact, built on solidarity and trust in each other. And most of all, we have our ingenuity and wit, our grit and gumption – a never say die spirit that has seen us through every crisis, and will carry us through the ones to come. So, Mr Speaker, I say to this House and to fellow Singaporeans: do not fear. Now, more than ever, we will stay resolute and united. Our little red dot will continue to shine. In a dark and troubled world, Singapore will hold our ground as a beacon of stability, purpose and hope. [Applause.]”
“They are all keen to do more with Singapore and to expand our economic cooperation, including in new areas in the digital and green economies. In particular, we will strengthen our collaboration and integration within the Association of Southeast Asian Nations (ASEAN). Last Friday, I spoke with the Malaysian Prime Minister Anwar Ibrahim. Malaysia is also the ASEAN Chair this year. We agreed to accelerate ASEAN's integration efforts to make our region more attractive and competitive. A Special ASEAN Economic Ministers' Meeting will be convened later this week. They will discuss further ways that ASEAN can work together to strengthen intra-ASEAN Trade and to send a strong signal of ASEAN's commitment to regional economic integration. As a group, ASEAN will also continue to strengthen our links with like-minded partners in areas of mutual interest. Mr Speaker, we are entering a changed world. The only way Singapore can make it through the gathering storm is to stay united, pool our resources, our resilience and our resolve. The Government will do everything we can to steer Singapore through the choppy waters and make sure no one is left behind. We will keep our economy open, our society cohesive and our institutions strong. We will create new value propositions for businesses and investors. We will act boldly and decisively, when needed, to ensure Singapore continues to succeed. Above all, we will put the interests of Singapore and Singaporeans at the centre of everything we do. The road ahead will be harder. The dangers are real, but so, too, is our determination. In many ways, we are in a better position than we were 60 years ago when we became independent. We have built deep reserves as a strategic buffer.”
“Our economic agencies are also engaging the firms impacted by the tariffs to better understand their responses and see how we can support them and assist them with any specific issues they face. Nevertheless, the situation is fluid and can change quickly. We will, therefore, set up a task force chaired by Deputy Prime Minister Gan Kim Yong to help businesses and workers address the immediate uncertainties, strengthen their resilience and better adapt to the new economic environment. In addition to our economic agencies, the task force will include the Singapore Business Federation, the Singapore National Employers Federation and the National Trades Union Congress (NTUC). We will continue to monitor developments closely. The Government stands ready to do more, if and when necessary. We have the resources to do so because of the financial discipline and prudence we have exercised over the decades. In this new environment, Singapore must redouble our efforts to remain a key node in global flows and a trusted business hub. We will forge closer ties with like-minded partners who share our commitment to open and free trade. The US may have decided to turn protectionist, but the rest of the world does not have to follow the same path. We will identify other partners to join us and work around this, to ensure resilience and maintain critical parts of the multilateral system, while laying the foundations for a possible new and different global system that can be achievable later. And this is why I have made the effort to engage and visit my counterparts in different countries. I touched base with the United Kingdom's Prime Minister Keir Starmer yesterday and have a few more conversations lined up in the coming weeks.”
“They include, manufacturing, especially segments like electronic and semi-conductors; biomedical science, which have higher exposure to the US; wholesale trade; and transport – these will be impacted. The global uncertainty and dampened sentiments will also impact some services industries, including finance and insurance. Singapore may or may not go into recession this year. But I have no doubt that our growth will be significantly impacted. We had originally projected GDP growth of 1% to 3% for 2025. The Ministry of Trade and Industry (MTI) is reassessing the growth forecast and will likely revise it downwards. Slower growth will mean fewer job opportunities and smaller wage increases for workers. And if more companies face difficulties or relocate their operations back to the US, there will be higher retrenchments and job losses. For now, the measures announced in this year's Budget will provide support for any short-term strain. We have a comprehensive package of measures for households and individuals. They will receive the Community Development Council (CDC) Vouchers, SG60 Vouchers and U-Save rebates to help with their cost of living. And there are also targeted measures, like increased ComCare Assistance, for the more vulnerable groups. We are also supporting workers through investments in SkillsFuture. And those who find themselves involuntarily unemployed will receive help to get back on their feet through the SkillsFuture Jobseeker Support scheme which will start later this month. We have also rolled out various measures in the Budget to help businesses. There are short-term support measures through corporate income tax rebates, as well as schemes to boost their productivity and competitiveness, and to pivot to new markets.”
“And all these create an environment of deep uncertainty, one that could tip both the US and the global economy into recession. The consequences extend far beyond economics. More and more countries are turning away from win-win cooperation and deeper integration. Instead, we see a rising "me first", win-lose mindset, where it is every country for itself. Some are even prepared to use aggressive or coercive means to get what they want at the expense of others. Meanwhile, global institutions are getting weaker and long-standing norms of cooperation are breaking down. One major concern is the US-China relationship. America views China as a strategic competitor and threat, which must be dealt with now while America still has the advantage. China says it is ready for a tariff war, a trade war or any other type of war. The US has now threatened an additional 50% tariff on China and China says it will fight till the end. There are fewer channels for dialogue, which can serve as guardrails to manage the relationship. So, if the disputes escalate and destabilise US-China relations, the consequences for the world would be disastrous. We must be mentally prepared. The predictable and rules-based order we once knew is fading. The new era will be more volatile, with more frequent and unpredictable shocks. We must be ready to stand firm and protect our interests, no matter how the external winds may blow. What does all this mean for Singapore? In the near term, we expect weaker global growth, which means external demand for our goods and services will fall. The outward-oriented sectors of our economy will suffer the brunt of the impact.”
“Many countries protested and a number retaliated with their own trade restrictions and tariffs. This deepened and extended the Great Depression. In some ways, today's risks may be greater. The new US tariffs, if fully enacted, are higher than the ones in Smoot-Hawley. Trade is now a much bigger part of the American and global economy compared to the 1930s. Supply chains are also more deeply interconnected than they were back then. Any disruption to trade flows will have wider knock-on effects on the world. This brings me to the third point, which is the impact on the global economy. Business and consumer confidence has already been hit by the tariffs. International trade and investments will suffer. Our economic agencies got in touch with several multinational enterprises (MNEs) and local businesses after the tariff announcement. Even those who are not directly affected by the tariffs are worried about weakening demand from their consumers. Some have put new projects on hold while they assess the full implications of the tariffs. These are reactions from companies based here. But I am sure similar conversations are happening in board rooms elsewhere. Over the recent days, we have seen sharp negative reactions in global stock markets. It is too early to tell is all these will spill over into the real economy. But the downside risks are clearly rising. What is troubling is not just the tariffs themselves, which are already damaging, but the fact that this new wave of protectionism is unpredictable and unstable. Protectionism is already bad. Unstable protectionism is even worse. Businesses do not know what to expect. Many are holding back, fearful that changing rules will leave them with stranded assets.”
“This was what President Richard Nixon did in 1971. He slapped a 10% surcharge on imports to pressure Germany and Japan to devalue their currencies and when they did, the tariffs came off. Indeed, there is a brief window for countries to negotiate and get some reprieve from the US before their higher tariff rates take effect and it may be possible for some rates to be lowered. But we have to be realistic. Once trade barriers go up, they tend to stay up. Rolling them back is much harder, even after the original rationale no longer applies. Even if some partial accommodations are eventually worked out, the uncertainty generated by such a drastic move will dampen global confidence and growth. It will be very hard to restore the previous status quo. And in particular, it does not look like the 10% universal rate is open for negotiation. This seems to be the fixed minimum tariff, regardless of a country's trade balance or existing trade arrangements. Furthermore, there are other forces that could maintain the momentum for tariffs. In particular, many European countries are eager to protect their critical industries, like electric vehicles (EVs), green technologies and semi-conductors, from Chinese competition. They do not want to become a dumping ground for exports from China or other countries. There is also a growing push across the West to strengthen their domestic manufacturing capabilities and to reduce dependence on global supply chains, especially in strategic industries. So, this round of tariff increases by the US may just be the beginning of more increases to come globally. And we have seen this play out before. The US enacted sweeping tariff increases through the Smoot-Hawley Act in 1930.”
“Actually, it means the opposite – that every member must treat all other members equally. In other words, if a country extends more favourable terms or imposes additional restrictions to one trading partner, it must do the same to all other WTO members. There are some carve-outs and exceptions to the MFN rule, for example, to allow FTAs. But MFN has long been the bedrock of the multilateral trading system. It ensures a level playing field, prevents discrimination and enables countries, big and small, to compete fairly in global markets. This has helped to liberalise trade amongst more than 100 WTO members, each with different economic and political and social concerns. America's new tariff regime is a complete repudiation of the MFN principle. It opens the door to selective country-by-country trade relationships, based on unilateral preferences. If other countries adopt the same approach as the US, the rules-based trading system will unravel. This will spell trouble for all nations. But smaller countries, like Singapore, will face more pressures because small countries have very limited bargaining power in one-on-one bilateral negotiations. So, the major powers will dictate the terms and we risk being marginalised and sidelined. Second, the likelihood of a full-blown global trade war is growing. Singapore has decided not to impose retaliatory tariffs. Doing so will only lead to increased costs for Singaporeans. But other countries may not be guided by the same considerations and may have different perceptions and views. China has already imposed retaliatory tariffs on US goods. Others, like the European Union, are considering their next steps. Some think that the new tariffs are a negotiating tactic, a negotiating tool by the US to extract concessions in other areas.”
“But this fact has been completely ignored. In Singapore's case, we have a free trade agreement (FTA) with America. We impose zero tariffs on US imports and we actually run a trade deficit with the US – meaning we buy more from them than they do from us. If the tariffs were truly reciprocal and if they were meant to target only those with trade surpluses, then the tariff for Singapore should be zero. But still, we are being subjected to the 10% tariff. We are very disappointed by the US move, especially considering the deep and long-standing friendship between our two countries. These are not actions one does to a friend. Asia bears the brunt of the US tariff increase. Within the region, China is the hardest hit, facing a 34% tariff in this round. This is on top of the 20% tariff increase imposed over the past two months and the 20% from the first Trump administration. Taken together, the average US tariff on Chinese products now exceeds 60%. In Southeast Asia, the tariff rates range from 10% to 49%. These measures will accelerate the fracturing of the global economy. Instead of flowing based on economic efficiency, capital and trade will increasingly be diverted based on political alignment and security considerations. Several Members have asked about the impact of the tariffs on specific industries in Singapore. We are assessing the situation carefully. But our deeper worry is not the direct impact that these businesses face. It is the wider implications for the global trading system and the world economy. Let me explain. First, the "reciprocal" tariffs are a fundamental rejection of the WTO rules. One of the cornerstones of the WTO multilateral trading system is the Most Favoured Nation (MFN) principle. Most Favoured Nation sounds like giving special privileges.”