Low Yen Ling
Singapore
“I want to thank Member Cai Yinzhou for the clarification. As far as his historic district is concerned, I want to assure him that the new Place-making Project Office that comes under the Inter-agency Task Force does indeed not only serve Kampong Gelam, Little India, but also Chinatown.”
“A "we first" society needs an active citizenry working together to realise it. When corporates, community groups, and individuals come together, we will be able to create a harmonious, united and progressive home and society that belong to us.”
“I want to thank Member Mr Andre Low. In my earlier speech, I have also responded very succinctly. I want to assure him, as well as Mr Melvin Yong, I think you touch on very similar issues, and you probably heard from the political office holders speaking at the Ministry of Home Affairs COS about their tough stance against scams.”
“Finally, Government agencies, not just MTI, EDB and Enterprise Singapore, under the leadership of Deputy Prime Minister Gan Kim Yong, will continue to create a pro-business, pro-people environment, building a business environment based on integrity.”
“— family business, as well as the other one on TACs. On family businesses, I want to assure him that earlier on, when we mentioned that we raised the support level for SMEs and non-SMEs and indeed, many of our multi-generational family businesses are in that category.”
“And since the Member asked, price obviously is an important indicator. Another example is if CCS observes the behaviour of the organisations and if we pick up signals that they are coordinating the behaviour to raise prices, to reduce quality, to reduce output, to reduce innovation, CCS will step in.”
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“Mr Speaker, I want to thank the Member Mr Gerald Giam for his questions. I mentioned the multi-pronged approach and the third prong that I mentioned is that MTI will continue to work closely with our importers, distributors and retailers to bring in various brands of self-test ART kits and to give choice and options to consumers. If Members remember, in the last one year – we now have a wider supply of ART kits and, as of now, MOH and HSA have already approved 12, with more coming on-stream – the price of test kits has since fallen by almost half. Most recently, I went to either Guardian or Watsons, and you can buy an ART kit for about $4.90. Having said that, I want to assure Mr Gerald Giam that, indeed, price is one of the considerations as part of MOH and HSA's evaluation criteria. And I want to assure Singaporeans that, regardless of financial background, if you remember last week, MOH has announced the setting up of more than 200 Combined Testing Centres (CTCs) and Quick Testing Centres (QTCs), where any COVID-19 patient with mild symptoms can proceed to for supervised self-test ART kits usage. At the same time, members of the public can make appointments at any of the QTCs and CTCs. At the same time, MOH and MSF have also distributed about 140,000 kits to low-income households. So, I want to assure Mr Gerald Giam and Members in the House that we will press on with our multi-prong approach to ensure that Singaporeans have access to continued supply of ART self-test kits.”
“Two other brands called Biocredit and Hotgen have obtained satisfactory analytical validation results and are in the midst of obtaining their PSAR registration prior to clinical validation. We hope that we will continue to have more options and wider supplies of ART kits from here as well as from abroad. Thirdly, we work very closely with various partners, importers, distributors and retailers to plan ahead and ensure that affordable stocks of ART kits are constantly on-stream for Singaporeans. I want to assure Mr Zhulkarnain Abdul Rahim that MTI, together with MOH and HSA, will continue to make the supply of ART kits our key priority and will provide ample support for the development and expeditious evaluation of ART kits, including local ones, to ensure quality self-test kits for Singapore's protection and safety.”
“So, I want to assure Mr Zhulkarnain Abdul Rahim that the Government spares no effort in ensuring the continued supply of ART kits which is critical to living in the new normal. Secondly, we diversify our sources of ART kits by importing from multiple sources. Currently, as I indicated in my answer to the Parliamentary Question (PQ), there are no companies locally manufacturing or assembling ART kits that are approved for retail sale yet. So, we welcome the application of the six companies seeking to assemble or manufacture ART kits in Singapore. To his first two supplementary questions about testing, requirements and approval process required for retail sale, I want to share with Mr Zhulkarnain Abdul Rahim and Members that only ART kits that have been evaluated to meet the stringent standards of quality, safety and performance and, at the same time, verified for its accuracy when used by consumers, will be made available for retail sale. For example, ART kits have to undergo a separate route for approval where they are being benchmarked against PCR tests. Why is this necessary? Because MOH has explained that these self-test ART kits are to be used widely by members of the public in self-test settings. So, the implications on public health will be huge and significant if the kits that are approved for self-test are not sufficiently accurate. Besides the 12 self-test ART kits that have been approved by MOH and HSA for retail sales, I want to assure Mr Zhulkarnain Abdul Rahim that MOH is also actively evaluating other ART kits for their eligibility. The brands, Alltest and Indicaid, have just obtained the Pandemic Special Access Route (PSAR) approval and will soon be on our retail shelves this month.”
“Mr Speaker, Sir, I want to thank the Member Mr Zhulkarnain Abdul Rahim for his three supplementary questions. Mr Speaker, globally, the demand for ART kits has increased in various countries, including Singapore, as we move towards making testing for COVID-19 part and parcel of our lives and also, in a way, to keep the virus in check. Here, we have seen an increase in the demand for ART kits amidst the latest Omicron wave and also during the recent festive period. In addition, more Singaporeans are practising social responsibility with regular self-testing. So, to Mr Zhulkarnain Abdul Rahim's third question on ensuring the connectivity and continuous supply of ART kits, I want to reassure him and everyone in the House that the Government has been able to respond to heightened demand due to our multi-pronged strategy of diversification, stockpiling and also by working very closely with the importers, distributors, retailers to ensure that Singapore and Singaporeans have continual and sufficient supply of ART kits. Firstly, the Singapore Government keeps a reserve of ART kits to mitigate any sudden surge in demand or disruption of supplies. During the recent spike of Omicron cases, MOH drew down on its stockpile to supplement the retailers' supply of testing kits. Prior to that, Members would probably remember that the Government distributed close to 25 million ART kits to households in Singapore just last year. If Members remember, the two distribution drives – the first was between August and September, and the second drive was between October and December – saw that each household received a total of 16 ART kits.”
“Mr Speaker, MOH has received applications from six ART companies which are in various stages of evaluation by MOH and Health Sciences Authority (HSA). The applicants indicated that the kits will be manufactured or assembled locally. Once approved, the companies will be able to apply for existing grant and loan schemes that MTI and its Statutory Boards provide to support companies with their plans for local manufacturing.”
“Having said that, I want to assure Mr Leon Perera that any lessee with shorter lease period of less than 15 years, or even smaller rooftop space of less than 800 square metres, they can still engage the solar vendor, including JTC's appointed solar vendor to participate in the SolarRoof Programme. I also want to reassure him that JTC is currently seeking new solar vendors who are able to service shorter contract periods so that we can benefit the lessees and the tenant of shorter compact periods. And in fact, JTC is also engaging existing tenants in land-based facilities to explore the possibility of a license fee sharing model. And in addition, as part of the SolarRoof programme Phase Three tender, which was just launched in November 2021 three months ago, both rooftop licensing and solar leasing rates for shorter contract period options of less than 10 years will be made available.”
“Mr Speaker, I want to thank the Member Mr Leon Perera for his supplementary question. Please allow me to share that solar energy is currently the most viable renewable energy in Singapore and the Government is committed to continue to accelerate our efforts to promote solar adoption. We are on track to achieving the solar panel deployment target of two gigawatt peak (GWp) by year 2030, which is equivalent powering 350,000 households annually. In fact, since 2015, our solar installed capacity has increased by nine times to over 560 megawatt-peak (MWp) in the third quarter of the year 2021. Earlier, I cited JTC's mandatory solar deployment scheme. I would like to share that currently a total of 224 MWp has been deployed across JTC's industrial estate – 224 MWp, compared to the 560 MWp I mentioned earlier. So, it is about 40%. This includes JTC's vacant industrial land and buildings owned by JTC and its lessees. I want to assure Mr Leon Perera that JTC's mandatory solar deployment scheme ensures that the lessees, which means the owner of the building, solarise their rooftops in line with the national efforts to increase our solar energy adoption. The prerequisite for the mandatory solar deployment scheme is established by JTC in consultation with the solar vendors. For example, as per current market practice, the typical contracting period for solar installation is between 15 years and 20 years, and a minimum of solar installation area of at least 800 square metres is required for the solar deployment for this to be viable. These requirements are needed to ensure that both the lessee as well as the solar vendor have sufficient runway and skill to amortise the upfront fixed investments into the solar panel installation.”
“This scheme requires lessees with a new or renewed land lease with JTC of more than 15 years, and with at least 800 square metres of contiguous rooftop area, to carry out solar deployment. Lessees can adopt the two deployment schemes under the SolarRoof programme if they do not wish to own the solar panels themselves. The Member will be glad to know that JTC is currently studying even more options to push solar adoption further, especially for lessees and tenants with short remaining tenures. The Government will continue to review ways to incentivise and promote more solar adoption, including co-creating solutions with private developers and industry players, as well as work with stakeholders to maximise solar energy adoption in Singapore.”
“Thank you, Mr Speaker, Sir. For commercial and industrial buildings which deploy solar power on a solar leasing model, the solar developers typically sell the solar energy captured to building owners who would use it to offset the electricity consumption in common areas. For instances where the solar installation is owned by building owners, the solar energy is typically used for common areas by the owners. Electricity charges and savings are negotiated between the landlords and tenants as part of their overall tenancy agreements. With this in view, it is not appropriate for us to provide guidelines on solar savings alone. Nevertheless, landlords can consider taking reference from practices established by JTC Corporation (JTC) aimed to encourage solar adoption. JTC adopts a two-pronged approach to encourage solar adoption amongst their lessees. First, JTC runs the SolarRoof programme. This was initially started to solarise JTC's own buildings. SolarRoof was expanded in 2020 to other buildings to make solar adoption more accessible for lessees, including those with shorter leases. Today, JTC's lessees can choose between two solar deployment models, both of which do not require any upfront capital outlay if JTC's appointed solar vendor for the SolarRoof programme is used. The first model available is through rooftop licensing, where lessees can lease their space to any solar vendor for solar panel installations in return for a rental fee. The second model is solar leasing, where lessees allow vendors to install solar panels on their rooftops and they pay a discounted rate on the electricity generated which offsets their electricity consumption. JTC implemented the mandatory solar deployment scheme in 2020, as highlighted by the Member.”
“Mr Speaker, Sir, can I have your permission to take Question Nos 7 and 8 together, please?”
“So, I want to assure Mr Melvin Yong and everyone in the House that MTI, the Government and relevant agencies, like SFA and MSE, will spare no efforts in our multi-pronged approach to keep our food supply and food prices stable.”
“I want to assure Mr Melvin Yong that to ensure the continuity of our food supply, MTI has been working very closely with our local companies, especially in the past few years, to ensure sufficient supply of essential food items. Today, we import our food from 170 countries all over the world. I also want to add that our multi-level mitigation efforts include bringing in stocks ahead of time where possible by working closely with our importers, distributors and even our retailers to anticipate and even mitigate delays as well as closely monitoring and looking out for potential disruptors. I was very heartened and I am sure all of us are very heartened to learn about the efforts by our retailers, such as the FairPrice Group and some of our supermarkets. They are making concerted efforts to moderate prices despite the cost pressures and disrupted supply chain. Just yesterday, we read that FairPrice supermarket announced their "Stretch Your Dollar" campaign which will give consumers and customers a weekly additional 5% discount on basic food items every Friday, I believe, starting on 4 March. And besides existing discount schemes for the Pioneer and Merdeka Generations and blue CHAS cardholders, FairPrice is lowering or holding the prices of popular breakfast items stable in their Kopitiam and Foodfare chains. And this morning, as I read the Lianhe Zaobao, I was also very heartened to read that not just FairPrice but other supermarkets, like Giant, Sheng Siong, Prime and also HAO mart, have also come up with very creative ways to keep the prices to consumers friendly.”
“Mr Speaker, Sir, I want to thank the Member Mr Melvin Yong for his two supplementary questions. I want to assure him and everyone in the House that MTI, the Government and the various Government agencies will spare no efforts in our multi-pronged strategy to keep our food supplies and food prices stable. He has two supplementary questions. On the first one, he asked what are the factors that contribute to and influence the cost of food. There are many. There are a combination of factors and these include imported prices, animal feed, energy costs, freight costs, labour costs, seasonal weather patterns and possible supply chain disruptions. I want to share with Mr Melvin Yong that the regional weather disruptions that are currently putting upside pressures on Singapore's imported food prices should fade as the monsoon season passes. The general appreciation of the Singapore dollar against the currencies of many of our key import source countries will also continue to temper cost pressures. To Mr Melvin Yong's second supplementary question, as a small and open economy that imports most of our food supply, Singapore is, indeed, impacted by trade and possible supply chain disruptions. The Government has in place a multi-pronged strategy involving import diversification, local production "30 by 30" and also stockpiling to reduce the impact of unforeseen disruptions to our food supply. This also serves to lower our vulnerability to larger price fluctuations and ensure that the prices remain competitive. This strategy is important because, to a certain extent, it will help to act as an important hedge to mitigate the risks of price and also supply disruptions.”
“Mr Speaker, the Government has been actively diversifying our food supply sources. Most of our top vegetable and seafood imports are well-diversified, with over 10 source countries, which include China, Vietnam, Indonesia, Australia, various European countries, the United States, United Kingdom, Canada and even Ecuador. This has helped to strengthen the resilience of our seafood and vegetable supplies. Nonetheless, prices of popular food items tend to rise ahead of festive periods because of a surge in demand. Retailers and importers would try to mitigate this by planning ahead and securing more supplies from multiple sources. Apart from the diversification of food import sources, the Government continues to work with the Consumers Association of Singapore (CASE) to promote consumer awareness and help consumers make informed purchasing decisions.”
“(proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Ms Low Yen Ling]. (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“I believe Assoc Prof Jamus Lim also asked about the introduction of the new section 3A of the Bill that allows the Minister for Trade and Industry to assign to public bodies various functions and powers of the administration of tax incentives under the Act. I want to assure Assoc Prof Jamus Lim and every Member in this House that when we talk about the public bodies, as far as this Bill is concerned, it refers to Government agencies, such as EDB and ESG. These two are the economic agencies within the entire family charged with the mandate to incur key investment promotions in Singapore and to support SMEs' development. So, these bodies refer to both EDB and ESG which administer economic expansion-related tax incentives. I want to assure Assoc Prof Jamus Lim that MTI also shares his wish to make sure that we remain pro-business when administering the tax incentive and that is really why we are introducing this amendment which would then provide EDB and ESG with more autonomy and agility to anchor key business investments and projects expediently. This is also in line with the existing practice where public bodies administer tax incentives via delegation made under the Interpretation Act. I want to thank Mr Don Wee and Assoc Prof Jamus Lim for their questions and also support. Mr Speaker, Sir, the Government is committed to fostering a business-friendly environment in Singapore. We will continue to review and sharpen our tools to help our businesses move towards a low-carbon future and we look forward to the continued support of this House in that endeavour. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House.”
“Allow me to assure Mr Don Wee and also Assoc Prof Jamus Lim that the IA-ER is part of a comprehensive suite of measures to support our industries and our companies based in Singapore in their decarbonisation journey and also to better position themselves to seize the opportunities in the green economy. Other incentives and schemes include ─ and I think some Members would have read about it, but allow me to recap ─ the Resource Efficiency Grant for Energy, the Energy Efficiency Fund, the $180 million Enterprise Sustainability Programme (ESP) that was mentioned by Mr Don Wee, launched by ESG on 1 October last year, and the Low-carbon Energy Research Funding initiative. Like I have mentioned, many of these programmes have been recently launched. MTI, ESG, and not just within the MTI family, I want to assure the two Members that we are taking a whole-of-Government approach. We will work with the various Ministries, including MSE, MOF and so on, and the relevant agencies to monitor their progress and review them regularly to ensure that, collectively, they remain relevant and effective in supporting our industries, our companies' decarbonisation journey and also Singapore's climate goals. We will similarly review the IA-ER scheme at an appropriate juncture to determine whether to extend it further or to adjust the scheme's parameters. Mr Don Wee also asked in his remarks how the Government is helping our industries to build their capabilities to meet our "30 by 30" goal. And Assoc Prof Jamus Lim, in his earlier remarks, recapped a list of recommendations and proposals, including those to encourage households to reduce their carbon footprint. Allow me to share with both Members that MSE will provide an update at next month's Committee of Supply debate.”
“Mr Speaker, Sir, I want to thank the two Members, Mr Don Wee and Assoc Prof Jamus Lim, for their support of the Bill and also for the opportunity to make some clarifications. During Assoc Prof Jamus Lim's remarks, he alluded to the question about the amendments. Allow me to clarify that these amendments would affect the applications for the investment allowance for emission reductions (IA-ER) that are received between 1 April 2021 and the time that the legislative amendments are passed. I want to assure the two Members that MTI, MOF and the agencies routinely review the effectiveness of our incentives to make necessary adjustments, such as extending the validity of the scheme or to adjust the scheme parameters. These are typically announced by the Minister for Finance at Budget, following which, agencies would then work with AGC to draft the legislative amendments. Incentive applications during the intervening period may be awarded retrospectively if the legislative amendments are backdated to the announced start date. In this instance, the amendments are being backdated to 1 April 2021, which was the previously announced start date of the IA-ER. With the expanded scope of the IA-ER and the increased attention that companies are placing on their own carbon footprint, we expect great interest in the scheme going forward. Mr Don Wee spoke passionately in English and Mandarin about whether the IA-ER scheme could be extended to 2030 to align with the Singapore Green Plan 2030. He also asked how the incentives could further help our SMEs or businesses fulfil the aims of Singapore Green Plan 2030 and whether additional support could be provided.”
“Clause 2 of the Bill inserts a new section 3A into the Act, which allows the Minister for Trade and Industry to assign to public bodies various functions and powers of the administration of tax incentives under the Act. This amendment arises from our periodic review of the income tax system to improve tax administration and is aligned with the Income Tax Act. There is no change in policy intent and no impact on tax incentive recipients. Mr Speaker, I beg to move. [(proc text) Question proposed. (proc text)] 2.10 pm”
“Mr Speaker, on behalf of the Minister for Trade and Industry, I beg to move, "That the Bill be now read a Second time." The Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill 2022 amends the Act to provide for tax incentive changes which were introduced in Budget 2021. It also enables the Minister for Trade and Industry to assign various functions and powers to public bodies for the administration of tax incentives under the Act. Let me elaborate on the two key legislative changes contained in the Bill. The enhancement of the "Investment Allowance for Energy Efficiency" scheme, which is now renamed "Investment Allowance for Emissions Reduction" ("IA-ER"), was announced at Budget 2021. The scheme currently supports companies in improving their energy efficiency. This Bill expands the scope of support to also include investments in equipment that result in measurable and verifiable reductions in greenhouse gas emissions. Specifically, the IA-ER grants a tax allowance on the qualifying fixed capital expenditure incurred within the qualifying period, which can be used to offset the company's taxable income. The scheme's validity period has also been extended from 31 March 2021 to 31 December 2026, to support companies adapting and transiting to a low-carbon economy. This proposed change is in response to industry feedback on how such investment allowances will help them reduce their carbon footprint, especially for manufacturing companies and data centre operators. To give legislative effect to these changes, clauses 3 and 4 of the Bill amend sections 41 and 43 of the Act respectively. The second change concerns the internal administration of tax incentives.”
“0 that Deputy Prime Minister Heng Swee Keat has talked about: refreshing, strengthening our 23 Industry Transformation Maps to raise the innovation capacity of our SMEs across the 23 sectors, raising productivity and designing good jobs that are not just good jobs for today, but also jobs and skills for tomorrow; at the same time, supporting our local companies to expand their international footprint. I had cited the mask example. This is just an example of how, when necessary, we will intervene in terms of monitoring prices. We are also making sure that we promote market competition. In addition to promoting market competition, it is also about lowering barriers to entry where possible, so that we can help Singaporeans enjoy competitive prices. Furthermore, I cited how we need to focus on diversifying our sources of supply, expanding our sources of food supply to more than 170 countries and regions across the world. The Member also asked about Ms Jessica Tan's question. I want to use this platform to reiterate again that MTI and all our economic agencies are working very hard, in particular, in the last two years, to keep a lid on business cost increases and we do so by carefully managing our domestic supply side constraints. And in terms of prices, coming back to it, we will continue to monitor prices and inflation very closely and we are prepared to adjust policies where necessary. We understand the concerns of businesses and Singaporeans and we will do whatever we can to mitigate the cost pressures that are being felt and the effects of inflation.”
“Mr Speaker, Sir, I want to thank the Leader of the Opposition Mr Singh for his two questions. And I do not think there has been a departure between what I have cited and what Minister Chan had shared. I want to thank him and I want to also use this platform to reiterate again, the Government understands and shares Singaporeans' concerns about rising prices and inflation. I also want to use this opportunity to assure everyone in the House that MTI, the Ministry of Finance (MOF) and all agencies will spare no effort in supporting Singaporeans and also households and businesses as we face this global specter of inflation. MTI and all economic agencies are also working very closely with MOF to mitigate the effects of inflation on businesses, households and also consumers. On his first question, I cited a six-pronged approach, a multi-pronged approach because this will allow us to take a very comprehensive stance and engage with our SMEs, our trade associations and of course, at the same time, leveraging on our extensive network of FTAs to provide market access for companies. I cited the first strategy, which is working hard to keep our economy competitive, working hard to create good paying jobs that generate real wage growth for our Singaporeans. So, really, it is about providing conditions for our companies, especially our local SMEs to create good jobs with sustained income growth that outpaces inflation. Because when companies raise their productivity, real wage growth will follow. When workers can attain real wage growth, they also have new skills to take on new jobs. This is where MTI schemes like the PSG and the EDG come in. And really, this is the whole notion of ITM 2.”
“But having said that, we know that we are still in the thick of the COVID-19 pandemic, the situation is very fluid, is very volatile. We are a small and open economy, and we are exposed to a lot of developments in other parts of the world, including the key food producing countries. For the full year MAS Core Inflation, it could average within the upper half of the official forecast range of 1% to 2%.”
“Mr Speaker, Sir, I want to thank the Member Mr Leon Perera for the two questions. On the first question, we monitor the CPI all items inflation based on different household income groups. That will allow us to also work with MOF to design the necessary targeted assistance for the relevant segments, based on household income. If I could use this opportunity to share with the House, in Q3 2021, the CPI all items inflation came in at 1.9% year-on-year for the lowest 20%; and 2.2% year-on-year for the middle 60%; and 3.0% year-on-year for the highest 20% income group. This leads me to my next point. This shows that the households in the lowest 20% income group experienced lower inflation compared to the other income groups. And earlier on in my speech, I shared about the importance of monitoring indicators like the real wage growth, that is after accounting for inflation. And I also took the opportunity to specify that for the lower-income, they saw higher real wage growth last year, while we were still in the thick of COVID-19. In fact, I think Minister Lawrence and Minister Gan will say that we are still in the thick of the COVID-19 pandemic. And for the lower income, the real wage growth was, I cited, 4.6% for the year 2021. His second question about the MAS core inflation, I may have read it very quickly, allow me to slowly read it out now. I cited the various factors driving global inflations and what are some of the contributing factors for domestic inflation. And I talked about the CPI all items inflation and then I cited the MAS core inflation. So, let me repeat: MAS core inflation is expected to increase in the first half of 2022, before easing in the later part of the year.”
“The Rental Support Scheme payouts in 2021 have also provided more than S$900 million of support benefiting over 40,000 tenants and owner occupiers. So, I want to assure Ms Jessica Tan and the House that the Government will spare no effort to support our enterprises, especially our local SMEs. We continue to stand by our local SMEs, our businesses, to support them and help them emerge stronger than before.”
“These include the enhanced financial support for capability development and productivity upgrading through grants such as the Enterprise Development Grant (EDG) and also the Productivity Solutions Grant (PSG). These grants will go some way to help our businesses transform and turn the current challenges into long-term opportunities. Over the longer term, certain trends like climate change, and these are trends that may cause our companies to think about their strategies and their cost structure, businesses can look to the S$180 million Enterprise Sustainability Programme (ESP) recently launched by Minister Gan Kim Yong on 1 October. This ESP is designed to help our local SMEs build capability in sustainability, not just company-centric but also sectoral-centric. We will support the trade associations and chambers (TACs) to bring on board or to adopt sustainability standards across the sub-sectors or the whole sector. We will also take an ecosystem-wide approach in terms of financing – we launched the Green Financing shortly after the launch of ESP – as well as training and certification. All these are done to better position our local companies to help them to build capabilities in sustainability and seize new opportunities in the green economy. The Government certainly strives to moderate business cost increases by managing domestic supply side constraints. For example, the Government ensures an adequate supply of industrial and commercial space to meet rising demand which will then help to relieve rental and price cost pressures that are faced by SMEs and businesses. Members may recall the Rental Support Scheme announced by Minister Lawrence Wong.”
“Mr Speaker, Sir, I want to thank the Member Ms Jessica Tan for her very important question and want to assure her and everyone in the House that MTI, the Government and the various agencies monitor business costs closely. And I want to assure everyone in the House that support is at hand to support our businesses to mitigate cost pressures when needed. First, in the area of cashflow, which is very critical now, the Government supports our businesses in need of additional loans to support their cashflow. Businesses can make use of the Temporary Bridging Loan (TBL) which provides additional working capital support of up to S$3 million for enterprises. TBL is available for our businesses at 70% Government risk share. From April to December 2021, more than 6,000 enterprises have benefited from the TBL. This amounted to S$1.8 billion worth of loans being catalysed. In addition, businesses that need funds for purposes like working capital, fixed assets, trade, projects, merger and acquisitions (M&As) can look to ESG's Enterprise Financing Scheme for assistance. Second, the Government also provides support to businesses in cost components especially in the last two years, such as manpower costs and rental. For instance, the Jobs Support Scheme (JSS), the Wage Credit Scheme, the Jobs Growth Incentive Scheme and the Rental Support Scheme all helped our businesses, our SMEs, with their cashflow challenges during the pandemic. To date, more than S$28 billion of JSS support has been disbursed since the scheme was introduced in February 2020. Third, the Government will also continue to defray investment expenditure to help our SMEs to pivot and strengthen their capabilities.”
“That certainly helped to shape the necessary behaviour by retailers and organisations. So, I want to assure the Member that the Government is committed to ensuring that Singapore has a conducive and competitive business environment for companies to thrive and at the same time, a wide range of choices for our consumers. By equipping consumers with the Price Kaki app, consumers will be able to make an informed choice with regard to their purchase of goods and services. Earlier, I mentioned our multi-pronged approach of import diversification, local production and stockpiling. This is critical because import diversification will ensure that Singapore enjoys a continuous supply of goods at competitive prices, even if any one of the sources is being disrupted. So, through this multi-pronged approach, this will help us to mitigate any supply shock-induced price fluctuations. We will continue to work very closely with trade associations and local companies to strengthen their Business Continuity Plans to better cope with possible supply chain disruptions.”
“These supply chain resilient efforts are also supported by Singapore's strong air and sea connectivity, as well as supply chain management and logistic capabilities which will help to facilitate the efficient movement of goods. For businesses, for industrial supplies, we have been working with our companies, SMEs, trade associations and industry associations to strengthen their Business Continuity Plans (BCPs) to better cope with possible supply chain disruptions. To this end, MTI, ESG and EDB stand committed to support our SMEs and local companies. If they are facing cashflow issues arising from supply chain challenges, ESG will continue to work with participating financial institutions to support them through the Enterprise Financing Scheme. To turn to the next question, he asked about charges and so on, and then he also asked a question about annual value. I believe the Second Minister has responded to another Member about the statutory fees and charges. I will respond to his second supplementary question where he was alluding to profiteering. Let me assure him that MTI and the Competition and Consumer Commission of Singapore (CCCS) take a tough stance against profiteering. We keep a very close watch on prices. Specifically, MTI monitors general price movements through the Department of Statistics (DOS), the CPI Survey and where necessary, MTI also monitors the prices of specific goods. If you recall, about 20 months ago between January and May 2020, there was a surge and very, very high demand for masks. During that period, MTI and CCCS swung into action, monitored the prices of the masks on a weekly basis. We took proactive actions and sought price information from e-commerce platforms.”
“I want to thank the Member Mr Ang Wei Neng for his two supplementary questions. Let me respond to the first one on supply chain. I thank him for the concern that he raised about the impact of global supply chain disruptions on our small and medium enterprises (SMEs) and businesses, and thereby, affecting households and consumers. We certainly understand that these disruptions have made it harder for businesses, households and consumers. We all wish for things to get back to normal. However, earlier on in my speech, I also outlined the contributing factors. Lockdowns, labour shortages and transport bottlenecks around the world, because of the pandemic, have caused the disruption of production and also the delivery of goods. This has been exacerbated by the recent rebounding of the demand for goods as the COVID-19 situation is improving in many countries. In response to his first supplementary question, there are some signs that the global supply bottlenecks are abating, with pressure on input prices easing and we are observing that the delivery delays are shortening. But we are cognisant that some of the supply chain issues such as the lack of production capacity for semi-conductor chips and port congestions are expected to take some time to be resolved. As such, it is likely that the supply chain disruptions will persist in the near term. Having said that, I want to assure the Member Mr Ang and everyone in the House that for essential supplies including food and healthcare items, we have adopted a multi-pronged approach. First, import diversification. Second, beefing up our local production. Third, stockpiling.”
“Mr Speaker, Sir, let me conclude by assuring Singaporeans and businesses that the Government will spare no effort to keep our economy vibrant as well as to create good jobs and this will help continue to bring real wage growth for Singaporeans to meet their aspirations and their needs in the present, as well as the future.”
“MTI and the various Ministries and agencies want to thank our industry partners, including our trade associations and key supermarket retailers who have been working closely with us, especially in the last two years, to diversify and secure alternate food sources for Singapore. Fifth, the Government works closely with industry partners, including major retailers, to ensure that the prices of daily necessities and food items are competitive and affordable. Mr Saktiandi Supaat asked whether there are further plans to enhance cooperation with retailers this year on daily necessities and food items. Some retailers like NTUC FairPrice have helped to keep the prices of essential items affordable. It has extended its discount schemes for seniors and low-income families by another year to cover the whole of this year, 2022. This is estimated to result in more than S$11 million worth of savings for customers, covering Pioneer Generation and Merdeka Generation seniors, as well as the Community Health Assist Scheme (CHAS) blue cardholders. Another initiative is the Government's effort to work with the Consumers Association of Singapore (CASE) to onboard more retailers onto its Price Kaki app. The app is for consumers, and it promotes price transparency and helps consumers make informed choices by providing easy and timely comparisons of the prices of groceries and hawker food. Last but not least, our sixth strategy. The Government provides targeted assistance to lower-income Singaporeans who need support for their basic living expenses through schemes such as the permanent GST Voucher scheme, Service and Conservancy Charges (S&CC) rebates and the Public Transport Vouchers. The Second Minister for Finance will elaborate on these in her response.”
“This should continue to support recovery in the labour market in the year ahead. Second, given the imported and domestic cost pressures, MAS tightened the monetary policy in October last year by shifting the trade-weighted Singapore dollar towards an appreciating path. Since then, the Singapore dollar has strengthened, which will help reduce the Singapore dollar cost of imports and shield Singaporeans from some of the external cost pressures. For instance, the Singapore dollar has appreciated significantly against the currencies of the country's major food sources over the longer term, and this has moderated the pass-through effects of external inflationary pressure. Third, the Government carefully manages domestic supply-side constraints, such as the supply of industrial and commercial space, to help rein in business rental costs that may translate to higher consumer prices. During the pandemic, businesses received rental relief to cope with their rental costs. Additionally, policy measures, such as the Wage Credit Scheme, Jobs Support Scheme and Jobs Growth Incentive Scheme, have alleviated the labour outlay of businesses. Fourth, the Government has been diversifying our food import sources and today, our food supplies come from more than 170 countries and regions from the world. This helps to ensure that the prices of our food supplies remain competitive and reduce our vulnerability to larger price fluctuations globally. Notably, while global food commodity prices surged by around 30% on a year-on-year basis between July and November 2021 based on the United Nation's Food and Agriculture Organisation's Food Price Index, Singapore's domestic non-cooked food prices saw a far smaller increase of 1.6% over the same period.”
“Domestic indicators consist of business cost measures such as resident wages and commercial rentals. Mr Speaker, the Government understands and shares the concerns of fellow Singaporeans and businesses and households about the price increases and empathises with the cost pressures felt. While the small and open nature of our economy constrains how much we can shield Singaporeans from inflationary pressures, the Government will spare no effort to lessen its impact. We have put in place a multi-pronged strategy to mitigate inflationary pressures. First, the Government is striving hard to keep the Singapore economy competitive, so that we keep creating good jobs for Singaporeans and to bring sustainable wage growth for Singaporeans. For example, before the pandemic, from 2014 to 2019, Singapore's economy was expanding by 3.1% per annum on average. In tandem with economic growth, the real median income of full-time employed residents and that is, after accounting for inflation, grew by 3.8% per annum over those five years I have cited earlier. Even though the pandemic led to the economy contracting by 5.4% in 2020, it rebounded by 7.2% last year. The strong recovery has helped to ensure that resident workers enjoyed real wage growth in 2021, after accounting for inflation. Specifically, we note that in 2021, the real median income growth of full-time employed residents was positive, at 1.1%. For lower-income residents at the bottom 20th percentile, real income rose by a larger 4.6% last year. Mr Ang Wei Neng asked about the potential impact of inflation on Singapore's economic growth this year. MTI's assessment is that Singapore's economic recovery remains on track, with the GDP expected to grow by 3% to 5% this year.”
“On our domestic labour front, wage growth is likely to continue to improve as the demand for labour strengthens on the back of a continued pick-up in economic activity. The Government’s roll-out of Progressive Wage policies such as the expansion of the Progressive Wage Model to the retail sector would also support wages for lower-wage Singaporeans. At the same time, as the COVID-19 situation stabilises, consumer demand should improve. With all these factors in mind, MAS Core Inflation is expected to increase in the first half of 2022, before easing in the later part of the year. For the full year, MAS Core Inflation could average within the upper half of the official forecast range of 1% to 2%. As for CPI-All Items inflation, it is projected to average 1.5% to 2.5% in 2022, following the 2.3% expected for 2021. MTI and MAS will carefully monitor price trends over the next few months of the year closely, before revising the forecasts if necessary. Mr Saktiandi Supaat asked about the second-round effects of inflation and whether it will persist. MTI and MAS's assessment is that while household inflation expectations have risen slightly, they remain well-anchored. In particular, household expectations of inflation have remained below historical averages. Hence, MTI and MAS do not expect persistent, accelerating inflation. Mr Shawn Huang asked about the forward-looking inflation indicators that are being monitored. Both MTI and MAS monitor a range of upstream cost indicators to form a forward-looking view of inflationary pressures in the economy. We closely follow external indicators like the global commodity prices reflected by the Brent crude oil benchmark, as well as international food commodity price indices and import prices.”
“Besides global forces contributing to this northward trend, there are domestic factors at play too, for instance, accommodation and private transport costs. Car prices have been rising at a faster rate due to bigger reductions in the Certificate of Entitlement (COE) quotas and the continuing strong demand for cars. Due to construction delays brought on by COVID-19, the need for rental housing has edged up. However, as accommodation costs comprise mainly of imputed rentals on owner-occupied accommodation and most Singaporeans live in owner-occupied homes and use public transport, these two factors are not likely to apply to all Singaporeans. Hence, a more useful gauge of inflation which excludes these two items is the Monetary Authority of Singapore (MAS) Core Inflation rate, which is so far, lower than the headline inflation. While MAS Core Inflation has moved up from 0.4% year-on-year in the first half of 2021 to 1.1% in the third quarter of last year, and to 1.6% last November, it is still lower than the headline inflation of 2.5% and 3.8% over the same period. Let me now turn to the outlook ahead, which several Members have asked about, including Ms Jessica Tan and Mr Derrick Goh. In the near term, Singapore is likely to continue to face external cost pressures. This is due to global energy prices remaining elevated and bottlenecks in global transportation, as well as supply-demand mismatches in various commodities and goods markets, which are likely to persist for a while. However, the Ministry of Trade and Information (MTI) and MAS expect these rises to be temporary and pressures to ease gradually over the course of the year. In particular, global oil prices should ease as production increases to catch up with demand.”
“Thank you, Mr Speaker. I will provide an overview of the drivers of inflation, the outlook ahead, as well as how inflation is being managed. The Second Minister for Finance will then address the questions relating to the Government's fiscal and household support measures. Mr Speaker, Sir, today, several global factors are at work, behind the rise of inflation. First, the world economic recovery has raised the demand for energy and pushed up global energy prices even as supply remains tight. Second, global food commodity inflation is climbing as global demand grows amid the supply constraints that is caused by climate change, weather-related disruptions and labour shortages in key food-producing countries. Third, supply bottlenecks in key global industries and transport hubs have exacerbated cost pressures, including higher logistics costs. Hence, many countries are grappling with inflation. For instance, inflation in the US climbed to 6.8% on a year-on-year basis in November last year, its highest in 39 years. In the Eurozone, inflation in November 2021 was 4.9%, the highest in 25 years. In Asia, South Korea's inflation hit a decade-high of 3.8% in November. As a small and open economy that imports most of our items, we are subject to these global economic forces as well. The rise in domestic inflation comes largely on the back of external inflation. Items like petrol, electricity and gas, as well as food prices and imported products are affected by the global drivers I have just described. In the third quarter of 2021, Singapore's CPI-All Items inflation averaged 2.5% on a year-on-year basis and rose to 3.8% in November 2021.”
“Thank you, Mr Speaker. Thereafter, Second Minister for Finance Ms Indranee Rajah will address Parliamentary Question Nos 6 and 7, as well as Written Question No 20 in today's Order Paper. Mr Speaker, may I request that we deliver our replies, which pertain to inflation and the Government's measures to mitigate its impact, and then, for us to take supplementary questions together thereafter, please?”
“Mr Speaker, Sir, may I have your permission to take Question Nos 4 and 5 in today's Order Paper by Mr Ang Wei Neng and Ms Jessica Tan; Written Question No 9 in today's Order Paper by Mr Saktiandi Supaat; as well as to take Parliamentary Question Nos 82 and 83 of yesterday's Order Paper by Mr Shawn Huang and Mr Derrick Goh?”
“So, what does it entail? The Enterprise Sustainability Programme supports our SMEs in a few areas: (a) in sustainability training; (b) capability development; and (c) product development. And also, in the month of October, ESG launched the Enterprise Financing Scheme–Green which will then catalyse funding for our SMEs to develop green solutions and technology. The Enterprise Sustainability Programme does not just support our SMEs at the enterprise level. It is very important for us to also take a sectoral view and an ecosystem-wide approach. So, MTI and ESG will certainly work very closely with the trade associations and chambers (TACs), industry partners, to develop a vibrant sustainability ecosystem to support our SMEs in their sustainability efforts, from capability development to product development. At the same time, taking an ecosystem-wide approach to leverage key enablers like financing, certification, training and other sustainability services. So, I want to use the opportunity to assure the Member Dr Wan Rizal and the House that the Government is fully committed to support the growth and the future of our SMEs in the post-COVID-19 recovery. We will not let up our support. In fact, we will continue to support our SMEs to adapt and develop their businesses to seize new opportunities, whether in internationalisation, digitalisation or sustainability, and other areas.”
“Mr Speaker, I want to thank the Member, Dr Wan Rizal, for his two supplementary questions. First, he asked about the growth outlook by sector. Growth will continue to be driven by outward-oriented sectors, like manufacturing, wholesale trade, finance and insurance and information and communications technology (ICT). The recovery in tourism related, aviation related or consumer-facing sector is projected to be gradual, in comparison. He asked about the business formation numbers in sectors. Let me just give him a bit of insights to this. Business formations continue to flourish, in spite of the COVID-19 crisis. Earlier on, I cited the numbers, the formation number and the number of firms that closed. More new businesses have started compared to the number of businesses closed. Between March 2020 and September 2021, over this one-and-a-half year period, a total of 73,036 business entities have ceased while 103,585 business entities have formed. So, again, more business formation numbers. In the same period, he asked about sectors, the sectors with the largest number of new businesses formed included professional services, wholesale trade and retail. His second supplementary question is on sustainability. I have cited about digitalisation, internationalisation, innovation; and he correctly pointed out the sustainability is going to be important as a competitive advantage for our SMEs. And indeed, we are encouraging our SMEs to integrate sustainability into their business, into their business process as a competitive advantage and to grow their capabilities in the new economy by tapping on the newly launched Enterprise Sustainability Programme. It was launched by Minister Gan Kim Yong about a month back on the 1 October. It is a $180 million-dollar scheme.”
“It also builds a stronger and more robust supply chain ecosystem for international trade flows. Secondly, we are supporting our businesses in capturing new and emerging opportunities, such as those in the green sector. As part of the Singapore Green Plan 2030 announced earlier this year, we will help our enterprises and workforce harness sustainability as a competitive advantage, and develop innovative solutions for the green economy. These include, amongst others, carbon trading and related services, low-carbon solutions, green finance, and green infrastructure. Enterprise Singapore recently launched the Enterprise Sustainability Programme which supports businesses, especially SMEs, to build capabilities and capture new opportunities in this exciting space. Thirdly, we are helping businesses transform for the future economy, sector by sector. The Future Economy Council chaired by Deputy Prime Minister Heng is currently refreshing the Industry Transformation Maps (ITMs) to meet the accelerated changes brought about by the COVID-19 pandemic. For each of the 23 ITMs, we are working with our tripartite partners, including the private sector to update our sectoral strategies to seize new opportunities, as well as to improve productivity and wages of our workers through digitalisation, innovation, internationalisation, upskilling and job redesign. These are the fundamentals which will underpin our competitiveness and ensure that Singapore remains as a global-Asia node for technology, innovation and enterprise. We are confident that through close partnership with Singaporeans as well as the business community, we will be able to emerge stronger together.”
“Over the last two years, an average of around 3,840 firms were deregistered each month, similar to the period 2017-2019, before the COVID-19 pandemic. On the other hand, an average of more than 5,000 new firms were registered each month over the last two years, reflecting an increase in the total number of businesses operating in Singapore, despite the impact of the COVID-19 pandemic. In the last two years, the Government has committed substantial resources to help our businesses weather the immediate impact of COVID-19. We are also helping our businesses prepare for post-COVID-19 recovery and continuing to enhance Singapore's position as a business hub in several ways. Firstly, we are strengthening both our physical and digital connectivity. For example, we are gradually and carefully reopening our borders to more countries through arrangements such as the Vaccinated Travel Lanes (VTLs). Our ports are kept operating throughout the pandemic to ensure supply chain resilience. We will continue to enhance both our air and sea connectivity. The Government is similarly extending Singapore's digital connectivity by establishing a network of Digital Economy Agreements (DEAs) with like-minded partners. We are also investing in digital infrastructure and capability building for our businesses and workers to access such opportunities. For example, the Grow Digital initiative helps SMEs tap on established e-commerce platforms to better access global markets, while the Enterprise Development Grant (EDG) encourages our SMEs to transform and strengthen their capabilities. In addition, we are partnering with industry stakeholders in this endeavour. An example is the SGTraDex, which is a common data infrastructure that enables our businesses to transit into the digital domain.”
“Mr Deputy Speaker, we fully recognise that this is a challenging period for food and beverages (F&B) businesses, including the catering sub-sector. That is why under the support package for Phase Two (Heightened Alert), all F&B businesses, including caterers, will receive 60% wage support under the Jobs Support Scheme. However, even as we gradually reopen the economy in a safe manner, caterers may not be able to revert entirely to their pre-pandemic modes of operation as consumer preferences change. This is why we have been encouraging and supporting food caterers to embark on transformation efforts and develop new business models or diversify into new businesses. One caterer that has ventured into new business concepts is Kitchen Haus Group. With funding support from Enterprise Singapore's Enterprise Development Grant (EDG), the company launched their cloud kitchen concept and virtual brand "Gourmet Xpress", which offers ready-to-eat products. This has opened up new growth opportunities and customer groups for the company. The EDG and other Government schemes work together to help our companies diversify their businesses, deepen their capabilities and develop talent. We encourage food caterers to tap on this range of schemes to seek out new opportunities in an evolving environment and strengthen their resilience for the future.”
“Hence, we do not expect our supply chain to be significantly disrupted by the MCO at this time. We will continue to monitor the situation, work very closely with our businesses and our counterparts in Malaysia to mitigate any possible disruptions.”
“I will give a quick example of how we are going the extra mile in the Ministry of Trade and Industry and Enterprise Singapore by working closely with MPA and PSA to support our local companies through our trade associations and chambers (TACs). For example, a few months back in anticipation of Chinese New Year, Enterprise Singapore facilitated the discussions between the Meat Traders Association with PSA and the Singapore Logistics Association during the peak Chinese New Year period to better manage the perishable stocks coming in. We will continue to lend a hand by facilitating conversations between businesses and also the trade and industry associations with the shipping liners and also freight forwarders on how to optimise supply chain flow. One way we can do that is that the TACs can secure container capacity; also, the second approach is to consolidate the container volume demand amongst key industry players to maximise the container capacity and thereby manage cost. On the second question regarding yesterday's announcement by Malaysia on its MCO, allow me to quickly recap. One year ago, in March, when Malaysia first implemented their MCO, we were able to work closely with them to secure the continued supply of fresh foods from the country. Most of our wholesalers and retailers received their goods without significant disruptions to their operations. Malaysia's announcement yesterday on the MCO covers predominantly social activities. Prime Minister Muhyiddin emphasises that all economic activities are permitted to operate during the MCO. Given this, farms and factories in Malaysia will still be able to run and logistics companies can continue to service our imports of goods and services.”
“Mr Speaker, I would like to thank the Member Mr Saktiandi Supaat for his supplementary questions and I would like to assure the House that the Government has put in place very robust strategies to ensure supply chain resilience and also to ensure that we facilitate the movement of our goods efficiently. I have highlighted the four contributing factors. For example, one of the contributing factors is reduced vessel capacity. Earlier on, Second Minister Tan See Leng also mentioned that some of that could be because of an uptick in COVID-19 cases and because they would have instituted lockdowns and some of this capacity constraints would come about because of that. So, the situation remains fluid and dynamic. But having said that, I want to reassure the Member that to cushion Singapore's supply chain against the present global volatility, the Government has strengthened our efforts on several fronts, mainly three. Firstly, for essential supplies, we have adopted a three-pronged approach: first, import diversification; second, local production 30 by 30; third is our stockpiling. Import diversification is important because it allows us to ensure that we have a continuous supply of goods at very competitive prices should any of the sources be disrupted. The second important strategy is MPA works very closely with our port operator, PSA, to anticipate and minimise congestions at the port. This is to make sure that we can turn around and facilitate the movement of the goods efficiently and, at the same time, also to minimise the freight costs for businesses. Thirdly, industrial supplies are critical. So, for industrial supplies, we have been working with our companies based in Singapore on their BCP plans to better cope with possible supply chain disruption.”
“Mr Speaker, Sir, sea freight charges have been rising due to the confluence of factors globally, including the COVID-19 pandemic, reduced vessel capacity, imbalance in the supply of containers and volatility in consumer demand. In our engagement with businesses, we understand that some have absorbed the higher freight costs in the near term, while others are considering passing on the costs. For supply chain resilience, we have adopted a multi-pronged strategy involving import diversification, local production and stockpiling. Import diversification allows us to ensure a continuous supply of goods at competitive prices should any of the sources be disrupted. We have also been working with local companies to strengthen their business continuity plans to better cope with possible supply chain disruptions. Specific to port charges, ships calling at Singapore pay port charges to the Maritime Port Authority of Singapore (MPA) and to terminal operators for port-related services, such as vessel traffic management and cargo handling. However, Singapore’s port charges, which have remained unchanged during this period, are unlikely to impact sea freight charges, as these are set by shipping lines based on market supply and demand. PSA has also worked with shipping lines and businesses to manage possible shipping delays by better anticipating and minimising congestion at the port.”
“I want to reassure everyone in this House that MCCY, NAC and the staff will continue to involve and consult our various stakeholders whether in administering grants, or supporting our community with infrastructure and space. That is why Minister Edwin Tong and myself, in our earlier speeches, mentioned that the SEP grant and the Business Transformation Grant will be rolled out by June because we do not want to rush the process. We want to use these few months to conduct focus group discussions with the various stakeholders, freelancers, arts and culture organisations and so on, to take in the views, to scope out the various grants. We will also similarly, take the same consultation approach with regards to infrastructure and art space.”
“For example, where they are providing specific project grants – because after all, this is taxpayers' money – or even managing the Arts Resource Hub co-working space, they will exercise greater oversight. But otherwise, NAC will provide recipients with the autonomy to utilise and maximise the resources that they are accorded within mutually agreed conditions. Allow me to use this opportunity to update some numbers. Over the years, our total Gross Floor Area, or GFA, for the arts have grown steadily to 88,000 sqm in the year 2020. NAC has also facilitated diversification of art space, primarily in private sector, which has also added 6,500 sqm GFA for arts through initiatives like the Community Sports Facilities Scheme and so on. To Ms Lim's point about The Substation, allow me to use this opportunity to share that MCCY and NAC recognise the contributions which The Substation has made to our arts and culture landscape over the past 30 years. I have attended many such programmes in my teens and early 20s. We had hoped that The Substation would continue its role as an arts incubator. Since 2017, NAC has proactively engaged The Substation and offered support in various, various ways, in different permutations and scenarios. In the interest of time, Chairman, details of the engagements are publicly available in NAC's statements. I want to reiterate that it has always been the intent of MCCY and NAC for 45 Armenian Street to remain an inclusive, multi-disciplinary arts space, a safe space for artistic experimentation. Following the renovation, which was already scheduled a few years ahead of time, we hope that the place will continue to support the work of young and unproven practitioners and be a haven for collaboration and the arts and culture community.”