Mark Lee
Singapore
“I understand the intent behind the early notification, to better support displaced workers. I have two clarifications, if I may. Based on past data, most workers take a few months to secure the next job.”
“Lastly, I would also like to ask whether the agency will consider publishing a service charter, setting out expected response times, processing timelines, escalating channels and sector points of contact. For SMEs in particular, delays in approvals or unclear responses can directly affect hiring, training and transformation decisions.”
“Will the Government consider recalibrating existing financing schemes, such as the Enterprise Financing Scheme and where relevant, the Long-Term Investment Fund and the Private Credit Growth Fund to better support SMEs facing such short-term liquidity pressures, particularly those managing volatility driven costs, or even firms that want…”
“I thank the Minister of State for the clarification. I think there are many times that she has mentioned that investigations are still underway and details are still unclear.”
“Thank you, Chairman. The Acting Minister has mentioned about the IPS survey and the survey actually indicates that younger Singaporeans are more likely to report feelings of social isolation, and more than half say that they find it easier to interact online than face-to-face.”
“As such, beyond delivering strong individual initiatives, how is the Ministry intentionally shaping a coherent narrative of what defines us as Singaporeans today, one that builds confidence in our multicultural identity and a shared sense of belonging, especially amongst younger Singaporeans?”
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“Chairman, the business community welcomes the Government's commitment through the $5 billion Future Energy Fund aimed at bolstering clean energy initiatives. As Deputy Prime Minister Lawrence Wong highlighted, transitioning to green energy necessitates substantial investments in infrastructure and technology, supported by Government-led catalytic funding. Yet several businesses are already pioneering projects to import clean energy into Singapore, such as building a high-voltage subsea cable between Singapore and our neighbour. Given this context, I am seeking clarification is the Government planning to work with these businesses who are engaged in these initiatives and will the Ministry consider leveraging the Future Energy Fund to enhance the financial viability of these ongoing projects? Addressing Our Energy Constraints”
“Sir, as SMEs navigate the challenges of integrating sustainable practices within an evolving regulatory framework, the Enhanced Energy Efficiency Grant (EEG) aims to bridge this gap, especially for sectors like food services, manufacturing and retail, with plans to extend it to reach new sectors. Could MTI provide insights into EEG’s effectiveness in these areas, highlight successful strategies and share lessons to encourage broader uptake across newly included sectors? Furthermore, in recognising beyond financial and technical hurdles SMEs encounter in adopting energy-efficient practices, is there a consideration from MTI to expand EEG to encompass a more holistic support package, covering consultancy, execution and training costs, to facilitate in this transition? Moreover, in the context of shifting towards clean energy and the high associated costs, can MTI outline any assistance for SMEs, particularly in adopting electric vehicles for commercial and industrial use? Lastly, could MTI explain the exclusion of crucial sectors like Process and Logistics from EEG, given their importance in decarbonisation, and are there plans to integrate these sectors into the programme? Heartlands 2025 Initiative”
“Sir, as Singapore looks towards new engines of growth while overcoming domestic resource constraints like for example, the Johor-Singapore Special Economic Zone, a portion of development efforts may need to be conducted outside Singapore utilising offshore resources. These offshore activities will ultimately contribute to tangible and intangible assets that benefit Singapore, enabling our businesses to reduce costs and maximise value capture. Will MTI consider revising current grant schemes to include coverage for business expenses incurred during offshore development activities? This adjustment can significantly aid local companies in leveraging international resources while ensuring the resulting benefits bolster Singapore's economy. 1.00 pm Partnerships for Capability Transformation (PACT) Scheme Sir, I support the PACT scheme for its role in promoting collaborations between MNEs and SMEs and now ask, how MTI intend to incentivise participation in the PACT Scheme to facilitate the creation of beneficial partnerships between SMEs and MNEs? Local businesses have shared their struggle to retain and develop talent because MNEs and aiming to swiftly expand their operations, often offer high and yet unsustainable wages to fulfill their foreign worker quotas, disadvantage SMEs in talent development and acquisition. Given these concerns, how does MTI plan to nurture our local SMEs to navigate these challenges effectively? Support for SMEs”
“I thank the Minister for Foreign Affairs for the clear and comprehensive explanation. I have two supplementary questions. The first supplementary question is that there seems to be an increasing demand amongst young people to be more involved in engaging and hearing out their views. Therefore, I was wondering if MFA would consider getting young people involved by developing youth leaders, pardon my pun, as ambassadors on the ground, as well as creating more spaces for organised discussion so that MFA can thoroughly explain their policy formulation. My second supplementary question is in regards to what Deputy Prime Minister Lawrence Wong said yesterday about nurturing, supporting and providing more Singaporeans who wish to go overseas to work and grow their experience. How does MFA actually plan to support and provide reassurance to Singaporeans working and living overseas, particularly during this volatile global landscape, in ensuring their safety and well-being so that we can inspire confidence among these Singaporeans and families to pursue their global opportunities boldly, knowing that the Ministry has their back?”
“Sir, given the impact of US-China relations, Middle East conflicts and Ukraine-Russia tensions on global stability and their repercussions for Singaporeans, including cost of living and negatively impacting business climate, how is MFA engaging with the public and businesses to mitigate these concerns? 1.30 pm What approaches are being taken to ensure the prompt and accurate sharing of information, facilitating constructive dialogue, and enhancing resilience among our citizens and businesses? How do these actions reinforce Singapore's international position, protect our national interests and maintain economic stability?”
“I thank Minister Chee for his response to my questions. I am glad to hear about the Government's ambition to be an IP hub. I have two subsequent questions. First, some businesses have patented IPs but prefer not to officially register to safeguard sensitive information, like formula and proprietary knowledge. Will the Government actually consider expanding the IP Development Tax Incentive to cover this? Second, I think IP valuation is both an art and a science. In our pursuit of being an IP hub for the region, what are the Government's plans in building this talent base?”
“Sir, I would like to inquire about the timeline for both listed and non-listed large enterprises within Singapore to commence the implementation of Scope 3 climate reporting disclosures. This initiative – of paramount importance amongst the business community fearing the tight timeline might leave them unprepared, risking their compliance and operational continuity. Could MOF share insights into the extended milestones and how the Government plans to support companies – especially SMEs – through this change? Strengthen Culture of Giving”
“Sir, the RIE 2025 plan reinforces Singapore's commitment to long-term investments in enterprise development. It establishes Singapore as a leading global hub for innovation and intellectual property development, ensuring a sustainable competitive advantage for businesses. Given these goals, there is scope to expand our IP protection. Could the Minister consider broadening the definition of qualifying IP for corporate tax purposes and enhance the IP development tax incentive to spearhead our overall innovation drive? Continuous Support for Cost of Living”
“Let us continue to take inspiration from the past, a country born from mud flats and swamp and now a shining metropolis. Let us muster the will together to ensure Singapore will not simply fade out of existence and not be a nation that began with a bang and end with a whimper. Together, let us be confident to create a Singapore that stands as a beacon of sustainable progress and inclusive prosperity for generations to come. Mr Speaker, Sir, I support the Budget.”
“The business community continues to advocate for strategic augmentation of our workforce with controlled foreign labour growth, tailored to specific sectors and job roles, where either local talent or local workforce participation is scarce. Such targeted augmentation is crucial for driving industry transformation and ensuring the long-term economic prosperity of Singapore. (In English): Mr Speaker, Sir, at the beginning of my speech, I have highlighted that societies can falter under the weight of their own complexity. My final and fourth recommendation is for the Government to engage with the business community closely, working together with various Government agencies and unions with the aim to reduce bureaucratic complexity and expediting efficiency towards co-curating a conducive environment that fosters business competitiveness. I wish to conclude by drawing to two additional factors contributing to the collapse of civilisations, which I have not previously mentioned. First, external shocks. Often symbolised by the metaphorical "four horsemen" – war, natural disasters, famine and plagues. Second, randomness or just simply bad luck. Singapore's advantageous position today, bolstered by our substantial reserves, grants us a unique capacity to mitigate the impacts of these external shocks and the uncertainties of randomness. Observing Budget 2024, I am reassured by its prudent and balanced nature, which thoughtfully avoids excessive depletion of our reserves, but rather strengthens our ability to secure a resilient and prosperous future for Singaporeans. Mr Speaker, Sir, we have the unique advantage of being able to learn from the wreckages of societies past. Societal resilience can prevent collapse and Budget 2024 is a step in that direction in building this.”
“Additionally, it is essential that we provide SMEs with support beyond technology access, particularly in developing governance frameworks and ethical guidelines for the responsible use of AI. To support SMEs in sustainability efforts, more assistance and education are essential. We urge the Government to collaborate with sectoral TACs to create and improve sustainability programs. Grants for consultancy, implementation, and training can help SMEs effectively manage and report emissions in compliance with sector standards. Our third recommendation is a continual call for responsible labour growth to sustain Singapore's growth ambitions According to the Singapore 2030 vision and updated Industry Transformation Maps, we aim to create 8,400 jobs in manufacturing, 2,000 in logistics and 1,600 in environmental services, among others. This is against the backdrop of a declining resident labour force, which saw a reduction of 1,800 last year. Given our aging population and persistently low birth rates, while businesses continue to reskill and upskill our local workforce, we can work closely with government to identify and unlock untapped manpower pockets. By harnessing smaller labour pockets, like gig workers looking to transit back to traditional economic jobs, women and older workers who are keen to re-enter the workforce, and students who might be incentivised to take on relevant part-time jobs or acquire real work experience that can count as academic credits offsets, we can collectively expand our labour force to support our economic growth targets. However, pursuing our growth objectives necessitates a harmonised alignment of both local and foreign labour forces.”
“At the same time, in addressing our Manufacturing 2030 vision, there is a pressing need for more local talent in manufacturing. Our first recommendation is that training should extend beyond introductory topics to include advanced technical domains, and sector-specific modules, ensuring it meets the real needs of workers, businesses, and the economy. To further enhance employability and cultivate a skilled workforce, more emphasis on workplace training is needed. Workplaces should be qualified as extensions of our Institutes of Higher Learning (IHLs), so that learning can be more practice-based and application-oriented. For SkillsFuture to be successful, not only employers should be responsible, workers must also have the right attitude and upskill voluntarily. This approach will enable workers to gain deepened industry skills beyond basic and general skills, boosting employability for the long term. Our next recommendation is centred on driving innovation in new areas of AI and sustainability within our SMEs. The allocation of $1 billion for National AI Strategy 2.0 and $5 billion for the Future Energy Fund in Budget 2024 highlights the Government efforts of fostering growth in these new sectors. The recent introduction of the ESG/IMDA AI Sandbox, which aims to involve 300 SMEs to participate, is a testament to ensure SMEs remain at the forefront of innovation. To further support SMEs in adopting these technologies, the Government should consider implementing a tiered grant model. This model will enable businesses eager to innovate beyond basic level ‘plug and play’ solutions to do so, without being constrained by cash flow issues.”
“Today, SBF manages the Progressive Wage Mark accreditation scheme and has partnered trade associations and chambers (TACs), like the Association for Catering Professionals, the Singapore Fashion Council, the Restaurant Association of Singapore and the Environmental Management Association of Singapore, to encourage companies to be part of this movement. I am proud to share that close to 4,500 companies have since been accredited. In 2022, SBF established the Alliance for Action (AfA) on Business Leadership Development, aiming to prepare Singaporean talents for global leadership roles. Engaging with over 200 business leaders, human resource (HR) experts and young professionals, the AfA produced a report with recommendations for individuals, businesses and Government to foster the next generation of leaders. Just this month, the Human Capital Action Committee within SBF has been tasked to implement these recommendations, ensuring that the report's insights are effectively put into practice. Lastly, TACs have now offer over 100 Career Conversion Programmes, supported by Workforce Singapore, targeting various sectors, such as construction, marine and offshore engineering, electronics and manufacturing, alongside specialisations in internationalisation and sustainability. To achieve our annual growth rate of 2% to 3% over the next decade, our economy and businesses will have to keep focusing on productivity, innovation and labour growth while keeping business costs competitive. I have four broad recommendations for this. Mr Speaker, Sir, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] The Government is boosting productivity by significantly investing in SkillsFuture, aiming to cultivate a skilled workforce.”
“Improving the affordability of preschools and special education schools, enhancements to retirement support schemes, introduction of a new unemployment support scheme and the new ITE Progression Award will enable us to advance social mobility and create a Singapore that everyone can contribute and belong to. Mr Speaker, Sir, many of the great ruins that grace the deserts and jungles of the earth are monuments to progress traps, the headstones of civilisations which fell victim to their own success. Collapse, however, is not absolute and history has shown that societal resilience may be able to delay or prevent collapse. Evidence from around the world indicates that "economic diversity", the range and complexity of a country's exports, is linked to the skill level of its population, suggesting that a more skilled populace is better equipped to tackle crises as they emerge. The Singapore business sector acknowledges the importance of collective efforts to advance the Forward Singapore vision and strengthening societal resilience. Let me just say a few ideas of what the Singapore Business Federation (SBF) has done. As a Council Member at the SBF, I have seen first-hand how in 2019 SBF launched a business-led initiative, proposing six recommendations to support the employment of the elderly, the less well-off and those at risk of job disruptions in Singapore. This Sustainable Employment initiative engaged over 50 business leaders, representatives from trade associations, Government, IHLs, non-government organisations (NGOs) and foundations, showcasing a nationwide effort to uplift disadvantaged and vulnerable workers.”
“Commitment to green innovation, renewable energy investments and the development of resilient infrastructure that can withstand the challenges of climate change ensures that our progress today does not come at the expense of future generations. Let me start with the advancing of businesses' and workers' capabilities. The Enterprise Support Package, with the 50% Corporate Income Tax (CIT) and minimum $2,000 cash payout signals that the Government is serious about supporting SMEs through its cost challenges. Targeted support for SMEs is provided for through the permanent increase of the SME Working Capital Loan, capped to $500,000. The SkillsFuture top-up for mid-career workers, the SkillsFuture Level-Up Programme, and extension of the SkillsFuture Enterprise Credit are positive moves towards building up the long-term skills stock of our Singaporean workforce. Second, building for the future. The $2 billion top-up to the Financial Sector Development Fund and the new Refundable Investment Credit will enable Singapore to build capabilities in new areas like FinTech and green finance and attract investment in high-value and substantive economic activities. I particularly like the enhanced Partnerships for Capability Transformation (PACT). PACT will provide support for companies to partner each other on capability training, internationalisation and corporate venturing. Such partnerships with large companies will help our SMEs grow and become industry leaders in their own right, providing more good jobs for the future. Third, caring for society. The enhanced Assurance Package will provide much needed relief for lower- and middle-income households.”
“Mr Speaker, Sir, as a student of history and currently chairing the Asian Civilisation Museum, I am inspired by our museum's artifacts that reveal the legacies of past civilisations. Insights from works like Ronald Wright's "A Short History of Progress" and Arnold Toynbee's "A Study of History" underscore the vital lessons history teaches us about the risks of unchecked progress that had collapsed civilisations. Understanding why civilisations collapse is a complex matter, with no singular cause universally recognised. However, several critical factors have been identified that contribute to such declines. The first factor is climate change and environmental degradation. These elements played crucial roles in the decline of various ancient societies, including the Anasazi, Maya and the Roman Empire. The second factor is inequality. This factor contributes to social unrest, erode social cohesion and weakens a society's ability to effectively tackle societal, ecological and economic issues. The third is complexity. As societies become more complex in their attempts to solve emerging problems, they may reach a point where the costs of complexity outweigh its benefits, ultimately precipitating collapse. In the context of Budget 2024, these lessons from history underscore the importance of a balanced approach to progress. It is not enough to pursue growth for its sake. We must ensure that our growth is sustainable, inclusive and even resilient to the tests of time. This is why the Budget's focus on advancing business and worker capabilities, building for the future and caring for society is so crucial.”
“This balanced approach aims to foster an environment where empathy and endurance coexist, ensuring mental well-being is recognised and supported without diminishing the value of resilience. On a lighter note, to everyone celebrating Chinese Lunar New Year and facing a mental health issue from relatives, remember, a healthy dose of bak kwa and pineapple tarts will help. Mr Speaker, Sir, I support the Motion.”
“Emotional well-being, influenced by the workplace atmosphere, plays a pivotal role here. Business leaders should take the lead in championing a respectful, collaborative and cohesive workplace setting where disputes can be resolved amicably, and a culture of inclusion and communication is celebrated. Companies must be intentional about defining and implementing work-life harmony strategies that balance operational and commercial demands alongside employees' need to recharge, spend time with loved ones and pursue personal passions. Finally, an employee's financial security and professional growth significantly impacts their overall well-being. Companies should provide employees with structured opportunities for continuous learning, skills development and career advancement. Adjacent to this is the principle of workplace fairness, which companies must uphold so that all employees, both locals and foreigners, have a fair and merit-centred basis to chart out their career paths. In conclusion, in our rightful pursuit to address mental health, we must tread carefully. We cannot let our focus on mental well-being erode the very resilience that has been the cornerstone of our success. We do not wish in the long-term, in the name of mental health support, see our competitive edge dulled, our youth's ambition softened by an over-promise of comfort and an under-preparation for challenge. Our approach must be different. It must blend empathy with endurance. We must build support systems that acknowledge mental health, not as a sign of weakness, but as an aspect of our humanity. But equally, we must guard against a culture where resilience is mistaken for indifference, where perseverance is confused with silent struggling.”
“We should consider integrating this recognition framework with tangible economic incentives, such as prioritisation in Government procurement processes, already associated with Progressive Wage Mark accreditation and possibly, temporary enhancements to foreign workforce access. Such measures would serve as a strong motivation for businesses to align with these national objectives. Another focus area covered in the paper is the customisation of mental health support for specific occupational needs. Working with MHA and Ministry of Defence to strengthen mental health support for Police officers and National Servicemen is a good start. But there is scope to expand this approach to other occupational groups, such as frontline services sectors that are susceptible to specific mental health stressors. As suggested by my hon colleague, Mr Edward Chia, my fourth recommendation is for the Government to support sectoral agencies and trade associations and chambers to work together to develop a holistic mental health support system for their sector. I have spoken quite a bit on mental health and well-being, and this is an opportune moment to emphasise that workplace well-being is a multifaceted concept that cuts across physical health, emotional wellness, social connectivity, financial security and professional growth and fulfilment. At the foundation of holistic well-being is physical health. As a fundamental baseline, companies must provide a stable environment for employees to work safely and without risks to health. But the responsibility of a company goes beyond that. It is therefore essential to encourage workplaces to promote physical activity, offer healthier meal options and facilitate regular health screening.”
“My first recommendation is for the Government to look into ways to engage and incentivise more companies to use the tool and support the implementation of suggested interventions to address specific workplace stressors identified in the report. I also hope the Government will continuously engage with businesses for feedback after the roll-out to continue improving on this tool. Not all organisations are the same. Similarly, not all HR professionals have the necessary skillsets and experience to handle workplace mental health issues. My second recommendation is for the Government to continue supporting companies to train HR professionals and senior managers, working closely with organisations like Singapore Human Resources Institute (SHRI) and IHRP, to build up these capabilities within the HR community. This will make the appointment of mental well-being champions more effective. Mr Speaker, in my 18 September maiden speech, I called on the Government to create a detailed framework for acknowledging companies that back important national initiatives. These include enhancing Government-Paid Paternity Leave (GPPL) and Government-Paid Maternity Leave (GPML), embracing the tripartite standard, obtaining Progressive Wage Mark accreditation, and now, supporting a forward-thinking workplace culture that emphasises the mental well-being of employees. Implementing such a framework would significantly speed up our nation's efforts to forge a workforce that is both more inclusive and equitable. My third recommendation therefore continues to emphasise the importance of recognising companies that support these national-level initiatives and highlighting those that excel in these areas.”
“Mr Speaker, Sir, in March 2021, our company experienced a profound loss with the passing of a cherished colleague, Mdm X. She had been a part of our team since 2008 and was known for her quiet dedication and tireless work ethic. Often staying late into the night, Mdm X was battling a private challenge unknown to us, a struggle with hoarding. A tragic fire at her home, fuelled by the very items that once brought her comfort, ultimately led to her untimely death. She was just 48 years of age. This event deeply affected both myself and our entire company, highlighting a stark reality. Despite our close-knit interactions over 13 years, we were unaware of the mental health struggles Mdm X faced. In response to this tragedy, we took proactive steps to strengthen our community within the company. We restructured our teams into smaller cell-groups of 20, aiming to enhance camaraderie. With the support from the company, these groups engage in informal outings and fitness activities, encouraging open dialogue and support, not just in physical health but in all aspects of life. They share photographs and positive affirmations, building a network of assistance and encouragement and creating a safe space for members to seek help and peer support. This incident underscores the critical role businesses play in promoting mental health and well-being as part of a national effort. The recent publication of a National Mental Health and Well-being Strategy is a significant step forward. This strategy highlights the iWorkHealth online tool, developed by MOM and its partners. This tool is invaluable and I wished our company would have had this tool earlier.”
“Finally, in today's digital age, I would like to stress that the ethical handling of customer information has transcended beyond just a mere legal obligation. It is a fundamental aspect of building trust and maintaining the integrity of our businesses. As custodians of customer data, we must adhere to the highest standards of ethics, ensuring that every piece of information is collected, stored, and used with the utmost respect for privacy and consent. This means being transparent about our data practices, providing customers with clear choices, and taking proactive steps to protect their information from breaches and misuse. By committing to these ethical practices, we not only comply with regulations but also fortify our reputation, foster customer loyalty, and contribute to a more trustworthy digital ecosystem. Mr Speaker, Sir, I would like to conclude in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] In conclusion, as we navigate the complexities and opportunities of building an inclusive and safe digital society, let us embrace a holistic approach. This involves not only investing in robust technology and infrastructure, but also fostering a culture of continuous learning, innovation and ethical practice. By doing so, we ensure that our journey towards a Smart Nation is one marked by trust, security and inclusivity, benefiting every individual and business within our society. Together, let us commit to a future where digital advancement equates to a safer, more prosperous and ethically grounded Singapore for all. (In English): Mr Speaker Sir, I support the Motion.”
“We must continue to invest significantly in training our workers, ensuring that every individual, regardless of their starting point, is given the opportunity to grow and adapt. This is not just about keeping pace with the digital society; it is about empowering them to lead and innovate within it. By fostering continuous learning, providing comfort and guidance, and encouraging innovation, we would not only enhance individual careers but also drive the collective progress of our industries and the nation as a whole. It is therefore crucial for companies to recognise that training our workforce transcends merely keeping pace with technological advancements; it is also about strategically upskilling them to unlock the full potential of technology adoption. When our workers are adept and agile, the company as a whole reaps substantial benefits. For instance, Utracon Corporation, through its participation in the CTOaaS initiative, leveraged expert advice to implement targeted solutions, significantly enhancing real-time project monitoring and fostering improved team collaboration. This example underscores the broader value of investing in our employees' growth, leading to enhanced operational efficiency and innovative capabilities within the company. To assist companies to continue their commitment to upskilling their workers, as proposed in the SBF-KPMG budget recommendations, the Government can also consider complementing the efforts of businesses by introducing a grant scheme to support costs related to employee upskilling and adoption of new technologies such as AI and machine learning, as well as by providing a secure and convenient centralised platform for SMEs to access these upskilling services.”
“These resources should encompass sector-specific training and assessment plans, baseline tools, and solutions that are pertinent to each industry. Also, as highlighted in the recent Singapore Business Federation (SBF)-KPMG Budget recommendations for 2024, the Government can consider adjusting existing grant schemes to support SMEs in adopting these tools and solutions. For instance, a tiered support approach with a higher grant support quantum for the adoption of advanced AI and blockchain technology may be necessary to help companies to progress along their digitalisation roadmap beyond basic process and operational automation. There is also scope to consider expanding existing schemes to support digital projects where development work is conducted outside of Singapore for operational and cost efficiency, given the tight IT manpower pool here. Additionally, establishing a dedicated assistance channel for SMEs to reach out when addressing potential cybersecurity or AI governance breaches would provide a safety net, ensuring that SMEs have the support they need when they need it. This comprehensive strategy will not only safeguard our businesses but also empower them to confidently embrace the digital future. As technology becomes even more integral in our daily lives, the demand for skilled workers correspondingly evolves. It is essential to cultivate a culture of learning and innovation within our workforce. As leaders and stakeholders, we must recognise and address the apprehensions of our workers, providing reassurance and support to those who may feel overwhelmed by the rapid digital changes.”
“To encourage participation and alleviate financial burdens, eligible SMEs can avail themselves of up to 70% co-funding under this scheme, making advanced cybersecurity more accessible and affordable. Proper cyber risk management is pivotal for SMEs to confidently navigate their digitalisation journey. The CTO-as-a-Service (CTOaaS) initiative, a part of the SMEs Go Digital Programme developed by IMDA and managed by SBF, is designed to bolster this confidence. Through CTOaaS, SMEs gain access to a shared pool of seasoned digital consultants who provide comprehensive advisories and project management services. This support helps SMEs identify and address digitalisation gaps and seize opportunities, ensuring a more secure and efficient digital transformation. SMEs lacking in-house IT expertise or dedicated resources have found significant benefits in this service, receiving tailored digital solutions and training roadmaps specifically to their needs. This initiative guarantees that SMEs have access to market-proven, cost-effective solutions, ensuring they are not marginalised in our collective stride towards an inclusive and safe digital society. It is a step forward in democratising digital advancement, allowing all businesses, regardless of size or resource, to partake in and contribute to our digital future. Considering these existing initiatives, I would like to propose some recommendations to the Government to further support our SMEs: the development of resources tailored to the emerging and critical areas of digitalisation, such as cybersecurity and artificial intelligence on a sector-specific basis. By working closely with trade associations and companies, this approach can significantly accelerate SMEs' transition into an inclusive and safe digital society.”
“Today, I aim to tackle the prevailing notion and apprehension among businesses, particularly small enterprises, that are implementing digital safety and cyber defences and feel that it is prohibitively expensive. I intend to introduce and discuss various tailored, accessible self-help tools and collaborative resources designed to enhance the cybersecurity stance of companies affordably and effectively. The Internet Hygiene Portal (IHP), crafted by the Cyber Security Agency of Singapore (CSA), serves as a comprehensive platform for businesses to utilise self-assessment tools. These tools are designed to evaluate the security of a company's websites, email services and domain configurations. Following the assessment, IHP provides tailored, actionable recommendations, enabling companies to enhance their overall internet security posture effectively. Additionally, the IHP enhances transparency by publishing an Internet Hygiene Rating table. This feature offers a simplified overview of the cyber hygiene status of various digital platforms. By providing such critical information, it empowers businesses and consumers alike to make informed decisions regarding their digital platform usage, therefore enhancing the security of their digital transactions and protecting against cyber threats. For SMEs who are ready to deepen their commitment to cybersecurity, CSA offers the Cybersecurity Health Plan. Under this initiative, cybersecurity consultants act as the SMEs' virtual Chief Information Security Officers, conducting cyber health audits and crafting bespoke cybersecurity health plans.”
“These incidents are stark reminders of the vulnerabilities in our digital infrastructure, the need for robust cybersecurity measures. Yet, in the face of a swiftly changing digital landscape, achieving digital inclusivity and safety necessitates significant investments in terms of finances, time and personnel. This requirement may present considerable challenges to some companies, especially those with limited resources. According to the most recent National Business Survey 2022/2023 by the Singapore Business Federation (SBF), 64% of businesses expressed concern over the high costs associated with adopting new technologies. Additionally, businesses, regardless of their size, are grappling with challenges such as the need for upskilling staff to keep pace with technological advancements and a shortage of management expertise to effectively spearhead technological change. While there is a growing confidence among businesses in managing cybersecurity challenges, with 80% feeling confident this year compared to 74% the previous year, small and medium enterprises (SMEs) still find themselves trailing behind their larger counterparts. According to recent data, 78% of SMEs feel confident or somewhat confident in their security measures to protect against cyber threats, which is lower compared to the 91% confidence level of larger companies. Furthermore, a 2023 survey conducted by the Singapore Chinese Chamber of Commerce and Industry (SCCCI) revealed that 32% of small and medium enterprises (SMEs) are prioritising the strengthening of their resilience against cyber threats, marking a significant increase from 11% in 2022, indicating a growing awareness and commitment to cybersecurity in the SME sector.”
“This holistic approach is essential in ensuring that the benefits of digitalisation are accessible and secure for all members of our society. Businesses are an important pillar of Singapore's digital society. Many businesses are either adopting or developing digital products and services to better engage and serve the needs of consumers, and in a manpower tight situation, implementing digital solutions with automation to streamline operations to improve efficiencies. In an age where digital transactions and interactions are integral to our daily lives, the safety and security of digital information have become paramount concerns for users worldwide, including here in Singapore. Singaporeans are increasingly vigilant about how businesses handle their digital information. Incidents like the SingHealth data breach in 2018, have left an indelible mark on the public consciousness. Another personal incident – a close friend of mine, who owns an engineering and construction company, experienced an ordeal that brings to light the stark realities of our digital age. His company was a victim of a ransomware attack, a malicious intrusion that stole his company servers and all of his engineering blueprints locked and encrypted by hackers. This attack brought his operations to a standstill with losses escalating every minute. In a desperate bit to regain control, he was compelled to pay a ransom of $160,000. Yet, the financial toll extended beyond the ransom, with significant downtime and disruption losses adding to his burden. Regrettably, his experience is not an isolated one that I know. Many have suffered silently. It is a part of a growing trend of sophisticated cyber attacks that are deeply concerning the business community.”
“Mr Speaker, Sir, as we gather today to discuss the future of our nation and the digital era, it is crucial to recognise the importance and relevance of digitisation in shaping a prosperous, efficient and connected Singapore. While we are mindful of the challenges it presents, the benefits of embracing digital transformations are undeniable and pivotal for our nation's progress. Digitalisation is a key driver of economic growth and innovation, opening doors to new markets and opportunities. It enhances operational efficiencies and productivity revolutionising how businesses operate and compete globally. It empowers businesses to offer improved customer experiences, leveraging data analytics for more effective strategies and services. While digitalisation can lead to the automation of some jobs, it also creates new ones. The European Commission reported that for every job that is destroyed by digitalisation, 2.6 new jobs are created in that digital sector. Digitalisation also play a significant role in the environmental sustainability, reducing our carbon footprint through innovative solutions. The resilience demonstrated by businesses during the COVID-19 pandemic largely due to their digital capabilities, underscores the importance of being digitally prepared. This readiness not only ensures business continuity in crises, but also strengthens our collective ability to adapt and thrive in changing circumstances. As Singapore steadfastly progress towards our vision of a Smart Nation, it is imperative that our digital transformation journey is not only marked by technological advancement but is characterised by its inclusivity and safety.”
“In conclusion, the business community calls on the Government to maintain a consultative approach, provide clarity on pertinent issues, like national security definition; and also sought to refine processes and outcomes and ensure that the Bill does not inadvertently stifle growth and innovation. In doing so, we can continue to strengthen Singapore's position as a trusted hub for businesses and investments. Mr Speaker, Sir, notwithstanding my clarifications raised, I support the Bill.”
“The current requirements under section 32(1), which provide that the Minister's powers can activated as long as the entity is incorporated and has business activity in Singapore, are quite broad and arguably require further clarity. Lastly, we call for a consistently open and consultative approach from the Government, including established timelines for responses and a transparent appeals process. This will enable businesses to effectively navigate the legislation and align their operations with national security requirements. For instance, there is currently no provision within the Act that allows for appeals against Special Administration Orders, even though such orders may potentially result in significant changes in the management of the affairs, business and property of a designated entity. We appreciate that under section 28, designated entities and affected individuals will be given an opportunity to be heard in decisions regarding removal of key officers. It would be ideal if a similar forum could be provided for other Orders made under the proposed Bill as well. We need to ensure that companies, investors and entrepreneurs do not perceive this proposed Bill as a protectionist move by Singapore, as such ownership rules tend to be associated with these intentions. The proposed Bill does well by clarifying the limited circumstances in which the Minister's discretion may be exercised and provides well-needed assurance that orders made outside such purposes would be against the spirit and objective of the Act under section 29(2).”
“I am glad that the Minister has made clear that the rules of this proposed Bill will not retroactively apply. This will give great comfort to ensure existing investors do not get stuck and entrepreneurs not lose value from having a narrower group of investors to prospect for fundraising or exit. The publication of the list of the designated entities will also be important to take the guesswork out of potential investors. However, some clarifications to the Minister. Under what circumstances and how often will the designated list be updated? Under the provisions regarding national security interest directions that the proposed Bill permits, the definition of national security needs further clarity as spoken by Nominated Member Raj Thomas. Under section 32(3), a Minister is allowed to publish notices to review transactions within a period of two years after any transaction. After such notice, the Minister may at any time thereafter order directions under section 32(5). This means that businesses may be subjected to potential scrutiny and uncertainty for an indefinite, undefined time period even after transactions are completed. This is not ideal especially for higher-value transactions and investments. Second, there are powers under this Bill that allow for the review of ownership of entities even if they are not designated. There are concerns that this will give the Government "soft" powers to flag and control the transactions of legitimate entities in certain sectors. It would be helpful for the Government to provide more clarity on how businesses can have certainty that they would not be penalised under this legislation and the conditions that they would have to fulfil do not fall out of line with national security provisions.”
“Mr Speaker, Sir, Singapore's reputation as an open, stable and business-friendly economy is a testament to our foresight and commitment to global integration. During the COVID-19 pandemic, our decision to keep supply chains open and maintain trade links not only demonstrated our resilience but also reinforced worldwide investors' confidence. This strategic move was crucial at a time when many countries were turning inwards, underscoring Singapore's role as a reliable partner in global trade and commerce. As we navigate new geopolitical and security complexities, it is crucial that the Significant Investments Review Bill is crafted and perceived as an extension of these values. The Bill must be seen as a proactive measure to safeguard our economic and security interests while reinforcing our commitment to being an open, transparent and reliable partner in the global economy. As mentioned by the Minister, many countries have established various forms of investment screening, particularly in sensitive sectors, such as defence, technology, infrastructure and energy, reflecting the global trend towards safeguarding national interest. One of our nearest neighbours, Vietnam, has investment management rules for critical sectors, like rice exports and mineral mining. Businesses appreciate that the proposed Bill strikes a reasonable balance between national security needs and business priorities. It is not an omnibus legislation and will only be applied to a handful of designated entities critical to Singapore's national security interests. In addition, the establishment of a dedicated Office of Significant Investments Review as a one-stop touchpoint is a positive move and will help to ensure that key issues and concerns are addressed expediently.”
“Sorry, Mr Speaker, Sir, I realised that I did not state in my speech. I want to state for the record that I support the amended Motion.”
“Expanding our economy's capacity in this way is crucial for our ongoing success and for our ability to provide social support. It is through these enduring strategies that we will build an economy robust enough to support its people through every challenge, ensuring that we are always ready to lend a hand to those who need it most. Mdm Deputy Speaker, our unity is our strength and it is together that we will craft a sustainable future where economic vitality is matched by social harmony and inclusiveness.”
“Yet, the broader business community understands that these are the tenets of a new social compact that Singapore is striving to create. In our journey to overcome and adjust to the evolving challenges of cost of living, it calls for unity and collective resolve, not division. We must resist the inclination to frame our challenges as conflicts between different segments of our society, be it local versus foreigner, business versus worker, or Government versus citizen. Instead, we must recognise that these economic hurdles are shared challenges that will be best overcome when we, as a united nation, pull together in the same direction. Fostering this unity requires a commitment from all sectors of society to engage in open, constructive dialogue. We must break down the barriers that hinder collaboration and build bridges that allow us to share insights and develop holistic solutions. By standing in solidarity – citizens and Government, businesses and workers, locals and internationals – we can harness the full strength of our national character to address the cost of living issues in a manner that is not only effective but also equitable. In conclusion, I thank the hon Leader of the Opposition, Mr Pritam Singh, for raising this critical and important issue that affects all Singaporeans. While we acknowledge the language of "crisis" may capture the immediacy of the issue, we must frame our dialogue in a manner that reflects not panic but preparedness, not reaction but readiness. The business community is convinced that the key to managing living costs effectively lies in bolstering our economic base. We must channel our efforts into enhancing our competitiveness, encouraging innovation and sustainability in businesses and elevating workforce skills.”
“It is essential that we sharpen the focus of our social support programmes, ensuring they deliver tangible outcomes to those most affected by rising costs. We must continue to reward innovation and productivity across all sectors. By doing so, we are not just spending money more wisely but also strengthening the foundation of our economic system. The third cornerstone of our approach is a commitment to thoughtful policy-making, avoiding quick fixes that cause more problems than they solve. Policies must be carefully calibrated to encourage growth and increase earnings without inadvertently sacrificing the future of our children, increasing the national debt or taxes in a way that could worsen living costs, driving talents and investments away. Our aim is to create a cycle of prosperity, spurring growth that leads to better wages and smoothing out inefficiencies that inflate costs. Our fourth commitment is fortifying the bonds of our community. In a landscape where the cost of living is escalating, it is not only households that feel the strain. The repercussions extend deeply into the business community as well. Workers naturally seek higher wages from their employers to cope with their increasing expenses. Acknowledging this dynamic, the National Wages Council has recently called for a built-in wage increase of 5.5% to 7.5% for low-income workers, raising also the minimum quantum in its 2023/24 wage guidelines. The Government has also proactively introduced the Progressive Wage Model, specifically designed to elevate the income of low-wage workers. These initiatives demonstrate a clear national resolve to uplift the standards of living for this vulnerable group. From a business perspective, these measures might initially seem like an added strain on operational costs.”
“Our first shared commitment is to understand the root causes of our cost of living challenges with clarity and precision. We are not just facing local issues, nor can it be solely attributed to ineffective policy-making. We are dealing with the ripple effects of global market trends and geopolitical events that have affected many countries, including Singapore. We therefore need to dissect these complex dynamics thoroughly. By doing so, we can craft solutions that are right for our unique situation in Singapore while also fitting into the larger global puzzle. A common pitfall for many nations has been the reliance on policy-making grounded in evidence or statistics that unfortunately are reflective of past conditions rather than the present reality. Such a lag can lead to suboptimal outcomes. Take, for instance, the Federal Reserve, which, having underestimated inflationary trends, found itself compelled to implement rapid interest rate hikes. To refine our policy-making, a more dynamic approach is called for. This could be achieved through enhanced collaboration with trade associations, ensuring a continuous dialogue and close listening ear between their diverse membership and Government policy-makers. Such a two-way exchange promises to bring real-time ground-level insights to the forefront, allowing for the crafting of more responsive and agile solutions to the economic challenges we face and allow policy-makers at times to consider slowing down the pace of implementation of certain policies that could unintentionally aggravate inflation woes. Our second commitment is to uphold strict fiscal discipline to protect our economic future.”
“A concrete manifestation of this commitment is seen in our investment in the tech industry, supporting the creation of high-value jobs and the development of cutting-edge products that not only serve local needs but have the potential to meet demands internationally. As we continue to bolster our economic resilience, we must also fortify the social fabric that holds us together. This involves maintaining fiscal responsibility and optimising social support measures to effectively reach those hardest hit by cost of living adjustments. A clear example is the enhancements made to the Child Development Account (CDA), providing additional support to young families investing in their children's future. Alongside these measures, the Government has been monitoring the business sector to safeguard against any instances of profiteering, which many consumers are concerned about. The Committee Against Profiteering (CAP) was reconvened on 16 March 2022, under the leadership of Minister of State Ms Low Yen Ling, and includes MPs, industry stakeholders and grassroots organisation representatives, actively investigating any feedback on unjustified price hikes of essential products and services. Even as global inflationary measures are set to moderate going forward, Singapore must continue to navigate cost of living issues in a way that is responsible, effective and forward-looking. The business community urges all stakeholders in society – individuals, families, community leaders, businesses, investors and the Government, to work together in trusted partnership towards a sustainable and viable growth that all of us, as a national collective, will benefit meaningfully from. As we look ahead, the business community call for four key shared commitments.”
“The price of rice, for example, a staple in every Singaporean home, has been subjected to fluctuations due to trade restrictions and weather-related production issues in exporting countries. These challenges are complex, but they have very real impacts on our community, from the corner store to the dinner table. It is imperative to acknowledge that the weight of these escalating costs cannot be shouldered by the business community alone. With each incremental rise in operating expenses, there is a cascade of effects, impacting on employment, wages and the price of goods and services. Mr Liang Eng Hwa has already mentioned that our Government has not been a passive observer to these trends. Through monetary policy, they have taken decisive steps, countering the cost of imports by allowing the Singapore dollar to appreciate in a controlled manner. This is a strategic move, managing the immediate needs with medium-term outcomes, and is but one prong of their approach. On the fiscal front, the Government have been responsive. Consider the Assurance Package enhancements announced in Budget 2023, which introduced or expanded upon several initiatives; the Cost of Living Special Payment provides a direct relief to families, helping to mitigate the immediate impact of rising prices; U-Save rebates have been a buffer for households against the increasing utility bills as energy prices soared globally. These measures are carefully designed to ensure that the additional costs are not borne by those least able to shoulder them. The Government efforts extend beyond immediate relief. The Enterprise Innovation Scheme (EIS) and the enhancements to the SME Co-Investment Fund exemplify the commitment to fostering a fertile environment for businesses to innovate and grow.”
“But these are not just random fluctuations; they are the result of complex global economic trends, including widespread inflation that many countries are dealing with. According to data published by the International Monetary Fund (IMF), global inflation currently stands at 6.9%, having eased slightly from last year's high of 8.7%. MAS' core inflation measures stands as a testament to these challenges, with projections indicating a rate of around 4% for 2023. While we see a moderate level of inflation as a hallmark of a thriving economy, the excess erodes the economic well-being of both companies and consumers. The businesses that drive our economy are feeling the effects of today's unpredictable economic climate first-hand. We have seen the cost of running a business go up due to higher prices for materials and goods, a consequence of the pandemic's lingering disruption to how we get products from one place to another. As a council member of both Singapore Business Federation (SBF) and Singapore Chinese Chamber of Commerce and Industry (SCCCI), data from our recent SBF Manpower and Wages Survey conducted in July 2023, 45% of SMEs and large enterprises expect their revenues to fall in the next 12 months, and an overwhelming 85% of companies expect business costs to increase, between 10% and 50% in the next 12 months, with SMEs projecting a deeper rise in costs. Even more unsettling is SCCCI's Annual Business Survey conducted between July to October this year, where 68% of SMEs expect to have lesser profits or losses this year, compared to last year. Additionally, recent international tensions have caused prices for fuel and food to soar – expenses that not only affected companies, but also the daily budgets of every household.”
“Mdm Deputy Speaker, our nation is undoubtedly feeling the ripples of global economic turbulence, and for many Singaporeans, the pressure on their household budgets is a source of concern. We must, and we should, take these concerns seriously, and it is our solemn duty to approach these concerns with the seriousness it deserves. It affects the daily lives of our people, the vitality of our markets and the health of our national economy. As I hear the debates from some of the Members on the floor, like Mr Sitoh, it invokes in me images of insurmountable challenges and despair. The term "crisis" is a powerful one. We must, therefore, use this term judiciously, especially when the resolve of a nation like ours is called into question. I stand today, not to minimise the concerns of our citizens regarding the cost of living, but to contextualise the narrative we choose to represent it. It is our collective responsibility to analyse and approach this issue with a clear-eyed perspective, and not through the lens of panic that the word "crisis" might imply. Mdm Deputy Speaker, I do agree in addressing serious concerns on our cost of living, but to declare a crisis is to imply that our existing policies have faltered significantly. That our systems are in disarray and that our societal frameworks are on the brink of failure. This, I do not agree. Singapore stands today as a global hub of commerce, a testament to sound economic principles and a beacon of stability. This did not happen by chance, but through the meticulous crafting of policies that are both robust and responsive. Today, we stand united in our commitment to tackle a concern that lies at the core of every Singaporean's daily life – the escalating cost of living.”
“0 on businesses and investments is to offer more expenditure-related incentives. For example, Singapore does not offer building allowances unless they meet the conditions for Land Intensification Allowance. However, not all business activities are suited to intensify land use and certain investments do not even qualify for such allowances in the first place, such as clean rooms and even R&D facilities. These types of investments are significant and a multi-faceted strategy is crucial to navigate the intricacies introduced by Pillar 2. Such a strategy ensures Singapore remains a top-tier destination for innovation among multinational enterprises. In conclusion, the Government's continuous refinement of our tax incentive strategies represents and reflects our strong dedication to evolving alongside the global business and taxation landscape, reinforcing Singapore’s allure as a prime location for multinational companies (MNCs). These reforms not only appeal to MNCs but also generate a ripple effect that benefits small and medium-sized enterprises by enhancing their international ties, increasing business opportunities and fostering technological partnerships. For a small, open economy like ours, these initiatives are critical by preserving our competitive edge and ensuring a favourable climate for sustainable economic development and the success of businesses of all scales. Mr Speaker, Sir, I support the Bill.”
“From a competitive vantage point, these incentives remain particularly crucial especially for certain mobile activities such as finance and research and development. Such activities are pivotal and economically significant to Singapore. The stark reality is that some multinational enterprises may hesitate at the prospect of meeting the conditions of these incentives, like substantial investment thresholds and local employment quotas, if the tax benefits do not translate into significant global savings. With this in mind, it is imperative for the Government to explore how our incentives might evolve to align with the Pillar 2 regulations of the BEPS framework. Tax professionals have identified a variety of "BEPS-protected" incentives that comply with the Pillar 2 Global Anti-Base Erosion (GloBE) rules. Therefore, studying these models could provide us with a pathway to adapt and preserve the efficacy of Singapore's tax incentives. One viable path forward could be the introduction of Qualified Refundable Tax Credits (QRTCs). These credits would be refundable, translating into cash or cash equivalents over a four-year period. QRTCs could be strategically directed towards fostering innovation, acting as an enhancement to the current research and development (R&D) tax incentives. Another possible solution might be the Market Transferable Tax Credit (MTTC), which could function as an investment tax credit. This credit would bolster sustainability and innovation-driven investments. Comparable tax credits are in operation in countries like the United Kingdom, Ireland and the United States, where they are treated as income rather than mere tax deductions for GLoBE purposes. Another way to manage the impact of BEPS 2.”
“Nevertheless, with the shift from an approval-centric system to an activity-centric system, it becomes essential to define what constitutes an approved activity more clearly. Given the diverse and concurrent projects businesses often undertake, the Government could offer clear guidelines and examples of eligible activities. Providing this clarity will facilitate the application process, reduce duplications and lessen the need for handling exceptions. Shifting focus to a wider perspective, Singapore's dedication to fostering a favourable tax landscape for businesses remains steadfast. This dedication is exemplified by the latest revision. In the previous year, this Bill was amended to support companies undertaking emission reduction initiatives, encompassing investment in technology and equipment that contributes to quantifiable reductions in greenhouse gases. This proactive change, spurred by feedback from the industry, underscores the significance of continual regulatory reviews. It ensures that our tax incentives stay in step with both national goals and the changing landscapes of business and investments. However, it is crucial to be cognisant of broader international trends, like the forthcoming Base Erosion and Profit Shifting (BEPS) 2.0 guidelines, which pose a challenge to the effectiveness of Singapore's tax incentives, particularly for multinational enterprises with a global turnover of at least €750 million. In response to these changes, the Singapore Government has pledged to bolster non-tax benefits to preserve and enhance Singapore’s competitive appeal in a landscape that is rapidly evolving due to the new BEPS 2.0 norms.”
“Mr Speaker, Sir, I declare my interest as a board member and a shareholder of Crystal International Group Limited, whose group turnover is in excess of €750 million and whose related entities have received or are in the process of applying for tax incentives. Mr Speaker, Sir, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Singapore is home to a vibrant and diversified corporate ecosystem. There are close to 40,000 international companies in Singapore, contributing about 30% of employment and 56% to value added over the past few years. Foreign direct investment inflow into Singapore reached $195 billion in 2022, reflecting robust growth year-on-year. MNCs are an important part of a healthy economy, driving growth sectors and working in partnership with SMEs in their value chain to deliver value to the economy. The business community supports the Economic Expansion Incentives Scheme as this is an important aspect of our national strategy to attract and anchor MNCs in Singapore. (In English): The latest amendment to the Economic Expansion Incentives (Relief from Income Tax) Bill seeks to enhance the existing incentives scheme by introducing a new Approved Activities scheme in place of the ARI scheme. This change includes transitional provisions to facilitate a smooth transition to support the shift to the new scheme. This amendment is a response to the evolving complexity of business structures, which necessitates a more dynamic and robust framework for managing tax incentives. The new scheme simplifies the process for businesses to manage shared costs amongst various agreements and streamlines the administration of tax incentives by considering the operations of large companies that are engaged in multiple contracts for a fixed activity.”
“Mr Speaker, Sir, I extend my gratitude to the Ministers for their thorough response concerning this case. I have a few supplementary questions. The first is, considering Singapore's amplified efforts to combat money laundering, would we be maintaining a universally welcoming stance for businesses or transition to a more discerning and selective methodology? Are there plans to recalibrate our focus towards specific countries or demographic sectors? The second is, as the Government introduced new protocols which are crucial to uphold our reputation as a reliable financial centre, these compliance measures would also require capacity development, skilled enhancement and adaptation periods for both frontline and backend personnel across all participating entities. How are we planning to bolster these capabilities without compromising the system's overall efficiency?”
“This framework could also evaluate a company's contribution and credibility in aligning its practices with national objectives and could be used to acknowledge companies that excel in this area. Finally, beyond recognition, the Government could consider linking this framework with practical economic incentives such as inclusion within Government procurement methodology, currently linked to PW Mark accreditation, and even temporary enhancements to foreign workforce access. This would serve as a powerful incentive for small and medium enterprises. In conclusion, through collaborative efforts, we can advance our pro-family, pro-worker and pro-business objectives in a synergistic and mutually beneficial manner. This Bill goes beyond extending parental leave. It is about recognising the profound role fathers play in their children's lives, strengthening families and, ultimately, building a better future for our country. Let us take this important step together, for the benefit of all.”
“The Government might also consider a tiered support structure to incentivise SMEs and frontline service industries to voluntarily adopt enhanced GPPL arrangements. This could take the form of higher reimbursement rates for smaller enterprises or enhanced Productivity Solutions Grant (PSG) support to assist these companies to adopt staffing and scheduling solutions in managing their workforce deployment effectively. There exists also an opportunity for essential stakeholders, including Government agencies, labour unions, trade associations and chambers, to collaborate with frontline service sectors in creating a consolidated pool of skilled workers. This pool could be deployed to provide immediate workforce support for SMEs within these industries. Current job platforms facilitate ad hoc job matching but lack a structured approach to organising this workforce pool, ensuring they receive training, insurance and other forms of support for swift and effective deployment to SMEs, especially on short notice, a pressing need in regulated fields like the security industry. The Government could consider providing initial funding to key players for piloting such initiatives. Also, such an enhancement to GPPL and GPML, taken together along with initiatives such as Tripartite standards and Progressive Wage (PW) Mark accreditation are necessary for us to build a fairer and more inclusive workforce. I would like to suggest using this opportunity to establish a comprehensive framework for recognising companies that support these national-level initiatives. Such a framework would empower companies, especially SMEs, to enhance their workforce support, aligning it more effectively with their operational and strategic requirements.”
“The Singapore Chinese Chamber of Commerce's 2023 survey also came out with similar concerns as the SBF survey, indicating that over 85% of companies expect costs to increase, with more SMEs, expecting a higher cost increase of about 10% to 25%, compared to large companies. Despite this, Singapore's labour market remaining robust, with seven consecutive quarters of employment growth and a low unemployment rate of 1.5% as of June. The introduction of GPPL and UICL enhancements may post significant challenges for certain businesses, especially SMEs. With their streamlined workforces, each employee's role is crucial to daily operations. Frontline service-oriented industries may need to recruit temporary personnel to cover for employees taking extended leaves so that they can maintain minimum staffing levels and service requirements. I will continue in English. (In English): The Bill aims not to create an uneven playing field or unfairly disadvantage companies constrained by their operating structure. To address these limitations and facilitate higher adoption of GPPL and UICL, we can consider the following measures. The Government could revise the reimbursement schedule for GPPL and GPML. Currently, these leaves can be taken intermittently within 12 months from the child's birth date, with reimbursement claims permitted only after the last day of leave is utilised. With potential increases in paternity leave days, employees may choose to spread their leave over time, causing delays of up to a year in Government reimbursement to companies. To alleviate the cash flow strain on SMEs, the Government could consider allowing pro-rated reimbursement filings for GPPL and GPML at more frequent intervals, such as quarterly.”