Neil Parekh Nimil Rajnikant
Singapore
“Mdm Chair, keeping fit and staying healthy are important aspects of our lifestyle which cuts across all ages. One way in which the Government has been encouraging a healthy lifestyle, is by the provision of the ActiveSG credits.”
“I thank the Senior Minister of State for his response. Could I ask the Senior Minister of State to share the various safety protocols that are upheld when training is done overseas? And to date, how has the safety record for the SAF been in its overseas training exercises in the last few years?”
“I just want to thank the whole MTI team for a very comprehensive analysis and presentation and a very detailed Budget – a very good Budget in my view. I have a couple of clarifications. The Deputy Prime Minister spoke about the NSTIC (R&D Fab) to drive advanced semi-conductor research and innovation.”
“I thank the Minister for the comprehensive response as well as the comprehensive discussions during the Committee of Supply with all the other political officeholders. My question is related to Ukraine.”
“Chairman, Sir, strengthening Singapore's position as a global hub for startups and innovation will be key to driving competitiveness and increasing productivity. With increasing global competition, we must continually enhance our startup ecosystem to remain at the forefront of innovation. I have three questions for the Minister.”
“Chairman, Sir, the Tourism 2040 roadmap is aimed at setting out Singapore’s long-term strategy to drive quality tourism growth and strengthen our position as a leading global destination. Recent data indicates a positive momentum.”
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“Five, this Bill aims to align with FATF's recommendations, but estate agents and developers may need more guidance on handling transactions involving foreign jurisdictions that do not have equivalent AML/CFT standards. It would be important to consider how stricter checks might affect legitimate foreign investment. What strategies will be employed to ensure that the enhanced compliance measures do not deter investment flows, thereby maintaining Singapore’s appeal as a financial hub? Lastly, while the Bill outlines the need for compliance, businesses would benefit from a more structured transitional support. Beyond the implementation window, what forms of assistance – such as grants, digital compliance tools or subsidised training – are planned to help businesses operationalise these requirements efficiently? Such support will be crucial, especially for SMEs navigating the new regulatory landscape. Mr Deputy Speaker, Sir, this Bill marks a pivotal step in protecting Singapore’s financial system and real estate sector from abuse. Strengthening due diligence, tightening enforcement, and embracing global standards affirms our position as a responsible, forward-looking financial hub. But as we raise the bar, we must also bring our businesses – especially the smaller ones – along with us. Implementation must be firm but fair. The regulatory net must be tight, but not so tangled that it stifles legitimate activity or innovation. Mr Deputy Speaker, Sir, notwithstanding my clarifications, this Bill has my full support.”
“Thank you, Deputy Speaker. Estate agencies and property developers may need to hire more compliance professionals, invest in new technology and restructure internal processes to meet reporting obligations. I now have six clarifications for the Minister. One, while the Bill addresses proliferation financing, it would be useful to clarify how this concept specifically applies to estate agents and property developers. For instance, how will transactions involving foreign buyers be monitored for potential links to such financing and what specific indicators or red flags should agents look out for? Two, will digital property platforms involved in cross-border transactions fall under the same compliance regime. It would be helpful to understand how enforcement will be operationalised in these more complex situations, providing stakeholders with reassurance and confidence in the regulatory process. Three, this Bill introduces stricter obligations, but stakeholders may need more clarity on the level of verification required, especially in complex commercial property transactions. It would be helpful to specify the legal obligations and liabilities when a client refuses to provide due diligence documentation. Four, given the additional compliance requirements, smaller firms may face challenges in adapting to this new setup. It would be helpful to know if there are any scaled compliance measures for small and medium enterprises (SMEs) or support initiatives such as training, grants, or digital tools to help them meet these obligations without compromising their competitiveness. Clarity on whether penalties will be calibrated based on business size or intent would ensure that SMEs are not disproportionately impacted by unintentional lapses.”
“Mr Deputy Speaker, Sir, thank you for allowing me to join the debate which seeks to strengthen Singapore’s regulatory framework for estate agents and property developers by incorporating recommendations from FATF. Singapore’s battle against money launderers now moves to the real estate and property sector as we strive to uphold our nation’s financial integrity and a strong reputation as a global financial hub. This Bill introduces tougher penalties and record-keeping obligations to ensure that estate agents and developers are better equipped to detect and report suspicious transactions. This Bill also has some important initiatives towards safeguarding our real estate market from illicit financial flows. These reforms come at a critical time. While Singapore must remain open for business, it must also be a place that is hostile to money launderers. This Bill reflects that balance – fortifying our defenses while preserving confidence in our institutions. This Bill also introduces stricter licensing criteria which is very important to protect the integrity of the sector. Specifically, institutions such as the CEA and the relevant housing authorities will gain stronger investigative powers and broader authority to enforce compliance. The two-year implementation timeline is also very prudent. It provides businesses with the space to understand, prepare for, and adapt to the new requirements. This phased approach balances urgency with realism. Mr Deputy Speaker, Sir, while the Bill is a necessary response to global risks, we must be candid about the challenges it introduces, especially for small and medium-sized firms operating in the space. Implementing these new requirements will mean higher operational costs for all. [Background noise.]”
“I thank the Prime Minister for his video, his comments today as well as Deputy Prime Minister Gan for many of the details he provided about what we plan to do in the future. The current US administration seems to have shown themselves to be fairly open to bilateral negotiations and in fact, has encouraged bilateral negotiations. For small countries like ourselves, it is obviously a lot harder to negotiate because the negotiation is not done on the basis of any straight international law but more of the laws of the jungle, which is, what can you do for me today? From a perception standpoint, certainly, in the US and perceptions shared by many senior folks in the current administration, Singapore is seen as a rich country with significant, not natural but financial resources, especially in the three sovereign wealth funds, or two plus one, our sovereign wealth system. I fully appreciate this is a hypothetical question, but the view is, if down the road, in a negotiation, we are asked, "What can you give to us? Can you commit a $100 billion commitment to invest in US manufacturing to create x-number of jobs?", how will we respond to that as a country, keeping in mind that our sovereign wealth funds are managed absolutely independently? The second point is more regarding the domestic companies that we have in Singapore, whose margins have been shrinking even prior to this latest sell war. Whether the imports in the months to come come from China or from other countries where the duties are substantially higher, how will the Government be able to support domestic companies without any form of anti-dumping duties, keeping in mind that the margins are razor thin already, especially for our SMEs?”
“Mdm Chair, keeping fit and staying healthy are important aspects of our lifestyle which cuts across all ages. One way in which the Government has been encouraging a healthy lifestyle, is by the provision of the ActiveSG credits. Could MCCY please provide an update on the utilisation of ActiveSG credits and how this current top up is accompanied with programmes to further boost the uptake and utilisation of ActiveSG facilities and programmes in 2025? Also, I would like to ask whether there are any new or upcoming programmes planned for 2025 that will complement this top-up, ensuring that everyone in Singapore is motivated and supported to fully leverage the facilities and programmes available.”
“I thank the Senior Minister of State for his response. Could I ask the Senior Minister of State to share the various safety protocols that are upheld when training is done overseas? And to date, how has the safety record for the SAF been in its overseas training exercises in the last few years?”
“Mdm Chair, the Grow Well SG, a new national health promotion strategy to enhance preventive care and inculcate healthy lifestyles in children and adolescents is a very welcomed, move as we celebrate SG60. The strategy aims to help our children eat well, sleep well, learn well, exercise well and to bond well to support and reinforce healthy lifestyles through purposeful screen use, a Health Plan for every child and enhanced support for schools. Grow Well SG will work hand-in-hand with families, educators, healthcare professionals and community partners to create supportive environments where our children can thrive and sustain healthy living habits. While the updated guidelines are very helpful, many families require practical tools to integrate good lifestyle habits, especially around digital usage, into busy routines. I have two questions for the Minister for Health. First, can MOH share what has been the receptiveness of Grow Well SG thus far? What is MOH’s target reach for the whole of 2025 for a start? Second, can MOH share how Grow Well SG will be further reinforced with families, particularly in terms of practical resources and tools? And would these resources be made easily accessible for those who want to refer to them? Affordable and Accessible Mental Health”
“I just want to thank the whole MTI team for a very comprehensive analysis and presentation and a very detailed Budget – a very good Budget in my view. I have a couple of clarifications. The Deputy Prime Minister spoke about the NSTIC (R&D Fab) to drive advanced semi-conductor research and innovation. May I ask why is advanced packaging the initial focus of this facility and will it be expanded to other areas very shortly? What is the immediate benefit to our local semi-conductor system with this NSTIC (R&D Fab)? The second question is: we have seen newspaper reports recently on NTUC researchers discovering a geothermal reservoir in Yishun. Perhaps MTI can provide an update on its study on the potential of geothermal energy going forward. Lastly, on private credit, having spent part of my life in the business, I think $1 billion will be too small. Perhaps, the purpose should be to use that as a base to harness external funds and perhaps make that $10 billion or more going forward. So, serving that as $1 billion from MTI, with $9 billion raised from the private sector.”
“I thank the Minister for the comprehensive response as well as the comprehensive discussions during the Committee of Supply with all the other political officeholders. My question is related to Ukraine. Does the Minister and envisage a role for ASEAN or Singapore in the peace negotiations that hopefully will get underway very soon, similar, to the way we made an effort to bring the US and North Korea together a few years ago?”
“Chairman, Sir, the Tourism 2040 roadmap is aimed at setting out Singapore’s long-term strategy to drive quality tourism growth and strengthen our position as a leading global destination. Recent data indicates a positive momentum. Tourism receipts reached S$22.4 billion between January and September 2024, a 10% increase compared to the same period in 2023. As mentioned by Minister Chee, Changi Airport's upcoming T5 will enhance our capacity to handle up to 50 million additional passengers annually. Given these developments, could MTI provide an update on the progress of our tourism development efforts? Also, what strategies are in place to refresh our tourism and lifestyle experiences, ensuring Singapore remains an attractive destination amidst growing global competition?”
“Chairman, Sir, strengthening Singapore's position as a global hub for startups and innovation will be key to driving competitiveness and increasing productivity. With increasing global competition, we must continually enhance our startup ecosystem to remain at the forefront of innovation. I have three questions for the Minister. First, can MTI share how it intends to attract and support top-tier startups, specifically in deep-tech and sustainability sectors? Second, how will MTI further strengthen funding access, talent attraction and market expansion support to help these companies grow and thrive in Singapore? And lastly, could we consider a regulatory sandbox model, allowing high-growth startups to test innovations under controlled conditions as we have already successfully done in the fintech industry? Commercialisation of Intellectual Property”
“Chairman, in February 2024, MTI and the Singapore Business Federation launched a bold collaboration – the Alliance for Action on Business Competitiveness. Over nine months of consultations with more than 100 business leaders, 13 trade associations and 17 public agencies, this alliance produced 27 recommendations to tackle key challenges in manpower, land use and regulatory frameworks. These recommendations serve not merely as proposals but as a roadmap to transform obstacles into opportunities, whether through diversifying our talent pool, extending industrial land lease tenures or streamlining regulatory processes. Alongside this, as mentioned earlier, an Inter-Ministerial Committee on Pro-Enterprise Rules Review was established under Deputy Prime Minister Gan Kim Yong. This committee is focused on reducing compliance costs and easing regulatory burdens, particularly for SMEs. A key outcome is the launch of the SME Pro-Enterprise Office under Enterprise Singapore, which is being welcomed by all trade associations and SMEs. This one-stop centre promises to be a game-changer by providing direct, hands-on support to businesses navigating complex regulations. Mr Chairman, these initiatives underscore our strong commitment to cultivating a vibrant and competitive business environment. I seek an update from MTI on two fronts. First, how is the implementation of the Alliance for Action’s recommendations progressing? What specific measures are in place to ensure their effective and timely execution? Second, how will the SME Pro-Enterprise Office engage with businesses to alleviate regulatory challenges and integrate their feedback to keep our framework agile and responsive? Easing Regulatory Compliance and Cost”
“I want to thank Minister Chee, the Senior Minister of State, Minister of State and Senior Parliamentary Secretary for their very detailed explanation of the Budget for next year. I just have one question. In your view, what is the key enabler or enablers, I should say, that will ensure Singapore remains a leading global supply chain hub.”
“What are some of the safety guidelines, protocols and regulations in place and how well-prepared are the staff to ensure that the processes take place safely in the handling, storage and transportation of alternative fuels, such as LNG, biofuels and ammonia? Finally, how is Singapore fairing in the research and innovation to develop cutting-edge technologies for fuel safety. Is qualified manpower available to meet the challenges facing the maritime industry in alternative fuels?”
“Mdm Chair, today, as we reflect on the future of Singapore's maritime sector, one thing is certain. The foundation of our success lies in one crucial element: our people. The right skills and expertise are essential to maintaining the competitiveness of our international maritime centre and hub port. The maritime industry is dynamic and fast evolving, demanding a workforce that is not only highly skilled, but also adaptable to new technologies and global trends. To ensure that Singapore remains a global leader in maritime excellence, we must prioritise building a robust pipeline of talent. May I ask the Ministry what steps is it taking to ensure that Singapore has a robust pipeline of talent with the right skills and competencies? I also request the Ministry to give this House an update on the collaborations with various Institutions of Higher Learning, which offer programmes related to shipping and the maritime sector, and the scale and extent to which it is working with these institutions, to instill the importance of lifelong learning for staff in the maritime sector. 3.30 pm Scaling up Bunkering of Alternative Fuel As the maritime industry embarks on its sustainability transformation, the safety of alternative fuels remains a critical concern. As a global maritime hub, Singapore is fully committed to leading this transition while ensuring the highest safety standards. Can the Minister for Transport to give us an update on the steps Singapore is taking to ensure that the country can scale up the bunkering of alternative fuels safely?”
“The MOT must take a proactive stance in implementing measures to decarbonise heavy vehicles, not just for the sake of compliance, but to actively combat climate change. We need a detailed and actionable roadmap. May I ask the Ministry to elaborate on its plans to decarbonise heavy vehicles bearing in mind these vehicles have a large carbon footprint? Could MOT also consider incentivising industries to adopt these green technologies by offering subsidies or tax relief, making it cost-effective for businesses to transition? And lastly, what efforts has the Ministry undertaken so far, to engage with stakeholders in the logistics and transportation sectors, ensuring that these policies align with their operational needs?”
“Mr Chairman, Sir, today, there is greater awareness amongst Singaporeans about electrical vehicles. The Ministry of Transport (MOT) has made the availability of EV charging stations as accessible as possible in many parts of Singapore. May I ask the Ministry to give this House an update on the adoption rate of electrical vehicles in Singapore and its overall assessment of the pace of adoption and our nation's commitment to sustainable transportation modes. Sir, the Government's initiatives have been instrumental in this progress. The EV Early Adoption Incentive offering a 45% rebate on the Additional Registration Fee for fully electric cars and taxis, has been extended until December 2025. Additionally, the Enhanced Vehicular Emissions Scheme (VES) provides rebates for vehicles with lower emissions, further incentivising the adoption of cleaner energy vehicles. Infrastructure development is also a priority. In this context, Sir, I have two questions for the Minister. First, could the Ministry consider Enhanced Financial Incentives in the form of increase in subsidies or rebates to reduce the initial purchase cost of EVs, making them more accessible to a broader segment of the population. Secondly, in what ways is the Ministry planning to intensify its public education campaign on the environmental and economic benefits of EVs? Decarbonising Heavy Vehicles The decarbonisation of heavy vehicles is a critical issue which the MOT has been grappling with for quite some time. It is an undeniable fact that heavy vehicles, including trucks, buses and freight carriers contribute significantly to the carbon emissions in our transport sector.”
“Chairman, Singapore has been in the forefront of providing humanitarian assistance to those who have been displaced because of the conflict between Israel and Hamas. Thus far, Singapore has sent its seven tranches of humanitarian aid, and the country has pledged that it can do more if required. In the ongoing Israel-Hamas conflict, our commitment to providing humanitarian aid is commendable, but can we do more to help de-escalate the situation? Can we leverage our diplomatic standing, whether through ASEAN, the UN or bilateral engagement to encourage restraint and dialogue. Can the Minister please share his views on the possibility of an expanded role for Singapore in helping to resolve this crisis? Singapore Support for Gaza Relief”
“Mdm Chair, as we navigate the rapidly changing global landscape, Singapore's continued success hinges on our ability to maintain a competitive edge, especially in frontier issues and emerging technologies. But we must be wondering what MFA got to do with all these? As MFA plays a crucial role in global diplomacy, strengthening international partnerships in critical areas of technology is vital. By engaging with like-minded countries and multinational corporations, we can create avenues for knowledge sharing, joint ventures and access to new markets. How can we maintain Singapore's competitive edge on frontier issues, especially on critical and emerging technologies, and ensure that we continue to be an attractive hub for investment and R&D? Critical and cutting-edge sectors, such as AI, biotechnology and quantum computing, will define the future of industries worldwide. Our challenge, therefore, is not only to keep pace with these developments but to position ourselves as a global leader in these fields. To achieve this, we must focus on three key areas – fostering innovation, strengthening international partnerships and creating a conducive environment for investment and R&D. Chairman, maintaining our competitive edge on frontier issues is essential to Singapore's future success. Let us continue to be a global leader in technological innovation and an attractive hub for investment and research. Singapore's Relations with Malaysia”
“Mr Chairman, Sir, cyber threats pose a significant risk to the security and economic stability of nations, especially for a global hub like Singapore. We are vulnerable to cyber risks that can cripple critical networks, infrastructure and our economy. Such threats often transcend national borders and sectors. The interconnected nature of our modern world also means that a cyberattack in one area can quickly spread and escalate, causing widespread disruption and damage. As the digital landscape evolves, so does the battlefield. The future of defence is no longer confined to traditional domains such as land, air, or sea; it now extends into the digital realm of cyberspace. In response to the increasing complexity of cyber threats, a growing number of militaries have established dedicated cyber units. I was heartened that the Digital and Intelligence Service (DIS) was established as the fourth service of the SAF in October 2022. Notwithstanding, cyber defence is multifaceted, making it impossible for any single entity to tackle alone. Effective cyber defence requires a collaborative approach, one that leverages the collective expertise and resources of various stakeholders, in both public and private sectors. It is essential for the DIS to work closely with other agencies, sharing information, strategies and technologies to build a robust and resilient defence against cyber threats. With this in context, I would like to ask the Minister for Defence how the DIS is partnering with other Government agencies to enhance our collective response to cyber threats and ensure the security of our nation's digital infrastructure. 12.15 pm Unmanned Systems”
“Thank you, Mr Speaker. I find it strange that we have spent all this time trying to defend a surplus, while most developed economies in the world are begging for a surplus. [Applause.] So, I had to stand up and say this. In my view, we have benefited a lot through the reserves that we have had, not just the NIRC, but the fact that we have been able to maintain such high quality credit ratings, which make people want to lend to us, which make people want to invest in our country and which make global companies want to come here and pay corporate income tax to us. So, I think we should be thankful of where we are. We should be thankful to our preceding generations for putting us where we are and we should make sure that we keep up the good work that has been done by our preceding generations for us and keep on adding to that. I would also like to add a question for the Prime Minister. Corporate income taxes are quite fragile. They are here one year, they are gone the next year, largely because of profitability, largely because of the fluidity of capital today. What strategies do we have in place to keep Singapore attractive as we deal with a very complex world where many people are competing for investment dollars and consequently, new projects, which can be a source of significant corporate income tax on the revenue side? On the employment side, we are investing a lot in SkillsFuture. But many of the skills that will be needed in a few years, especially because through the advent and the expansion of AI, we do not know as yet. So, how do we plan for the unknown? If I may say, it is very hard to do. But what plans do we have in place other than what we are good at it already, which is being nimble?”
“I would also like this surplus to help our citizens over 60 who have paid their dues, to be able to retire with dignity and maintain the quality of life they were used to during their working lives. Mr Deputy Speaker, Sir, I rise today in support of Budget 2025, a bold and forward-thinking Budget that strikes a balance between providing immediate support for Singaporeans and businesses while laying the foundation for our nation's future growth and competitiveness. Let us move forward with confidence and determination, embracing the opportunities that lie ahead while staying true to the Singapore spirit. I wholeheartedly support this Budget.”
“The recent initiatives announced by the equity markets review group chaired by Minister Chee Hong Tat align well with this objective, with significant measures for improving liquidity, enhancing research coverage, introducing incentives for institutional investors as well as simplifying the regulatory framework. These reforms are essential in boosting investor confidence and fostering a more vibrant capital market. Mr Deputy Speaker, Sir, a strong commitment to social progress must match a resilient economy. Budget 2025 takes a significant step in uplifting low-wage workers and enhancing social security. The Progressive Wage Credit Scheme has been further improved, providing employers with higher co-funding support to encourage fair wages and career progression for lower-income workers. However, while wage increases are essential, they must be accompanied by broader efforts to enhance job quality, provide workplace protection and facilitate long-term career development. I urge the Government to ensure that training and upskilling programmes for these workers remain industry-relevant and accessible, helping them transition into higher-paying, sustainable careers. Finally, a word on the Budget surplus. Our nation's continued fiscal prudence has allowed Singapore to maintain a surplus, reflecting the Government's commitment to long-term financial stability. I suggest to the Prime Minister and Finance Minister that the Government may want to leverage this surplus to address emerging challenges with even greater allocations to help businesses to adapt quickly to a digital economy and to the changes brought about by AI.”
“We must also strengthen our intellectual property framework to complement these financing initiatives. While the IP Grow initiative has made commendable progress in educating businesses, we must take further steps to help SMEs commercialise their IP and integrate it into their M&A growth strategies. I propose extending incentives for SMEs to acquire and license strategic IP for business expansion, possibly integrating these into existing M&A grant schemes. The newly established Private Credit Growth Fund will provide alternative financing options to businesses, particularly in emerging and high-growth sectors. This fund is an essential step in enhancing Singapore's financial ecosystem, allowing companies to secure capital from diversified sources. At the same time, the Enterprise Compute Initiative will play a crucial role in equipping our businesses, especially our SMEs and startups, with greater access to computational resources, ensuring they can harness artificial intelligence and high-performance computing to stay competitive. To ensure accessibility, I suggest that the Government explore subsidised access to computational resources for SMEs and provide structured training programmes so that local enterprises can maximise their use of advanced digital technologies. Singapore's position as a financial hub will be further solidified with the new listing tax incentives designed to encourage more businesses to list on the Singapore Stock Exchange. The move will enhance our capital markets, attract investors and offer companies more opportunities to raise funds locally. I welcome the Government's focus on strengthening our equity markets.”
“First, our SMEs need broader support to navigate complexities of M&A successfully. The Government could possibly partner trade associations and chambers to establish dedicated advisory units that provide end-to-end support for SMEs pursuing mergers, acquisitions and joint ventures. Second, we must leverage existing foreign demand for cross-border M&As, especially in the energy and technology sectors. I suggest introducing a legal framework facilitating cross-border corporate amalgamation, like the European Union, United Kingdom and Delaware frameworks. This should include establishing reciprocal agreements with key jurisdictions – particularly with our ASEAN trading partners as well as developed financial hubs – to enable smoother deal execution. Strengthening business resilience lies at the heart of the Enterprise Financing Scheme, which has been enhanced to provide SMEs with better access to funding and working capital support for internationalisation and mergers and acquisitions. However, to address the evolving financing needs of enterprises, particularly startups and high-growth firms, additional flexible financing mechanisms tailored to businesses at different stages of growth are needed. One such improvement could be introducing alternative financing options, such as revenue-based financing, where repayments are tied to business performance. This would reduce the burden on companies facing temporary cash flow constraints. Additionally, streamlining the application process and improving loan approval transparency will help SMEs access funding more efficiently, ensuring that financing remains accessible to a broader range of businesses, especially those that may not fit traditional credit assessment models.”
“The Partnerships for Capability Transformation initiative has played a crucial role in fostering MNC-SME collaborations, thereby fostering a more dynamic business ecosystem. Perhaps, the Government can provide an update on the number of SMEs that have benefited from Partnerships for Capability Transformation over the past year and explore increasing funding support or tax incentives to encourage deeper and longer-term SME-MNC partnerships, driving greater industry transformation. Even as we provide direct support to Singaporeans, we must continue strengthening our economic fundamentals to remain resilient and competitive in an increasingly uncertain global landscape. As we navigate the global landscape, the expansion of the National Productivity Fund is not just an investment, but a strategic move that enables targeted investments in high-growth industries. These investments will drive innovation, boost productivity and create employment opportunities. This investment is key to securing Singapore's position as a global economic leader and in instilling confidence in our financial future. As we plan towards Singapore's next stage of economic growth, strengthening our position as a global hub for startups and innovation is crucial. I look forward to the Government sharing its plans for attracting and supporting high-performing, innovative companies and growing our research and innovation ecosystem, particularly in semiconductors and biomedical sciences. Businesses appreciate the Government's extension of the mergers and acquisitions (M&As) scheme until December 2030, demonstrating our continued commitment to supporting business growth through M&A. May I make two suggestions to strengthen the M&A landscape?”
“Mr Speaker, Sir, thank you for allowing me to join this debate on Budget 2025. In my view, Budget 2025 is not just a financial plan, but a significant milestone that underscores the Government's unwavering commitment to economic resilience, worker reskilling and fostering a stronger business ecosystem. As we celebrate 60 years of Independence, Budget 2025 holds a special significance for all of us. It is a testament to our resilience, unity and unwavering commitment to progress. This Budget is not just a financial plan, but an opportunity to reflect on our achievements, acknowledge the challenges ahead and reaffirm our collective vision for a prosperous and inclusive nation. The SG60 Package is a targeted and timely initiative that not only eases cost-of-living pressures but also reinforces our long-standing commitment to shared prosperity. It reflects our nation's approach to ensuring economic growth, translating into tangible benefits for all Singaporeans. This is a result of our strong economic performance in 2024, with Singapore registering GDP growth of 4.4%, a notable acceleration from the 1.8% growth we saw in 2023. This expansion has been driven by increased productivity, workforce upskilling and strategic investments in innovation and sustainability. Such economic resilience underlines our ability to navigate global uncertainties and presents an opportunity to strengthen social mobility and economic inclusion, ensuring that every Singaporean benefits from our nation's progress. Mr Deputy Speaker, Sir, to support businesses in managing costs, a 50% corporate income tax rebate, capped at $40,000, will be implemented for the Year of Assessment 2025. This is further complemented by a cash grant to help enterprises mitigate financial pressures and focus on growth.”
“I want to thank the Minister for his answer. The numbers are not surprising that the majority have been conversions from other classes because we just initiated the programme. However, the real success of this programme will be determined by how many new people we give that visa to in terms of real talent. What tweaks does the Minister think we need to make in the programme to attract new talent?”
“Lastly, on support for businesses, given that the leadership composition rules for designated race-based entities may require significant changes to organisational structures and processes, will the Government consider providing a transition allowance? Specifically, how much time will be given to affected organisations to comply with the new requirements and what support or resources will be made available to help them navigate these changes, without undue disruption to their operations? Sir, the Maintenance of Racial Harmony Bill is a comprehensive and forward-thinking legislative framework that reaffirms Singapore's unwavering commitment to racial unity. While this Bill introduces additional compliance requirements for business organisations, it also provides an opportunity for them to contribute meaningfully to our shared national goal of racial harmony. I am confident that through collaborative efforts, businesses, community groups and the Government can work together to uphold our social cohesion. Mr Speaker, Sir, notwithstanding my clarifications, this Bill has my full support.”
“Three, participation in the remedial CRI race programme is presented as an alternative to prosecution. Can the Minister please explain the eligibility criteria for participation and whether completion of the programme will be considered in determining future regulatory actions against offenders. Also, how can entities contribute to the broader objectives of such initiatives, potentially as partners in promoting racial harmony? Four, can the Minister please provide more details on the penalties for non-compliance with the Bill's provisions? How will the Government ensure these penalties are proportionate and do not unduly burden businesses? Five, the Bill mandates disclosure requirements for race-based entities. Could the Minister please clarify what criteria will define an organisation as a "race-based entity"? How will the Government balance the need for transparency with the operational realities of organisations engaged in international collaborations? Could the Minister clarify the criteria for evaluating foreign donations or affiliations that may be deemed politically or racially sensitive? Six, the Bill introduces stricter oversight of business associations with racial ties. Could the Minister please elaborate on how the Government plans to balance regulatory oversight with the operational needs of businesses and chambers of commerce, particularly those engaged in cross-border partnerships? How will the Government address concerns about potential competitive disadvantages for designated race-based entities especially the smaller ones, now that they have additional regulatory requirements and disclosure obligations?”
“Mr Deputy Speaker, Sir, thank you for allowing me to speak on the Maintenance of Racial Harmony Bill, an important legislative initiative that seeks to reinforce our long-standing commitment to social cohesion and unity in Singapore. Together with the related Constitution (Amendment) Bill, this legislation strengthens our efforts to uphold racial harmony, ensuring that Singapore remains an inclusive and cohesive society for all. Racial harmony has always been a fundamental pillar of our nation’s success. Over the years, we have fostered a culture of mutual respect and understanding among our diverse, multi-ethnic communities. However, in an evolving social landscape marked by the rise of digital media and increasing external influences, it is imperative to adopt new measures that safeguard the delicate balance of our multicultural fabric. This Bill is a timely and necessary step in that direction. Mr Deputy Speaker, Sir, I seek clarifications from the Minister of State on seven key aspects of the Bill. [Mr Speaker in the Chair] One, could the Minister of State please elaborate on how the Presidential Council of Racial and Religious Harmony will engage with organisations that have racial affiliations? Will the Council primarily serve an advisory role, or will it have the authority to issue specific guidelines and recommendations that businesses or institutions must adhere to? Two, the Bill grants the Minister the power to issue Restraining Orders with immediate effect. Could the Minister please clarify the criteria used to determine when an entity falls within the scope of such orders? What safeguards exist to ensure that organisations have the right to appeal or challenge these orders without undue disruption to their operations?”
“Mr Speaker, Sir, I have a supplementary question for the Minister. I would like to get his assessment on the likely impact on Singapore of the recent tariffs imposed on China, Mexico and Canada.”
“Three, could additional details be outlined on the limits of immunity granted to banks and their staff, particularly in cases of unintentional errors? Four, what will be the criteria and processes for including new offences to ensure transparency and consistency? Five, could I request the Minister of State to outline the process for scam victims to apply to lift or modify restrictions, ensuring timely resolution of legitimate concerns? Lastly, would it be useful at this time to establish a single regulatory body to coordinate the mechanisms between banks, regulatory authorities and officers to streamline the implementation of the Bill's provisions? In conclusion, public education is a key element in ensuring that the importance of this Bill is communicated to the common man and the business community. The importance of the Protection from Scams Bill cannot be overstated. It is a crucial step towards protecting our citizens and businesses and ensuring a safer, more secure society. Mr Speaker, Sir, notwithstanding my clarifications, this Bill has my full support.”
“While we recognise that implementing these measures may pose operational challenges for our financial institutions, requiring system adaptations and staff training, this investment in infrastructure will, for sure, strengthen our financial ecosystem against fraud. Moreover, this legislation presents significant opportunities for innovation. We anticipate increased demand for advanced fraud detection and prevention technologies. This opens new avenues for Singapore-based companies to develop cutting-edge solutions, potentially creating a new export market for our cybersecurity expertise. Our fintech sector stands to benefit greatly, too, from these developments. Though we need to strike a balance between regulatory effectiveness and technological innovations, I do believe stronger protections will increase public confidence in the banking and financial systems. We must also consider the cross-border implications of this Bill. As we implement these measures, we need to ensure that they do not unduly hinder legitimate international financial relationships and cross-border transactions, which are vital to our economy. The enhanced trust in a system, our well-oiled cross-border processes, coupled with a proactive stance against scams, will reinforce Singapore's reputation as a secure financial hub, potentially attracting more international investment. Sir, at this point, I have six clarifications for the Minister of State. One, at this juncture, what would be the minimum threshold for issuing these Orders? Two, could the Ministry spell out clear timelines and documentation requirements for scam victims or joint account holders appealing against the ROs?”
“These challenges not only jeopardise individual companies' sustainability but also undermine the broader confidence in Singapore's digital economic infrastructure, necessitating comprehensive protective strategies that extend beyond individual victim protection. The Protection from Scams Bill addresses this urgent and escalating challenge by empowering the Police to issue temporary ROs as a last resort to protect potential victims. This Bill represents a pivotal step forward, balancing the need to respect individual freedom with the collective responsibility to shield our citizens from irreparable harm. Today, as we discuss this Bill, let us remember that this is not just legislation. It is a lifeline for those caught in the psychological grip of scammers. It reflects a commitment to safeguarding the vulnerable in our community and a testament to our determination to combat this escalating issue. The Bill aims to empower law enforcement, specifically, the Police, to intervene more effectively by enabling them to issue temporary ROs to prevent further victimisation of individuals at risk of falling prey to scammers. Sir, these temporary ROs are a central feature of the Bill. They will allow the Police to intervene before financial damage occurs, providing a crucial window of protection for potential victims who may be transferring money to scammers. These Orders can be issued to freeze or restrict certain activities that may lead to further victimisation, such as freezing bank accounts or restricting certain financial transactions.”
“Mr Speaker, Sir, for the past decade, scams have escalated into a pressing issue, significantly impacting families and businesses in Singapore. The urgency of this problem is underscored by the fact that just in the first six months of 2024, a staggering $385 million was lost to scams, which is a 25% increase from the previous year. Disturbingly, 86% of these scams involved victims willingly transferring money despite repeated warnings from banks, law enforcement and loved ones. These figures are not just numbers, they represent real people and their heartbreaking stories of retirees losing their life savings, individuals manipulated by false promises of love and people driven to financial and emotional despair. One recent case involved a man on the brink of losing all his $600,000 in savings, but was saved by the quick intervention by a diligent bank officer. Unfortunately, not every story has a happy ending. Even when faced with undeniable evidence, many victims remain steadfast in their trust in scammers, sometimes to their ruin. The escalating scam landscape also poses a multifaceted threat to Singapore's business ecosystem, with small and medium enterprises particularly vulnerable to sophisticated cyber threats that can inflict severe financial, operational and reputational damage. Beyond direct monetary losses, businesses face increased cybersecurity investment costs, potential operational disruptions and erosion of customer trust, whilst employees handling financial transactions become prime targets for scammers seeking to compromise both personal and corporate assets.”
“Since SMEs often rely on close personal relationships with local suppliers and employees, these parties must be treated fairly during a simplified winding process. Finally, I touch on this Bill's emphasis on digital-first processes for filings and notifications. While this is a welcome development, how will the Government ensure that SMEs, particularly those without significant digital infrastructure, be able to adapt to this new approach? Will assistance or training be available for businesses that may face challenges in transitioning to these digital systems? More broadly, what comprehensive plans are in place to educate our SME community about the SIP and its benefits, particularly on the new changes? Sir, this Bill is a plus for SMEs, especially in battling the next major economic crisis whenever it happens. Mr Speaker, Sir, notwithstanding my clarifications, this Bill has my full support.”
“Will there be clear guidelines for how Restructuring Advisers are selected and will there be a mechanism for businesses to challenge or request a change of advisors if they feel that the current advisors are not acting in their best interest? Number six, I now turn to the compliance and penalties under clause 6, section 72E(4). The proposed amendments also introduce new compliance and penalty provisions. While these provisions will help ensure that businesses follow the proper procedures, I seek the Minister's clarification on what constitutes materially false or misleading statements under the Bill and how these will be assessed. It would also be helpful to understand whether businesses will have the opportunity to rectify any misstatements before penalties are imposed. Number seven, will there be specific thresholds or guidelines for penalties and will there be proportionality between the nature of the offence and the consequences for the company involved? Number eight, an important aspect of this Bill is the support for SMEs with limited access to restructuring professionals under its general provisions. Will there be financial assistance or subsidies for smaller businesses to help them engage professional advisors, such as restructuring specialists or legal counsel, during the insolvency process? Number nine, how can the Government partner with industry bodies or trade associations to create awareness and provide training for SMEs on navigating the insolvency process? Would the Minister consider setting up a dedicated SME advisory panel to provide ongoing feedback and suggest improvements? Number 10, will there be any provisions to protect employees and other stakeholders, such as suppliers, who may be affected by a company's closure?”
“Will the SIP framework accommodate the specific complexities these businesses face, especially regarding validating the debts or assets in multiple countries? Number three, when a business faces financial distress due to factors beyond its control, such as global supply chain disruptions or international trade restrictions, will such companies be considered eligible for SIP assistance, even if their financial difficulties stem from external, non-operational factors? Number four, given the current economic climate of relatively high inflation and interest rates, can the Minister please clarify, if the SIP's entry requirements will be sufficiently flexible to accommodate businesses facing these external challenges? Specifically, will the criteria consider the impact of these economic pressures on a company's financial position, ensuring that otherwise viable businesses are not unfairly excluded from accessing this crucial support? This question is particularly pertinent, given the findings of the recent Singapore Business Federation's National Business Survey 2024/2025. The survey revealed that customer demand uncertainty has risen sharply from 30% in 2023 to 45% in 2024, becoming the second top challenge for businesses today. Additionally, 51% of businesses have had to implement cost-saving measures to offset rising costs. These statistics underscore the need for flexibility in our insolvency framework. Number five, one of the key elements of the proposed amendments is the role of the Restructuring Adviser in guiding businesses through the simplified debt restructuring process. Given the importance of this role, does the Bill include safeguards to prevent conflicts of interest?”
“Mr Speaker, Sir, thank you for allowing me to speak on the Insolvency Restructuring and Dissolution (Amendment) Bill, a critical step in ensuring that our insolvency framework remains responsive to the needs of businesses, especially the micro and small enterprises that form the backbone of our economy. This Bill builds upon the SIP which was introduced in 2021 as a lifeline during the challenging days of the COVID-19 pandemic. Over the years, this programme has proven its value, offering businesses a faster, simpler and more cost-effective way to restructure the debts or wind-up operations. With a focus on efficiency and fairness, the proposed changes are designed to provide businesses with the tools they need to navigate financial distress while preserving value for creditors. This simplified framework will be of great help to SMEs in some financial stress, while supporting others to wind down with dignity. This amendment seeks to do more than just extend the programme. It aims to refine it. By consolidating eligibility criteria, streamlining processes and reducing costs, the Bill ensures that these mechanisms remain accessible to firms of all sizes, including our SMEs, which sends a powerful message that Singapore remains committed to supporting entrepreneurial risk-taking. Sir, I have 12 clarifications for the Minister. The Bill's provisions outline the eligibility criteria for businesses seeking to enter the simplified debt restructuring programme. I would seek the Minister's views on whether companies with complex ownership structures qualify for the programme, such as those with multiple layers of ownership or significant cross-border operations. SMEs with international operations face unique challenges, especially dealing with creditors across jurisdictions.”
“In my view, some of these changes, while introducing new compliance requirements, will benefit medical institutions from more streamlined approval processes and clearer service delivery standards, and will lead to improve patient care. During this transition, in order to avoid any disruption in claims processing, close coordination between insurers and health providers will be required. Sir, I now have some specific clarifications for the Minister of State. First, what are the specific timelines for approval or rejection of applications by medical institutions for treatment coverage under MediShield Life? Second, will insured persons undergoing treatments, under the previous framework, continue to receive coverage during the transition period? Third, will the conditions for service delivery vary across institutions and how will these be communicated to the public? Fourth, what processes will be in place for institutions or individuals to appeal decisions related to approval revocations or for denial of claims? Mr Deputy Speaker, Sir, notwithstanding my clarifications, this Bill has my complete support.”
“Mr Deputy Speaker, Sir, thank you for allowing me to join this debate on amendments to an important piece of legislation which aims to assist Singaporeans with their healthcare expenses. It is especially relevant now, with a growing ageing population. The amendments before the House align the MediShield Life Scheme with the evolving healthcare needs. By enabling better oversight through approvals and conditions for medical institutions, the Bill promotes service quality and cost-effective healthcare delivery. These updates enhance Singapore's ability to deliver sustainable healthcare coverage, while managing public health funds efficiently. Medical institutions must now seek approval from the Minister to provide specific medical treatments eligible under the MediShield Life Scheme. The Minister can impose conditions on service delivery modes like telemedicine, the provision of outpatient medical services remotely and at permanent premises to ensure appropriate healthcare delivery. The ability to revoke or suspend approvals ensures compliance with the Healthcare Services Act 2020, promoting accountability and service quality. The Bill also ensures only treatments provided by approved institutions under specified conditions will qualify for MediShield Life claims, ensuring proper allocation of insurance funds. Amendments to clause 5 will allow for premiums to be published online for transparency, with rates varying by insured persons' risk profiles and needs. Also, clause 6 will expand scope of offences for false information to ensure accountability in health declarations and protect MediShield Life from abuse.”
“Third, what processes and procedures can be implemented to address potential imbalances if other nations do not reciprocate Singapore's efforts in cooperation and resource allocation? Fourth, clause 6 refers to providing assistance to non-prescribed foreign countries under certain conditions. I would request clarification on the process the Attorney-General would use to verify compliance guarantees from these countries. By fostering a transparent and secure financial environment, this Bill can increase confidence among international partners and clients. I believe strengthening guidelines around the handling and transmission of sensitive information will require businesses to adhere more closely to best practices in data security, and help prevent breaches and supporting overall client confidence. Mr Speaker, Sir, notwithstanding my clarifications this Bill has my full support.”
“Heightened obligations to share information with foreign authorities may raise privacy concerns, particularly for clients who prioritise confidentiality. While we are committed to international cooperation, we must also ensure that we protect the data privacy of our clients to maintain Singapore's attractiveness as a financial hub. There is also the issue of international reciprocity. While Singapore is committed to fulfilling international requests for assistance, these amendments will only be effective if there is a reciprocal commitment from other jurisdictions. If other countries fail to uphold their side of the bargain, Singapore could find itself disproportionately bearing the burden of international cooperation. Finally, we must remain mindful of the impact on smaller financial entities. Smaller firms, particularly those with limited compliance resources, could find it difficult to meet the new standards, leading to a possible consolidation of the market. We must ensure that these changes do not inadvertently push smaller players out of the market, as diversity in our financial ecosystem is essential to the continued growth of our economy. I have some clarifications for the Minister of State. First, as international cooperation is critical for tackling cross-border crimes, how would Singapore streamline communication and operational procedures with foreign authorities to maintain swift collaboration? Secondly, it would be helpful to have more details on the Attorney-General's specific powers and responsibilities in transmitting certified evidence to foreign authorities, along with the safeguards for managing sensitive data.”
“Mr Speaker, Sir, thank you for allowing me to speak on this Bill. The amendments in this Bill aim to bolster Singapore's framework for international cooperation on criminal matters. Sir, earlier this year, this House discussed Ministerial Statements on this matter and subsequent legislation to strengthen our detection of financial crimes and the recovery of ill-gotten gains. The Bill before us further demonstrates the commitment of the Government and policing authorities to exhaust every effort in combating financial crimes. By aligning with the updated FATF recommendations, the Bill strengthens Singapore's position as a compliant and cooperative jurisdiction in the global fight against financial crimes. This, in turn, can reinforce the country's position as a trusted financial centre, attracting investors and multinational corporations looking for a secure and transparent business environment. The amendments also enable quicker and more effective cooperation in criminal matters with other nations. Singapore's capacity to support international law enforcement in asset confiscation, extradition and information sharing can make it a key player in global financial crime investigations. Stricter regulations on trustees and asset management enhance Singapore's defense against money laundering, promoting a stable and secure financial system. However, we must also acknowledge the challenges these changes may bring. Compliance and operational costs are likely to rise, particularly for financial institutions and businesses. These sectors will face increased administrative and regulatory burdens, which could necessitate investment in staffing, technology and legal resources. Also, the balance between privacy and cooperation is another challenge we must carefully manage.”
“Sir, I have some clarifications for the Minister of State. First, will companies benefiting from existing incentives need to reapply under the new framework or will their current exemptions automatically continue? Second, since BEPS 2.0 primarily targets large multinational enterprises, what specific benefits will SMEs gain from these amended tax incentives and how will they remain competitive in this new environment? Third, under clause 2 of the Bill, are specific thresholds in place for qualifying for the 15% tax rate, particularly for companies managing regional operations? Fourth, how will the new amendments align with Singapore's international tax treaties to prevent double taxation and support cross-border activities? Fifth, what penalties will be imposed for non-compliance with milestone-based relief provisions and will there be an appeals process for this? Mr Speaker, Sir, notwithstanding these clarifications, I fully support this Bill.”
“Mr Speaker, Sir, thank you for allowing me to speak on this Bill. The amendments to the Bill not only align Singapore's tax policies with global trends, but also reinforce our status as a competitive business hub amidst shifting international standards. As jurisdictions worldwide compete for investments through tax incentives, we must ensure our policies remain competitive and compliant with international norms, such as the Organisation for Economic Cooperation and Development's guidelines fostering both economic resilience and sustainable growth. Sir, by introducing a new 15% concessionary tax rate and extending the DEI, this Bill strengthens our appeal to high-value investments in advanced manufacturing, AI and green technology. The amendments also encourage foreign investment supporting economic growth through favourable tax incentives for strategic industries, such as finance and logistics. The amendments support companies involved in regional operations qualifying development projects and capital investments through targeted tax relief. Furthermore, clause 3 of the Bill also extends tax relief periods for eligible projects up to the end of 2028, ensuring sustained support for businesses expanding in Singapore. I also applaud provisions in the Bill supporting innovation and infrastructure growth with amendments to the capital expenditure allowance which will encourage businesses to invest in new technologies, infrastructure and high-tech industries by widening the scope of eligible activities. In turn, this allows Singapore to position itself as a global leader in high-tech industries. Also, by streamlining tax relief frameworks, these amendments provide legal clarity and ease of planning, empowering businesses to pursue growth with confidence.”
“In conclusion, I believe the proposed Insurance (Amendment) Bill is a good step towards greater accountability. I also commend the Government, especially the Second Minister of Finance Chee Hong Tat for his strong leadership and moving quickly to bring this Bill for a vote to Parliament. This Bill will allow MAS to facilitate the right discussions while maintaining the highest standards of governance. While we must remain an attractive and competitive market to attract global capital, we must do everything possible to protect the long-term interests of Singaporeans by continuing to careful nurture national treasures such as Income Insurance. Mr Deputy Speaker, Sir, notwithstanding my clarifications, this Bill has my full support.”
“Perhaps what is needed is a new Singaporean controlled Board of Directors with real talent, real experience and a real vision to come up with a coherent seven-year business plan to make Income Insurance a world-class company, operating profitably not only in Singapore but also in other countries in Asia, ex-Japan. There are plenty of providers of growth equity capital focused on the insurance business that would be willing to take a minority stake in Income Insurance if a coherent, realistic five-year business plan for growth and development would be presented to them. We have accomplished that in other sectors and I see no reason why we cannot accomplish the same for our insurance business. This new Board should be given the complete authority as well as full responsibility for recruiting experienced talent from international insurers, who can help develop the right products and services and execute this five- to seven-year business plan that, while protecting Singaporeans first, can also develop a world-class insurance company headquartered in Singapore. While I have shared my views on what I consider is the best strategy for Income Insurance, I would like to seek clarifications from the Minister on the Bill. One, what kind of a deal with a new investor would satisfy the Government? Two, what guardrails would be established to ensure that Income will continue to meet its obligations to society? Three, how can we ensure that any future financial partner can contribute to the financial strength of Income while still preserving its social mission? Four, how can we ensure that any new financial investor in Income does not make a quick buck by selling out their stake in a very short period of time or taking a large dividend payment?”
“To be clear, I do not advocate such a Singapore First policy for companies that do not have a social mission to fulfil nor are they considered national treasures. My years in international finance have also taught me that the minor criticism we may face in the short term for a strong Singapore First policy will dissipate away quickly. Nor will such a strong, clear policy discourage foreign capital from buying controlling stakes in our companies that do not have a social mission to fulfil. Many countries have allowed control of their national treasures to be sold to foreigners now regret it today. Just ask the many citizens and residents of New Zealand, where all the major banks are controlled by foreigners. As I had mentioned during the debate in January this year on the Significant Investments Review Bill, perhaps the time has come for us to have a comprehensive all sector approach to review all large foreign investments in entities significant to the daily lives of most Singaporeans. Such a comprehensive all sector approach will make sure no important large deal slips through the cracks. With the unique brand that it has, I fail to understand how Income Insurance does not have a larger market share and greater pricing power in our domestic market. Why has Income’s relevance in the insurance market just decrease over the years? That leads me to agree with the view expressed by many that Income Insurance clearly requires strengthening. But, in my view, such a strengthening exercise does not mean ceding control to foreigners.”