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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“Mr Deputy Speaker, Sir, thank you for allowing me to speak on the Insurance (Amendment) Bill. This Bill is being proposed in light of the Income-Allianz deal which has raised important questions regarding public interest, corporate governance and the preservation of social missions within insurance entities, especially those transitioning from co-operative models. I would like to commend the efforts of MAS and MCCY for their excellent collaboration. Their joint review of the Income-Allianz transaction, announced on 17 July, revealed concerns that went beyond a typical business deal. It cast doubts on whether Income, after being acquired by Allianz, could fulfil its social mission. However, it is important to note that this deal is still only proposed. The door remains open for further negotiations, provided that any future proposal addresses the concerns raised by MCCY and MAS. The events of the last few months have brought to light a few important issues, with the most important one being how we deal with our national treasures such as Income Insurance. In my view, control of such carefully nurtured national treasures should never be passed on to foreigners. The majority of the Board as well as the seat of the Chairman should always be in control of Singaporeans. While such a strong view coming from someone like me who has spent over 30 years in international finance, where cross-border mergers are commonplace may surprise a few, my view is based on what I believe, that national treasures should be treated as what they are – national treasures – companies that, for generations to come, will provide world-class products and services to Singaporeans.”
“By balancing the need for fairness, transparency and innovation, these Bills will help ensure our long-term economic growth while addressing the challenges posed by global tax trends. Mdm Deputy Speaker, notwithstanding my clarifications, this Bill has my full support.”
“Lastly, by complying with the OECD's global tax framework and aligning our income tax policies with international practices, Singapore strengthens its reputation as a transparent, ethical and business-friendly hub, which will continue to attract foreign investments. However, despite many positive outcomes for the overall economy, these Bills could lead to certain challenges for businesses especially for SMEs. Mdm Deputy Speaker, I have a few clarifications for the Minister. One, how will businesses currently benefiting from existing tax incentives be affected by these amendments? Will their exemptions continue under the new framework, or will they be required to re-apply? Two, how will the minimum tax rate apply to industries with unique tax treatments, such as financial services, energy or digital businesses? Will specific sectors receive special considerations or exemptions? Three, how do the new regulations align with Singapore's existing international tax treaties and agreements, specifically regarding parenting double taxation and resolving disputes? Will there be any adjustments required to ensure compatibility with the global minimum tax framework? Four, what penalties will be imposed on businesses that fail to meet the compliance requirements, particularly in sectors like financial services and for Real Estate Investment Trusts (REITs)? Five, can SMEs also benefit from the RIC or is it primarily designed for larger corporations? Are there limits or caps on the amount of tax credited can be refunded through the RIC? In conclusion, both the Income Tax (Amendment) Bill and the MMT Bill represent forward-thinking steps that will secure Singapore's competitive edge in the global economy.”
“By keeping pace with global competition through these tax credits, Singapore enhances its abilities to attract substantial investments, ensuring long-term economic growth and segmenting its position as a premier business destination. Mdm Deputy Speaker, the MMT Bill, on the other hand, focuses on enforcing a 15% minimum tax on MNEs with global consolidated revenues exceeding €750 million. This Bill is Singapore's response to the OECD's BEPS framework, particularly Pillar Two, which seeks to address tax avoidance and profit shifting by large corporations. By adopting this Bill, Singapore aligns itself with global tax transparency efforts, ensuring that large MNEs contribute their fair share to our economy. The revenue generated through this minimum tax will safeguard the Government's financial base, allowing us to invest in infrastructure, social programmes and growth initiatives. These amendments will ensure that Singapore can create a more predictable and consistent tax landscape, a critical factor for MNEs that evaluate where to base their operations. Additionally, the Bill promotes fairness by addressing the competitive disadvantages faced by local businesses, especially SMEs, when competing against MNEs. By enforcing a minimum tax, we are fostering fair competition and supporting the long-term sustainability of both our local businesses and our tax system. The 15% minimum tax helps Singapore protect its tax base by closing loopholes that allow profit shifting to lower-tax jurisdictions, ensuring that large corporations contribute to our nation's development.”
“Mdm Deputy Speaker, thank you for allowing me to join this debate on two important pieces of legislation that will strengthen Singapore's position as a global financial hub and as a responsible international player in tax regulation – the Income Tax (Amendment) Bill and the MMT Bill. I will cover both Bills today. Both these Bills work hand in hand to ensure Singapore remains competitive in the global marketplace, yet they do so in complementary but contrasting ways – one offering relief, while the other enforces a stricter regime. Both promote fairness and transparency in our tax regime. Mdm Deputy Speaker, the Income Tax (Amendment) Bill introduces targeted tax reliefs, particularly for sectors like financial services, shipping and real estate investment trusts (REITs). I believe these amendments will encourage foreign investment and help sustain our economic growth by enhancing Singapore's global competitiveness. The Bill also provides enhanced tax deductions for R&D, encouraging companies to invest in high-tech and green technologies. This will bolster Singapore's position as a leader in innovation and future industries, driving sustainable economic growth. Simplified tax administration will also make it easier for businesses to comply with tax regulations. Moreover, the RIC benefits businesses and encourages investment and capital expenditures, R&D and talent development. The RIC also helps businesses offset the corporate tax liabilities, making it more attractive to establish many factoring facilities and regional headquarters in Singapore. Additionally, the Bill encourages focus on decarbonisation efforts, aligning with our broader sustainability goals.”
“I thank the Minister of State. If I may ask a supplementary question. In the Minister of State's view, how will the JS-SEZ help small and medium enterprises (SMEs) as well as other businesses in Singapore?”
“Mr Speaker, Sir, notwithstanding my clarifications, this Bill has my full support.”
“One, could the Minister clarify when exactly the automatic closure of CPF SAs will take effect after a member turns 55? Will the members be notified beforehand and will they have options to manage their accounts before closure? Two, how will the closure of SAs affect ongoing payments or contributions linked to these accounts? Three, could the Minister provide more details on the formula for calculating interest on funds transferred from closed SAs? Four, the Bill introduces expanded eligibility for the HPS, allowing coverage for individuals with serious conditions, subject to premium adjustments. How extensive will this coverage be for those with pre-existing conditions? How will premium adjustments for members with pre-existing conditions be handled, and will there be an appeals process if members disagree with the risk assessments? Five, what support will be provided to small and medium enterprises (SMEs) to manage change of internal systems to handle the new CPF procedures that may increase compliance burdens for businesses, especially those with limited administrative resources? Six, could the Minister elaborate on the specifics of the governance changes that simplify the constitution of the CPF Board and what is the potential impact of this change? What changes have been made on the criteria for appointing the Chairperson and Deputy Chairperson of the CPF Board and how these appointments will ensure the CPF Board operates efficiently? Sir, in conclusion, in my view, this Bill fosters better financial planning, greater transparency and confidence in our social security system. Together, these challenges will enhance both individual retirement readiness and the overall stability of Singapore’s workforce.”
“Mr Speaker, Sir, thank you for allowing me to join this debate on the important amendments to the CPF Act. Sir, the CPF (Amendment) Bill presents significant updates to the CPF Act of 1953, aimed at enhancing retirement adequacy and simplifying the management of CPF accounts. For Singaporeans, particularly those entering their silver years, this Bill represents a boost to financial security. The automatic closure of CPF SAs at age 55 and the transfer of funds to the OA or RA, are a significant step towards streamlining CPF management. It ensures that retirees can efficiently access their savings when they need them the most. This Bill also ensures that the provisions around clearer interest calculations and fund management foster greater trust in the CPF system, an essential element in preserving confidence in our social security infrastructure. These amendments can foster a more equitable labour market where workers have access to adequate retirement savings. This could enhance employee satisfaction and retention in the long run, benefiting businesses through reduced turnover and improved morale. This Bill is also a win for businesses. The clarified guidelines for managing CPF-related insurance schemes, including the HPS insurance scheme, offer greater transparency and simplicity for employers managing insurance on behalf of their employees. The streamlining of CPF account administration also makes it easier for employers to manage contributions and compliance. These, in turn, will reduce administrative burdens, allowing businesses to focus on their core operations. However, besides providing some benefits to our citizens and businesses, this Bill may lead to certain challenges. Sir, I would like to seek some clarifications from the Minister.”
“Three, are there any exemptions for certain types of platforms or services and, if so, what are the criteria for these exemptions? Four, how will the Bill affect existing contracts between platform operators and workers? Will there be a transition period for compliance? Five, what happens if a current platform work agreement conflicts with the provisions of the Bill? I recognise that effective implementation and enforcement of the Bill’s provisions may require significant additional resources to ensure that all platform operators comply with the regulations. Six, how does the Ministry hope to ensure the seamless execution of these new regulations? Lastly, are there any plans for a separate division within MOM to address the needs of the gig economy for the long term? Mr Speaker, Sir, notwithstanding these clarifications, this Bill has my strong support.”
“For businesses and business owners, this Bill can lead to better relationships between businesses and their platform workers, as the regulations provide clearer guidelines on rights and responsibilities. This could result in higher worker satisfaction and loyalty. There is also legal certainty. By formalising the rights and obligations of platform workers and operators, the Bill reduces legal ambiguities. Businesses can operate with more confidence, knowing they comply with regulations, which can help avoid potential legal disputes. Furthermore, businesses which comply with the new regulations might gain a better reputation among consumers and workers, who value fair treatment and worker protection. This could attract more customers and better performing workers to the respective platforms. The regulation of platform operators also ensures a level playing field, preventing unfair practices and promoting healthy competition within the digital economy. This will stimulate innovation and improve efficiency among platform service providers. This Bill also can lead to the development of new business models and services within the gig economy, contributing to the diversification of Singapore's economy. Sir, I now turn to some clarifications for the Senior Minister of State. My concern is that compliance with the new regulations might increase operational costs for platform operators. This could lead to higher costs for consumers and will reduce margins for businesses, potentially impacting the competitiveness of Singapore-based platforms. One, will there be any Government support measures and assistance to help these businesses? Two, does this Bill apply to all types of platform services, including those that are emerging or certainly are less common?”
“Mr Speaker, Sir, thank you for allowing me to speak on the Platform Workers Bill. This Bill rightfully acknowledges the crucial role platform workers play and seeks to address some of the issues they face. It is worth emphasising the significance of their role in Singapore's economy. During the pandemic lockdown, they became essential to our daily lives, ensuring the continuity of services and even boosting Singapore's productivity. When the circuit breaker was in place, our food delivery riders and companies were at the forefront, delivering tens of thousands of food orders all over Singapore, especially for those who were in quarantine. Not only did these workers alleviate the difficulty of individuals in quarantine, these unsung heroes also ensured that food and beverage (F&B) businesses stayed afloat, by continuing with their takeaway businesses. This Bill before the House recognises them and formalises them as key players in our economy. Sir, allow me to share some benefits of this legislation. This Bill is an important milestone for the community of platform workers because the various associations currently representing them would be able to negotiate collectively for them, better represent them in disputes and provide them with better support services. It signals a positive shift, one that recognises not just their contributions but their rightful place within our economic framework. By strengthening worker protection, this Bill paves the way for a more stable and satisfied workforce, with expected outcomes, such as enhanced productivity and reduced turnover in sectors heavily reliant on gig and platform-based work. In my view, this new legislation also benefits employers.”
“Also, industries dependent on traditional energy sources will encounter higher expenses and operational challenges as they shift to low-carbon alternatives. These costs could include investments in new technology, compliance with new regulations and potential disruptions during the transition. Perhaps the Minister can address if there will be any Government assistance or incentives to help these businesses adapt? Could the Minister please provide us with a comprehensive update on the support measures available for SMEs? Second, what are the specific types of projects or initiatives that the FEF can invest in and how will the allocation of funds be prioritised among different projects? Three, under what specific circumstances would EMA initiate electricity rationing? In case of rationing, how will affected businesses and consumers be notified and what measures are in place to minimise disruptions? Fourth, are there any plans to conduct electricity rationing drills to familiarise industries with what to do when it happens, just like the regular fire drills that our buildings conduct? Lastly, I seek the Minister's views on the legislation's impact on existing contracts. How will the Bill affect existing contracts between energy suppliers and consumers, especially if new regulations or rationing measures are introduced? Mr Speaker, Sir, notwithstanding these clarifications, this Bill has my complete support.”
“This positions Singapore as a leader in green energy and contributes to global climate goals. In turn, this will attract investment in renewable energy projects and related technologies into our economy. Additionally, focusing on low-carbon energy projects opens opportunities for businesses to venture into renewable energy, energy storage and related technologies and allows for companies that innovate in these areas to tap into new markets and revenue streams. Secondly, this Bill aims to enhance energy security. Regions, like the European Union and the Americas, faced severe impacts from oil, gas and electricity shortages during the global energy crisis of 2021-2022. Thanks to the quick actions taken by MTI and EMA, Singapore avoided electricity supply disruptions during that period by leveraging on existing system buffers. Building on this experience, the Bill seeks to further enhance energy reliability, which is essential for economic stability and growth. The FEF supports infrastructure investments for Singapore's carbon-neutral transition, backing projects with high costs and risks. It secures low-carbon energy supplies, advancing decarbonisation goals and ensures Singapore remains an attractive investment destination. Sir, I now turn to some clarifications for the Minister. One, one area of concern are the associated regulatory changes and the cost of implementation of these regulatory changes, particularly for businesses that rely heavily on energy as an input. SMEs, especially, may face significant costs during the transition, including investing in new technology, complying with the regulations and dealing with potential disruptions.”
“Mr Speaker, Sir, thank you for allowing me to speak on the Energy Transition Measures and Other Amendments Bill. As the world grapples with the challenges of climate change and the finite nature of fossil fuels, economies around the globe are increasingly transitioning towards more sustainable sources of energy. This shift is driven by a need to reduce greenhouse gas emissions, enhance energy security and future-proof economies against the volatility of traditional energy markets. For us in Singapore, energy transition is not just an environmental imperative but an economic necessity, too. As a small, resource-constrained country with limited availability of renewable energy resources within, Singapore is highly dependent on imported energy, notably natural gas. The volatility of the global energy markets, as evidenced by the global energy crisis of 2021-2022, poses significant risks to the country's energy security and economic stability. By transitioning towards more sustainable energy sources, such as solar power, low-carbon hydrogen and regional renewable energy imports, Singapore can reduce its reliance on fossil fuels, enhance its energy resilience and contribute to global efforts to combat climate change. Furthermore, embracing this transition offers Singapore the opportunity to position itself as a leader in clean energy innovation in Southeast Asia, potentially driving economic growth through new industries and technologies. The provisions in this Bill bring about numerous opportunities for Singapore businesses and the Singapore economy as a whole. Allow me to highlight some of them. Firstly, this Bill will promote low-carbon energy through measures, such as tapping of low-carbon hydrogen as a source of fuel.”
“Implementing stringent AML/CTF measures often requires significant investments in technology, staff training, and process changes, which can be financially burdensome. Compliance costs may also increase substantially leading to closure of some SME businesses. While some consolidation in this sector may be necessary there is also a risk that overly stringent regulations might stifle innovation and entrepreneurship. Businesses might be hesitant to engage in new ventures or adopt innovative practices due to the fear of non-compliance or excessive regulatory scrutiny. Mdm Deputy Speaker, I have a few clarifications for the Minister. First, regarding the scope and application of this Bill, could you please specify which businesses and sub-sectors are directly affected by the new AML/CTF regulations? Are there any exemptions for small businesses or any specific sub-sectors? Secondly, is there a stipulated timeline for businesses to comply with the new regulations? Also, are there any transitional provisions provided to help businesses adjust to these new requirements? Thirdly, how do our regulations align with international AML/CTF standards and the recommendations of the Financial Action Task Force? Are there any specific international guidelines that businesses should be aware of? Lastly, could you please also clarify the procedures and measures for ensuring privacy and security of collected customer data? Mdm Deputy Speaker, notwithstanding these clarifications, this Bill has my full support.”
“Mdm Deputy Speaker, thank you for allowing me to participate in this debate on this important legislation. This Bill seeks to send a strong signal to the international community that Singapore is fully committed to combating money laundering. I also believe the importance of this Bill in strengthening anti-money laundering and counter-terrorism financing measures can improve trade relations with other countries, as partners will have greater trust in Singapore's regulatory framework. Singapore’s compliance with the recommendations made by the Financial Action Task Force will increase confidence among international investors and financial institutions and help attract more foreign capital. This is quite evident from the healthy inflow of investments we continue to see, as reported in in the recent announcements by the Economic Development Board (EDB) and by the Ministry of Trade and Industry (MTI). By cracking down on illicit activities, the Bill helps protect legitimate businesses from being undermined by unfair competition from entities engaged in money laundering or financing terrorism. I believe the Bill may also lead to development of new services and products in the financial sector such as advanced compliance software, consulting services, and anti-money laundering and counter terrorism financing training programmes. Furthermore, the need for enhanced compliance can spur innovation in Regulatory Technology or regtech, leading to the development of new solutions to help businesses comply with the regulations more efficiently, positioning Singapore as a leader in the regtech innovation. However, despite many favourable outcomes for the overall economy, this Bill could lead to certain challenges for businesses especially SMEs.”
“Providing such clarity upfront will ensure that CSPs maintain compliance with the regulatory standards and uphold the integrity of their services. As we deliberate upon this Bill, it is important to underscore the significant benefits it holds for our economy. I believe it will enhance trust and credibility, improve compliance and governance and eventually boost operational efficiency. Laws like the one before us will further strengthen and enhance Singapore's financial stability and investment climate. The CSP Bill is not just about regulation; it is also about creating a better business environment for all. Despite the short-term challenges, the Bill will facilitate a better future for our economic growth and will create an enhanced investment climate for all investors in Singapore. Sir, notwithstanding my clarifications, this Bill has my full support.”
“Firstly, the Bill introduces increased administrative burden for businesses. To comply, companies in this sector need to prepare extensive documentation to register as CSPs or to ensure their own service providers are properly registered. These new administrative tasks demand considerable effort and resources from small businesses, diverting attention from other critical activities. Secondly, the additional financial costs associated with compliance will be substantial. This reallocation of resources, in terms of time and people and system upgrades to meet new standards, can cause temporary interruptions in service delivery. Lastly, stricter regulations might also result in fewer service providers meeting the new criteria. In my view, smaller, specialised CSPs will continue to play an important role in this sector. We just need to ensure we do not stifle growth of this very important sector by bringing about major changes at too rapid a pace. Madam, now, I have a few clarifications which I wish to raise with the hon Minister: first, could the Minister please elaborate on the additional information that will be required for the registration and renewal of CSPs, including the necessary documentation; and the specific form and manner designated by the Registrar, as outlined in clause 8? Understanding these aspects ensures that applicants can comply effectively with the registration process quickly, avoiding any delays or rejections. [Mr Speaker in the Chair] Secondly, will businesses be provided financial support to alleviate increased costs from operational disruptions? Lastly, could the Minister clarify what constitutes adequate supervision and the specific responsibilities involved, as defined in the Bill?”
“Mdm Deputy Speaker, thank you for allowing me to join this debate on a topic of great importance for Singapore's continued success as a business and financial centre. In parallel with Singapore's rapid development as a financial centre, the CSP sector have seen significant growth, providing a wide range of fiduciary and administrative services to corporates, investment managers and high-net-worth individuals. The CSP Bill, along with the ACRA and CLLP Bills mark significant strides to solidify Singapore's regulatory landscape. These legislative measures aim to enhance transparency, combat illicit financial activities and maintain Singapore's reputation as a trusted global financial hub. By imposing stricter compliance requirements and heavier penalties, the Bills seek to ensure that CSPs uphold rigorous anti-money laundering standards. The CSP Bill seeks to regulate entities offering corporate services, ensuring they are registered, meet the necessary criteria and operate in compliance with legal and regulatory standards. The Bill also aims to prevent money laundering and the financing of terrorism by imposing stringent requirements on CSPs. The legislation will also provide training opportunities for staff employed in the sector, to help them keep up-to-date with the latest developments in the industry and ensure they do not fall short of the law in their work. The Bill also establishes the role of the Registrar of CSPs and details registration processes, renewal requirements and obligations of registered providers. Penalties for non-compliance include fines, imprisonment, suspension or cancellation of registration and regulatory actions, such as censuring and financial penalties. However, I believe this Bill could also bring about challenges to businesses and owners.”
“I would like to ask the Senior Minister of State in what ways chambers of commerce and trade associations can help and collaborate with the various training agencies to help prepare the workforce to meet these hidden compliance costs amidst growing manpower challenges. Mdm Deputy Speaker, cybersecurity is a serious matter for Singapore and it impacts our reputation as a global smart city. To ensure the proposed Cybersecurity (Amendment) Bill is effective and equitable, it is crucial to consider international best practices in its formulation. We can draw valuable lessons from the United States, where a recent Executive Order focuses on harnessing AI for advanced cybersecurity; and from the EU's Network and Information Systems (NIS) Directive, which emphasises proactive risk assessment and public-private partnerships. Additionally, countries like Estonia have demonstrated how continuous risk assessment and collaboration can enhance digital infrastructure protection. By aligning our roadmap with these global standards, we can develop a robust and forward-thinking cybersecurity framework that not only addresses emerging threats but also fosters innovation and industry collaboration. Mdm Deputy Speaker, notwithstanding my clarifications, this legislation has my complete support. Deputy Speaker: Mr Desmond Choo. 3.38 pm”
“We do not want regulatory compliance to unfairly favour established companies. SMEs may find it particularly challenging to meet the new requirements due to limited budgets and cybersecurity expertise. If they fail to comply, SMEs might face penalties or be forced out of certain markets, reducing the diversity of the business ecosystem and possibly leading to consolidation in certain industries, which could stifle innovation and competition. Also, the stringent requirements for entities of special cybersecurity interest could act as a barrier to entry for new startups in critical sectors. Meeting these high standards from the outset could be daunting and financially taxing for new market entrants. I have a few clarifications which I wish to raise with the Senior Minister of State. Businesses would like to have some clarity on the specific criteria that will be used to designate entities to be of special cybersecurity interest. Knowing these criteria can help companies assess their status and understand whether they fall under this designation. Organisations need to know exactly what security measures they must implement once designated as STCC. Secondly, businesses also would like to better understand both the financial and operational impacts of non-compliance. Also, are there any exemptions or exceptions, particularly for SMEs or startups that might face significant challenges in meeting these more stringent requirements? In its publicly available closing note on the Bill's consultation process, CSA has communicated that "further industry consultations will be conducted on the development of reporting parameters and applicable cybersecurity codes or standards".”
“With a focus on opportunities for businesses, the amendments provide for market expansion in cybersecurity services, where businesses in the cybersecurity sector can expand their offerings to include services tailored to the new categories, like foundational digital infrastructure and digital service providers. There are also avenues for innovation and product development, leading to new patents, intellectual property and leadership in niche markets. The increased demand for skilled cybersecurity professionals, will provide more avenues for training and workforce development. This amendment also creates an opportunity for the insurance industry to develop new products and services around cybersecurity insurance, which could become more prevalent and necessary as businesses seek to mitigate the increased risks associated with the new stringent compliance requirements. However, these expanded definitions and updated requirements are likely to increase the regulatory burden on businesses and require companies to invest in new technologies. For smaller businesses, these increased costs may be prohibitive, potentially leading to competitive disadvantages or even business closures if they cannot afford to comply. There are also data privacy concerns. With the broadened scope of what constitutes sensitive digital infrastructure, businesses must handle an increased volume of sensitive data – raising data privacy and security concerns. Mismanagement of data, or failures to adequately protect data, can lead to breaches, legal penalties and loss of consumer trust, all of which can have significant financial repercussions. Mdm Deputy Speaker, I am most concerned about the impact of the legislative changes on the SMEs as they make up the backbone of our economy.”
“Mdm Deputy Speaker, thank you for allowing me to join this debate on a topic which is of utmost importance for all of us and especially for the business and financial community. In March this year, a chamber of commerce in Singapore held a fireside chat with a leading expert on cybersecurity who summarised the threats and challenges for cybersecurity with these words: "The bad guys are here to stay." Simple words, but somewhat scary and that is why this Bill before the House is most timely as not a day passes by in Singapore or any part of the world without a cybersecurity-related event taking place. Hon Members who spoke before me discussed the need for the various amendments which have been proposed in this amended legislation. The proposed Cybersecurity (Amendment) Bill represents a significant step forward in enhancing Singapore's digital resilience. Among its key features, the Bill empowers the Commissioner of Cybersecurity with the authority to conduct on-site inspections and broadens the scope of incidents that must be reported. Importantly, it extends the definition of CII to include "non-provider-owned CII", therefore holding third-party vendors accountable when they manage essential services. Additionally, the Bill introduces new regulated categories, such as STCC and ESCI, to address emerging threats and evolving operational risks. Through these measures, the Bill seeks to bolster our cybersecurity framework, ensuring that we stay ahead of sophisticated and rapidly evolving digital threats.”
“By offering a wide range of financial services, including savings and loan options tailored to their members' needs, co-ops play a crucial role in ensuring the financial well-being of individuals within the community. As we look ahead, we must leverage these legislative changes to foster innovation, enhance member engagement and drive sustainable growth. We must also empower various social institutions, such as co-operatives, to play a greater role in strengthening our social compact in a relevant and meaningful way. This dual focus on financial and community support is at the heart of the co-operative movement, illustrating the significant role co-ops play in strengthening the social fabric of Singapore. The Bill's focus on transparency, accountability and member-centric governance benefits co-operative societies significantly. Mr Speaker, Sir, notwithstanding my clarifications, I stand in support of this Bill, Sir.”
“The introduction of the new section 72A, specifying the allocation, distribution, and payment of reserves, is particularly noteworthy. This addition allows societies to allocate reserves to various funds, subject to the Registrar's approval, ensuring flexibility in financial management and maintaining adherence to strong regulatory and member interests. These funds could act as financial buffers, allowing societies to navigate economic uncertainty. Funds for social and environmental efforts can also strengthen the co-operative's reputation and member loyalty. The introduction of section 72A ensures transparency and accountability in financial decisions and can further align the societies' financial practices with their long-term sustainability and members' collective welfare. I would like to take this opportunity to seek some clarifications on this Bill. How will obtaining the Registrar's approval for distributing dividends or paying from reserves work in practice? Has the Ministry made an assessment on the impact of these new amendments on members' rights and benefits? Also, what impact if any is expected on member engagement and investment in co-operative societies? Also, with the increased responsibilities and decision-making powers regarding financial distributions from reserves, what additional guidelines or best practices should the Committee of Management or COM follow to ensure transparency and accountability? Lastly, has an assessment been made on how quickly will co-operatives be able to respond to changing economic cycles to help their members under the new approval process? Mr Speaker, Sir, co-operative societies have historically been bastions of financial stability and community support for their members.”
“Mr Speaker, Sir, thank you for allowing me to speak on this Bill. Co-operative societies play a significant role in Singapore's economic landscape. This has been evident in recent years, especially during the pandemic, when the co-operatives did much to help those displaced at the workplace or struggling with reduced take-home pay. Our co-operative societies also help cushion price rises and an increased cost of living caused by the volatile global economic and political environment. The Co-operative Societies (Amendment) Act 2024 is a significant legislative reform that impacts broader operations and provides flexibility to the co-operative movement. This Act marks a new chapter with enhanced governance for co-operative societies in Singapore by streamlining regulatory processes, reducing bureaucratic hurdles and simplifying compliance. By allowing dividends and honoraria to be paid from reserves with the Registrar's approval, the Act acknowledges our need for greater operational flexibility. In the current volatile and uncertain economic landscape, it may not be practical for the finances of an organisation to be considered purely on a 12-month block. While this remains the case for corporate entities, there is merit in introducing some form of flexibility, accompanied by the appropriate governance controls for co-operatives, as they play an essential and unique role in strengthening Singapore's ecosystem. These welcome changes empower leadership and ensure co-operative societies can respond more rapidly to changing member needs and market conditions while maintaining the movement's core democratic principles. This amendment represents a pragmatic shift towards a more efficient and responsive co-operative governance.”
“Mr Speaker, Sir, despite the short-term pain, there will be long-term gain for our financial system. This Bill will enhance Singapore's stature as a well-regulated, leading global financial hub. Notwithstanding my clarifications, I support this Bill.”
“The shift towards digitisation, while beneficial in the long run, may pose short-term challenges for businesses lacking the infrastructure or expertise to adapt quickly. Lastly, the broader regulatory scope of these amendments means that more businesses, including those involved in emerging financial products and services, will come under greater regulatory oversight, perhaps necessitating adjustments to their business models to ensure compliance. Sir, may I now take this opportunity to seek clarifications from the Minister of State on three issues? What would be the guidelines for the MAS to manage regulated institutions in the development of unregulated financial products? Could the Minister of State also please outline how SMEs will be supported in understanding and complying with new regulations, including potential briefings, training and financial assistance, while fostering confidence in the regulatory landscape? Lastly, given the unique challenges posed by cloud services, may I clarify how MAS intends to handle investigations involving digital data stored in cloud environments, including the practicality of seizing physical evidence and ensuring the security and confidentiality of unrelated data? Given that the financial sector is one of the pillars of our economy, this stronger regulatory oversight is paramount as the governance of financial institutions becomes increasingly important. In my view, these legislative amendments reflect MAS' recognition of the rapid evolution within the fintech sector and the need for a more comprehensive regulatory framework. These amendments will allow MAS to further develop a secure and vibrant ecosystem for fintech innovation, while ensuring the new regulatory measures are proportionate to the risks posed.”
“Mr Speaker, Sir, thank you for allowing me this opportunity to speak on this Bill. I would like to declare my interest as a board director of Elevandi, established by the MAS to advance fintech in the digital economy as well as to organise the annual Fintech Festival. I would also like to declare my interest as a member of the Advisory Council of the Singapore FinTech Association. The FIMA Bill aims to amend various acts to enhance MAS' investigative powers, regulate additional business activities, clarify MAS' authority to reprimand formerly regulated persons for past misconduct and improve the governance and control of financial institutions. For businesses, especially small and medium-sized enterprises (SMEs) in the financial sector, the Bill introduces stricter licensing and compliance requirements; which, while increasing administrative work, enhances trust within the business community. Also, the move towards digitisation and electronic service adoption can reduce paperwork and make compliance processes more efficient. This will encourage businesses to uphold the highest standards of compliance, enhancing our reputation for integrity and reliability in the market. However, this Bill will introduce several challenges that businesses may face. One key challenge is the increased compliance costs due to stricter licensing and regulatory requirements, which could strain the financial and operational resources of SMEs in the sector. Additionally, the enhanced investigative powers granted to regulatory authorities may lead to a more rigorous scrutiny of business practices, requiring companies to invest more in compliance and risk management systems.”
“Chairman, there are many ways that corporations can support the vulnerable and those in need. Offering their professional resources and expertise is one way. The ESG Coordination Office, operated by the Singapore Business Federation (SBF), was set up for businesses to play a more significant role in society. Can MCCY share how it will work with the ESG Coordination Office to support businesses in integrating social impact into their business models, and what is the progress thus far? The National Volunteer and Philanthropy Centre (NVPC) also has its Company of Good programme to encourage businesses to do good. Can MCCY share how can the ESG Coordination Office and NVPC better synergise efforts and also share its plans to encourage the business community and working professionals to contribute more to society beyond just making corporate donations and volunteering? Co-operatives and Their Role in Singapore”
“In response, many companies are shifting from efficiency towards resilience and moving away from "just in time" to "just in case", by diversifying their supply chains. In this regard, some of the strategies businesses are employing include shifting or commencing manufacturing in Southeast Asia. Our neighbours, Malaysia and Indonesia, are also attracting foreign investment for manufacturing. While companies have also increasingly expanded their supply chain functions in Singapore, we are also seeing heightened competition from neighbours. With the robust connectivity and increased capacity at the port and airport in the future, Singapore is well-positioned to take advantage of the opportunities arising from these shifts. May I ask MOT: how can we help companies cope with disruptions and further strengthen Singapore's position as a supply chain hub?”
“Mdm Chairperson, in line with Singapore's Nationally Determined Contribution, we have set targets for our domestic harbour craft sector to achieve net zero emissions by 2050. 4.15 pm To achieve this transition, from 2030, all new harbour craft operating in Singapore's port waters will be required to be fully electric, capable of using B100 biofuels, or compatible with net-zero fuels, such as hydrogen. The ports will also be adopting electrified equipment and vehicles, energy-saving infrastructure and solar energy generation to offset electricity consumption. We are enhancing port efficiency, which can improve the sustainability of the maritime sector on top of cost savings for businesses. Even the international shipping industry has responded by exploring the use of alternative fuels, such as hydrogen, methanol and ammonia. This is shown by the growing order books for methanol and ammonia fuelled new-builds and retrofits. May I ask MOT: how is Singapore supporting maritime businesses in adopting greener solutions and being a global player in achieving these standards? Also, what measures are being taken to develop safety standards and operational procedures and prepare the workforce to handle these new fuels safely? Supply Chain Resilience Recent events, such as the Russia-Ukraine conflict and United States-China geopolitical tensions have led to a reconfiguration of global supply chains. Additionally, the past few years have seen disruptions in the global supply networks with port shutdowns during the pandemic and the Houthi Attacks in the Red Sea and the droughts at the Panama Canal. Also emerging trends towards renewable energy and the economic growth of regions in Asia Pacific and in Latin America could lead to further adjustments in supply chain dynamics.”
“I want to thank Minister of State Alvin Tan for answering so many questions on tourism and internationalisation, and for the $300 million boost to the Tourism Development Fund. My question for you is, which schemes have worked well for Tourism Development Fund. On a different point, what strategies were involved in bringing Taylor Swift to Singapore, which in my view has been very successful in terms of a branding on an international stature?”
“Chairman, science and technology are instrumental to Singapore's survival and success and has helped us overcome the constraints of our small size and somewhat limited resources. The RIE ecosystem remains a cornerstone of Singapore's development into a knowledge-based, innovation-driven economy and society. The RIE's ecosystem is also a key enabler in creating new avenues of growth and raising Singapore's economic competitiveness. Under the RIE, local enterprises' business expenditure on R&D increased from $1.1 billion in 2010 to $1.6 billion in 2020, while the number of local enterprises involved in research and development grew from approximately 450 to almost 600 now. The recent announcements by Deputy Prime Minister Wong during the 2024 Budget have underscored our Government's commitment to fostering innovation and driving research and development initiatives to propel our economy forward. A key area of Singapore's research and development efforts would be unlocking new economic opportunities and helping Singapore's economy and businesses transform to remain competitive. This could include new opportunities in advanced manufacturing, health technology and emerging areas, like AI. R&D can also enable companies' green transition and our push towards greater sustainability. Sir, during the 2024 Budget, the Government announced additional investments to RIE2025 to step up research and development efforts. My questions for the Ministry are: first, can MTI share some of the research and development initiatives and sectors the Ministry will focus on to grow our economy? Also, how does MTI plan to leverage on research and development to tap into promising growth sectors and facilitate Singapore's transition to a low-carbon economy? Optimising Our Land Resource”
“Chairman, the tourism industry is vital for our economy. As a key pillar of our economy, the tourism industry, besides creating jobs and opportunities for our citizens, also enhances our international brand as a global business hub with a vibrant lifestyle. The pandemic had impacted tourism flows across the world and also affected Singapore. However, with support from the Singapore Tourism Board, tourism receipts have bounced back to an estimated $14 billion in 2023. As we move into a new world after the pandemic, it remains crucial for Singapore to continue to capture the tourism market. In 2022, MTI announced that the Government had earmarked half a billion dollars to support tourism recovery. Can MTI please provide an update on the tourism revitalisation efforts? What will MTI do to ensure that Singapore remains an attractive tourist destination amidst growing global competition? Support Firms and Creatives to Create Value”
“However, the lingering effects of the pandemic, geopolitical tensions and the macroeconomic uncertainty have given rise to an increasingly fragmented world. There are headwinds to economic growth with high inflation rates and increasing volatility in the world. In Singapore, we have achieved quite a bit thus far. Today, we have forged an extensive network of 27 implemented Free Trade Agreements (FTAs) along with being a signatory to many regional agreements in the Asia Pacific like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership Agreement. On its part, MTI, Enterprise Singapore and the Singapore Business Federation (SBF) also offer several schemes and programmes, such as the Global Innovation Alliance, to support companies' internationalisation efforts. Moving forward, Singapore needs to identify new opportunities and build new engines of growth as well as continue to build on our international partnerships. My question for the Ministry is: how can MTI continue facilitating our companies' endeavours to seize new economic opportunities in the fast-growing markets in Southeast Asia, South Asia, Latin America, Central Asia, the Middle East and Africa? Also, how do we protect the investments of Singaporean companies in these emerging markets? FTAs and Singapore's Competitiveness”
“Chairman, in the Asia Pacific region, the digital economy, including AI and the green economy, present immense growth opportunities. Southeast Asia's Internet economy is forecasted to reach US$1 trillion by 2030 and over five to six million new jobs are expected to be created through the green economy. In Singapore itself, we expect to create more than 50,000 green jobs by 2030. In 2023, MTI announced enhanced support under the Enterprise Development Grant for sustainability projects to support more firms in capturing new growth opportunities in sustainability as we transition to a green economy. Sir, there is no doubt that both the digital and green economies are growing in importance and Singapore's enterprises must seize these opportunities in these growth areas to further progress in these spaces. My question for the Ministry is: how does MTI plan to continue supporting our enterprises and capture future growth opportunities in the region and growth sectors, such as AI and the green economy? At the same time, given the promising growth potential in Southeast Asia, how does MTI plan to strengthen Singapore's links and collaborations with the region for new growth opportunities in green economy and AI, so that our businesses and people can tap on the opportunities beyond our shores? Facilitating Internationalisation Chairman, as we navigate through an increasingly interconnected global economy, we must recognise that our nation's growth is intricately linked to our ability to venture beyond our shores. Singapore, although small in size, possesses boundless potential. But to fully unlock it, internationalisation becomes not just a choice but a necessity for sustained economic growth.”
“Chairperson, officers serving in the Home Team are friends of our citizens today. A good example is the Neighbourhood Policing System. The Singapore Civil Defence Force has opened its doors and held open houses at many of its fire stations. The Home Team is people-centric and with this comes a higher expectation of service delivery standards – be it at a 999 or a 995 call or at service centres. My question for the Ministry is what plans does the Home Team have to enhance its service delivery to make these services more accessible for the public? Home Team Transformation and Manpower”
“Chairman, Singapore is a strong supporter and an active and founding member of ASEAN. Amidst a troubled global outlook, it is even more important for Singapore to take the lead and work with ASEAN member states to pursue a positive agenda and deliver substantive cooperation. Sir, the theme of Laos' 2024 ASEAN Chairmanship is "Enhancing Connectivity and Resilience". May I ask the Minister for Foreign Affairs: how does the 2024 Chairmanship theme and priorities align with Singapore's interests in ASEAN? Also, what can Singapore do to support Laos' Chairmanship through the year? Engaging the Middle East Chairman, the Middle East continues to be a key region of importance for Singapore and the world. Over the years, we have cultivated strong ties with many Gulf countries and have had frequent high-level exchanges. In August 2023, Singapore hosted the 8th Qatar-Singapore High-Level Joint Committee, which Qatar Prime Minister and Minister of Foreign Affairs Sheikh Mohammed Bin Abdulrahman Al Thani and Senior Minister Teo Chee Hean co-chaired. In October 2023, our Prime Minister visited Saudi Arabia and the United Arab Emirates. In December 2023, Sultan Haitham Bin Tarik made the first-ever State visit by an Oman Sultan to Singapore. If I may ask the Minister: how does Singapore plan to build on these high-level engagements to strengthen further our relations and cooperation with the Gulf countries? Also, what are some emerging areas of collaboration with the Gulf countries that have embraced economic transformation and diversification? Singapore's Relationship with Africa”
“Chairman, our NSmen play a significant role in Singapore's defence. Our men put their career aspirations on hold for two years and after NS, they continue to serve as Operationally Ready National Service (ORNS) duties. Balancing NS along with professional and personal obligations poses new challenges as they enter the workforce and even more competing pressures as they start families. All of us, including our employers, must play our part in ensuring that our NSmen feel supported and recognised for their activities and sacrifices. Deputy Prime Minister Wong announced a special cash credit for former and current NSmen in Budget 2024. In recent years, I have been heartened to see initiatives like the NS55 Recognition Package and the enhancement of the NS HOME Awards. But we can certainly do more. My question for MINDEF is: what role can employers play in supporting NSmen in recognising their contributions towards Singapore's defence? Also, can MINDEF also provide an update on what steps are being taken to ensure that NSmen receive recognition and are well taken care of in their service to the nation?”
“Also, I would encourage the Government to re-energise its financial literacy campaign. While some of our fellow citizens are sophisticated, intelligent investors, many still do not understand basic concepts, such as the long-term benefits of compound interest. I would also encourage the Government to formulate a detailed but simple delivery platform to explain these CPF changes to our senior citizens. We want every Singaporean to be well informed about the rationale for this move and how it will help them when the time comes for everyone in the near future. In summary, this is a Budget that directly confronts the reality that cost-of-living pressures exist for individuals while rising costs for businesses are a major challenge. It balances these two issues while reducing the risk of overheating the economy and increasing inflation. I believe this Budget will give businesses the necessary confidence to expedite their capital investment plans, which, in turn, will lead to growth in GDP and the creation of high value jobs. In my view, the most important aspect of this Budget is that it provides for significant increase in benefits for individuals and companies without any new tax increases and without any need for any short-term deficit financing. Maintaining fiscal discipline and protecting our Reserves is of paramount importance in what is likely to be a decade or two of rapid changes in the global economic environment with significant impact on a small, open economy like ours. Mdm Speaker, I wholeheartedly support this well-balanced, prudent Budget.”
“I also consider the most significant retirement-related move in the Budget to be the increase in the Enhanced Retirement Sum (ERS), which will enable members to receive more income from CPF Life. From 2025, the ERS – the maximum that can be put in the RA – will be raised to four times the Basic Retirement Sum (BRS). This is very significant in our society which is ageing fast and with many more Singaporeans living long, healthy and satisfying lives. With the higher ERS, a member can receive $3,330 a month from age 65 for life, against currently $2,530 at the current ERS level. With a prudent lifestyle, Singaporeans can retire and live gracefully in their golden years. However, I recognise the fact that for many of our fellow citizens, the most immediate goal is to reach the level of Full Retirement Sum (FRS), which remains at two times the BRS. In order to make the path to FRS and then eventually ERS less steep, my recommendation is for the FRS to be adjusted down to 1.6 times the level of BRS from the current 2.0 times. In dollar terms, from the current level of $213,000 to $170,400, a reduction of $40,600 in the threshold. The lowering of this threshold will allow many more of our fellow citizens to enjoy the higher payout that comes with meeting the FRS. Having some familiarity with how annuity payments are calculated and paid for, may I suggest that CPF LIFE and other annuity providers plan for these higher payouts for more citizens by increasing the duration of their fixed income portfolios? With interest rates at or close to the highest levels in the last decade, this is perhaps as good a time as any to increase the duration of their fixed income portfolios and enjoy the high rates that go with the longer duration.”
“The investment in schemes aimed at improving R&D and productivity, alongside advancements in AI and the nationwide broadband network will drive local productivity growth and attract foreign direct investments into Singapore. The RIE2025 plan, with the NPF and the Financial Sector Development Fund (FSDF) are strategic initiatives designed to cement our status as a global hub for innovation, technology and financial services. By fostering R&D, promoting the commercialisation of innovative technologies and enhancing productivity, these programmes ensure our competitive edge in a high-value, efficient economic landscape. More importantly, these initiatives are progressive, ensuring that businesses lacking expertise and the ability to integrate with pre-existing technologies remain competitive and included. Notwithstanding the uncertainties surrounding it, the implementation of Pillar Two of BEPS 2.0 on 1 January 2025 is a good strategic move for Singapore. Beyond low corporate taxes, Singapore offers a conducive investment environment with a skilled talent pool, a stable and business-friendly political climate, low crime rates, a robust judicial system and top-tier educational opportunities. These factors make Singapore an attractive hub for MNCs, even with a potential increase in corporate tax rates. I also want to highlight the measures in Budget 2024 to touch on a very important subject, which is enhancing the retirement adequacy of Singaporeans. The announcement for the closure of the Special Account and the transfer of the monies to the Retirement Account (RA) in 2025 is, in my view, a move in the right direction. There will be short-term pain for a few, while there will be medium-term and long-term gains for many.”
“Individuals are well-equipped with better skills, lowering unemployment rates and pursuing jobs in sectors that offer better financial opportunities for their families. Businesses benefit from an increased talent pool with qualified individuals ready to dive into their sectors. The extension of the credit to 30 June 2025 will also allow individuals more time to decide on the career paths more suited for them and consider additional expenses when deciding to attend the courses. However, it is very essential to bring along employers on board and change their mindset on investing in employees' training without fearing that they will leave after training. It is also important that employee training support includes workplace training, to improve the employability outcomes of our nation's investment in the training of our workforce. As Deputy Prime Minister Lawrence Wong has highlighted, the most sustainable way to counter inflation is by bolstering our productivity by investing in human capital. Not only will empowering individuals with new and improved skills enable us to elevate real income through productivity gains, this will also allow Singapore to be better prepared for the ever-changing economic climate as well as create an agile and relevant workforce to better solidify our position in the world as more than a financial hub. I also believe the minimum cash payout of $2,000 to all companies which employ at least one local employee is clearly a new feature that will benefit many Singaporeans. Madam, now let me touch on some of the other big-ticket announcements in Budget 2024.”
“The Corporate Income Tax rebate provides temporary relief, enabling businesses to sustain operations and employment. This intervention is a strategic move to alleviate financial pressures, encouraging firms to invest in productivity enhancements. This could lead to a more resilient business environment and a win-win situation for the Government and business owners through greater economic activity and increased tax revenues. The Enterprise Financing Scheme enhancements, including the SME Working Capital Loan increase and the enhanced maximum loan quantum for the trade loan, are also welcome developments. These adjustments will facilitate access to operational cashflow for SMEs and support businesses in internationalisation, ultimately reducing operating costs through leveraging comparative advantages in different sectors. These enhancements also facilitate businesses with greater access to financing and capital and to capture new growth areas. Introducing the SkillsFuture Level-Up Programme for Singaporeans aged 40 and above is a commendable step. Including the $4,000 SkillsFuture Credit top-up that fills the need for lifelong learning, even in times of inflation. This initiative, coupled with the Mid-Career Enhancement Subsidy and a monthly training allowance of up to $3,000 for up to 24 months will significantly motivate individuals to enhance their skills. I believe the SkillsFuture Credit top-up will not only nurture talent but also allow those unemployed to build skills in different sectors and improve their employability into new roles by pursuing full-time diplomas at polytechnics, ITEs or arts institutions. This provides a win-win scenario for both individuals and businesses.”
“Mdm Deputy Speaker, thank you for allowing me the opportunity to discuss the Budget as presented by the Deputy Prime Minister earlier this month. In my view, Budget 2024 cares for people, helps businesses focus their attention on improving, upgrading and expanding both locally and internationally while ensuring that business costs are better managed with Government assistance. Budget 2024 also boosts Singapore's premier position for attracting quality investments and helps create high-quality jobs for graduates coming out of our institutes of higher learning. The big question before all of us is the need to remain committed to achieving these objectives as one people, one nation, one Singapore. With a cautiously optimistic outlook for 2024 and the economic stability that many of our trading partners are experiencing, Singapore businesses can breathe a sigh of relief. However, Singapore needs to remain vigilant in view of the current geopolitical tensions. An escalation in any of the current conflicts could significantly impact a small, open, trade-reliant nation like ours, potentially affecting energy stability, inflation and global commodity prices. The business community welcomes many of the initiatives outlined in Deputy Prime Minister Lawrence Wong's Budget 2024 speech. Let me very briefly touch on some of them. The measures in the Budget to support and stimulate growth by managing rising business costs are greatly appreciated. The $1.3 billion Enterprise Support Package, which includes a 50% corporate income tax rebate capped at $40,000 and a minimum cash benefit of $2,000, will be particularly advantageous for our SMEs. Given the four consecutive contractionary quarters faced by SMEs in 2023, as reported by OCBC's quarterly SME Index, this package is timely.”
“Yes. If I may clarify, Speaker. What I had said, just to be very clear, is, if there is a discovery of the size of the overall Reserves which pushes the Government into extra populist policies, that will cause inflation. Meaning, the populist policies that are mandated will lead to inflation. So, that is my view. I do not think that is something that the Government can answer. They may totally disagree with my view.”
“I thank the Member Mr Leong. I did, because the more money you put into the overall money supply, whether the Government spends it or any private entity spends it, it will lead to inflation if the overall pool of assets does not change. We saw that in our real estate market in the recent past, where there was a significant inflow of perhaps international money. So, absolutely. Any new money that comes in that was not there, leads to inflation – which is, perhaps, the reason that any economic policy put forward by the Government needs to be watched very carefully.”
“Sir, I thank him for the comment. So, I will let that be.”