Committee of Supply – Head V (Ministry of Trade and Industry)

Head V (cont) –

Resumption of Debate on Question [3 March 2022],

"That the total sum to be allocated for Head V of the Estimates be reduced by $100." – [Mr Liang Eng Hwa].

Question again proposed.

The Minister for Trade and Industry (Mr Gan Kim Yong): Mr Chairman, we are now in the third year of the COVID-19 pandemic. Our enterprises and our workers have shown tremendous resilience, particularly our frontline workers and our healthcare workers, amidst a challenging and constantly evolving environment. Our strong economic fundamentals, such as our excellent infrastructure, our vibrant innovation ecosystem, our extensive connectivity to the region and the world, and our trusted and robust regulatory environment, also provided us the ballast to ride out the storm. Together, we achieved a strong recovery last year.

We rebounded from the worst recession since Independence, growing by 7.6% in 2021. In particular, the manufacturing, information and communications, finance and insurance and wholesale trade sectors recorded strong growth. We also remained attractive to global investors, securing commitments of $11.8 billion in Fixed Asset Investment and $5.2 billion in Total Business Expenditure in 2021. These projects are expected to create more than 17,300 jobs and close to $17 billion in value-added per annum. Labour market conditions have also improved considerably. Median real income grew by 0.9% after accounting for inflation and our resident unemployment rate has come down to 3.2%, which is close to pre-COVID-19 levels.

The Government has leaned forward to provide generous support to help enterprises through the past two years. We recognise that the recovery has been uneven across sectors and we will continue to extend assistance in a targeted manner. The Finance Minister announced that we will be supporting firms in sectors which have been most affected by COVID-19 restrictions, through a Small Business Recovery Grant (SBRG) of $1,000 per local employee, up to $10,000 per firm.

He also announced an extension of various loan schemes administered by Enterprise Singapore, to facilitate access to financing for Small and Medium Enterprises, or SMEs. We will also do more to give the tourism industry a further lift, as we prepare for international travel to return eventually. Minister of State Low Yen Ling will provide more details in her speech.

I am heartened that many of our enterprises do not want to just sit on their hands and wait for the pandemic to pass. Instead, they want to make full use of this time-out period, to uplift themselves and their workers, so that they are ready to sprint ahead when the pandemic subsides. Last year alone, Enterprise Singapore supported over 22,000 enterprises in their transformation efforts, an increase of 44% compared to the year before.

Transformation will become even more important in the years ahead. Ms Mariam Jaafar and Mr Edward Chia asked about the economic headwinds we may face in the coming years and what we are doing to enhance Singapore's competitiveness.

There are several major challenges. Our external environment is increasingly volatile and uncertain. Pandemics and extreme weather conditions are becoming more common. Technology and business cycles are shortening and changes in international economic regulations, such as the impending BEPS 2.0, will affect how we attract and anchor investments here. Geopolitical shifts, big power contestation and rising protectionism are also underway. The ongoing crisis in Ukraine is yet another reminder that peace and security, the foundation for economic growth, cannot be taken for granted.

As a small and open economy, we cannot insulate ourselves from these external factors. We will need to muster the agility and fortitude to adapt and stay ahead. As Ms Mariam Jaafar said in her speech, we must work hard to secure our position as a stable and trusted global business hub, which includes steadily reopening our borders, committing to a strategy of COVID-19 resilience and welcoming investments, ideas and people from all over the world.

We also face challenges at home. I know many are concerned about how doing business is getting more expensive and costly, as Mr Liang Eng Hwa pointed out. The Minister for Finance in his round up speech explained what the Government is doing to support businesses and assured the House that we will monitor the situation closely and step up our support if necessary.

While there are headwinds, there are also many exciting developments in key sectors across our economy. To position ourselves for growth and seize these opportunities, we must continue to invest in our fundamentals and build up strong capabilities in our enterprises and our people.

We have already started on this important work. The Future Economy Council is refreshing all 23 Industry Transformation Maps, or ITMs, to refine our transformation strategy up to 2025. Mr Sharael Taha, Ms Jessica Tan and Mr Pritam Singh asked about the progress of the ITMs. We are currently working closely with industry stakeholders, unions and academia to update our ITMs, to address emerging trends and opportunities. These include digitalisation, resilience and as Mr Sharael Taha suggested, sustainability. Jobs and skills, including the upskilling of workers, is also a key thrust of ITM 2025.

Let me use the Precision Engineering ITM as an example. The Precision Engineering ITM aimed to add 3,000 PMET jobs from 2015 to 2020. The sector is doing well and as of 2019, the number of PMET jobs in the sector has already increased by about 4,000. The ongoing ITM Refresh seeks to enable the sector to capitalise on digital manufacturing and create good jobs in growth areas such as additive manufacturing and robotics. The other ITM 2025 reviews are also in progress and will take into account the outcomes achieved from the earlier round of ITMs. More details will be shared when ready.

Ms Jessica Tan asked about growth and emerging opportunities and business sectors. For the longer term, we need a collective vision for the economy – the Singapore Economy 2030 vision – which will outline our ambition, provide direction and coordinate actions across key pillars of our economy. Together, these efforts will put our industries, enterprises and workers on a firmer footing for long-term, sustainable growth.

Let me share our vision for the four key pillars of the Singapore Economy 2030, namely services, manufacturing, trade and enterprises.

Let me start with the services sector, which Mr Don Wee talked about. Singapore has a large and diversified services sector. It represents more than 70% of our economy, comprising industries such as finance and insurance, information and communications, professional services and logistics.

The bulk of our services sector is export-oriented and has shown remarkable resilience through the pandemic. Looking ahead, there are two major waves of opportunities – sustainability and digitalisation. I will speak more on sustainability and our Green Economy Strategy, as part of the Joint Segment on the Singapore Green Plan, next week.

Digitalisation is a secular trend which will disrupt all our industries. Technologies such as blockchain, artificial intelligence and machine learning, as well as augmented and virtual reality, have the potential to fundamentally transform how we interact with the world around us.

As more companies accelerate investments in digitalisation, there will also be increased demand for services such as consultancy and marketing. For example, as businesses move online, companies will need the expertise of marketing services firms to create more personalised advertising campaigns with the use of data analytics and marketing technology, or "martech" tools, and to engage customers through immersive user experiences through gamification, and augmented and virtual reality. Firms will also need to build new capabilities through collaborating with partners from other industries to co-create multidisciplinary solutions, including in areas such as logistics.

I am glad to see many homegrown companies leveraging global opportunities afforded by the digital economy. Many of you would have heard of Nium, a Singapore-based fintech unicorn that builds white label cross-border payment solutions. Today, its software is getting money to people and businesses in over 190 markets.

Another example is AP Media, a Singapore marketing firm that specialises in interactive and video content production. At the height of the pandemic, AP Media developed a livestreaming and virtual conference tool which was used for Singapore's first virtual fashion show called "The Front Row". The online portal houses a 3D arena, which visitors can virtually navigate runway shows, panels, workshops and podcasts. AP Media's creative technology has since been deployed in several international projects, notably Louis Vuitton's fashion show and Razer's Global Virtual Conference.

Mr Edward Chia spoke about consumer-facing businesses. Digitalisation can also be a powerful transformation tool to help consumer-facing businesses. They help them improve productivity and to engage new customers. Sephora is a good example. Singapore houses Sephora's Digital Centre of Excellence in areas such as marketing, creative and design and data analysis. One of the solutions it created in-house here in Singapore is the Virtual Artist Kiosk, which relies on augmented reality to reflect the various lipstick colours on their consumers through a digital screen. Real-time analytics, such as user engagement and the popularity of products, are then channelled back to Sephora's platform.

Second Minister Tan See Leng will speak more about what we are doing to help firms seize opportunities in digitalisation.

Even as we invest in our services ecosystem, we will continue to build up a strong manufacturing sector. Thanks to our continued investments over the years, we have a thriving and competitive manufacturing ecosystem which exports products all over the world. For example, we account for 11% of the global semiconductor market and 20% of global semiconductor equipment is manufactured in Singapore. We are also a major player in the biomedical industry and pharmaceutical companies have been producing lifesaving drugs from Singapore to supply to global markets.

Mr Baey Yam Keng asked for an update on our Manufacturing 2030 vision and the opportunities in this sector. We launched Manufacturing 2030 last year, with the aim of increasing manufacturing value-add by 50% in 10 years. We have already made good progress. Last year, the sector grew very significantly by 13.2% and received $8.5 billion in total Fixed Asset Investment, creating over 6,000 jobs when these projects are completed.

Let me share with you a few examples where we are leveraging technology for manufacturing, in particular advanced manufacturing, to allow us to produce goods higher up in the manufacturing value chain.

GE Aviation Engine Services Singapore, which I visited last year, recently became the first maintenance repair and overhaul (MRO) facility in the world to use advanced additive manufacturing technology to repair airfoil components in commercial jet engines. This will further entrench its position as GE Aviation's largest site globally for engine component MRO and strengthen Singapore's aerospace industry.

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Advanced manufacturing in food-related value chains also offers exciting growth opportunities, especially in areas with strong synergy with sustainability. Plant-based food, for example, is projected to grow by 100 times by 2050 across the world.

Oatside is one such local plant-based startup and Singapore's first homegrown oat milk brand. It focuses on sustainable sourcing and production and is tapping on Enterprise Singapore's Market Readiness Assistance grant to gear up for expansion in Southeast Asia, Korea, Japan, China and the Middle East.

I thought Members would be excited to try this local product, so I have arranged for Oatside milk to be served in the dining areas here at Parliament. You can try the milk on its own or have it with some freshly made coffee from Hook Coffee, a local coffee company that has expanded significantly through leveraging e-commerce.

To make a further push towards our Manufacturing 2030 (M2030) ambitions, we will redouble efforts to grow a vibrant core of Singapore Global Manufacturers that are deeply innovative and can deliver distinctive offerings to their customers. Our economic agencies will provide bespoke support for manufacturers with strong potential, to deepen their capabilities and expand their global reach.

One example of a globally oriented Singapore manufacturer is Akribis Systems, a global leader in motion control solutions. Akribis owns core technologies in direct drive motor components, robotic actuators and linear stages which are critical to build high precision equipment for the semiconductor, electronics and medtech industries. Akribis is headquartered in Singapore and has a factory and innovation centre here. It has significant global reach, with its overseas businesses contributing to over 75% of its total revenue.

We must continue to strengthen Singaporeans' interest in manufacturing and develop a strong local pipeline of talent. We also need to ensure that Singaporeans can access the good job opportunities in the sector. To do so, companies need to offer attractive career progression pathways in line with technological changes and ensure these prospects are accessible and exciting.

We will therefore launch the M2030 Careers Initiative to work with the industry to achieve this, targeting especially our graduates from the Polytechnics and the Institute of Technical Education (ITE), who have been trained with industry-relevant skills.

To level up the industry's talent development capabilities, the Singapore Precision Engineering and Technology Association (SPETA) will work with industry partners such as the Singapore Semiconductor Industry Association and our Institutes of Higher Learning to develop a Manufacturing Employer Handbook. The Handbook will provide a range of human capital best practices and resources, to support companies in developing structured career development and progression pathways for their employees. SPETA will identify and work with at least 20 companies to pilot the adoption of these practices and pathways.

We are also working with companies to offer additional high-quality internship opportunities for students in the ITE. We aim to secure at least 200 places from 60 companies by the end of 2022. These internships can go a long way in shaping students' perception of the sector and kindle their interest.

One example is KABAM Robotics, a robotics solution provider headquartered in Singapore in the service robotics industry. KABAM currently has three interns in roles such as software and hardware development and is looking to bring on another five soon. One of its past interns, Ms Rachel Lim from the Temasek Polytechnic School of Engineering, was given the opportunity to work in the Products team to support the design, development and assembly of robots, as well as conduct performance testing and analysis. Rachel enjoyed her stint so much that she has decided to join KABAM as a full-time Product Engineer starting next week. I look forward to more of such conversion stories in the near future.

We will also work with selected companies to pilot the Accelerated Pathways for Technicians and Assistant Engineers Grant for Manufacturing, or APT(M) Grant. This will support companies to hire and train ITE graduates for critical technician and assistant engineer roles through on-the-job training, with career progression pathways and competitive salaries.

Let me now talk about trade. Given our small domestic market, global connectivity is essential to help our enterprises grow beyond our borders. As one of the world's leading business and transport hubs located in one of the most economically dynamic part of the world, we are in a very strong position to take advantage of growth opportunities in the region.

Ms Janet Ang asked how we will secure Singapore's status as a key node in the global trading network. Mr Edward Chia also asked how we are helping our companies seize regional opportunities. We are embarking on a few key moves.

First, we are proactively strengthening regional economic integration through ASEAN and other platforms. This is particularly important in a bifurcated world with increased protectionism and global competition. Greater regional cooperation and integration will not only enhance access to markets and create opportunities for our businesses, but also enlarge the economic pie for our entire region.

We are playing a leading role in key regional Free Trade Agreements (FTAs), such as the Regional Comprehensive Economic Partnership, or RCEP, which is the world's largest FTA, and as the Chair of the Commission of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, this year.

We will also continue to facilitate trade by shaping the rules of the game and setting high standards in emerging areas. We are pioneering new agreements, such as Digital Agreements, which facilitate cross-border data flows and digital trade, as well as Green Economy Agreements. We will continue to work with like-minded partners such as UK, South Korea, Australia, New Zealand and others, to secure benefits for our companies and our people.

Ms Mariam Jaafar asked about FTAs. It is important to help our enterprises, especially the SMEs, utilise and benefit from FTAs. Singapore's network of 27 FTAs has brought many benefits to our companies, including tariff savings, stronger intellectual property and investment protection, a more conducive business environment and increased regulatory transparency. We will continue to work with industry partners, including the Singapore Business Federation, to proactively engage SMEs and provide them with the necessary support to take advantage of our FTAs.

Second, we will embark on a Trade 2030 strategy to grow our trading volume, widen the types of trading activities in Singapore and expand trade with other parts of the world. From 2020 to 2030, we aim to grow our export value from $805 billion to at least $1 trillion and double our offshore trade value from US$1 trillion to US$2 trillion. We also want to capture more re-exports and transshipment flows, to embed Singapore more deeply into the global supply chains.

To achieve this ambition, we need to redouble our efforts to build a strong ecosystem in trading companies and activities.

We will boost our efforts to attract leading Global Traders and increase value capture for Singapore by anchoring more of their upstream, downstream and innovation activities here. These Global Traders will also serve as platforms to help other Singapore companies to break into overseas markets.

We will also accelerate efforts to grow a strong core of Singapore Global Traders, which are locally grown traders that command global scale and are highly innovative. To do so, Enterprise Singapore will tap on its full range of programme offerings, such as Scale-up SG and the Enterprise Leadership for Transformation Programme, and provide bespoke support tailored to each firm's unique circumstances and ambitions. These will cover areas such as talent development, innovation, internationalisation and financing.

For instance, Fish International Sourcing House (FISH), is a homegrown seafood trader and graduate of the Enterprise Leadership for Transformation Programme. It has established presence in over 90 markets. To grow its trading business further, the company plans to invest more than $20 million to set up a 240,000-square feet seafood processing and innovation centre in Singapore, which will enable it to seize new growth opportunities. In addition, FISH intends to almost triple its current headcount of 25 by hiring another 45 employees over the next few years. FISH is also poised to have an impact on our larger trading ecosystem by partnering Singapore enterprises and helping them break into new markets, by allowing them to leverage its existing strong overseas distribution network to grow.

Growing our trading volume will create good jobs for our people. The trading sector is one of Singapore's largest employers with over 300,000 employees in 2020, of which the majority are locals and close to 70% are PMET jobs. To take on the many attractive opportunities that will emerge from the continued growth of this sector, we must build a workforce with skills and knowledge needed.

We have embarked on a suite of workforce upgrading initiatives for the trade sector, such as the creation of a Jobs Transformation Map and a Career Conversion Programme for Wholesale Trade Professionals. In addition, we are working with industry and the Institutes of Higher Learning (IHLs) to develop more talent in the trading of commodities such as Liquified Natural Gas (LNG) and carbon credits.

Let me now talk about enterprises. Our Singapore Economy 2030 vision needs to be supported by a vibrant ecosystem of Singapore enterprises that are future-ready, globally competitive and possess deep innovative capabilities. These enterprises will then create new jobs and meaningful careers for Singaporeans.

We will therefore embark on an Enterprise 2030 strategy, to scale up efforts to identify and support promising local businesses, including through the Singapore Global Enterprises initiative to support their growth into global champions. Second Minister Tan See Leng will elaborate on the concrete steps that we will be taking.

Our Singapore Economy 2030 vision would be neither achievable nor meaningful, if it is not anchored on an unwavering belief in uplifting our people. Enterprises also need a strong workforce with the right skillsets and capabilities to succeed.

Mr Liang Eng Hwa, Mr Shawn Huang and Mr Saktiandi Supaat asked how the Government is building a future-ready workforce. This must be a whole-of-economy effort with close coordination and collaboration between workers, companies and the Government. The Minister for Education Mr Chan Chun Sing and Minister for Manpower Dr Tan See Leng will be elaborating on initiatives to develop our local workforce, and help displaced workers upskill and reskill, so that they can continue to fulfil their potential by taking on new job roles or moving to emerging sectors in a nimble fashion.

I agree with Ms Janet Ang that company-led training (CLT) is critical. Companies need to step up, to consistently and persistently invest in human capital to recruit, retain and nurture talent. Workers too need to play their part and be open to learning new skills and adapting to new roles.

As the Minister for Finance announced in the Budget speech, we have relaxed the eligibility criteria for the SkillsFuture Enterprise Credit (SFEC) for one year, to enable more small and microenterprises to tap on the credits and upskill their workforce.

There is simply no substitute for well-structured on-the-job training. Besides ensuring that workers are trained in relevant skills, such investments by employers can also help create a highly engaged and productive workforce.

I agree with Ms Foo Mee Har that initiatives like the Company Training Committees, or CTCs, play an important role in this regard. NTUC Deputy Secretary-General Chee Hong Tat had earlier spoken at length about how CTCs have supported companies in their transformation efforts during the Budget debate. I would like to assure Ms Foo that even smaller companies such as SMEs can also benefit from CTCs.

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One example is Vicinity Studio, a local content production company founded in 2017. The company worked with its union – the Creative Media and Publishing Union, or CMPU, and the NTUC Training and Placement ecosystem to conduct an Operations Technology Roadmap, and developed a three-year workplan to transform its business and workforce. This helped Vicinity take steps to improve its HR capabilities and staff competencies. The studio has since grown its business and hired 13 additional new staff, some of whom are interns and SGUnited Trainees.

I urge enterprises to tap on these available resources and work with us to strengthen our economy and workers together.

Sir, let me conclude. Our enterprises and workers have come far in the fight against the pandemic. The pandemic is not yet over, and the future will continue to surprise us and challenge us in more ways than one. The conflict in Ukraine will add bumps on our road to recovery and growth. But let us look ahead into the future with confidence and resolve. We will need to work hard to build on our strong fundamentals, strengthen our agility to respond to uncertainties and amass the fortitude to make adjustments that can be painful in the short run, but will pay handsome dividends in the long run.

The chapters of our Economy 2030 vision are filled with exciting stories waiting to be written. As we continue our work to grow and develop our economy, we can look forward to a wide spectrum of new career and business opportunities for our workers and enterprises to explore. Some of these may not even exist today.

As long as we continue to stand together as one, as we have done through the pandemic, and look upon the future with a spirit of enterprise and discovery, I have every confidence that we will make progress towards building a future economy that will meet the aspirations of our workers and companies, and inspire generations of Singaporeans to come. [Applause.]

Mr Speaker: Second Minister Tan See Leng.

The Second Minister for Trade and Industry (Dr Tan See Leng): Our local enterprises are a critical part of Singapore's growth story. They account for almost 70% of jobs in Singapore and have the potential to help us venture into new growth areas, create solutions for the world and reimagine Singapore's economy.

Riding on global economic recovery last year, we registered a strong economic performance and we had projected GDP growth of 3% to 5% for 2022.

Minister Gan has earlier shared in this House that it is still too early to estimate the actual impact on Singapore's economic growth this year, given the conflict in Ukraine. The situation is fast evolving and there will be greater uncertainties.

In an increasingly volatile environment, the only way to navigate these challenges is to strengthen our resilience and accelerate our transformation.

Despite the pandemic, many of our local enterprises have not sat still. They have pressed on with transformation and they are now in a stronger position to rebound and capture growth. They have sought to turn the crisis into an opportunity of a generation.

This is the spirit that will power the Enterprise 2030 strategy.

Ms Jessica Tan and Ms Janet Ang asked how we are supporting our local enterprises to grow and compete globally. The Enterprise 2030 strategy is our response to ensure that we build and sustain a vibrant ecosystem of Singapore enterprises that are future-ready and possess deep capabilities to compete globally.

We will achieve this in two ways. First, we must support the growth of high potential companies to become global champions. Second, we will strengthen the core capabilities of the broader base of local enterprises in industry transformation. Let me elaborate each of these strategies.

Over the last few years, we have witnessed the emergence of a new generation of local champions.

We now have 22 homegrown startups that have reached unicorn status. Many of our homegrown companies such as Secretlab, Hegen and Nanofilm, have made a name for themselves internationally. These are the bright spots in our enterprise landscape.

We will intensify our efforts to identify, nurture and to grow many more promising local enterprises. To do so, we will launch an initiative to cultivate a new generation of "Singapore Global Enterprises" which are locally grown and globally competitive.

Both ESG and EDB will provide more bespoke and enterprise-centric assistance to enterprises with strong growth potential and global ambitions which are tailored to their specific needs and individual growth ambitions.

We will also harness resources across whole-of-Government and our partners to support each of these high potential enterprises in areas such as innovation, internationalisation and fostering partnerships with other firms.

For a start, we will enhance our support for these high potential companies in four ways: firstly, developing global-ready executives; secondly, creating new corporate ventures; thirdly, facilitating Mergers and Acquisitions; and fourthly, creating enhanced access to financing.

Mr Shawn Huang and Mr Saktiandi Supaat asked how we will continue to ensure that firms have access to the talent they need. As Mr Liang Eng Hwa have pointed out, the answer lies in "growing our own timber", providing the space and opportunity to nurture and support Singaporeans to be part of the growth stories of many more promising enterprises.

We will launch the Singapore Global Executive Programme (SGEP) to boost the human capital capabilities of our high potential local enterprises and support them in talent attraction and retention, as well as leadership succession programmes to develop a pipeline of future leaders, not just locally, but globally.

We have also been exploring new ways to support companies in creating new business ventures. Last year, EDB launched the Corporate Venture Launchpad, which is a pilot programme to support companies to incubate and launch new businesses within a six-month sprint. As part of this programme, Keppel Land is venturing into digital well-being, companion care and connectivity solutions for eldercare, in line with its ambition to become a leading player in the Senior Living sector. Given the positive feedback from the pilot programme, we will expand the Corporate Venture Launchpad to support a wider range of companies.

We know that it takes courage, it takes gumption to scale a business. To help our enterprises on this journey, EDB will be launching a Mergers and Acquisitions (M&A) grant to co-fund the qualifying spend on Singapore-based professional and financial advisory services incurred on the M&A deal.

We have also launched three funds recently to provide capital to accelerate the growth of our enterprises, broaden the range of fundraising options and help them work towards an eventual public listing or liquidity event in Singapore. These funds are the Local Enterprises Fund @ 65 and the Anchor Fund @ 65 which are set up in partnership with Temasek, as well as the Growth IPO Fund managed by EDBI.

Ms Jessica Tan asked about the progress of the Local Enterprises Fund. 65 Equity Partners, a wholly owned investment platform of Temasek, has been managing this fund and engaging promising local enterprises. We have seen good interest in the fund since its launch. But these are still early days and many of these plans will take time and a certain runway to finalise.

Let me now move on to my second pillar of Enterprise 2030 – to strengthen the core capabilities of our local enterprises.

We will step up efforts to help the broad base of SMEs in four key areas: one, capabilities development; two, internationalisation; three, digitalisation; and four, innovation.

First, in capabilities development. We have rolled out a comprehensive suite of programmes to support our enterprises and workers. I will elaborate on our key shifts.

Ms Jessica Tan, Mr Edward Chia and Ms Janet Ang asked how the Government will foster stronger partnerships between MNCs or Large Local Enterprises (LLEs) and SMEs to seize new opportunities.

We will work with SkillsFuture Singapore to onboard MNCs and large local enterprises who are "Queen Bees" to curate industry-relevant training courses in emerging growth areas, such as robotics and Industry 4.0.

Another initiative is the PACT scheme. PACT stands for Partnerships for Capability Transformation. Under this scheme, we have supported collaborations between large companies and smaller SMEs through co-innovation, internationalisation projects as well as costs of supplier qualification processes.

Since its inception in 2010, the Government has set aside more than S$150 million to support these projects which have benefited over 2,000 Singapore-based companies.

I am happy to announce that we will be extending the enhanced support levels for PACT to 31 March 2023. Companies can qualify up to 70% for manpower and consultancy costs and up to 50% for hardware and equipment costs. I strongly urge interested enterprises to get in touch with our agencies for more details.

Second, on the internationalisation thrust. I thank Ms Janet Ang for her suggestion that LLEs can take a step further to lend their networks to create business opportunities for local enterprises. We have been working with many LLEs to do so and we will adopt a more concerted "Team Singapore" approach in our internationalisation strategy and bring onboard SMEs to collectively access overseas markets.

I am encouraged that 1,600 local enterprises embarked on internationalisation projects last year. This is in spite of current travel restrictions. Many of these enterprises have gained a foothold in key markets through our support networks such as the GlobalConnect@SBF, as well as leveraged on ESG's international matchmaking platforms, such as the Open Innovation Network to connect and co-innovate with other industry players. We will intensify efforts through these international partnerships and networks to help SMEs deepen their presence in key markets and pursue opportunities in new ones.

Third, digitalisation. Ms Jessica Tan, Mr Liang Eng Hwa and Mr Desmond Choo asked how we are helping firms to digitalise, strengthen capabilities and capture new opportunities in the digital economy.

One way we are doing so is through the SMEs Go Digital initiative, which supports SMEs in the adoption of digital solutions for basic business functions, online transactions and other more advanced solutions. More than 80,000 firms have benefited from the initiative since it was launched in 2017. In addition, firms can also tap on funding support from ESG's Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG).

As announced in the Budget Speech, we will expand the range of solutions under the PSG, to include new technologies and more sector-specific solutions to deepen capabilities in areas, such as cybersecurity and data analytics, which will increasingly become essential skillsets.

I would like to thank Mr Desmond Choo, Ms Foo Mee Har and Mr Derrick Goh for their feedback to strengthen the digitalisation capabilities of our SMEs.

On Mr Desmond Choo's suggestion to help SMEs tap on a pool of tech talent, this is exactly why IMDA has launched the Chief Technology Officer-as-a-Service (CTO-as-a-Service) scheme. As the name suggests, SMEs can engage a pool of digital consultants for in-depth advisory and project management services. MCI will share more on the digitalisation initiatives later on, today, at the Committee of Supply (COS) debate. We will also study Ms Foo Mee Har's suggestion to replicate the CTO-as-a-service scheme to other functions.

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On Mr Derrick Goh's point to provide more holistic support for companies, I want to highlight that the schemes I mentioned earlier are part of a comprehensive suite of tools to support our enterprises in each stage of their growth. Indeed, more can be done to raise awareness and help our SMEs understand how the various tools can support their needs, as mentioned by both Ms Rahayu Mahzam and Mr Shawn Huang. I encourage enterprises to reach out to Enterprise Singapore and our network of SME Centres for free one-on-one business advisory.

Last, but not least, innovation. Mr Desmond Choo and Mr Liang Eng Hwa asked how the Government is supporting enterprises in their innovation and R&D journey. Under our RIE 2025 plan, we will sustain investments in research, innovation and enterprise at 1% of Singapore's GDP, or $25 billion, from 2021 to 2025.

Over the years, we have taken a more enterprise-centric approach to help SMEs build their innovation capabilities and translate their innovations into new products and services. Since 2003, more than 950 A*STAR research scientists and engineers have been seconded to support over 850 local SMEs in product development as part of A*STAR's Technology for Enterprise Capability Upgrading programme, or T-UP. ESG has also enhanced its Innovation Advisors Programme to partner industry veterans with SMEs to commercialise their research. These are significant efforts to help our SMEs scale up their capabilities in-house.

We have also reaped the fruits of our labour. In the fight against COVID-19, the A*STAR's Experimental Drug Development Centre (EDDC) collaborated with the Diagnostics Development Hub and Tan Tock Seng Hospital to develop the Fortitude COVID-19 test kit, the first lab diagnostic kit to receive Provisional Authorisation from Singapore's Health Sciences Authority (HSA) for clinical use. The Fortitude kits have been deployed in Singapore and more than 40 countries globally.

Apart from COVID-19-related innovations, we are also encouraged to see more local firms innovating and moving up the value chain. I visited another local startup, ION Mobility, last year to unveil its flagship product, the ION Mobius. It is a smart electric motorbike which was conceptualised, designed and assembled in Singapore. In fact, its proprietary battery pack allows riders to cover a distance of up to 200 kilometres on a single charge. And its interface settings can also be changed with the rider's smartphone.

We have invested substantial resources and efforts in building innovation capabilities, and I agree with Mr Desmond Choo that, beyond Government support, importantly, our enterprises must also embrace the spirit of innovation as a core capability. I am excited to see how our enterprises will push the boundaries to create solutions for the world.

After having set out our longer term plans, I would like to address some of our near-term challenges. The Minister for Finance and Minister for Trade and Industry have touched on many of these issues. I would like to explain how we are addressing rising electricity prices and manpower constraints.

Mr Liang Eng Hwa asked about the impact of the Russia-Ukraine conflict on our energy supply. Mr Derrick Goh also asked how we are supporting consumers due to rising energy prices and whether these measures could be extended. While Singapore's sources of fuel are diversified and the conflict in Ukraine poses limited direct risks to our supplies, we will be affected by the high or volatile global gas prices arising from the conflict.

However, I would like to assure all consumers that we will spare no effort to ensure that Singapore's energy supply remains secure and reliable. As the Minister for Trade and Industry and I have explained in this House, MTI and EMA have put in place various measures to safeguard energy security and to help consumers cope with rising electricity costs. These include ensuring that generation companies have sufficient fuel reserves, establishing a Standby Fuel Facility which generation companies can tap on to produce electricity and working with the generation companies and electricity retailers to offer fixed price contracts under the Temporary Retail Electricity Contracting Support (TRECS) scheme. EMA is also working with them to offer longer term fixed price contracts to consumers who wish to have more price stability. We have since extended TRECS from March to May 2022 and we will extend it further if necessary.

I understand the cost pressures faced by households and businesses. We will continue to monitor market developments and will not hesitate to introduce further measures, if necessary, to support vulnerable consumers. Eligible households will continue to receive U-Save rebates to support them with their utility expenses and businesses which need financing support can tap on the loans offered by ESG.

I agree with Mr Liang Eng Hwa that we can enhance energy efficiency and reduce energy consumption. In fact, we have rolled out a series of measures to encourage consumers to do so by redesigning electricity bills to benchmark individual consumption across other similar users and mandating energy-intensive companies to implement energy conservation and energy management practices. However, we cannot embark and succeed on this journey alone. We urge all consumers to use energy prudently and adopt energy conservation as a way of life.

I would like to assure this House that even as we address the near-term challenges in the energy sector, we remain committed to planning for the future. We are pressing ahead with our efforts to advance the energy transition and decarbonise the power sector. Minister Gan Kim Yong will elaborate more on this in the Joint Segment on the Singapore Green Plan.

Let me now turn to manpower. Domestically, the labour market in Singapore has tightened over the past year due to economic recovery and international border restrictions. Many businesses continued to find it challenging to access the manpower they require, especially in areas where there are skill shortages. As Mr Shawn Huang and Mr Saktiandi Supaat pointed out, access to highly-skilled manpower is a critical challenge we must overcome together, given our ageing population, economic uncertainties and the competition for global talent.

Therefore, we have made various adjustments to our foreign worker policies to be more targeted and selective in bringing in high-quality and diverse foreign workforce to complement the local workforce. Mr Cheng Hsing Yao asked whether our foreign workforce policies are dynamic and flexible enough to meet our economic needs. Indeed, this is critical.

For example, we had recently launched specific schemes, such as the Tech.Pass and Tech@SG to provide firms with access to specialised talent. These schemes have been well-received by companies, with around 180 Tech.Pass holders and more than 50 firms on Tech@SG. We will continue to actively monitor and review these schemes to ensure that they are effective. I will also share more on the refinements to address skill shortages later on this afternoon at MOM's COS debate. Mr Chairman, in Mandarin, please.

(In Mandarin): [Please refer to Vernacular Speech.] We are committed to support our local enterprises to leverage growth opportunities in a post-COVID-19 world. Beyond targeted measures to address immediate cost pressures and greater uncertainties brought by the conflict in Ukraine, we need to accelerate industry transformation efforts in the light of the larger transformation and restructuring of our global economy.

As part of our Enterprise 2030 strategy, we will encourage and support the growth of high potential companies to become global champions and strengthen the core capabilities of the broad base of SMEs. In particular, we will intensify efforts in capability development and supporting internationalisation, digitalisation and innovation in our local SMEs. We will support our SMEs on this journey, so that we can seize opportunities, achieve breakthroughs and build a more resilient and vibrant economy together.

(In English): We have set out our strategy under Enterprise 2030 which will allow us to set our sights further, plan for the longer term and put in place the building blocks right now. Importantly, we will need to continuously innovate, think outside the box and transcend our own physical boundaries and constraints to seize the opportunities of the future economy.

I strongly urge and encourage our enterprises to equip themselves for the future, press on with transformation and set their sights to become the next Singapore Global Enterprise. The Government will continue to support them in this journey. [Applause.]

The Minister of State for Trade and Industry (Ms Low Yen Ling): Chairman, we have gone through two long and hard years since the start of the COVID-19 pandemic. Despite the challenging and uncertain business environment which upended lives and operations, Singapore enterprises have shown incredible resilience and mettle to transform and thrive in the new normal.

As encouraged by Minister Gan Kim Yong and Second Minister Tan See Leng, we have the chance to seize the new opportunities that are before us and to forge a new path forward for our economy. Let me elaborate on our plans to support our businesses as we chart the path ahead together. We will leave no stones unturned to enable our people and businesses to emerge even stronger than before.

First and foremost, we know that access to financing is the lifeblood of business survival and growth. To ensure that our enterprises have ready access to financing at various stages of their development, the Government has put in place a range of support measures specifically for this purpose. In the last two years, close to 28,000 companies have secured financing from the Enterprise Financing Schemes (EFS). And we will do even more.

As the Minister for Finance Mr Lawrence Wong recently announced in Budget 2022 just two weeks ago, we will extend the Temporary Bridging Loan Programme (TBLP), as well as the enhanced EFS Project Loan (EFS-PL) and EFS Trade Loan (EFS-TL). We will also be making further enhancements to schemes, such as the EFS Merger and Acquisition (M&A) scheme. These improvements come on the back of industry feedback and engagement.

One company that has benefited from the EFS M&A scheme is GKE Corporation Ltd. This is a third-party logistics provider that provides warehousing, freight services, transportation, marine logistics and port management services. They took up an EFS M&A loan of $6 million to fund the acquisition of a chemical tolling company. This strategic acquisition will help GKE acquire deeper technical expertise in specialty chemical manufacturing and capture a broader segment of customers as a market leader for chemical logistics.

To support more companies like GKE in their growth plans, we will be expanding the EFS M&A Programme to include domestic M&A activities from 1 April this year to 31 March 2026.

In addition, we will provide fresh avenues of financing for the green economy. The Enterprise Sustainability Programme (ESP) that was just launched last October has an Enterprise Financing Scheme component called EFS-Green, designed to help our local enterprises capture opportunities and develop capabilities in sustainability. Sectors involving Clean Energy, Circular Economy, Green Infrastructure and Clean Transportation are well-placed to tap into this source of funding.

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These enhancements to keep the financing tap on will reassure Ms Rahayu Mahzam that companies can access the vital support they need to seize green shoots of opportunities and tide through the pandemic. We will continue to monitor the schemes' efficacy and fine-tune them to give our local companies our fullest support.

Apart from financing, I would like to assure Mr Shawn Huang and Ms Rahayu Mahzam that our enterprises have a one-stop portal called GoBusiness to rely on for all the latest information and e-services for doing business in Singapore. In addition, by answering a few simple questions on the portal, they can receive tailored recommendations from its e-Adviser feature – from the kind of Government grants suited for their transformation journey, to how to start and grow their business.

As of January 2022, close to 43,000 businesses have used the GoBusiness portal to apply for Government assistance, and over 56,000 have benefited from the e-Advisers' personalised recommendations. We encourage our companies, entrepreneurs and business owners to make full use of this business-friendly online resource.

On this note, I want to assure Mr Derrick Goh that while the Government aims to achieve greater efficiencies through technology and streamlining processes, we are also mindful of the need to ensure an inclusive playing field of opportunities. We hear his concerns that the use of the demand aggregation procurement by VITAL could limit opportunities for SMEs to be appointed on the Government's panel of suppliers and providers.

In the demand aggregation tender involving the events management industry late last year, a decision was made after feedback from the industry, to structure the contract such that, in addition to lower financial barriers, smaller event management companies could have a chance to be appointed onto this panel. This also led to a doubling in the number of bids attracted. So, I want to assure Mr Derrick Goh that, wherever it is appropriate, we aim to structure the procurement in such a way that a range of suppliers of different profiles and sizes can take part, so as to offer business opportunities for as many enterprises as possible.

Chairman, COVID-19 has hit some sectors very hard and we will continue to avail support to those that need it. As Mr Edward Chia pointed out, consumer-facing businesses are bearing the prolonged impact of the pandemic. The Small Business Recovery Grant (SBRG) will provide up to $10,000 per firm in the most affected sectors to help these SMEs regain their footing and build back their strength.

In the last two years, the food services and retail sectors have battled waves of disruptions time and time again, from restrictions to closures, to changing consumer preferences and also pressures to digitalise, as well as manpower shortages. With the accelerated pace of change and the fast-emerging consumer trends, the food and retail sectors have to continue to transform themselves.

Today, I am happy to announce that we will be introducing the $70 million Food Services and Retail Business Revitalisation Package to help our food services and retail companies overcome these challenges. We want to help them recover, we want to help them get stronger and we want to help them forge ahead with new strength.

The new Food Services and Retail Business Revitalisation Package will: one, extend crucial support for our businesses in these sectors to improve their productivity and equip them with the capabilities to pivot and transform, so as to stay competitive and relevant; and two, help our food services and retail companies to beef up their manpower in the hiring and training of locals.

Hence, we will extend the 80% support level of the Enterprise Development Grant (EDG) and relevant solutions under the Productivity Solutions Grant (PSG) for the food services and retail sectors till 31 March 2023. This extension under the Food Services and Retail Business Revitalisation Package will give our F&B and also our retail businesses more scope and more opportunities to adapt and transform and better position themselves for the future.

Let me share one example. Since 2020, Dian Xiao Er – I think this is a name that some of us are familiar with – has tapped on the EDG for three projects to enhance their central kitchen. One of the projects involves the development of a first-of-its-kind automated duck conveyor system, which then helps to cut the preparation time for 1,500 ducks by about one-third. I note that it is 12.00 noon and for me to talk about 1,500 ducks, I think, is very tempting to the Members in the Chamber. But back to this example.

With less manual work that is required in the duck preparation process, Dian Xiao Er retrained their staff to take on other roles. What other roles? For example, by taking on duties in their manufacturing central kitchen. The company estimates that these three EDG projects have saved them at least $60,000 per month on operating costs. By sharing this example, I hope that our food services and retail companies will make full use of the newly introduced $70 million Food Services and Retail Business Revitalisation Package to enable more such companies like Dian Xiao Er to continue pursuing their business transformation efforts, so as to stay competitive and future-ready.

Chairman, we also recognise that manpower challenges continue to feature at the top of the food services and retail sectors' concerns. Together with industry associations, such as the Restaurant Association of Singapore (RAS) and the Singapore Retailers' Association (SRA), we will double up on our efforts to support the hiring and training of local jobseekers.

This will include promoting local talent development programmes, such as the SGUnited Career Pathways scheme and the Career Conversion Programmes (CCPs), as well as intensifying our outreach to jobseekers and supporting the sectors' training needs.

I am also pleased to update the House and Mr Edward Chia that all Government landlords and major private sector landlords have adopted the Code of Conduct for the Leasing of Retail Premises since 1 June 2021. We can look forward to updates to the Code from the FTIC, which is the Fair Tenancy Industry Committee, in the coming weeks. These updates will then provide us with additional clarity and details on the implementation of the Code as its legal enactment gets underway.

Chairman, our tourism sector keeps Singapore connected to the rest of the world and maintains our position as a global-Asia node. COVID-19 has hit the tourism sector very hard. But despite the challenges, we have continued to quickly adapt and pivot to new propositions to come back even stronger. We will continue to support our tourism sector's efforts to recover, innovate and to come back stronger than before.

To answer Mr Shawn Huang's questions about our plans to support our tourism sector's recovery, allow me to share some of our strategies and plans.

First, Singapore Tourism Board (STB) will accelerate its SingapoReimagine international recovery campaign, in tandem with the resumption of international travel. STB is now working with a wide range of partners around the world, such as airlines, travel agents and media outlets, to maintain Singapore's position as a global-Asia node to attract more travellers here.

Second, we will help tourism companies develop attractive new products and experiences. Members will remember the SingapoRediscovers Vouchers (SRV) scheme last year, which generated nearly $300 million in SRV-related bookings and transactions and up to $100 million in ancillary spending. The SRV was part of a larger effort, which is the SingapoRediscovers campaign, which is still ongoing.

Through this campaign, STB works with hotels, attractions and tour operators to create new products and experiences that appeal not only to Singaporeans but also to visitors when they return to Singapore. For example, the tour operator Let's Go Tour Singapore developed new and unique programmes in the course of the SRV scheme and, as a result, they enjoyed a three-fold jump in their revenue compared to pre-COVID-19 times. STB will continue to engage and also support tourism companies so that Singapore will have a broader and richer range of unique experiences and products that differentiate us from other cities.

Third, we will defend our position as a leading destination for high-quality business and leisure events. We hit a "pause" button on these because of COVID-19, but STB is now gearing up to resume large-scale, and also, high-quality business and leisure events from this year. I think Members will remember, just two weeks ago, the Singapore Air Show 2022. It welcomed an estimated 13,000 trade attendees and almost 600 exhibitors from over 39 countries.

Later this year, we will welcome many more industry-leading events, such as the Global Health Security Conference 2022, the FIND – Design Fair Asia 2022, as well as the Formula 1 Singapore Grand Prix and the Standard Chartered Singapore Marathon. These events will not only directly benefit the tourism sector but will also ensure that Singapore remains a "top of mind" destination.

Fourth, we will continue to co-curate innovative tech and digital solutions with the tourism sector. Over the past three years, STB's Singapore Tourism Accelerator Programme supported 34 promising tech startups in developing solutions to future-proof the tourism industry. Let me quote one example.

One of them is Bazaar and this is a local startup which offers augmented reality solutions. Bazaar developed gamified wayfinding solutions for Marina Bay Sands to enhance its customer engagement. And beyond the Accelerator Programme, Bazaar is now planning to tap on opportunities in the metaverse to support tourism businesses in developing immersive experiences for their customers.

Fifth, we will double down on efforts to upskill the tourism sector workforce to ensure that tourism workers are ready to meet changing job demands. Over the last two years, STB and Workforce Singapore (WSG) supported over 140 tourism companies through various CCPs. This helped more than 1,300 workers take on redesigned and enhanced roles. STB has also set up the Tourism Careers Hub pilot jointly with NTUC and the five main travel Trade Associations and Chambers (TACs) to provide job facilitation, skills training and also, business transformation.

Chairman, to complement the suite of support that the Government has directly rolled out to businesses, we will continue to work with partners, such as the TACs. on collective actions to transform and better position our industries for the future.

As the eyes, ears and mouth for their members, TACs play an important role in the sectors that they represent and this was a point that was highlighted by many of the Members yesterday – Mr Raj Joshua Thomas, Ms Janet Ang and other Members as well. I am always of the view that the TACs' roles actually can be easily summarised by "ABC". Why? Because "A", the TACs advocate their members' interests; "B", they help their members by bridging the communications between the members and the Government; and "C", they help their members by collaborating with others, including from other sectors to capture new opportunities for the industry.

Two months ago, I attended the launch of the TAC Competency Framework and the TAC Growth Model. I note that Mr Raj Joshua Thomas also highlighted this in his speech yesterday. The Framework and Growth Model were developed by the Singapore Chinese Chamber of Commerce and Industry (SCCCI) with the support of the Singapore Business Federation (SBF), the Enterprise Singapore (ESG) and the SkillsFuture Singapore (SSG). Through this initiative, SCCCI and SBF aim to reach out to at least 150 TACs on upskilling their secretariats, to raise TACs' capabilities and to add value to their business members.

I would like to assure Ms Janet Ang, Mr Raj Joshua Thomas and Mr Derrick Goh that this year, the Government will redouble our efforts to uplift TACs by building their capabilities, developing their leadership and also enhancing their talent attraction strategies. I would like to announce three new programmes that aim to uplift TACs' capabilities, especially in digital adoption and leadership development.

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Firstly, to help our TACs digitalise, SBF will partner SGTech to launch the Digitalisation of TACs programme or, in short, Digi-TAC. Eligible TACs can access a range of digital solutions and training courses that is curated to equip TAC staff with basic e-capabilities that will help raise their productivity and efficiency.

Secondly, SBF will launch a new TAC Fellowship Programme to enable TACs to develop their leaders and build a leadership pipeline. We will support secretariat members and TAC leaders nominated by their TACs to attend the TAC Leadership Development Programme, so as to boost their leadership capabilities.

Thirdly, to boost the TAC talent pool, SBF will, with support from Enterprise Singapore and SCCCI, develop a TAC Leadership Accelerator Programme. This programme seeks to attract talented, high-performing mid-career professionals with industry-relevant experience to join our TACs and to take industry transformation efforts to a higher plane. To become effective leaders in industry development, the candidates will undergo a mix of classroom training and mentorship programmes and also gain on-the-job experience in the participating TACs.

I am very heartened that SBF, as the apex business chamber, has stepped forward as an anchor and advocate for a stronger TAC community to help our businesses grow. More details on the new programmes will be made available this year.

Chairman, in the area of partnerships with the industry, MTI is working closely with the different industry representatives to form the Committee Against Profiteering (CAP). I am grateful that many Members of the House welcomed the aims and the work of the CAP that Minister Lawrence Wong announced during the Budget two weeks ago.

I want to assure Mr Sharael Taha that CAP will investigate businesses that raise prices of essential products and services unjustifiably using the GST increase as an excuse. I have heard many Members during the Budget debate talk about this and they have rightly pointed out that with the global spectre of inflation, some businesses may have legitimate reasons to raise prices. So, our job in the CAP will be to look into errant practices that are flagged out by the public and bring to task those who unfairly profiteer using GST increase as a reason. We want to ensure that businesses keep their prices transparent and do not misrepresent the reasons for any of their price increase. The committee will share more details on its work in the coming weeks.

I would also like to take this opportunity to thank Consumers Association of Singapore (CASE) and its President Mr Melvin Yong for the strong partnership in safeguarding the interests of our consumers. We assure Mr Melvin Yong that we will review the constructive suggestions that he made yesterday to strengthen our consumer protection regime. We will work closely with CASE and the industry to better protect and empower consumers and at the same time, create greater opportunities for businesses in Singapore.

Chairman, I would now like to take the opportunity to touch on another important group of businesses, one that is very close to our home, one that is very close to our hearts – our heartland enterprises.

Mr Shawn Huang said it very well yesterday during the delivery of his cut. He said that our heartland enterprises are the heartbeat of our community and I completely agree with him because the shops in our heartlands form a central thread of Singapore's social fabric and our everyday lives. Many Singaporeans grew up with these "mom and pop shops". They play an important role in our neighbourhood, providing convenience and affordable goods and services at our doorstep, as well as jobs for Singaporeans near their homes.

Our heartland spaces are also fertile ground for the birth and growth of many well-loved local enterprises. For example, do you know that our very own homegrown bakery Bengawan Solo started out in an HDB block at Marine Terrace? Over the years, it has expanded to become a household name, serving both local and international customers.

With their affordable rent and ample pool of residents as customers, heartland spaces are ideal incubators for the next generation of notable Singaporean brands. Many budding entrepreneurs have seized this opportunity and have launched their dreams in the heartlands. We can now often find businesses with very fresh and very cool concepts in our neighbourhood, like gourmet burgers or even novel pets.

I have come to know Mr Lee Syafiq of Ashes Burnnit. He leads a very young team and he himself is only 30 years old. He and his team serve up delicious gourmet burgers across four hawker centres and coffeeshops in Singapore.

We want to do more to nurture and launch fresh waves of entrepreneurs in our very own heartlands.

In recent years, heartland enterprises face various challenges arising from changing consumer behaviour and rising competition exacerbated by the COVID-19 pandemic. We will continue to work with our partners and not let up in our efforts to help our heartland shops stay competitive and stay relevant.

One of the key initiatives that we rolled out in October 2020 was the Heartlands Go Digital (HGD) programme, which aims to help our heartland enterprises respond to the COVID-19 situation and also adapt to new consumption patterns and leverage digital commerce.

I am happy to report that as of February 2022, 85% or about 14,500 of our heartland enterprises have adopted e-payment solutions, such as NETS, Fave, Grab and PayNow. In fact, more than half – 58% of our heartland enterprises and that translates to about 9,900 heartland enterprises – are now onboard digital channels and onboard e-commerce platforms such as Carousell, Fave, Shopee and have set up a Google My Business page to create an online presence.

Think about it. This progress is a great step forward for many of our "mom and pop shops" that were only using cash and operating strictly as a brick-and-mortar store just two years ago before the COVID-19 pandemic.

Our heartland enterprises truly deserve our admiration and our praise for their resilience and their can-do spirit. MTI and ESG will build on this momentum to bring our heartland enterprises onto a higher plane and into a brighter future.

Enterprise Singapore will be launching a new initiative called Our Heartlands 2025, which we estimate will cost about $50 million to help our heartland enterprises increase revenue, improve their operational efficiency thereby reducing cost and expand their customer base both online and offline.

The four-year programme to energise and support heartland shops will seek to: one, deepen the digital and manpower capabilities of our heartland shops; and two, upgrade the capabilities of our TACs. Let me now share some new initiatives under this roadmap.

Firstly, deepening digital and manpower capabilities will help businesses diversify their revenue and increase operational efficiency thereby reducing cost. Mr Shawn Huang will be glad to note that under Our Heartlands 2025, we aim to further expand our digitalisation efforts, so that nine in 10 shops will adopt at least one digital solution.

Under this new roadmap, heartland enterprises will be equipped progressively via the Heartlands Go Digital programme. In addition, we will accelerate our outreach to merchants and encourage them to take up solutions and training in financial and inventory management as well as venture into online sales through other e-commerce vendors and subsidised solutions.

Besides digital capabilities, we will widen the reach of the current Heartlands Visual Merchandising Programme to increase their offline capabilities and attract customers and improve sales.

Another key thrust of Our Heartlands 2025 programme is to improve and deepen the capabilities of our TAC partners who are active in our heartlands. As I had mentioned earlier, TACs are important partners in helping our enterprises grow and transform.

To support the needs of our heartland enterprises and their transformation journey, we will strengthen and develop capabilities of the Federation of Merchants' Associations Singapore (FMAS) and the Heartland Enterprise Centre Singapore (HECS) as well as our local merchants' associations (MAs).

This will involve training their secretariat in aspects such as project management, precinct rejuvenation and financial management. We will also support FMAS in launching a shared secretariat for local merchants' associations. This will free up more time and resources for the local merchants' associations to help their member shops adopt solutions to increase their revenue and to improve their efficiency.

Chairman, we are committed to helping our heartland shops gear up for the future through Our Heartlands 2025. In the next few years, we hope to see them grow their revenue, boost their operational efficiency and attract new customers into our vibrant heartlands.

On that note, we are looking forward to the heartlands attracting more Singaporeans to eat, shop and spend using their Community Development Council (CDC) vouchers. You may recall that about $130 million worth of vouchers were given out just about two months back in December 2021. The Government recently committed another three tranches, which total up to $650 million in CDC vouchers, which will be distributed over 2022 to 2024.

To date, more than 1.1 million Singaporean households, which translate to 90.6% of households, have claimed the first tranche of $130 million CDC vouchers and $62 million worth of CDC vouchers have been spent in the last three months. More than 91% of the participating businesses have received CDC voucher transactions.

The number of participating outlets in the CDC voucher scheme has grown to more than 14,500. We are very heartened that our heartland merchants and hawkers recognise the benefit of the CDC vouchers and hope that Singaporeans will continue to support our heartland enterprises. Chairman, may I have your permission to say a few words in Mandarin, please?

(In Mandarin): [Please refer to Vernacular Speech.] Mr Chairman, it has been a difficult two years for our SMEs due to the pandemic. During this time, the Government rolled out many initiatives and support measures not only to help SMEs overcome their operating challenges, but also to encourage all businesses to pursue transformation efforts, boost their productivity and improve their sustainability.

We also recognise that some sectors may need additional assistance.

We will be introducing the $70 million Food Services and Retail Revitalisation Package to help businesses seize growth opportunities. The package will: one, extend crucial support for businesses in these sectors to improve their productivity and equip them with the capabilities to pivot and transform, so as to stay competitive and relevant; and two, help companies hire and train more locals and optimise their manpower arrangements.

When speaking of the Food Services and Retail sectors, we cannot leave out our heartland enterprises. Our heartland enterprises offer a myriad of goods and services at affordable prices, inject vibrancy into our neighbourhoods and offer employment to Singaporeans close to their homes. They are crucial to our economy and our community.

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I earlier shared about the Heartlands Go Digital programme as well as the Heartland Visual Merchandising programme.

After the introduction of these programmes, we have gathered and listened to feedback from the merchants and merchant associations. After further consultation and planning, ESG and HDB will be launching Our Heartlands 2025, a four-year programme that aims to energise and further the development of our heartland shops. The $50 million Our Heartlands 2025 programme aims to deepen the capabilities of merchants' associations and help heartland shops adopt technology and digitalise. We hope they can innovate and better meet the diversified needs of customers and ever-changing consumer habits, and add to the unique character of our heartlands.

The Minister for Finance announced during Budget that we will be committing another $650 million in CDC vouchers, which will be distributed over 2022 to 2024. We hope the CDC vouchers will encourage Singaporeans to patronise neighbourhood shops and help the continuing recovery of our heartland enterprises.

To date, 1.1 million households, which is about 90.6% of all Singaporean households, have claimed the CDC vouchers distributed last December, with more than $62 million redeemed. More than 91% of the 14,500 neighbourhood shops and hawker stalls on the scheme have logged at least one voucher transaction. I hope more heartland merchants and hawkers can participate in this programme and benefit from it.

Our heartlands are not just places where we can eat and shop, but they are key nodes in our everyday lives where people can have warm and genuine interactions. The Government will continue to work closely with our key partners to create business opportunities for our heartland enterprises, instil vibrancy into the heartlands and build a more cohesive neighbourhood and community together.

(In English): Chairman, we have come a long way in our fight against the pandemic. Despite the challenges, the last two years have also brought new opportunities and growth. This has been possible because of our Singapore can-do spirit. Our journey of learning and transformation continues. As long as we are on this path together, we can take courage and strength that we do not walk alone.

Together, let us chart our way forward and scale new heights as one Singapore. [Applause.]

The Chairman: Mr Liang Eng Hwa.

Mr Liang Eng Hwa (Bukit Panjang): Thank you, Sir. Just two clarifications for the Minister. Firstly, I am glad to see the COVID-19 cases come down in the last few days. I hope we have seen the peak. I would like to ask the Minister whether our growth projections as well as our transformation efforts and the economic plans that we have, would hinge on us further opening up and the further relaxation of our SMMs. Is that an important part to it?

The second clarification is on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Singapore is the chairman for this year and we read about interest from China and Taiwan. I would like to ask the Minister whether he can share whether are we still engaging the United States to rejoin the TPP?

Mr Gan Kim Yong: Mr Chairman, I would like to thank the Member for the two very important questions.

First, on COVID-19 and our progress for opening up and our economic recovery efforts. I should first clarify that while the numbers have stabilised over the last few days, which may suggest that we are probably nearing the peak, but anything could happen. So, it is important for us to make sure that we continue to monitor and watch carefully, before opening up in a big way.

It is also important to recognise that with all the measures that we have been put in place, we have been able to keep the critical cases low and ICU capacity has been kept manageable. But at the same time, the large number of cases also means that the hospitals are very, very busy. So, it is important for us to ensure that the healthcare system is protected and to allow the patients to be taken care of properly. This will then give us more capacity to open up.

The Member is correct that it is important for our economy that we continue in our journey to living with COVID-19. There are three aspects of our economic recovery that are very important. First, the safe management measures (SMMs) that we impose, have put a strain on many of our economic sectors, particularly the domestic-facing sectors, such as the F&B and retail sectors. They face significant challenges because of restrictions on gathering and the safe distancing measures that they have to put in place.

Second, it is important to progressively allow workers to go back to work. So far, we have a requirement for 50% of employees to work from home, where practicable. But we have to recognise that it is important for businesses to bring their workers together because there are many team efforts that cannot be done with workers working from home. So, we need to progressively restore working onsite and this will help us to open up our economy and allow the economy to recover faster.

Third, which is also very critical, is our global connection. Singapore is a hub city. We are a hub for business, for travel, for talent, for ideas, for investments. This international connectivity is very crucial. And that is why we are continuing to open up our interconnectivity. We introduced the Vaccinated Travel Lane (VTL). We are bringing in more and more important visitors. We are also allowing more workers to return from overseas, some of whom have returned to their home countries and are unable to come back. The construction sector, for example, is still facing constraints and we hope to be able to bring back more of these workers through the opening of VTLs. At the Committee of Supply of MOT, I am sure Minister S Iswaran will elaborate on this.

These are the three aspects which are very important and we will continue to look at these to allow the economy to continue on its journey of recovery.

The Member also asked about the CPTPP. This is a very important agreement that we have entered into and this year Singapore will be chairing the Commission for CPTPP. CPTPP is a very high standard trade agreement that requires its members to meet very stringent trade practices. This will benefit the global multilateral rules-based trading system. Therefore, Singapore and CPTPP members welcome economies which are able to meet these high standards, including the US and other economies. But whether the US is able to join the CPTPP is something that we will need to continue to discuss with and engage the US on.

Beyond CPTPP, Singapore has also been encouraging the US to continue its engagement in the Asian region and in particular, ASEAN. We have several collaborations already in place with the US. One is the Partnership for Growth and Innovation which was announced during the visit of US Vice President. We are in the midst of a discussion with the Department of Commerce on how we can take this further in introducing initiatives to encourage businesses on both sides to tap on opportunities in each other's countries.

We are also discussing the possibility of establishing an Indo-Pacific Economic Framework to allow collaboration among Indo-Pacific economies. This is multilateral, it is not just between Singapore and the US. We want to continue to explore platforms for collaboration between this region and the US, because the US' participation and engagement in this region and in the economy of this region is very important. We certainly look forward to further collaboration between Singapore and the US, as well as the region and the US.

The Chairman: Assoc Prof Jamus Lim.

Assoc Prof Jamus Jerome Lim (Sengkang): Thank you, Chairman. I have three clarification questions: two for Minister Gan and one for Minister Tan.

For Minister Gan, he had gone into some detail in explaining the evolution of our economy toward exportable services. Just to help us get a better understanding, I wonder if he is able to give us some handle on the share of exports that are currently attributable toward services as opposed to more traditional goods.

I ask this in part because the traditional export-oriented industrialisation model for which Singapore subscribed to is such that it is targeted at goods export rather than services. And services export is a relatively new and under tested model. India and the Philippines come to mind and their experiences have not been as promising.

My second question has to do with FTAs and utilisation of these FTAs. Minister Gan had spoken about them. I wonder if he is able to share in terms of the average utilisation rate for all the FTAs that Singapore has signed.

I ask this because, based on the available data, I see that, for example, the Singapore-US FTA's utilisation is only at 15%, the Korea-Singapore FTA is 8%. This goes down to 3% for the Jordan-Singapore FTA and as little as 0% for the Singapore-New Zealand and Singapore-Panama FTAs. The premise of the question is whether we are devoting, perhaps, excess resources to signing new FTAs to the detriment of other positive initiatives by the Ministry.

My third question is directed at Minister Tan. Here I wish to echo Member Foo Mee Har's call for expanding on demand productivity enhancement consultation. This is in part because as a business school professor and also understanding the research, SME productivity shortfalls can actually be extensively explained by managerial deficiencies, such as old-school basics like proper inventory management and HR practices and bookkeeping, not so much the sexy tech upgrades that people often think of. So, here I wonder whether the Ministry will have some efforts to entail public-private partnerships in this particular aspect.

Mr Gan Kim Yong: Chairman, I thank Assoc Prof Jamus Lim for the question.

Services trade constitute about 40% of our total exports. So, it constitutes a very important component of our total export and we will continue to help our companies to export our services. As I mentioned earlier in my speech, there are significant opportunities in the export of services, including the green economy as well as digital services. This will also include our professional services.

In terms of the FTA utilisation, for FTAs, we have to look at it carefully. On the one hand, FTAs provide preferential access for our exports in terms of tariff savings because they allow us to have tariff-free access to important markets. The tariff savings constituted, I think if I remember correctly, about $1 billion last year. So, that is an important savings for our businesses. It means that, otherwise, they would have to pay $1 billion in tariffs to other countries.

But FTAs are not just about tariff savings because they also provide greater transparency for the rules and regulations that will allow our businesses to be able to do business in these countries more easily. Certain FTAs also provide protection in terms of our investments in these countries and that will allow our companies that have investments in these countries to have security with regard to their investment, to allow them to be able to operate freely within those markets.

So, I think we have to look at FTAs in totality. It is not just specifically on tariffs but it allows many other forms of access. A lot of these access may not be recorded, including protection of IPs and protection of investments. And also, it provides a framework for data exchange. Some of these are very critical to our businesses when they do business in other countries. So, this is the overall benefit of FTAs for Singapore.

12.45 pm

Dr Tan See Leng: To Assoc Prof Lim's point for on-demand consultancy productivity, today, all our SMEs are welcome to drop into any of our SME Centres or Connect with ESG. On an individualised basis, as I have said, we try to not just have bespoke advice for the larger enterprises but, to the extent that is possible, we try to cater and tailor it to SMEs. You can appreciate the fact that SMEs come from a very wide diaspora of different businesses, different sectors, different industries. So, in terms of trying to help them, to reach them, there is not a one-size-fits-all perspective.

With regard to public-private partnership, we have started PACT, as I have said earlier on. One of the examples that we have done is a company called Excelpoint Technology. I do not have all the details at this particular point in time to share, but I am happy to answer it separately. Importantly, we welcome this type of public-private partnership. If the hon Member Assoc Prof Lim can envisage that there are more of these partners, earlier on, towards the end of my speech, I have constantly encouraged SMEs to take that first step. If there are partners who are willing to partner us to expand the range of service offerings for our own local enterprises, to bring them, to groom them, to develop them into large local enterprises and eventually, to become a Singapore global enterprise, I think we would very much welcome them.

We are all after the same thing in this aspect. What we are trying to do is to grow Singapore enterprises into large local enterprises (LLEs), put them on the world map and, at the same time, offer our Singaporean employees, our Singapore Core, a chance at being able to go global. I hope that gives him the reassurance.

The Chairman: Mr Sharael Taha.

Mr Sharael Taha (Pasir Ris-Punggol): I thank Minister Gan, Minister Tan and Minister of State Low. I am heartened to hear about the plans for the ITM Refresh and Manufacturing 2030. It is exciting to hear how we are pioneering using additive manufacturing to repair state-of-the-art jet engine components.

Minister Gan mentioned that the ITM Refresh will consider workplace transformation and upskilling and retraining workers. I would like to ask if the ITM Refresh can also include the specific requirement to look at job redesign so that we can make a conscious and concerted effort to design jobs that are appealing to mature workers, retiring workers, workers with disability or returning-to-work individuals so that they can contribute and participate in the refreshed economy.

The reason for me asking this is that industries are already finding it hard to find the manpower to grow. We must use the opportunity from the ITM Refresh to realise the latent potential from this group of individuals and we create not just jobs, but inclusive jobs for all. And we retain the experience as we grow our industries.

Mr Gan Kim Yong: Sir, job redesign actually is an integral part of the ITM journey because, as Mr Taha has rightly pointed out, we want to help companies transform their business model, so as to take into account emerging trends and opportunities. But, at the same time, as you change the business model, you have to redesign the jobs so that they fit into the new business model.

In the process of redesigning the jobs, we need to train the workers so that they are able to take on these new jobs that have been redesigned. So, remodelling of the businesses, redesigning the jobs and retraining of the workers are actually integral parts of the entire ITM journey. And I will be very happy for MTI to work together with MOM and the tripartite partners and the companies to embark on this journey of redesigning jobs for existing workers as well as senior workers, including the workers who are more experienced, to transform them so that we can provide them with new career opportunities.

The Chairman: Mr Saktiandi Supaat.

Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, I would like to thank the Ministers for their answers to my cuts earlier. I have two clarifications.

First is in regard to my question. It is good to hear Ministers' answers that there are efforts to build talent and manpower by sector. But I would just like to follow up on work to enhance the supply of Singaporeans with the requisite skillsets.

In terms of the Capability Transfer Programme (CTP), I am looking at the website of WSG, which mentions that one of the purposes of capabilities transfer programme is to develop a sufficient supply of Singaporeans. Can Minister explain further, whether in this year's Budget, whether there is any amount set aside for enhancements to the CTP?

The second question I have is in relation to Ukraine. Since the Budget Statement was announced, a few things have happened, especially on oil prices. A lot of analysts are talking about the Russian oil price shock now, in terms of supply crisis, logistics crisis and payment crises and many crises that have emerged. The impact on eurozone growth is a big concern now.

So, from an economic growth perspective and its impact on businesses in Singapore, what are our plans and concerns to help businesses, especially those that are exposed to eurozone?

Dr Tan See Leng: Mr Chairman, I will take the first question and Minister Gan will take the subsequent question.

The first point that Mr Saktiandi Supaat raised, it overlaps the auspices of MOM and MTI. There is significant focus on expanding the Continuing Education and Training (CET) component, even for mid-career workers. Today, under the WSG, we have invested significant resources in developing the Career Conversion Programmes (CCPs). The precursor was the Professional Conversion Programme (PCP) and we have now morphed it into the CCPs. We are very focused on making sure that we work with companies, we walk with companies, helping them to not just redesign skillsets as to what is necessary for them to pivot and to transform, but on top of that, we have our very close relationship with our tripartite partners. The Finance Minister had also announced that we will be significantly beefing up the Company Training Committees (CTCs). NTUC drives that part of it, together, in terms of working, reskilling and also training as well.

These are just two examples. There will be other programmes, perhaps, if I can beg Member's indulgence to stay for the MOM Committee of Supply debate later. You will see the whole plethora of programmes that we have available.

Mr Gan Kim Yong: Sir, all of us know that the crisis in Ukraine is still evolving. The impact, since the war started, has already been felt in many parts of the world. In Singapore, you can also see that energy prices have been on the rise. As for commodities, some of the food suppliers are also indicating that their raw material costs have gone up. We are beginning to feel the impact of the war in Ukraine.

But at the same time, I should also caution that it is still early days. We have not felt the full impact of what the Ukraine crisis will have on the global economy as well as on Singapore's economy.

Broadly, I can try to categorise the impact into three aspects.

First, in terms of supplies. With the conflict between Ukraine and Russia, supplies from Ukraine and Russia, particularly Ukraine, would be affected. Singapore imports very little from Ukraine. Members may remember probably two years ago, even when the COVID-19 pandemic was ongoing, we were importing eggs from Ukraine. So, we do have some imports from Ukraine, but we have diversified supplies. We do have sufficient supply of basic food commodities. So, in terms of supplies, the world will see a shortage of supply of products from Ukraine and Russia.

And secondly, the impact is not just on specific supplies, but also on supply chains. Analysts have indicated that the supply chain, which is already very tight with challenges of the pandemic, now, coupled with the Ukraine crisis, will be tightened even further. So, shipping lines may be affected. Flights are already affected, as all of us know.

So, one is supplies; second, supply chains; and third, both of these will lead to higher costs. And higher costs will eventually impact everyone. Singapore, being an open economy, we will not be able to insulate ourselves from all these impacts. But the Minister for Finance has reassured all of us that we will continue to monitor the situation and if need be, we will provide more support and help for both businesses, our workers as well as our households.

The Chairman: Ms Foo Mee Har.

Ms Foo Mee Har (West Coast): Thank you, Chairman. I have one clarification for Minister Gan. During the COVID-19 pandemic, we promoted domestic tourism and spending to achieve some resilience with locals and also to reduce our dependency on overseas visitors given the COVID-19 border closure. So, lots of thanks to the Government for the vouchers.

I would like to ask the Minister then what lessons have been learned about domestic tourism and consumption and whether this can be sustained after the opening of Singapore. What can be done to further promote and strengthen to achieve less reliance on overseas visitors, and also, to have another pillar, that is, domestic spend?

Mr Gan Kim Yong: Sir, we have to acknowledge that Singapore has a very small domestic economy. It is not possible for us to support the entire population and our entire economy based on domestic consumption. During the pandemic, foreign visitor numbers dried up. We had significant barriers in terms of travel and tourists would not come because of the quarantine, the Stay-Home Notice (SHN) and all the border measures. And therefore, we had to support our local industry, particularly the tourism industry, and we rolled out the SingapoRediscover Vouchers to help to spur demand for the local and domestic industry. But we cannot do this in perpetuity because we just will not be able to support local industry purely by spending our way through.

It is therefore important for us to have a strategy which Ms Low Yen Ling has explained. Our tourism industry is preparing ourselves for the eventual recovery. So, we need to continue to invest in our tourism sector, continue to invest in attracting foreign tourists to come to Singapore when the pandemic subsides.

But it is also important in the meantime to continue to see what we can do to help local industries. I am sure our CDC vouchers – which Ms Low may be prepared to elaborate in a short while – has gone a long way in helping our domestic economy, particularly the heartland shops, retailers and markets and so on. We are rolling out additional CDC vouchers in the heartlands. This will go towards helping our domestic industry cope with the current challenges.

But we have to be quite clear in our mind that it is not possible for the Government to purely support the industry through tax revenues. We need to continue to encourage our external economy, the export of both of our services and our goods, to be able to support our local economy. On this note, maybe Ms Low will be able to elaborate more on our CDC programmes in helping local industries.

1.00 pm

Ms Low Yen Ling: Thank you, Minister Gan. I thank Ms Foo Mee Har for the questions.

Like what Minister Gan has mentioned and if everyone in the House remembers, about a year back, when Deputy Prime Minister Heng Swee Keat announced the $130 million CDC vouchers, he cited two objectives. The first objective was to thank fellow Singaporeans for their sense of solidarity during the COVID-19 pandemic. He also highlighted the second objective, which is to stimulate demand for the products and services at our HDB shops and also by our hawkers.

We can all agree. In the last two years, our HDB shops and our hawkers have been adversely affected by the COVID-19 pandemic because they are the front-facing, consumer-facing businesses. Even though now, although dining has opened up, limited to five persons, certainly, in terms of traffic flow, some may say it is not as busy as before the COVID-19 period but necessarily so because of safe distancing measures.

So, in the last nine months, the CDCs have been working with our Government agencies – and allow me to use this platform to thank the whole-of-Government effort in supporting our CDCs. First, a big thank you to GovTech, the Smart Nation and Digital Government Office (SNDGO), IMDA – because we worked with IMDA and their SG Digital Office, with their digital ambassadors to support the onboarding of our HDB shops and our hawkers. This was timely because IMDA and MCI had earlier rolled out Seniors Go Digital and Hawkers Go Digital programmes. By then, many Singaporeans and many hawkers and many seniors are very comfortable using mobile phones to scan a QR code and so on.

On 13 December, when the $130 million CDC vouchers were launched by the Prime Minister, we were very, very heartened that within two days, 550,000 households claimed the vouchers; and within 10 days, 830,000 claimed. I believe less than four weeks after the launch, we crossed the one-million mark. More than one million households claimed the vouchers. I just earlier mentioned that to date, 1.1 million Singaporean households have claimed the $100 CDC vouchers. We are happy that over the last two and a half months, we have seen that more than $62 million of CDC vouchers have been spent.

MTI and ESG have been working very closely with FMAS and HECS to conduct a survey on how this has supported and turbocharged the market. We are very heartened to hear from our HDB shops, merchants, hawkers saying that since the launch of the CDC vouchers in December – which also coincided with our inaugural Heartlands Festival which was launched on 28 November – it really brought human traffic, the crowd to the neighbourhood centres. It is because we have designed it in such a way that it coincided with the festive period. If you remember – Christmas, year-end and then the Lunar New Year.

We have heard from our merchants that, on average, their footfall has increased by 20%. We have heard from the merchants who are participating merchants and hawkers of the CDC Vouchers Scheme that their sales have improved 10%, some 30% and, in some cases, 40%.

So, we are very heartened. In fact, many merchants were very heartened to hear Minister Lawrence Wong announced two weeks ago when he delivered Budget 2022, that, this year, he will roll out another tranche of $130 million in CDC vouchers, which means that every Singaporean household will receive $100 of CDC vouchers under the Household Support Package (HSP).

In addition, Minister Lawrence Wong announced that, come January 2023 and come January 2024, each Singaporean household will receive $200 of CDC vouchers as part of the Assurance Package, though for 2023 and 2024, the major supermarkets will be included in the list of participating merchants and hawkers.

So, we want to give assurance to Ms Foo Mee Har and Members in the House that in designing products and solutions like these, hand in hand with our HDB shops and our SMEs, if we bear in mind the objective, which is to stimulate demand for their products and services, the CDC Vouchers Scheme has shown – just like the SingapoRediscover Vouchers did – it can bring a multiplier impact to the economy.

The Chairman: Mr Liang Eng Hwa, would you like to withdraw your amendment? Minister Gan.

Mr Gan Kim Yong: Chairman, can I just make a quick clarification? I mentioned $1 billion of tariff savings from our FTAs. That number was correct, but it was for 2020. I said last year but, actually, it is for 2020. Just for the record.

The Chairman: Thank you. Mr Liang Eng Hwa.

Mr Liang Eng Hwa: Chairman, allow me to thank Minister Gan Kim Yong, Minister Tan See Leng and Minister of State Low Yen Ling for responding to our cuts and clarifications; and also wishing Minister of State Alvin Tan a speedy recovery.

Sir, the road ahead is full of uncertainty. Our economy is facing challenges and stresses from multiple fronts. But we take comfort that we have a best-in-class MTI team there and now helmed by Minister Gan, who is, of course, no stranger to managing crises. We wish MTI all the best and, with that, I beg leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $2,804,739,800 for Head V ordered to stand part of the Main Estimates.

The sum of $6,266,508,900 for Head V ordered to stand part of the Development Estimates.