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

Head V (cont) –

Resumption of Debate on Question [5 March 2025],

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

Question again proposed.

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The Chairman: Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong.

The Minister for Trade and Industry (Mr Gan Kim Yong): Chairman, let me first thank Members for their very constructive comments and suggestions. The year 2024 has been a relatively good year. The gross domestic product (GDP) grew by 4.4%, compared to 1.8% in 2023. Core inflation came down from 4.2% in 2023 to 2.7% in 2024.

This year, we celebrate SG60. We have come a long way in building a strong, innovative and vibrant economy. We have created good opportunities for Singaporeans and improved their lives. Our economic success did not happen by chance. It was the result of a combination of factors: careful long-term planning; sustained investments in infrastructure; keeping a pro-business environment; and, most important of all, investing in lifelong education and training, together with staying open to talent, trade and investment.

Generations of Singaporeans have worked together to build a strong foundation for our economy. But Members are well aware that we are now entering a new chapter in our economic journey with new challenges and opportunities unlike those we have seen before.

Mr Liang Eng Hwa asked about the potential headwinds arising from geopolitical contestation.

Sir, the multilateral free trade system has been under tremendous stress in recent years and is at risk of being fractured. Members would have heard United States (US) President Donald Trump's new tariffs and his plans for more, including reciprocal tariffs on trading partners to match the duties on US' exports. China and Canada have also responded with their own tariffs. This may lead to an escalating, tit-for-tat cycle for tariffs, or worse, a global trade war. This could upend the global rules-based economic order that Singapore, as a small and open economy, is dependent on.

Given that we do not impose tariffs on any American imports and the US has a trade surplus with us, we may not be significantly affected by the reciprocal tariffs directly. However, rising tariffs and trade wars could cause disruptions to supply chains, slow down global trade and drive up business costs, and therefore, affect businesses and consumers. In the longer term, it will also affect confidence and investment flows and slow down the global economy.

Instead of seeking win-win opportunities with their partners, many countries are now competing aggressively against each other for investments and protecting their domestic sectors. This will lead to a more challenging external environment for us.

Domestically, we will also need to tackle tighter constraints, especially in land, labour and carbon I spoke about last year. Our local workforce growth is expected to continue to slow in the coming years. With limited land, we will need to find new ways to maximise our space utilisation. To do our part on climate change, we will need to reduce our carbon footprint while accommodating the growing energy demand as we expand our industries.

Nevertheless, it is not all doom and gloom. Amidst these challenges, there are still opportunities for us. Asia's economy will continue to grow and Southeast Asia is expected to become the fourth largest economy in the world by 2030. Artificial intelligence (AI), digitalisation and the low-carbon transition will also present new opportunities in the digital and green economy. Singapore can also capitalise on the shifts in production and supply chains to attract new investments and strengthen our position as a key node in the reconfigured trade flows.

On balance, we can be cautiously confident. We expect our economy to expand by about 1% to 3% this year and inflation to stay moderated, with core inflation at about 1% to 2%, barring major disruptions.

Mr Liang Eng Hwa asked if we can grow faster. We will certainly try to do so and we hope we can grow faster than what we have projected.

Last year, I spoke about four strategies to allow us to grow, namely, grow our economy; unlock our resource potential; transform our businesses; and connect internationally. These strategies remain relevant. I will speak about how we will grow our economy while my colleagues will elaborate on the other strategies.

Sir, we will grow our economy in four ways: (a) strengthen our connectivity to the region and the world; (b) grow strong enterprises through innovation; (c) foster a pro-enterprise environment; and (d) invest in our people.

I will start with connectivity.

Mr Desmond Choo, Ms Tin Pei Ling and Mr Saktiandi Supaat asked how Singapore can strengthen regional trade relations.

As a business hub, our success depends on staying well-connected to the region and to the world. Firstly, we have made progress in deepening integration and collaboration with our immediate neighbours. This year, we signed the Agreement on the Johor-Singapore Special Economic Zone (JS-SEZ) with Malaysia. This will benefit our firms here by allowing them to tap on the resources available in Johor to expand and grow. JS-SEZ will also allow Singapore and Malaysia to draw in investments, by offering a more compelling value proposition by combining our complementary strengths.

We have seen strong commercial interest in JS-SEZ. The Singapore Business Federation's business mission to Johor Bahru last month drew 230 delegates from over 180 Singapore businesses. We will also continue to build on our existing cooperation with Indonesia, particularly in Batam, Bintan and Karimun, as well as explore new areas of cooperation.

Second, we will continue to enhance digital trade and improve market access for our companies operating in the Association of Southeast Asian Nations (ASEAN). We are making progress to substantially conclude our negotiations on the ASEAN Digital Economy Framework Agreement (DEFA) this year. This will accelerate the growth of the digital economy within ASEAN.

We also plan to conclude negotiations and sign the upgrade to the ASEAN Trade in Goods Agreement (ATIGA) this year, which will boost intra-ASEAN trade and strengthen supply chain connectivity within our region, to tap on the growth of Asia's economy.

Even as we deepen our connections, we want to nurture Singapore enterprises to become regional or global leaders. We also seek to anchor global industry leaders here to enhance our industry ecosystems, which will benefit local companies and provide good jobs.

As Ms Foo Mee Har and Mr Neil Parekh have noted, innovation is at the heart of economic growth. For example, over the past decades, we have successfully built up a strong and competitive semi-conductor ecosystem that has cemented Singapore as a critical node in the global semi-conductor supply chain. But to remain a semi-conductor powerhouse, we must invest in research and development (R&D) to drive innovation within the industry, not just among the big players but also among the small and medium enterprises (SMEs).

Semi-conductor manufacturing facilities typically involve substantial upfront investments. Companies, especially the smaller ones, may face challenges accessing semi-conductor infrastructure and expertise in their R&D and pilot production. To support them, we established the National Semiconductor Translation and Innovation Centre (NSTIC) last April, at the Agency for Science, Technology and Research (A*STAR).

NSTIC provides companies and researchers in the fields of flat optics and silicon photonics with access to semi-conductor R&D infrastructure. Companies may also tap NSTIC's capabilities for prototyping and small volume manufacturing to accelerate the speed to market and scaling up.

To build on this, A*STAR will broaden NSTIC to cover more semi-conductor technologies and increase the capacity. We will invest about $500 million to establish the NSTIC (R&D Fab), a new national semi-conductor R&D fabrication facility at JTC nanoSpace @ Tampines.

The NSTIC (R&D Fab) will have an initial focus on advanced packaging, which is a key growth area in the semi-conductor industry. It will offer state-of-the-art cleanroom infrastructure and industry-grade tools, as well as translational research and fabrication expertise. This will support the scaling and translation of R&D.

Major global semi-conductor players as well as SMEs and startups can tap on its capabilities and even foster new partnerships. One example is NexGen Wafer Systems, a local SME which supplies wet etching and cleaning equipment to chipmakers worldwide. They had started their R&D efforts overseas to better access tools and facilities that were not available in Singapore then. By leveraging A*STAR's R&D capabilities and facilities, NexGen has developed new semi-conductor equipment features and applications in Singapore to fabricate different types of chips. They have therefore found value in bringing a part of their R&D activities back to Singapore.

The NSTIC (R&D Fab) will scale up our capacity to enable similar SMEs and the broader semi-conductor industry here to build new capabilities, develop and commercialise globally-competitive technologies and create good jobs for Singaporeans.

Our R&D efforts have also enabled us to develop a strong pipeline of promising and innovative startups. One example is Lucence, an A*STAR spin-off and homegrown startup. Lucence focuses on precision oncology and partners the National Cancer Centre to develop the LiquidHALLMARK test to guide therapy selection for tumours. With support from Enterprise Singapore, Lucence automated its Singapore laboratory to serve customers in Singapore, Hong Kong and Southeast Asia. It partnered Mayo Clinic Laboratories this year, to drive adoption and commercialisation of its technology in US.

Today, Singapore also hosts many Deep Tech companies. Among them is Entropica Labs, a startup from the Centre for Quantum Technologies. Entropica Labs has been working with global leaders in quantum computing hardware and infrastructure providers, such as Amazon Web Services, Microsoft and Xanadu, to bring quantum technologies to the market.

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We want to do more through the Global Innovation Alliance (GIA) nodes in key innovation hubs. We help our companies tap into the innovation networks and market opportunities overseas. Carecam, a digital health startup focusing on transitional care and advanced screening, participated in the GIA San Francisco Acceleration Programme and connected with a US-based corporate to integrate their solutions into new business entities. This will support the company's expansion into the US healthcare sector.

We want to support more startups like Carecam to accelerate their speed to market and facilitate their product commercialisation. We will enhance the GIA to support startups in various growth stages. The GIA Discovery will support startups to familiarise themselves with the market and evaluate product-market fit, in order to shape their market strategy. Thereafter, startups can pilot their technologies in these new markets, with the support from GIA Proof of Concept to validate their products and gain market credibility.

The GIA+ initiative will support startups participating in global acceleration programmes, such as those run by Y Combinator, MassRobotics and MassChallenge in the US, to gain access to mentorship, resources and networks to realise their overseas expansion plans. To expand our startup ecosystem, we also want experienced founders to be anchored here and build their new ventures that have the potential to become globally leading businesses. To do so, the Economic Development Board (EDB) will launch a Global Founder Programme (GFP) later this year.

Let me give Members a preview. This is a targeted programme aimed at supporting the new ventures of experienced founders from around the world as well as in Singapore. Founders are individuals who have built highly successful startups or who have developed major new products and business lines in global companies, or who have made significant scientific or engineering achievements, such as in AI or Deep Tech. The GFP signals our belief in the power of openness. We want to bring the best from around the world to Singapore to add to the strength of our own. We want to support firms which are able and willing to innovate and grow. We will foster a vibrant innovation ecosystem that will help our companies stay competitive and create high-value job opportunities for Singaporeans.

Manufacturing is a key pillar of our economy, comprising close to 20% of our GDP and is one of the largest contributors to productivity growth. It also supports the growth of the financial and professional services sectors.

I would like to reassure Mr Liang Eng Hwa, Mr Mark Lee, Ms Jessica Tan, Ms Tin Pei Ling and Mr Saktiandi Supaat that we will continue to encourage leading manufacturers here to invest in innovation and also attract new, high performing companies to grow in Singapore.

Last October, I attended KLA's groundbreaking ceremony for a new manufacturing facility in Singapore, for some of their most advanced wafer geometry and defect inspection tools. KLA's new facility is expected to create at least 400 jobs, in areas, such as mechanical design, materials and product testing. It will also create opportunities for enterprises here to collaborate with KLA on niche areas, such as precision cleaning and manufacturing of metal parts used in optics assemblies.

For example, local SME Alantac Industrial Services and KLA co-developed precision cleaning solutions for defect inspection tools that meet stringent cleaning requirements. By supporting our high-performing firms in Singapore, we hope to uplift the capacity and capabilities of our entire industry ecosystem, including our local SMEs.

Mr Mark Lee and Mr Edward Chia asked how the Ministry of Trade and Industry (MTI) intends to support the financing needs of businesses as they expand globally. The Government had allocated over $1.8 billion in the past five years in equity investment funds to support enterprise growth; but there is room for us to enhance our equity and debt financing toolkit to better support our enterprises' diverse growth strategies.

First, we will introduce the Long-Term Investment Fund and deploy more than $200 million of Government capital over a longer time horizon, beyond the typical three- to seven-year timescale. This caters to enterprises with longer and more complex growth trajectories that will require more time to fully realise their potential.

Second, we will launch a $1 billion Private Credit Growth Fund (PCGF). Unlike traditional debt, private credit has the flexibility to meet the specific needs of companies looking to scale up quickly. And unlike equity, private credit allows companies and founders to retain business ownership and control. The PCGF is targeted at local enterprises with strong growth potential to become leaders in their respective industry domain. Some of them will require tailored financing solutions to support their unique growth strategy, such as international merger and acquisitions (M&As) or large overseas capital investments. These solutions may not be readily available in Asia, through the traditional financing today.

Beyond the $1 billion seeded by the Government, we hope to catalyse more commercial funding as more fund managers and investors gain familiarity and confidence in this space.

I spoke earlier about the importance of our pro-enterprise environment. At last year's National Day Rally, the Prime Minister also spoke about the need for us to ensure a business-friendly environment and to keep regulatory burden to a minimum. We had set up the Inter-Ministerial Committee for Pro-Enterprise Rules Review last year that I chair to look into our rules and streamline our regulations, to enable our businesses to move fast to seize the opportunities that come our way.

Since then, my fellow Ministers and I have engaged more than 140 business leaders across 14 sectors. Let me thank all the stakeholders for their support and their feedback. Business leaders have cited approval timelines, frequency of licence renewals and duplicative processes as key areas for improvement. The Committee has studied the feedback carefully. While we will tackle specific feedback from the industry, and Senior Minister of State Low Yen Ling will elaborate later, the Government will set three Statements of Commitment to guide our whole-of-Government efforts to increase regulatory agility and reduce compliance burden for our businesses.

First, all relevant agencies will publish service standards for the processing of business regulatory applications to provide greater clarity for companies. We will endeavour to streamline service standards to 30 working days or less, where feasible.

Second, we will increase the validity period of regular business licences to a minimum of three years where possible and aim towards five years. This will provide greater certainty for businesses, especially for those undertaking longer-term growth plans.

Third, the Government will continue to streamline regulatory processes to facilitate concurrent rather than sequential approvals where possible. We will also streamline information requests across agencies. We have made good progress in the Built Environment sector, by developing CORENET X as a one-stop digital platform for building works approvals across agencies. We should learn from this experience and apply the same approach in other domains.

Lastly, we are investing more in our people. Ultimately, we pursue economic growth so that future generations of Singaporeans can continue to build better lives for themselves. So, this growth must translate into real opportunities for Singaporeans to advance their careers and develop their potential to the fullest.

Lifelong learning is critical for workers to upgrade themselves and take up higher wage roles. For example, we have partnered the Singapore Institute of Technology on a continuing education and training (CET) degree, to upskill in-employment diploma holders in manufacturing.

This will also help businesses develop and retain their local manufacturing talent pipeline and enhance business continuity. Minister Tan See Leng will share more. We will also strengthen initiatives to groom more Singaporean Global Leaders. Last year, we launched the Global Business Leaders Programme. We also launched the Singapore Leaders Network (SGLN) Fellowship to equip managers with the ambition to assume regional and global leadership roles.

One of 60 fellows from the pioneer batch is Ms Camy Loh. Camy joined Royal Vopak, a leading independent tank storage company, as a sales manager in Singapore in 2014. Today, Camy is now the Deputy Managing Director of Royal Vopak's Thai Tank Terminal, co-leading a team of over 120 employees at one of the largest maritime logistics terminals near Bangkok. It was a big step for her professionally as well as personally. Through the SGLN, Camy gained skills and knowledge to allow her to thrive in this role in Bangkok.

We are proud that Camy is flying the Singapore flag high. We are enhancing SGLN to better support more Singaporeans like Camy. The Ministry of Manpower (MOM) will elaborate further on this.

These education and training initiatives take time to bear fruit, and I encourage companies to start early and proactively plan to nurture Singaporean talent and benefit from a strong pipeline of talent and leadership.

Chairman, we are, indeed, entering uncharted waters. In fact, I think I should say that we are already in uncharted waters. We will face economic uncertainties and disruptions in the months and years to come. There will be challenges, but there will also be opportunities. We can look ahead to the next bound of our economic development with confidence, by remaining open to trade, talent and investments, as well as maintaining a pro-business environment.

We must further strengthen our competitive edge through innovation, deepen our integration with the region and with the world, and investing in building strong enterprises and a skilled workforce. This is how we will earn our living and standing in an increasingly uncertain and unfavourable external environment.

By doing so, we will keep our economy going, keep our economy strong, vibrant and resilient, and create better jobs and opportunities for Singaporeans and a better future for Singapore for the next 60 years and more. [Applause.]

The Second Minister for Trade and Industry (Dr Tan See Leng): Mr Chairman, Singapore faces increasing growth pressures. Our population is ageing rapidly amidst intensifying competition for talent. We face fiercer rivalry for investments as we navigate land and carbon constraints.

To address these challenges, we will expand our resource potential through four strategies. First, decarbonising our energy mix. Second, investing in our workers. Third, sustaining investments in research and innovation and last, but not least, enhancing our land productivity.

I will first update on our decarbonisation efforts. Singapore has committed to achieve net-zero by 2050. As Senior Minister Teo Chee Hean said, Singapore is a climate realist. The timeline for climate action is set by nature, not geopolitical developments. Moreover, our decarbonisation initiatives are an important factor in companies' investment decisions. We owe it to our children and our grandchildren to stay the course.

Cross-border electricity trading is crucial to achieving our climate goals. We are working towards progressing the first batch of electricity import projects with Conditional Licences, to reach Final Investment Decisions. These projects are win-win collaborations that lay the groundwork for our shared aspiration of an ASEAN Power Grid within the region. They create jobs. They underpin new investments for the source country. And given the substantive progress that we have made, we have raised our imports ambition from four gigawatts (GWs) to around six GWs by 2035.

Concurrently, we will maximise our domestic solar potential. As Senior Minister Teo has also shared, we achieved our 2025 deployment target of 1.5 gigawatt-peak (GWp) ahead of schedule. This puts us on track to achieving our 2030 target of at least two GWp. Scaling beyond the two GWp is challenging, but we will continue to encourage home owners and building owners to install solar panels and push the boundaries of domestic deployment. For example, the Singapore Civil Defence Force (SCDF) has worked with industry stakeholders, including through the Alliance for Action (AfA) on Business Competitiveness, to simplify regulatory processes.

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The simplified processes exempt more than half of all solar photovoltaic (PV) installations on metal-roofed buildings from fire separation requirements, allowing eligible building owners to save up to 30% on total construction cost.

Electricity imports and solar energy alone are insufficient to get us to net-zero. We need to explore every possible decarbonisation pathway. Nuclear energy, especially advanced nuclear reactors, is an option that we are seriously studying for potential deployment.

Now, let me address Mr Sharael Taha and Ms Jessica Tan's questions clearly. We have not yet made a decision on deployment. It is, therefore, premature to speak on potential sites, costs and specific plans. But our current priority is to accelerate capability building on nuclear safety and advanced nuclear technologies. We are training more nuclear scientists, such as via postgraduate scholarships in nuclear science and engineering.

We are also stepping up on international partnerships. Last year, we signed a substantive civil nuclear agreement with the United States. This complements our ongoing cooperation with partners, such as the International Atomic Energy Agency (IAEA), France's Institute for Radiological Protection and Nuclear Safety and the Emirates Nuclear Energy Company.

Mr Saktiandi Supaat asked about our plans for hydrogen. Hydrogen, indeed, has the potential to be a low-carbon fuel for the future, although high adoption costs and technical challenges remain today. In the near-term, our focus is similarly on capability building. By the end of this year, the Energy Market Authority (EMA) and Maritime and Port Authority of Singapore (MPA) aim to identify a lead developer for a pilot project to use ammonia for power generation and maritime bunkering.

We are also exploring complementary solutions to decarbonise the hard-to-abate sectors. Carbon capture and storage (CCS) technologies are advancing quickly. We will engage emitters and potential service providers to develop the CCS value chain and partner countries with suitable geological storage sites. We have made progress by signing a Letter of Intent with Indonesia in 2024 and a Memorandum of Understanding (MOU) with Malaysia in 2025.

Mr Edward Chia and Ms Tin Pei Ling asked for an update on our carbon markets initiatives. As Senior Minister Teo Chee Hean mentioned, Singapore just signed an Implementation Agreement with Bhutan, in addition to our agreements with Ghana and Papua New Guinea. These Agreements establish the framework for the transfer of Article 6 carbon credits, which is aligned with our environmental integrity criteria. MTI will also be launching a Request for Proposals to procure Article 6-compliant carbon credits later this year.

Mr Saktiandi Supaat pointed out, natural gas will continue to play a crucial role in our energy mix. And that is why we will set up the central gas procurement entity for the power sector this year and complete the development of our second liquefied natural gas (LNG) terminal by this decade. These will secure our natural gas needs for the foreseeable future.

We will calibrate our speed of adoption for energy technologies and solutions. For the less mature solutions, we will strengthen research efforts and accelerate commercialisation.

We will commit $62.5 million for the A*STAR to develop a Low-Carbon Technology Translational Testbed (LCT3) that will support companies in scaling up low-carbon solutions closer to commercial development. International and local players, like IHI Corporation from Japan and CRecTech, a local company, have already expressed interest to use LCT3.

For commercially-mature solutions, we will accelerate their deployment.

As Mr Saktiandi Supaat highlighted, this includes making major infrastructural investments for a low-carbon future. To save up for these investments, we are topping-up the Future Energy Fund (FEF) by $5 billion. We have not disbursed monies from the fund, as it is still early days in our infrastructural developmental journey. However, we anticipate significant drawdowns once key technological and commercial thresholds are crossed.

To address Mr Sharael Taha's question, the FEF can also be used to fund studies for the deployment of low-carbon energy infrastructure, including those needed for small modular reactors.

To better inform our decisions as we decarbonise, A*STAR is developing an integrated model to simulate the interdependencies of the possible net-zero mitigation measures.

Members have voiced concerns about the potential impact of decarbonisation on energy costs. Our aim is to strike the right balance between decarbonisation towards net zero, ensuring at the same time our energy security and maintaining cost-competitiveness.

For households, we will continue to provide support through measures, such as U-save rebates. For businesses, we will co-fund investments in energy efficiency through initiatives like the Energy Efficiency Grant. Furthermore, we will fully rechannel carbon tax revenue collected towards decarbonisation efforts. We do not expect, therefore, to derive additional net revenue from the carbon tax in this decade.

Next, on manpower. As we decarbonise, we will continue to upgrade the skillsets of our workforce. This is particularly crucial for workers in energy-intensive sectors, such as the petrochemicals industry, who will be more impacted by the green transition. Many already possess core skillsets that allow them to take on new job opportunities in adjacent growth segments, like specialty chemicals, or those in the sustainability space.

We will also support workers via CET efforts, as well as Career Conversion Programmes (CCPs).

Beyond the green transition, CET will remain a key enabler to deepen Singaporeans' skills in response to digitalisation and AI. In fact, Government spending on CET initiatives in FY2024 is projected to amount to over $1 billion. We will continue to work with companies and Institutes of Higher Learning (IHLs) to support workers in upskilling and attaining better wage outcomes.

One prime example is EDB's collaboration with industry and the Singapore Institute of Technology (SIT) on an Electrical and Electronics Engineering degree for in-employment diploma holders in manufacturing roles. This CET degree follows best practices in adult education by recognising prior learning and work experiences and allowing qualifications to be stacked towards a degree. Learners can also access recorded lessons and online consultations, so that it is easier for them to juggle work and study.

CCPs can also support the reskilling and the redeployment of employees. Mr Mark Lee would be pleased to know that Workforce Singapore's (WSG's) CCPs already support these redeployments of existing employees post-merger. Moreover, since 1 April 2024, WSG increased the monthly salary support cap from $6,000 to $7,500 for eligible workers with up to 90% of salary support.

Now, even as we develop Singaporeans, we must continue to attract global talent that can complement our local workforce. We have concluded agreements with both Indonesia and Vietnam to facilitate the exchange of technology and innovation talent.

The Tech:X pilot with Indonesia was launched in July last year, while the parameters of the Innovation Talent Exchange programme with Vietnam were launched in September 2024. So, Indonesia in July 2024 and Vietnam in September 2024. Nearly 50 companies and 50 Singaporeans have expressed interest across both programmes. Our young leaders will have greater exposure to regional economies and companies will find it easier to access mobile talent.

Collectively, this two-pronged strategy of supporting Singaporeans and attracting global talent will keep our workforce globally competitive. I will elaborate on how our efforts have supported good employment outcomes for Singaporeans later at MOM's Committee of Supply (COS) debate this evening.

Third, on research and innovation. We must continue developing an innovation-led economy, as Deputy Prime Minister Gan Kim Yong has shared. This is why Singapore invested $28 billion under the Research, Innovation and Enterprise 2025 (RIE2025) plan.

Ms Foo Mee Har asked how we will drive research translation and support the development of our semi-conductors and biotech sectors. Last week, Deputy Prime Minister Heng Swee Keat announced upcoming initiatives, such as the RIE Flagship to advance semi-conductor R&D and the RIE Grand Challenge, focusing on healthy and successful longevity. These complement the existing R&D translation platforms available.

One such platform is A*STAR's MedTech Catapult, which provides infrastructure, expertise and connections to local contract manufacturers looking to further develop frontier medical devices. I attended the launch event last month and was happy to know that more than 10 companies have applied to this initiative.

Besides this, the NSTIC (R&D Fab) for advanced packaging in semi-conductors, which Deputy Prime Minister Gan Kim Yong shared earlier, is another R&D translation platform that A*STAR will be rolling out. Such investments enable more firms to produce cutting-edge technologies, create good jobs and maintain Singapore's competitiveness.

The GDP contribution from firms with R&D activities grew from around 15% of GDP to 24% over a 10-year period from 2012 to 2022. The number of R&D jobs increased by 7.6% from 2021 to 2022.

To address Ms Foo Mee Har's question on securing the talent pipeline for our R&D facilities, we are bringing in top talent who contribute to the ecosystem.

During COS 2023, I shared about Prof Watson, an Overseas Networks and Expertise Pass (ONE PASS) holder, who took on the Executive Director role at A*STAR Skin Research Labs and the Skin Research Institute of Singapore. Prof Watson has since strengthened A*STAR's global standing, by partnering the National Skin Centre and Sanofi to trial a first-of-its-kind acne vaccine and deepen understanding of key biological markers that impact the severity of the condition.

These are signs that our efforts are bearing fruit and we will invest further.

The Prime Minister announced during Budget that we are refreshing A*STAR's biomedical research infrastructure by extending it to the greater one-north area. This is an approximately $500 million effort, which will strengthen our biomedical R&D ecosystem in two ways.

First, A*STAR will be located closer to key partners, like the National University Health System's clinical community and venture builders, making it a new attraction point for both industry players and talent. Second, A*STAR will redesign its laboratories and workspaces to promote interdisciplinary collaboration across the different research institutes. It will do so by providing more centrally-managed collaboration spaces that allow for better integration of expertise across teams.

A*STAR will also introduce new biopharma manufacturing programmes with its partners – the Singapore Cell Therapy Advanced Manufacturing Programme 2.0 (STAMP 2.0) and the Process Accelerator for Cell Therapy Manufacturing (PACTMAN).

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Cell therapies, such as chimeric antigen receptor T-cell (CAR-T) therapy, have transformed treatment for certain blood cancers and they have demonstrated promise for autoimmune diseases, but they remain complex and expensive to manufacture.

Since 2019, STAMP has partnered biotech companies to improve the quality testing of cell therapy assets, conduct CAR-T therapy trials in Singapore and enable licensing and spinoffs of new technologies. STAMP 2.0 will build on this to develop lower-cost manufacturing technologies that can produce higher quality products. For example, it aims to reduce the time taken for cell extraction, modification and infusion into patients, what we call the vein-to-vein time.

Meanwhile, PACTMAN will develop scalable processes to accelerate the translation of cell therapies, including those developed through STAMP, from laboratory to clinic. Taken together, these efforts will deepen our R&D capabilities and drive innovation-led growth.

Lastly, on land polices. We support businesses to intensify land use and to be more productive.

We will extend and enhance the Land Intensification Allowance (LIA) scheme to unlock new industrial space. Companies receiving the LIA approval during the next five years will continue to enjoy tax allowance on the full qualifying costs over 15 years. From 2026, we will make it easier for companies to qualify for LIA so that they can optimise space and they can integrate operations with related businesses. Building users and LIA recipients can be considered related if they own more than 50% shareholding of each other. This is down from the current threshold of at least 75%.

JTC will also introduce four initiatives to provide greater flexibility for companies. These initiatives support the recommendations from the AfA on Business Competitiveness and the work under the Inter-Ministerial Committee for Pro-Enterprise Rules Review.

First, companies with new leases on greenfield industrial land will be offered additional three years of lease tenure to cover the development and building period. This will allow companies to enjoy the full duration of the lease with their completed development.

Second, high-performing companies will have more flexibility to extend their leases in shorter periods for incremental business investments. JTC will introduce a new five-year Flexible Lease Extension Initiative (FLEXI) to give eligible companies on JTC's 20-year leases the option to extend their leases by up to two tranches of five years each.

Third, JTC will bring forward the lease renewal application period from the current six years to ten years before lease expiry.

Finally, JTC will broaden its definition of plant and machinery investments, which is a key criteria for lease renewal. We will now recognise auditable investments in innovation, R&D, digital transformation and intellectual property (IP) creation. Mr Chairman, in Mandarin, please.

(In Mandarin): [Please refer to Vernacular Speech.] There is an old saying, "Wealth does not last beyond three generations." However, through the hard work of successive generations, Singapore has successfully entered its fourth generation.

We, as the current generation, should uphold the same spirit and be accountable to future generations of Singaporeans.

The measures that I have announced today will lay the foundations for the future of Singapore's economy.

(In English): Chairman, as we conclude, let us reflect on the enduring Singapore spirit.

For 60 years, we have thrived not despite our challenges but because of them. We have always been tight on resources, but we are never short on resourcefulness. Our resource constraints have compelled us to be innovative and brought us to where we are today. For the next 60 years and beyond, I am confident that this same innovative spirit, as reflected in the bold steps we are taking today, will drive our continued growth and it will secure a vibrant future for generations of Singaporeans. [Applause.]

The Chairman: Senior Minister of State Low Yen Ling.

The Senior Minister of State for Trade and Industry (Ms Low Yen Ling): Mr Chairman, Deputy Prime Minister Gan Kim Yong shared that the next chapter of our economic journey will bring new challenges and opportunities. We have what it takes to stay anchored amid the waves.

Over the years, our enterprises have acquired the skills to adapt, innovate and change to emerge stronger. Together, we can transform to achieve growth and stay ahead of the game.

The Government is strongly committed to supporting our enterprises every step of the way. To enable their business transformation and growth, we will: one, support the overseas expansion of our enterprises; two, empower our enterprises to transform and benefit from artificial intelligence; and three, enhance Singapore's pro-enterprise business environment and reduce red tape.

We will also boost our heartlands and support our heartland enterprises.

Chairman, Singapore's economic success is built on our ability to connect with the world, as Mr Mark Lee has noted. For Singapore enterprises to grow, they must expand beyond our hinterland to overseas markets for fresh revenue streams.

I want to reassure Ms Jessica Tan, Mr Edward Chia, Mr Mark Lee and Mr Keith Chua that Enterprise Singapore is committed to providing comprehensive and holistic support for Singapore enterprises.

In 2024, Enterprise Singapore supported more than 2,300 companies, helping them boost their projected annual revenue by $14.5 billion through transformative projects in productivity, that is $8.2 billion; internationalisation, that is $5.5 billion; as well as innovation, that is $0.8 billion, all totalling up to the $14.5 billion I highlighted earlier.

Companies that undertook internationalisation projects saw a projected increase in annual revenue of $8.8 million per company compared to $7.7 million in 2023. I am glad to announce that moving forward, we will further enhance our support in this area.

First, we will permanently double the maximum loan quantum for the Enterprise Financing Scheme – Trade Loan (EFS-TL) from $5 million to $10 million. We have considered feedback from the business community, including the Singapore Business Federation (SBF) and PricewaterhouseCoopers, and would like to meet this need for financing.

Second, we will extend the Double Tax Deduction for Internationalisation (DTDi) for the next five years. Enterprises with expansion plans can continue to benefit from a 200% tax deduction on eligible expenses for overseas market expansion and investment development activities.

Third, we will extend the $100,000 Market Readiness Assistance (MRA) Grant cap by one more year to 31 March 2026, because this is in response to industry feedback that many companies, many businesses have spent the last two to three years getting back on their feet after COVID-19. They are restarting their expansion plans and need more time to execute their global market outreach.

Besides our grant, tax and financing schemes, Enterprise Singapore and its partners operate a wide network of Overseas Centres where Singapore SMEs can receive support to enter regional markets.

Besides helping enterprises grow their overseas markets, I want to reassure Mr Mark Lee that the Government will enhance support for enterprises pursuing inorganic growth via M&A.

We will expand the scope of the Enterprise Financing Scheme – Mergers and Acquisitions (EFS-M&A) to also cover targeted asset acquisitions, such as intellectual properties and contracts, without a corresponding equity purchase. This will help unlock loan financing for enterprises to acquire specific and complementary assets of a target business that can enhance their growth prospects without having to buy out the target business and, therefore, take on its liabilities. The pilot will last five years, from 1 April this year until 31 March 2030.

Chairman, in addition to providing access to financing, we will continue to support enterprises in adopting new technologies, such as AI, because AI can spur enterprise and workforce transformation. It enables the firm to automate manual business processes and augment workers' skills, raising productivity, driving innovation and further growing business revenue.

The Ministry of Digital Development and Information (MDDI) will share the broad progress of our National AI Strategy (NAIS) 2.0 while I will focus on MTI's key industry development efforts.

First, we will support more enterprises in setting up AI centres of excellence to accelerate the development and deployment of AI solutions across our economy. We recognise that enterprises need access to compute infrastructure, software and consultancy services to grow their AI R&D and productisation capabilities

And so, as the Prime Minister announced and mentioned in his Budget Statement, we are introducing the new Enterprise Compute Initiative (ECI) for Singapore-based enterprises with the ambition to anchor AI mandates and grow AI teams here in Singapore. Enterprises which are digitally mature, have a compelling AI use case as well as an implementation roadmap can tap on the ECI.

Mr Mark Lee will be pleased to know that under ECI, participants will have access to cloud compute credits and training programmes from cloud service providers, such as Google, Microsoft and Amazon Web Services. The Government will also provide a grant for ECI participants to access consultancy services offered by system integrators to help them develop and scale their AI solutions.

Secondly, the Government will continue to support the broad base of enterprises that are considering the adoption of AI-enabled solutions.

Ms Jessica Tan will be pleased to know that Enterprise Singapore, in partnership with the Infocomm Media Development Authority (IMDA), has helped close to 3,000 SMEs adopt AI solutions through the Productivity Solutions Grant (PSG). We will continue to enhance our existing digitalisation initiatives, such as the SMEs Go Digital Programme, to accelerate AI adoption. MDDI will elaborate more on this during their COS.

Besides powering up enterprises to use AI, we will help workers to upskill and harness AI to advance their careers.

Mr Liang Eng Hwa will be glad to know that we are indeed deepening our partnerships with the industry and the IHL partners to continue delivering industry-relevant curricula and providing student internships. MOM will share more details on how we will enhance support for businesses as they redesign jobs and upskill workers.

Chairman, Singapore is continuing to innovate and stay agile with AI. The constant energy to do better is part of our Singapore DNA. Deputy Prime Minister Gan spoke about our business-friendly environment, a fundamental quality that has enabled Singapore to stay attractive, to stay competitive. We are not resting on our laurels and we are committed to doing more.

The Government has stepped up our engagements with the industry and sought views on how Singapore can strengthen our competitiveness.

To this end, I co-chaired the AfA on Business Competitiveness with SBF Council Vice Chairman Mr Mark Lee from February to November last year. Mr Neil Parekh will also know and, in fact, he shared that the AfA engaged the businesses, and trade associations and chambers (TACs) extensively last year and released 27 recommendations on manpower, land and regulatory issues.

Our Government agencies have considered the AfA's recommendations seriously. Earlier on, you heard from Second Minister Dr Tan See Leng, JTC will implement the AfA's recommendation on lease tenure and renewals for industrial land.

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In April 2024, the Government formed the Inter-Ministerial Committee (IMC) for Pro-Enterprise Rules Review to review our regulatory regime for the next bound. I thank Mr Edward Chia, Ms Jessica Tan, as well as Mr Keith Chua and Mr Mark Lee for their questions on the IMC. As announced by Deputy Prime Minister Gan earlier, he mentioned after extensive reviews and consultations, the Committee has set out three Statements of Commitment to streamline regulatory processes and to reduce the compliance burden on businesses. Our work does not stop there. Let me share more about the three-pronged commitment to enhancing our ecosystem and supporting businesses as they navigate Government regulations.

First is the SME Pro-Enterprise Office (SME PEO). Following the AfA's recommendation, I announced last September that this new office will be set up under Enterprise Singapore to help businesses navigate regulatory matters. I am pleased to announce that the SME PEO will be fully operational from 26 March this year, in 20 days' time. Working with the Pro-Enterprise Panel and respective regulatory agencies, SME PEO will be the Government's key coordination unit to aggregate business feedback and to improve regulations at the systems level. We seek continued strong support from our key partners, including the SBF and all TACs, to be our ears on the ground as well as champions for SMEs. Let us work closely with SME PEO to reduce red tape and to streamline processes to support our SMEs.

Second, we will enhance our SME Centres to offer a wider range of business advisory services and programmes. Today, there are 10 SME Centres across Singapore, helmed by TACs. The Business Advisors at these Centres will be armed with new toolkits to provide enhanced one-to-one business advisory services, workshops as well as group-based upgrading projects where multiple businesses facing similar pain points can adopt a common solution. This complements the work of the SME PEO so that our businesses can receive advisory support for their growth needs, including regulatory issues. We will continue to partner closely with our TACs to enhance SME Centres' offerings and to extend our reach to more businesses.

Third, we will continue investing in and improving our digital platforms, such as the GoBusiness portal and the Enterprise Singapore's Business Grants Portal. We will not only streamline licensing and regulatory transactions, but we will also improve, in terms of the grant applications, to better serve businesses.

Enterprise Singapore continues to enhance its grant processing efficiency through automation and centralised processing. For instance, the processing time for PSG applications has been shortened by 80%, from the previous almost three months to the current two weeks. These enhancements to our grant application and approval processes for local enterprises will not stop. We will continue to look at how we can improve and shorten the processing time by leveraging automation and centralised processing.

Taken together, the three pillars – the SME PEO, SME Centres and digitalisation – will continue to drive our efforts in supporting business transformation and growth for our SMEs and our enterprises.

Chairman, while easing regulatory burdens for businesses, the Government is also mindful that for markets to function properly, consumers' trust in merchants and markets must be upheld. I thank Mr Dennis Tan, Ms Sylvia Lim and Mr Melvin Yong for their questions.

On Mr Dennis Tan's suggestion, while right-to-repair has its benefits to the environment and to consumers, there are also potential downsides, such as data security concerns. I want to assure him that we will monitor and assess the need for such legislation in Singapore.

I also want to assure Ms Sylvia Lim that there is a whole-of-Government approach today to deal with scams which are criminal in nature, led by MHA and coordinated by the Inter-Ministerial Committee on Scams.

MTI and the Competition and Consumer Commission of Singapore (CCCS) regularly review our consumer protection regime to ensure that consumers' interests are protected. The Consumer Protection (Fair Trading) Act (or CPFTA) provides general remedies for consumers who encounter unfair trade practices when transacting with businesses. In addition, sector regulators have established more specific standards relevant to the sectors they oversee.

An effective consumer protection regime also requires the strong support of our key partners and businesses. MTI works closely with the Consumers Association of Singapore (CASE) to raise consumer awareness and champion their needs and rights. I agree with Mr Melvin Yong that more can be done, especially in the e-commerce space, where unfair practices can take on new and less-obvious forms.

The Government welcomes and encourages businesses to take the lead in industry-led initiatives, to ensure a fair and safe marketplace for our consumers. We have commenced consulting with the industry and will announce more details on our upcoming initiatives in the coming weeks.

Last but not least, let me speak on something closer to home – heartland shops. Many of us have very close ties to the heartlands, where we live, work and share good memories. They form part of our collective identity as Singaporeans, and our heartland shops are really part and parcel of our daily lives and social fabric.

I reassure Mr Desmond Choo and Mr Keith Chua that we are sparing no efforts to rejuvenate our heartlands. We have made progress in the past few years and we will strive to do more.

To recap, in 2022, we launched the $50 million Our Heartlands 2025 programme to revitalise our heartlands and to enhance the capabilities of heartland shops, helping them transform, stay relevant and continue serving residents. In fact, earlier in October 2020, we laid the foundation for transformation with the Heartlands Go Digital Programme. Since then, more than 17,000 heartland shops have adopted e-payment solutions. In 2022 and 2023, we further expanded the Heartlands Go Digital Programme to cover wider areas, such as service excellence, digital marketing and human resources.

We have also helped heartland shops rejuvenate their premises with the Visual Merchandising Programme that was launched in 2021. As a result of this programme, the heartland shops that participated shared that they have seen their footfall and their sales increase by generally about 20%.

Our heartland shops in Singapore have also benefited from the launch of Community Development Council (CDC) Vouchers since the scheme started slightly more than three years ago. To date, Singaporeans have spent more than $1 billion at about 23,000 heartland shops and hawker stalls. In fact, the new round of CDC Vouchers as well as the SG60 Vouchers this year will again boost the visibility, footfall as well as business for our heartland shops.

For many of our heartland shops, getting that additional visibility and awareness can really make a vital difference to their business. That is why, last year, we launched the Heartland Enterprise Placemaking Grant (HEPG) to encourage our heartland merchants to organise innovative placemaking activities involving community engagement, public art installations, workshops, and thematic festivals. Many heartland shops have applied successfully for the HEPG.

One such shop is Quan Shui Wet Market, which started in Ang Mo Kio in 1968. The fresh pork stall owned by Uncle Oh Quan Shui has grown to eight and is now an omni-channel retail operation with a flagship store at Upper Thomson. Quan Shui participated in the Digital Practitioner Programme (DPP). In fact, under the charge of Uncle Oh's grandson, Neo Jun He, the store has refreshed its brand and pivoted online with a website and marketing a wider range of product range that went beyond just pork. Within just five months, Quan Shui attracted a growing pool of keen visitors and potential customers.

And like what Mr Desmond Choo mentioned during his cut yesterday, Quan Shui tapped into the HEPG to improve its product visibility. They participated in Easty Breezy, which is a seaside-inspired marketplace last September in Marine Parade, as well as a Chinese New Year Bazaar this year. Both events led to higher revenue, footfall and brand loyalty.

In fact, with its refreshed brand, expanded online presence and growing product range, Quan Shui's revenue increased by 25% from 2021 to 2024, and the company is projecting a 20% growth year-on-year.

Today, we would like to invite all Members to have a taste of Quan Shui's success. MTI has arranged for bento boxes with Quan Shui's siew mai, har gao as well as the chicken and mushroom dumplings to be served in the Members' Room later during tea break, and we have also made special arrangements for our Muslim Members. We have set aside four of their very, very popular halal otah buns in each bento set for each of our Muslim Members when they break fast later. We hope that Members will enjoy this at the end of the day. These handmade local dim sums are really based on the 60-year-old family recipe from the founder, Uncle Oh.

So, companies like Quan Shui, have shown that Government support and schemes helped them to transform and boost their businesses. We want to encourage our enterprises to approach any of our 10 SME Centres for assistance and to embark on a journey of transformation and growth.

Given the success of these initiatives, we will continue strengthening Our Heartlands 2025 Programme with fresh initiatives and energise our heartlands "inside out".

Starting from the "inside" of our heartland shops, we will launch the Enhanced Visual Merchandising Programme to help our heartland shops refresh their stores and gain visual appeal to attract more customers. This enhanced programme will offer the heartland shops support in training, consultancy as well as makeover of their shopfronts. We are increasing the total qualifying cost by five times, from $12,000 previously to $60,000 now. In addition, the project scope for the shopfront makeover can be more customised and more training topics will be added.

From "inside" to "outside", besides revitalising the interiors of heartland shops, we will also rejuvenate what takes place in our heartlands' neighbourhood. We will launch a new Vibrant Heartlands Programme for Merchants' Associations to support their placemaking activities and events. They can conduct bite-sized and pre-scoped activities under a recommended standard option or explore holding larger-scale, customised placemaking events. Bite-sized and pre-scoped activities would receive grant support on qualifying costs of $3,000 per application, while larger-scale customisable placemaking events would receive grant support on qualifying costs of up to $200,000 per application.

Mr Chairman, please allow me to say a few words in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Chairman, fellow Members of Parliament, the global and regional economies are facing unprecedented situations, and all Singapore businesses must actively innovate and transform. The Government will support businesses in their transformation and growth in these areas.

First, supporting internationalisation. Second, helping businesses leverage AI for transformation. Third, increasing regulatory flexibility to create a business-friendly environment.

In recent years, we have continuously work to revitalise our heartland economy and promote the development of heartland enterprises. Firstly, the Government has distributed several rounds of CDC Vouchers, encouraging Singaporeans to spend at approximately 23,000 participating heartland shops and hawker stalls, with total spending exceeding $1 billion. Through the new round of CDC Vouchers and the SG60 Vouchers this year, we will continue to help heartland shops and hawkers increase their revenue.

Our heartland communities are our emotional connection points. For Singaporeans, the familiar heartland shops and hawker stalls play an irreplaceable role in deepening our collective memories and national identity. Like the handmade snacks you will enjoy later, our heartland communities have that familiar flavour and human touch.

Therefore, we will further upgrade Our Heartlands 2025 Programme to let communities shine from inside out, injecting vitality throughout our heartland communities. These include launching an enhanced Visual Merchandising Scheme, increasing the total qualifying cost five-fold from $12,000 to $60,000, while expanding shop renovation scope and adding training topics.

Additionally, we will launch the Vibrant Heartlands Programme for Merchants' Association. This programme has two parts. Firstly, for shorter pre-set activities, the qualifying cost is $3,000 per event. Secondly, Merchants' Association planning larger community building activities can apply for subsidies, on qualifying costs of up to $200,000.

We hope more heartland businesses will make good use of existing schemes for innovation and transformation.

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(In English): Chairman, the Government is standing together with our Singapore enterprises, with our SMEs. We will support and empower our enterprises as they transform and grow be it an SME hoping to expand abroad or an SME embarking on AI or heartland shops and stalls seeking more customers. We will spare no effort to support them every step of the way.

As we forge ahead together, we invite all Singaporeans to join us in energising our heartlands. Let us show them our support during this SG60 year, by patronising our heartland shops and participating in their placemaking activities. Let us enjoy and celebrate our vibrant and beloved heartlands. As we do so, we affirm our Singaporean identity with pride and joy.

The Chairman: Minister of State Tan.

The Minister of State for Trade and Industry (Mr Alvin Tan): Chairman, the global trading system is coming under severe strain. We are entering uncharted waters, as Deputy Prime Minister Gan Kim Yong said, marked by heightened geopolitical tensions, rise of economic nationalism and supply chain disruptions.

Historically, Singapore has been the gateway to global trade, symbolised by our Singapore River, just outside this chamber. It has shaped our nation's identity – open, connected and adaptable to shifting global tides.

Our rivers thrive when its waters flow freely, so too must we keep our economic pathways flowing. We can do that by connecting Singapore to the world and connecting the world to Singapore.

We must always connect the world to Singapore, and flow people, businesses and trade through our shores. Last year, we welcomed 16.5 million international visitors and our tourism receipts for the first three quarters of 2024 soared to a historic high of $22.4 billion. They were drawn by the new and refreshed experiences we curated.

Our live entertainment scene sparkled last year, as we hosted international A-listers like Taylor Swift, Coldplay and Jay Chou. This year, we already have a few top acts, including Seventeen in January and G.E.M. over the weekend. We have a flow of exciting performances lined up this year as well, including our very own Stefanie Sun, KISS OF LIFE, BTS' j-hope's first solo concert and BABYMONSTER.

We also saw strong flow on our Meetings, Incentives, Conferences and Exhibitions (MICE) front. Events like Singapore Airshow, Asia Pacific Maritime, and Food & Hotel Asia – Food & Beverage, all drew record numbers. I also hosted young leaders at last year's World Economic Forum's Young Global Leaders Annual Summit.

And true to our positioning as the World's Best MICE City, we have been Asia Pacific's Top Meeting City for an incredible 21 consecutive years. For the first time ever, Singapore also ranked second in the International Congress and Convention Association's worldwide city rankings in 2023 .

We also partnered global world-class intellectual properties (IPs) to curate innovative experiences. For example, ArtScience Museum hosted The World of Studio Ghibli; and at Resorts World Sentosa, Harry Potter: Visions of Magic. We also lent support to the Louis Vuitton X Murakami pop-up in Joo Chiat.

Building on these flows, the Singapore Tourism Board (STB) has been working with tourism and lifestyle enterprises on new and fresh opportunities. As Mr Neil Parekh highlighted, our vision for the Tourism 2040 (T2040) roadmap will drive the next chapter of our quality tourism journey. STB will share more about T2040 in the coming months.

We also have a good flow of events and attractions lined up this year. In fact, this year we expect international visitor arrivals to reach between 17.0 and 18.5 million, bringing in approximately $29.0 to $30.5 billion in tourism receipts.

Senior Minister of State Low Yen Ling, as Parliament's heartland guide, spoke about injecting vibrancy into our heartlands. As Parliament's tourist guide, let me take you through some of the new and rejuvenated offerings around Singapore.

Mr Chairman, our flow of MICE events remains vibrant, reflecting strong business confidence from organisers and delegates. This year, we will host inaugural events like the Business Aviation Asia Forum and Expo. Bloomberg's New Economy Forum will also return to Singapore in November for the fifth time.

Mr Edward Chia asked how we are working with local arts practitioners to create authentic tourism content. In January, Singapore Art Week (SAW) 2025 aggregated over 160 art events and featured many local artists. And for the third time, ART SG returned to Singapore as part of SAW, with 105 galleries from 30 countries and territories around the world.

To Ms Usha Chandradas' question, signature lifestyle events, including music festivals, increases our appeal to global talent and visitors and this boosts tourism and economic spillovers. They also provide a stage for our local creatives to showcase their talent, like Kin Leonn and Iman Fandi. STB will continue working with stakeholders, including our National Arts Council (NAC) to create more opportunities for our local music ecosystem. We will continue to support these events, through financial and non-financial means, to build a diverse pipeline. And we welcome compelling music festival proposals that bring strong economic benefits to Singapore.

For sports fans, we will host the National Basketball Association (NBA) Rising Stars Invitational in June, which will be the first regional youth basketball event in Asia. This comes after we hosted the Singapore Tennis Open and Singapore Smash just last month.

Our Integrated Resorts will also unveil world-class tourism offerings as part of their ambitious expansion plans. When completed in 2029, Marina Bay Sands' upcoming fourth tower will redefine our iconic skyline.

Over at Resorts World Sentosa, I broke ground for its new waterfront lifestyle development in November 2024, which will feature an exciting new promenade with entertainment, retail and dining experiences. I also opened Illumination's Minion Land just in time for the March school holidays and, later this year, we will open the Singapore Oceanarium, which will be three times the size of our current SEA Aquarium.

In a few years, we will also open Super Nintendo World at Universal Studios Singapore.

Let us now go from the South of Singapore to the North of Singapore in Mandai. Following the opening of Bird Paradise in 2023, new features in Mandai await all of us this year. I launched the public Mandai Boardwalk in January 2025, which offers breathtaking views of Upper Seletar Reservoir and the Central Catchment Nature Reserve.

We are also opening Rainforest Wild ASIA, Singapore's fifth zoological park. It will be home to 29 iconic animal species. I visited a few weeks ago for a preview and Minister Grace Fu will officially open it next Wednesday. Then there is also Mandai Rainforest Resort by Banyan Tree, which opens next month. It blends architecture with nature, offering rooms, including tree houses, nestled in lush greenery. Next year, we look forward to opening the Rainforest Wild Africa.

Mr Chairman, this flow of new offerings marks our 60th year of Independence and our tourism sector has come a long way since. I spend plenty of time with our tourism sector – our workers and our visitors. The amazing tourism offerings we enjoy today is testament to their work over the past 60 years.

That is why I am happy to announce that our attractions are rolling out several deals in celebration of SG60. We are working with the Association of Singapore Attractions (ASA) and our tourism businesses to curate SG60 promotions, including family-friendly bundles and discounts.

For instance, Gardens by the Bay will launch an exclusive SG60 Wonder Blooms Pass for citizens and residents to enjoy over 60% discounts on unlimited visits to six stunning upcoming floral displays in our Flower Dome. Mandai Wildlife Reserve will also offer exclusive deals across its parks from May to August. We will launch these deals on our SG60 website today, so please book and visit our attractions and enjoy these amazing offers.

Then let us also go on a cruise! Like on Disney Adventure cruise ship in Singapore, which is starting in December. It is the first-ever Disney Cruise Line ship to homeport in Asia. Many new cruise ships will also be calling in Singapore, including Resorts World Cruises' Star Voyager and the Ritz-Carlton Yacht Collection's Luminara.

As cruise lead coordinator for ASEAN, we are working with our neighbours on new sailing itineraries, tapping the fast-growing potential of cruise tourism to attract even more visitors to visit Southeast Asia from Singapore. I discussed this with tourism ministers in Johor just in January 2025.

Mr Chairman, I shared how we are connecting the world to Singapore through our robust flow of tourism and attraction offerings. Equally important is to connect Singapore to the world.

That is why we are deepening our relationship with our trade partners globally.

Ms Tin Pei Ling asked how we are strengthening our trade links. Our approach is simple: we are working with our trade partners to harness complementary strengths, improve market access and also to drive mutual growth. This will unlock more opportunities for businesses, talent and capital to flow efficiently across economies.

First, let me speak about ASEAN. We are doubling down on regional economic integration with our ASEAN partners to create an ecosystem where trade, investments, resources and innovation flow seamlessly, making our region jointly more competitive.

Deputy Prime Minister Gan Kim Yong shared about our progress on the ASEAN Digital Economy Framework and the ASEAN Trade in Goods Agreement (ATIGA) to enhance regional trade networks. Beyond these, we also substantially concluded the second upgrade of the ASEAN-China Free Trade Area last year and aim to fully conclude the upgrade this year.

Second, we are strengthening bilateral economic ties with key partners, such as US, China, India, Vietnam and Malaysia. We commemorated the 20th Anniversary of the US-Singapore Free Trade Agreement last year. It is a cornerstone agreement which remains one of our most actively used Free Trade Agreements (FTAs). We have built upon this foundation in new areas such as the digital economy, AI, supply chain resilience and energy, as Minister Tan See Leng mentioned.

With China, our China-Singapore Free Trade Agreement Further Upgrade Protocol entered into force on 31 December 2024. It introduces more liberal and transparent trade rules, so Singapore investors and suppliers can enjoy better market access to China and greater confidence when doing businesses there.

In India, annual bilateral trade has grown over 2.5 times since 2005, from $20 billion to $52.3 billion in 2023. During Prime Minister Narendra Modi's official visit in September 2024, Singapore and India agreed to elevate our relationship to a Comprehensive Strategic Partnership. Then in January 2025, President Tharman Shanmugaratnam's State visit to India commemorated 60 years of diplomatic tides. During the visit, Singapore companies signed MOUs with the Odisha government, including one signed between Surbana Jurong Group and Odisha on sustainable urban planning.

In Vietnam, today, Singapore is among Vietnam's top investors and we are unlocking new investment opportunities for our businesses there. These span renewable energy and carbon credits. They will form an integral part of our Comprehensive Strategic Partnership upgrade with Vietnam. Enterprise Singapore and Vietnam's Foreign Investment Agency have also established the Singapore Unit, which is a single point of contact to provide support for Singapore companies investing in Vietnam.

On Malaysia, Ms Usha Chandradas asked about our arts plans for the JS-SEZ. We will discuss with Malaysia how the arts sector can complement our priority areas in the SEZ.

We are also ensuring that our businesses can make the full use and the most of the FTAs that we have signed, so that they can gain better access to global markets and benefit from greater efficiency and lower business costs when trading with our FTA partners. So, we worked with SBF to conduct 11 FTA outreach events last year, attended by over 911 companies.

I attended some of these together with Mr Mark Lee. These sessions allow us to provide customised advisory support for Singapore companies to use FTAs for exports and internationalisation. For instance, SGProtein Pte Ltd, which is a plant-based protein food manufacturer, enhanced its competitiveness in the Korean market with 8% saved in tariffs by using the ASEAN-Korea FTA and the Korea-Singapore FTA.

Sir, even as we deepen our relationship with key partners, we must also broaden our horizons. Ms Tin Pei Ling and Mr Saktiandi Supaat asked how we are diversifying our trade. Today, we have 27 FTAs and 43 Bilateral Investment Treaties. These are all in force across the globe and we are doing more.

First, we are securing partnerships with regions a little bit further away from us, to help us stay relevant amid global uncertainties and shifting tides. And that is to enable our businesses to improve supply chain resilience and unlock new market opportunities.

Sir, I visited Latin America with my colleagues many times to work on two trade deals. In 2022, we signed the Pacific Alliance-Singapore FTA; and the Pacific Alliance, which comprises Chile, Colombia, Mexico and Peru, collectively forms the eighth largest economy in the world. I am pleased to share that the FTA is very close to coming into effect.

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We also recently signed the MERCOSUR-Singapore FTA with Argentina, Brazil, Paraguay and Uruguay, and we are in the process of working very hard to get it ratified as well. As the first FTA between MERCOSUR and a Southeast Asian country, this FTA will pave the way for greater economic cooperation between both our regions.

We are also doing exciting work in the Middle East. In 2023, we established our first Strategic Partnership with a Middle East country, Saudi Arabia. At the fourth Saudi Arabia-Singapore Joint Committee meeting last month, we discussed collaboration in connectivity, energy, digital economy and innovation. We also announced new collaborations in logistics and port automation, and started negotiations to update our existing Bilateral Investment Treaty, which entered into force in 2007.

Mr Chairman, we are also strengthening ties with Africa, a vast, young and rapidly growing region with vast potential. I have visited Africa many times too. In fact, I was just in Rwanda last week to advance discussions on Article 6 carbon credits cooperation, digital and AI, and fintech. I have also met many Singapore-based companies who are venturing into Africa, including GenZero, an investment firm exploring carbon credit projects in Ghana, Kenya and South Africa. This year, we will host the Africa Singapore Business Forum, a biennial platform that has connected over 5,000 business leaders from Africa and Asia since 2016. [Please refer to "Clarification by Minister of State for Trade and Industry", Official Report, 6 March 2025, Vol 95, Issue 159, Correction By Written Statement section.]

We will also continue to broaden our trade partnerships in the digital and green economies. We are expanding our networks of Digital Economy Agreements (DEAs). DEAs help us integrate into the global digital economy and enhance digital trade flows. Through DEAs, we work with other countries to establish rules and standards around issues like personal data and online consumer protection. They enable our businesses to capitalise on cross-border digital services.

We have four DEAs in force, and are expanding the network. Last year, we concluded the European Union-Singapore Digital Trade Agreement and are negotiating a DEA with the European Free Trade Association.

Sir, recent global developments have underscored the importance of plurilateral initiatives to address emerging issues like digital trade. As a founding member of the Digital Economy Partnership Agreement (DEPA) alongside Chile and New Zealand, we continue to champion DEPA's expansion. And many countries are keen to join DEPA. Last year, the Republic of Korea joined DEPA and Costa Rica's accession is nearly finalised. Accession negotiations with Canada, China and Peru are also ongoing. And other economies, such as the United Arab Emirates (UAE), El Salvador and Ukraine, have also applied to join.

On the multilateral front, Singapore co-convenes the World Trade Organization (WTO) Joint Statement Initiative on E-Commerce with Australia and Japan. This helps establish global rules in digital trade. And after five years of negotiations, we reached an agreement on the text last year, supported by around 70 members. We are working to incorporate the agreement into the WTO and expand its membership.

We are also advancing our Green Economy Agreements (GEAs) to catalyse collaborations in green innovation and trade flows in sustainable products, and ultimately accelerate our low-carbon transition.

Under our GEA with Australia, we established a co-innovation programme for SMEs. We call this the Go Green Co-Innovation Programme (GGCIP) to incentivise partnerships between Australian and Singapore enterprises. The programme has supported five projects, including the joint venture between Singapore-based ESGpedia and Australia's FootprintLab, to develop an AI-powered sustainability reporting tool to help businesses with climate disclosure and sustainable supply chain management.

In November, we also launched a joint working group on trade and the green economy with New Zealand and Chile, with plans to enhance cross-border trade and investment in green growth areas.

Mr Chairman, our iconic Singapore River is a symbol of our nation's success story – a dynamic hub that facilitates the seamless flow of people, trade and capital through our shores and as a gateway for the world. Our success as a nation depends on us continuing to be open and connected.

And therefore, to stay competitive, we must sharpen our edge by fostering innovation, building strong enterprises and investing in our people. Government will support our businesses as they navigate the ever-changing currents of the global economy. By building upon our strong foundations, we will enhance connectivity, expand opportunities and strengthen Singapore's role as a gateway for people, trade and capital flow.

Together, we will grow our economy, unlock new potential, transform enterprises and connect Singapore to the world, ensuring our collective success as we chart a bold course forward.

The Chairman: Clarifications. Mr Liang Eng Hwa.

Mr Liang Eng Hwa (Bukit Panjang): Thank you, Sir. Deputy Prime Minister Gan, in his speech and in response to my query, mentioned that the worst case scenario for Singapore amidst an ongoing US-China contestation could be a global trade war. So, I would like to further ask the Deputy Prime Minister what Singapore is doing to mitigate that potential impact.

And also, if I can ask the Deputy Prime Minister to share how he sees our relationship with US and with China, whether in the event of a global trade war, would that put us in a better position to manage the downsides?

Mr Gan Kim Yong: First, I must say that I wish a global trade war will not happen, but we must always be prepared because the external environment, as I said, will become increasingly difficult and challenging for us. But what Singapore should do is to continue to deepen our value proposition for businesses and for our trading partners. We must continue to be a reliable, consistent partner with other countries so that we will continue to be a valued player in the global economy. I think that is the fundamental.

Secondly, we must also continue to find opportunities to deepen our collaboration within the region, with different parties, with like-minded countries and economies. This way, we can then continue to expand and grow our economic space in the global economy. ASEAN is one area. As I mentioned, it is a fast-growing area and I think we will continue to work with the ASEAN partners to see how we can deepen our integration within ASEAN so that we have more opportunities for us.

But at the same time, as I mentioned in my speech, we continue to expand our collaboration with our neighbours particularly, and see how we can leverage on each other's strengths so that when we combine together, we have a a better value proposition for our trading partners and our business partners globally.

But also it is important for us to explore new areas of growth and opportunities for collaboration. For example, I mentioned about digital economy, which is a new platform. It is not the same as traditional FTAs. It is not just about tariffs and imports or exports, but it is about collaboration and interoperability in developing the digital capability to strengthen our own enterprises, giving them the better opportunity to expand in the region. So, I think this is something that we will continue to do.

The Member talked about US-China relationship and how Singapore can play a role. I think it is not easy. We are a very small economy. We hope to be able to continue to play a constructive role between the two countries. And we have to continue to remain nimble and to monitor the development. And I am sure every Member, and nowadays, when you wake up in the morning, open the newspaper, the first thing you see is what are the major news. And every time, you are shocked into waking up with the news. And now, without reading the newspaper, you can read it on your mobile phone, and these are news alerts. And I think you just have to take it when it comes and always be nimble, be prepared to move very quickly. This also speaks to the strength of Singapore as a small economy. We are able to a very compact economy. We are able to move very quickly, we are able to respond very fast.

So, it is important for us to work closely with the enterprises and with our businesses through the various trade associations and organisations to see how we can bring our businesses along. Keep them informed on the developments around the world, enable them and equip them so that they are able to adjust their supply chains, their production lines and their export markets quite quickly.

At the same time, it is important for us to continue to invest in our people so that they acquire new skills and new capabilities because as the global economy changes, new opportunities will emerge. But we must have the skills to be able to tap into these opportunities. So, I think getting our industries and enterprises to be nimble and move fast, investing in training of our people, these are fundamentals to keep Singapore's economy resilient and continue to grow.

The Chairman: Ms Jessica Tan.

Ms Jessica Tan Soon Neo (East Coast): Thank you, Mr Chairman. My clarification relates to supporting SMEs in terms of internationalising, and it is for Minister of State Tan. He shared on SGProtein and how it has enhanced its competitiveness in the Korean market by tapping the FTAs, and he has also shared on the many FTAs that we are working on. Can more be shared on how the Government and SBF are working together to support our SMEs in terms of better tapping these FTAs and getting access to new markets?

Mr Alvin Tan: Sir, I thank Ms Jessica Tan for her question. In fact, it is not just enough for us to expand our FTAs and sign these FTAs even in far flung countries, it is also important for us to work very closely with our business associations, like SBF and others, to take them there and show them what the business opportunities are. And also, while they are in Singapore, to give them the tools and the support for them to take up these advantages as they look at how to lower their costs and increase their business efficiency.

There are a few things maybe I want to just share with Ms Jessica Tan. The first is we have a tariff finder tool now. That was developed by Enterprise Singapore, and the example that I gave earlier, SGProtein, can access, through this tariff finder tool, crucial information on import duties and formalities, FTA preferential duties and rules of origin for potential export market. So, it helps them to navigate this and then test how much they would have to pay, for example, or how they can increase their efficiency.

SBF has been working very closely with us to provide companies like SGProtein with on-site guidance on, for example, how even to produce and prepare a manufacturing cost statement application. And this is a very crucial step because it helps to demonstrate local content and to qualify for FTA benefits.

I also wanted to highlight that MTI and Enterprise Singapore also, again working with SBF, has launched a new Centre for Future of Trade and Investment (CFOTI) just last year. CFOTI helps businesses address issues related to trade compliance and also expands the capacity to benefit on trade agreements. There are also bespoke advisory support through this, for our SMEs to make the best use of FTAs. So, I encourage our SMEs to work closely with us, Enterprise Singapore, as well as our trade associations, like SBF, to fully utilise these FTAs.

The Chairman: Mr Mark Lee.

Mr Mark Lee (Nominated Member): I would like to thank Senior Minister of State Low Yen Ling, Second Minister Tan See Leng, Deputy Prime Minister Gan and those who were involved in the AfA.

I think from the announcements today, it truly shows that when there are constructive comments, the Government is not tone deaf but is actually tuned in to make sure that Singapore remains agile and business-friendly.

For this AFA, I would like to ask for the Government to consider continuing this platform from time to time, so as to reinforce the strong partnership between the Government and the business community. That is my first clarification.

The second clarification is in regard to the establishment of the $1 billion Private Credit Growth Fund. This is definitely a good opportunity and an important source of alternative financing. There are currently already many private credit fund providers, mainly catering to larger MNEs and large local corporates, and often leave their local enterprises underserved. I would like to ask the Deputy Prime Minister, to ensure targeted support for local enterprises, will the cost of funds provided to the Private Credit Growth Fund's fund managers be set at a preferential and competitive rate, so that it ensures that local enterprises benefit directly from the lower borrowing cost?

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Ms Low Yen Ling: I would like to represent the whole MTI family – not just MTI, but also Enterprise Singapore, EDB and all our economic agencies – to thank SBF and Mr Mark Lee for co-chairing the AfA on Business Competitiveness, and also to Nominated Member of Parliament Mr Neil Parekh for being part of the AfA as well.

We also want to thank the 13 TACs that joined us in this journey from February to November last year. It was very intense. We consulted many of the businesses, not just sectoral but also the industry and trade associations and so on. That really is the usual engagement, and we must continue to sustain this momentum.

That is why earlier, during Deputy Prime Minister Gan Kim Yong's speech, you heard him mentioning that he helms the Inter-Ministerial Committee for Pro-Enterprise Rules Review. In the last few months, I joined him as well as Minister Shanmugam, Minister Tan See Leng, Minister Desmond Lee and Minister Chee Hong Tat in hosting discussions with more than 140 chief executive officers and chief experience officers of SMEs to continue to understand, sector by sector, if there are any pain points or any areas that we can look at to further improve the whole-of-Government regulatory agility.

I want to reassure Mr Mark Lee and in fact, the business community that MTI and not just MTI, now that we have set up the SME PEO from 26 March onwards as a key coordination unit to galvanise the whole-of-Government to lean forward, to continue to work with the business sector to improve the regulatory agility, to better support our businesses to seize opportunities overseas.

Mr Gan Kim Yong: There is a second part of the question that maybe I can address – the suggestion about the Private Credit Growth Fund.

This is a scheme that is designed to fill the gap in the financing framework. We have equity financing, we have the normal commercial loans, but some of these high-growth companies are in a very niche area and they are not able to find financing so easily available. And the owners, the entrepreneurs, are also not keen to be diluted. They want to retain control of their businesses. Therefore, equity investment may not be suitable for them. They are looking for alternative financing. This private credit allows more flexibility for the structure of the financing to be designed to suit the needs of the specific companies.

So, it is not meant to be a subsidy. It is not meant to be for businesses that are having difficulties or need subsidies or support for overseas expansion. We have other schemes. Enterprise Singapore has a host of schemes. I have mentioned some of them, like GIA and so on. These are other schemes that will support businesses going overseas, expanding their regional presence, even including R&D funds and efforts and so on.

So, there are different schemes designed for different purposes. For this particular private credit scheme, it is really meant to fill a gap in the financing framework. So, I hope Mr Lee understands that.

The Chairman: Mr Neil Parekh.

Mr Neil Parekh Nimil Rajnikant (Nominated Member): I just want to thank the whole MTI team for a very comprehensive analysis and presentation and a very detailed Budget – a very good Budget in my view. I have a couple of clarifications.

The Deputy Prime Minister spoke about the NSTIC (R&D Fab) to drive advanced semi-conductor research and innovation. May I ask why is advanced packaging the initial focus of this facility and will it be expanded to other areas very shortly? What is the immediate benefit to our local semi-conductor system with this NSTIC (R&D Fab)?

The second question is: we have seen newspaper reports recently on NTUC researchers discovering a geothermal reservoir in Yishun. Perhaps MTI can provide an update on its study on the potential of geothermal energy going forward.

Lastly, on private credit, having spent part of my life in the business, I think $1 billion will be too small. Perhaps, the purpose should be to use that as a base to harness external funds and perhaps make that $10 billion or more going forward. So, serving that as $1 billion from MTI, with $9 billion raised from the private sector.

Mr Gan Kim Yong: Thank you. I will ask Minister Tan See Leng to respond to the geothermal energy source. Let me just focus first on the NSTIC (R&D Fab).

This facility really is an expansion of the existing NSTIC facility run by A*STAR. The idea is to focus first on advanced packaging because advanced packaging is a foundational technology for many of the advanced technologies for semi-conductor, in order to pack more and more components into the chips. The idea is to increase the density and advanced packaging plays a very important role in allowing that to happen. So, it is a key fundamental foundational technology.

We started investing in this technology since 2011 and we have built a significant capability in this area. That is why it is important for us to encourage investment in the R&D in this particular aspect of the technology, particularly, not just the multinational corporations (MNCs), but also the local SMEs.

So, this is a starting point. We will allow the NSTIC (R&D Fab) to focus, first, on advanced packaging. But this is not the only area. We will keep our options open and keep our doors open, and we welcome other emerging technologies which may become important and critical for us. We will also make these facilities available to other companies which have emerging technologies to invest in R&D.

The Member mentioned $1 billion. I presume he is talking about the Private Credit Growth Fund. We will be very happy if we can talk to Mr Neil Parekh to raise the other $9 billion, if he can help us do so. But I must say that, generally, I think this is the seed money the Government has to put in. Hopefully, we can kickstart this process. We will keep our doors open for private credit which wants to come in and to join us in this journey.

As I mentioned in my speech, when fund managers and investors are more familiar in this space of private credit, we may then be able to catalyse more funds from outside. So, I do agree with the Member. We look at this $1 billion as seed money. We hope to be able to raise even more capital in time to come for this fund. But I think this is a good start.

Dr Tan See Leng: I thank Mr Neil Parekh for his clarification. I think the Member was referring to Nanyang Technological University's (NTU's) study, not "NTUC". I think we will be dealing a lot with NTUC later on in MOM's COS debate. In NTUC, it is – just for the benefit of all my brothers and sisters in NTUC – every worker matters, not every power source matters.

I think we all know Singapore, as a country, we are alternative energy-disadvantaged and I have mentioned many times in the past that we will explore every possible decarbonisation pathway. So, nothing is off the table.

One of the indigenous energy options that we have, that we are investigating is geothermal energy. In 2023, EMA issued a request for proposal for a Singapore-wide non-invasive geophysical study to assess Singapore's deep geothermal resource potential at depths of up to 10 kilometres. This is for the purpose of power generation. So, I want to emphasise, EMA is to assess the deep geothermal resource potential. This is actually quite different from NTU's study, which is conventional geothermal potential.

I am actually pleased to update that this month, we are commencing an airborne survey of our geothermal energy potential. We hope and we aim to complete this study in about a year's time. Again, like I said, in terms of giving a very clear demarcation, NTU's study focuses on establishing the localised potential at areas surveyed up to a depth of about four kilometres. So, it is conventional. Whereas ours is the deep sort of geothermal assessment, which is up to 10 kilometres.

Of course, given the fact that we have an existing Sembawang hot spring, I know that many of my comrades are also concerned about how that would impact Sembawang. The Singapore Government, let me reassure everyone, is not conducting any invasive geophysical studies that could affect the existing hot spring.

The geothermal drillings have been carried out by NTU sites. They were at sites that were 2.5 kilometres and 700 metres away, almost a kilometre away from the Sembawang hot spring. They were already completed in early 2024.

Our EMA's ongoing studies, they are non-invasive because we are conducting airborne and land-based surveys of our entire country's geophysical landscape for a better assessment of the deep geothermal potential. As with every study, every new infrastructural development that we undertake, all of the necessary environmental assessments will be conducted. I hope I have given Members enough reassurance as well as understanding of what we know thus far.

The Chairman: Ms Sylvia Lim.

Ms Sylvia Lim (Aljunied): Chairman, I have two clarifications for Senior Minister of State Low Yen Ling on my cut on scams, which she touched on briefly.

First, she mentioned the whole-of-Government efforts through the Inter-Ministerial Committee on Scams (IMCS). I read that MTI is also represented on that committee. So, I would like to understand a little bit more on what is MTI's interest and contribution so far to the work of the IMCS. That is the first question.

The second question is: of course, underlying my cut is the issue of consumer protection because as far as scams are concerned, we often find that the consumer is actually dealing with service providers like banks, telecommunications companies (telcos) and social media companies, and there is some unequal bargaining power there.

So, I would like to understand whether the CCCS is actually looking into this area. Is it doing anything in the field of online scams to protect consumers or to do some standard setting?

Ms Low Yen Ling: Chairman, I want to thank Ms Sylvia Lim for her two clarifications.

I will address the second one first. I understand where the Member is coming from when she shared her thinking when she delivered her cut yesterday. As shared by Minister of State Sun Xueling during the Ministry of Home Affair's (MHA's) COS debate, a majority of the scams involve self-effected transfers of money to scammers as well as cryptocurrency scams.

These are, one, criminal in nature and two, often carried out by highly sophisticated criminal networks. The third point really is that a lot of these are really based out of Singapore. So, such scams are, hence, more appropriately handled by our law enforcement authorities.

But I want to assure her that to ensure a collective effort in tackling scams, the Singapore Government works closely not just mounting a whole-of-Government approach, but also with the private sector. Members have heard from Minister of State Sun Xueling, with the various tech companies and so on, as well as community partners, to tackle scams, go upstream, not just engaging the seniors, but it can affect people of all ages and all backgrounds.

So, the anti-scam efforts are coordinated by the Inter-Ministerial Committee on Scams, which comprises representatives from MHA, Singapore Police Force, MDDI, IMDA, MAS and other public agencies. MTI sits in, and if there are relevant cases that are relevant to our economic agency, that is where we will bridge the communications.

Notwithstanding that, I want to assure the Member that where there are unfair practices by, say, suppliers being involved, CCCS can certainly take them to task under our CPFTA. This really forms part of the whole-of-Government approach, where agencies can work together to safeguard consumer interest.

The Chairman: Ms Foo Mee Har.

Ms Foo Mee Har (West Coast): Chairman, I have two questions for the Deputy Prime Minister. The first one is relating to R&D. The Deputy Prime Minister spoke about R&D infrastructure in Singapore and how it is important as part of our economic growth. I spoke about this during my COS cut where I said that equally important is R&D being commercialised.

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So, I would like to ask the Deputy Prime Minister how specifically local enterprises will benefit with all the R&D spent, how are we going to encourage them to take this up, how are we going to encourage and support them to really take this R&D and commercialise it into applications? That is one.

The second one I just like to weigh in to hon Member Neil Parekh's comment. I probably take the other end of conservatism. He talked to balance the ambition; I think private credit is quite a science, related to a lot of risk management as well, if Government is going to go into this. Traditionally, when we co-fund, the bank comes in and you risk-share. But I would very much like to know that given that it is not small sum, $1 billion that the Government is going into, how is this going to be underwritten, in terms of risk management? How are you going to pick which company you are going to back pick? Because $1 billion will not go very far and we want to make sure that this is a good experience and that we can bag more companies? So, which agency is going to administer this and the partnerships?

Mr Gan Kim Yong: With regard to the R&D and the commercialisation of the R&D efforts and outcomes, the NSTIC (R&D Fab) I mentioned is one such example that has facilities to help companies to do their R&D and to commercialise the R&D. Because the facilities are very costly and very expensive; the SMEs will not be able to have access to these facilities, other than through NSTIC. Therefore, that is one area that we do. A*STAR does the same for many other domains in the industry.

So, we partner our private sector to allow them to have access R&D facilities. But it is not just the hardware facilities, because NSTIC and A*STAR also provide consultancy advice on how to do their R&D from a technical point but, at the same time, how to commercialise their products. Because A*STAR, meaning the research centre, has a lot of experience in commercialising some of their research outcomes. That will play a very important role.

We also have IPI that is set up under Enterprise Singapore that provides advisory on particularly IP rights, whether they are making use of IP that is already available, how to take advantage of the existing IP to commercialise the IP, or to register their own IP that they have developed. IPI will do that part. We also have a collaboration with IHLs through our technology transfer officers to help companies on to how to translate their technology into commercial products. There are many platforms to allow us to work in partnership with our companies to commercialise their R&D efforts.

One other aspect of the at NSTIC, which I mentioned in my speech, is the collaboration between the MNCs and the SMEs. Because they are able to work together, the SMEs will understand the needs of the larger companies to develop their products to be able to serve the MNCs. This also encourages a collaboration between MNCs, which have more resources, and to help the SMEs to also commercialise their R&D products. That is on the R&D side.

The Member also talked about the $1 billion credit. It is not a small sum. I do appreciate that it is limited because it is just $1 billion. We hope the Member can collectively persuade Ministry of Finance to give us a bit more in time to come. But I do agree that we need to progress very carefully and conservatively to make sure that this $1 billion is put to good use.

So, we do intend to go out to look for fund managers with a good track record, to have experience in managing private equity, private credit and managing projects, so that we are able to leverage on the expertise of these fund managers to manage the $1 billion so that we can put it to good use.

The Chairman: We are approaching the end of our guillotine time. I will call on Mr Saktiandi Supaat. You raised your hand earlier? Because you had four cuts, so I will give you the floor.

Mr Saktiandi Supaat (Bishan-Toa Payoh): Thank you, Mr Chairman, I thought I want to let others have the chance. But I have just one quick clarification for Minister Tan. I had filed a cut on the infrastructure for energy source, in terms of energy infrastructure. The Minister shared earlier about the hydrogen strategy and the ammonia strategy. Can Minister share about what our budgeting plans for power sourcing infrastructure in terms of landing points? I know ammonia and hydrogen and nuclear is still at the research phase and we are still investigating on those. But how are our plans of planning or investing on infrastructure for those, including the landing points for imported energy sources?

Dr Tan See Leng: I thank Mr Saktiandi for his clarification. For the renewable energy imports, I have shared that, given the progress that we have had in our negotiations with our neighbours, we have upped the ambition from four gigawatts to six gigawatts. And the interconnectors, for the landing sites, we have preliminarily identified some of the sites, the details of which I am not at liberty to reveal at this point in time.

For the interconnectors, broadly, there are two types – the high voltage direct current, which entails significantly longer distance traversing the subsea distances. And then, you have the relatively less expensive alternating current type of subsea cable. So, depending on the site, the source of the generation of that renewable energy source, the appropriate type of cable would be utilised.

At this particular point in time, the conditional licence that we have issued are for relatively closer source generation sources, namely, coming from the Batam, Bintan and Karimun corridor. The Member would have read in the open-source media that we have also awarded conditional approvals to further up north from Indochina and also, at the same time, potentially from Australia as well. Those would involve higher cost cable, involving high voltage direct current subsea cables. That covers one big part of renewable energy imports.

On the carbon capture storage, we are still studying the model working with the S-Hub. Looking at the aggregation of the hard to abate carbon intensive sectors, this would be quite a fair bit of the petrochemical industry on Jurong Island. Looking at the transportation and, eventually, the storage of the carbon that we have captured, at this point in time, given the amounts that are involved, we are still working with some of the potential partners.

For ammonia and hydrogen, I have also stated earlier on that hydrogen, at this point in time, even though it is a technically feasible pathway, the transportation of hydrogen, by itself, is very costly. So, we are using ammonia as a pilot. We have a pathfinder project where we are going to work with a couple of potential consortia to work out when it comes of scale, whether it would be a feasible and a commercially viable pathway. For the project, because it is very small, it is going to constitute like 0.5% of our overall energy mix. We are looking, as a pilot pathfinder, about between 50 to 60 megawatts. We will provide initial seed funding to assess the viability of that pathway.

The sum of it all is that we have set aside the budget. Today, given the different thresholds that we have not arrived at yet, the drawdown from the FEF is still not there. But we have topped it up because we envisage that in the coming quarters ahead, once we cross certain key thresholds, the drawdown will happen.

The Chairman: I am sorry. We have reached our guillotine time. Can I invite Mr Liang, if you would like to draw your amendment?

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Mr Liang Eng Hwa: Chairman, allow me to thank Deputy Prime Minister Gan, Minister Tan See Ling, Senior Minister of State Low Yen Ling and Minister of State Alvin Tan for their very thorough responses to our cuts and clarifications. It leaves me to just wish the MTI family every success in growing our economy, hopefully, once again, to outperform our forecasted range of 1% to 3% growth for 2025. Sir, with that, I seek leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $1,638,234,500 for Head V ordered to stand part of the Main Estimates.

The sum of $6,309,880,900 for Head V ordered to stand part of the Development Estimates.

The Chairman: We have sat for almost four-and-an-half hours. I propose to take a break now. Order.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Mr Speaker: Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 2.45 pm.

Sitting accordingly suspended

at 2.27 pm until 2.45 pm.

Sitting resumed at 2.45 pm.

[Deputy Speaker (Ms Jessica Tan Soon Neo) in the Chair]