Debate on Annual Budget Statement

Order read for Resumption of Debate on Question [18 February 2025] [2nd Allotted Day]

"That Parliament approves the financial policy of the Government for the financial year 1 April 2025 to 31 March 2026." – [Prime Minister and Minister for Finance].

Question again proposed.

Mr Speaker: Deputy Prime Minister Heng Swee Keat.

11.35 am

The Deputy Prime Minister (Mr Heng Swee Keat): Mr Speaker, Sir, I rise in support of the Budget. Budget 2025 is a Budget for all Singaporeans. It provides immediate support for families and businesses amidst cost pressures, while advancing our growth frontier for the future. This focus on tackling immediate challenges, while positioning Singapore for the longer term, has been a focus of this Government and has served Singapore well.

This year, we celebrate SG60. We have much to celebrate. From a fledgling nation with limited resources, we have built a thriving economy, a cohesive society and a liveable city for our people. Our people are living longer and healthier lives in affordable and vibrant estates. Our workers enjoy good jobs and rising wages in a modern economy. Our students learn and excel, and adults continue learning all their life.

As we enjoy the SG60 package in the Budget, let us express our gratitude for the hard work and sacrifices of earlier generations of Singaporeans, and for their support for political leaders to forge a path forward, to uplift all.

While we have done well over the last 60 years, changes will accelerate in the years ahead. The Prime Minister delivered the Budget Statement in a world that is moving towards a multipolar economic order. Domestic politics in many countries are more polarised and fragmented, making rational policymaking harder. Global political and security dynamics, and trade and investment flows, are shifting rapidly.

Climate and demographic change are the warp and weft, weaving inexorable impact on the future of humankind. Advances in science and technology are transforming our economies and societies. Imagine, the smart phones in our pockets today have more compute power than the Apollo 11 module that took the first man to the moon!

Game-changing technologies like artificial intelligence (AI), quantum computing, 5G/6G, satellite communications, robotics, biotechnology, electric vehicles (EVs), autonomous vehicles and nuclear fusion are advancing rapidly. All these will change how we work and live.

As Chairman, I have been working with my teams at the National Research Foundation and the Future Economy Advisory Panel to stay on the pulse of these seismic movements. How can we ride these changes to create a better future for Singaporeans? We must stay creative and find opportunities in adversity and in times of major changes to emerge stronger, just as we did during the Asian Financial Crisis, the Global Financial Crisis and more recently, through COVID-19.

We must also invest in creating our future. So, let me suggest three areas.

First, we must press on with our economic transformation. At the last Budget debate, I outlined our latest phase of economic transformation, starting with the formation of the Future Economy Council in 2017. Last year, we launched a report to take stock of our efforts. There are copies of this report in the Parliament library.

Between 2016 and 2023, Singapore's labour productivity grew by 3.1% per annum. [Please refer to "Clarification by Deputy Prime Minister", Official Report, 27 February 2025, Vol 95, Issue 154, Correction By Written Statement section.] And this puts us among the top three of a select group of small, advanced economies with similar population size and gross domestic product (GDP). Our workers and businesses have all benefited. I thank all our leaders in our business sectors, unions, trade associations and chambers, and academia, who have lent their support and expertise.

But change is inherently difficult, particularly when faced with near-term head winds. Fewer companies, facing geopolitical uncertainties and higher costs, are launching transformation projects. But we must press on to create new value-add and stay competitive.

So, even as businesses make full use of the corporate income tax rebate and Progressive Wage Credit at this Budget to manage immediate cost pressures, I urge them to also make the best use of the measures, such as the Enterprise Compute Initiative and the redesigned SkillsFuture Enterprise Credit, to transform.

Let us build on the partnerships and structures we have established to support one another, whether through the tripartite platforms like the National Trades Union Congress' (NTUC's) Company Training Committees (CTCs), or private-public partnership platforms like the Alliance for Action (AfA) on Business Competitiveness led by the Ministry of Trade and Industry (MTI) and the Singapore Business Federation (SBF), we will go further in our transformation journey by working together.

I have spoken on pressing on with transformation. The second area is to continue to invest and double down on our investments in research, innovation and enterprise (RIE). Science, technology and innovation are advancing at an accelerated pace. These advances will reshape and disrupt industries, changing the competitive dynamics and transforming our lives and our societies. The recent buzz over AI, new generation of chips and 5G/6G communication is just the beginning.

Given the critical value of technology and innovation, strategic and economic strengths of nations and of companies will depend on who can make the breakthroughs and retain their lead. The stakes have never been higher, and that is why Great Power rivalry is intensifying. But around the world, enough players believe in collaboration to tackle common challenges shared by humanity. So, we must continue to position Singapore as a trusted and neutral Global-Asia node of technology, innovation and enterprise, where like-minded partners come together to collaborate.

Our investments in RIE will not only support our economic transformation but also benefit our people, directly and indirectly. For example, AI and robotics will automate routine tasks – augmenting our declining workforce and improving the quality of jobs; the science of learning, which explores how we learn, and the use of AI learning tools, can allow us to personalise learning for each student and worker; our National Precision Medicine Programme seeks to personalise treatments based on our genetic make-up; geriatric science, such as that being studied at the Queenstown Health District, seeks to keep our ageing population healthy and active for longer; and low carbon fuels and smart cities allow us to make best use of our limited land size, while reducing our carbon emissions.

Over the years, we have invested around 1% of GDP annually to support RIE activities, with $28 billion committed for the current RIE2025 plan. Unlike research and development (R&D) in a private company, the benefits from these public research expenditures accrue to the whole economy and society. Unfortunately, we are seeing a worrying trend where some governments are making cuts in these areas as they do not fully understand their value, risking great damage to themselves in the long run.

Members, including Ms Jessica Tan and Mr Pritam Singh, have asked what progress looks like? Let me give a few examples. Our RIE spending has supported our research talent and raised the quality of research in Singapore. Singapore's Field-Weighted Citation Impact, a measure of research impact, grew from 1.29 in 2010, to 1.52 in 2022, which is 52% above the global average.

Our universities, research institutes and academic medical centres are well-regarded globally. The National University of Singapore (NUS) and the Nanyang Technological University (NTU) are ranked among the top five universities in Asia. This is not a small achievement, considering that we have such a small population and there are so many universities in Asia alone.

Multinational corporations (MNCs), small and medium enterprises (SMEs) and startups alike partner our research ecosystem to develop new products and services through platforms like company R&D centres, over 20 corporate labs and Centres of Innovation.

Indeed, as Members have raised, innovation is key! Our agencies organise renowned innovation platforms, such as the Singapore Week of Innovation and Technology and the Singapore Fintech Festivals, the largest in the world. The percentage of firms with R&D activities grew, from 14.8% of our GDP in 2012, to 23.6% in 2022. [Please refer to "Clarification by Deputy Prime Minister", Official Report, 27 February 2025, Vol 95, Issue 154, Correction By Written Statement section.]

Our RIE investments support entrepreneurship and incubation programmes in our universities, which generate a pipeline of startups. In fact, the Global Start-up Ecosystem Index Report 2024 ranks Singapore first in Asia and seventh globally.

Sir, I put forth that over the years, our RIE investments have supported economic growth, created good jobs and improved lives for Singaporeans. Mr Neil Parekh also asked what else will we do.

We will finalise our investments from 2026 to 2030 later this year. But let me share two major new initiatives that we are working on for RIE2030.

The first initiative is Applied AI. I think Mr Henry Kwek made a good speech yesterday on the use of AI. So, our first initiative on Applied AI includes applying AI to major use cases in priority sectors, such as healthcare, education, finance, advanced manufacturing, connectivity, logistics and transport. We have started on this. In October last year, we launched a $120 million AI for Science initiative, to support researchers in leveraging AI to accelerate discoveries in fields, such as advanced materials and biomedical sciences.

Applied AI sits at the intersection of AI and domain knowledge. Building on the strong domain expertise of our practitioners and researchers in healthcare, education, finance, engineering and many others, we will invest more in developing "bilingual" scientific talent – researchers who can bridge between AI technologies and domain expertise.

The second new initiative is the development of new large-scale, cross-cutting R&D programmes called Flagships and Grand Challenges, to achieve greater impact. "RIE Flagships" will push for value creation in key economic sectors and "RIE Grand Challenges" will address national strategic priorities.

These Flagships and Grand Challenges will pull together relevant research and translational capabilities across our universities, the Agency for Science, Technology and Research (A*STAR) and other research institutes, public agencies and private sector players, to form a suite of purposefully coordinated and synergistic programmes. The linkages between research, translation and commercialisation will be tightened, to advance key economic areas, produce new products and companies and address real-world needs and problems.

I am pleased that work has started to scope and design these initiatives. The first Grand Challenge proposes to address the opportunities and challenges of healthy and successful longevity and the first flagship will be focused on advancing our semi-conductor and microelectronics R&D. We will announce more details later.

Even as we do these, we must remember that while Singapore's research investments are significant, it is a small fraction of global R&D spending. So, we must work with like-minded partners from the region and around the world to achieve synergy. Just as an illustration, while our investments are $28 billion over five years, the United States (US) alone in one year, was US$923 billion, and China was US$812 billion. And even as a percentage of their GDP, they are far higher. So, I think we must have a sense that even as we want to talk about value for money, that what we are spending is a tiny fraction, and I would say that even private sector players like Alphabet spent US$45 billion, Meta spent US$38.5 billion and Apple $30 billion in 2023, all in US dollars.

So, we have to work with like-minded partners from the region and around the world to achieve synergy. Beyond achieving impact for Singapore, we must contribute to addressing global challenges, as these are faced by everyone.

Hence, as part of our positioning as a Global-Asia node, we will step up our international partnerships in the coming years and, while we launch new initiatives, we will continue to invest in basic research to develop talent in our universities and in upgrading our research infrastructure. In addition to what the Prime Minister announced in the Budget, we will also invest in new data and compute capabilities.

I have spoken on economic transformation and investing in research. To capture the value of our research, the third area is to strengthen our innovation and enterprise ecosystem. We are off to a good start, with Singapore ranked number one in three different reports: the IMD's World Competitiveness Ranking, the IMD's World Digital Competitiveness Ranking and the World Intellectual Property Organisation's Global Innovation Index.

To remain competitive, we must continue to maintain our outward orientation. Companies invest in Singapore not just for our market, but as a gateway to the region. Singapore has served this role well in the last 60 years. Today, Asia accounts for over half of the world's population and about 40% of global GDP. The projected medium-term growth rates of 4% to 5% is double that of the G7 developed nations. As the future economy will be driven by technology and innovation, to stay relevant, Singapore must position ourselves as a 21st century Living Laboratory, or Living Lab, where companies and innovators test new solutions and then scale them up to the region and the world. We can serve as a springboard for companies to venture to a new future, to a wider world market.

In this regard, our regulatory agencies play an important role. They need to fulfil their mandates to regulate safely and effectively, while staying on top of changes and facilitating new ideas and innovation. For example, the Monetary Authority of Singapore (MAS) has embraced its dual mandate to supervise and develop the financial sector and is pushing the frontier in new areas, such as digital and sustainable finance. The Singapore Food Agency (SFA) is the first in the world to approve cultivated meat for commercial sale. The Land Transport Authority (LTA) is facilitating trials of autonomous vehicles to transport goods and keep our public roads clean. Sir, I trust that our regulatory agencies will continue to build up the capabilities and the mindset to facilitate innovation while managing risks.

Talent is another key pillar of our innovation strategy. The Government is committed to helping every Singaporean achieve his or her potential. When I was the Education Minister, we launched an Applied Learning Programme to interest the young in science and technology. Earlier on, I supported Mr Philip Yeo, then Chairman of A*STAR, to send promising young Singaporeans to the top universities in the world to do their PhD under the A*STAR scholarship. To date, almost 1,400 have completed their studies and returned, where they contribute to cutting-edge work in our research institutes and uplift our companies' R&D capabilities.

In the coming years, I encourage more Singaporeans to develop "bilingual" fluency in the languages of business and in science and technology. Make full use of these Budget enhancements to build new skills.

At the same time, we must also welcome the best from around the world to be here. Just as steel sharpens steel, strong minds sharpen one another. Indeed, the Economic Development Board (EDB) plans to launch a Global Founder Programme to attract more experienced global founders to grow impactful new ventures from Singapore.

Growing up in a diverse multicultural society, Singaporeans are well-placed to serve as bridges to connect ideas and talents across the world. Together, we can learn from the best, work with the best and build a better home for future generations.

Mr Speaker, Sir, let me now say a few words in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] This year marks Singapore's 60th year of Independence. It is a significant milestone for our nation. Over 60 years, our people and the Government have worked together to overcome numerous challenges and created a remarkable economic miracle and a harmonious multicultural society. However, amidst global uncertainties, intensifying geopolitical tension and rising trade protectionism, how can we maintain Singapore's economic momentum and create a better future for our people?

Science, technology and innovation are developing at accelerating pace, profoundly impacting countries' strategic strength and economic development. As countries strive to achieve breakthroughs and maintain leadership in these areas, a competitive dynamic has emerged. At the same time, many researchers worldwide are still willing to cooperate with researchers from other countries to address common challenges.

Therefore, we will continue to develop Singapore's research, innovation and enterprise ecosystem and strengthen international connections and cooperation to reinforce Singapore's position as a neutral, trusted Global-Asia node. This enables Singapore to work closely with international partners to address common scientific challenges, such as ageing population and pandemic response.

(In English): Before I conclude, allow me a brief reflection on SG60. A decade ago, I was chairing the SG50 Steering Committee, where we engaged with Singaporeans to express their love and hopes for Singapore. I was inspired and humbled by the hardy spirit of our Pioneers and the dynamism of our youths. I was then working on my first Budget and thinking hard about how to support Singaporeans to ride the waves of changes to come.

Even 10 years ago, at SG50, we knew big changes would come. We invested our resources, hopes and energies in building a resilient nation. We never imagined we could be hit by a global pandemic that defined a generation. Yet, we pulled together and pulled through.

Our Singapore that celebrates SG60 this year is a tougher, stronger and also kinder and more compassionate Singapore than the one that celebrated SG50. As I look forward to SG70 and beyond, my wish is for us to continue to invest in all Singaporeans, young and old. Let us invest in enabling our seniors who have done so much for the progress of Singapore to enjoy healthy, fulfilled and productive longevity.

Let us invest in our young to develop their full potential, to develop uniquely human skills and competencies, to thrive in a world of AI, robotics and other technological advances.

In particular, let us continue to invest our time and energy to continue deepening our multiracial, multi-religious and multicultural society. If we can forge our path forward, our youths today will serve as valuable bridge-builders, connecting ideas and talent across the world to solve pressing challenges facing humanity.

In a world heading towards greater contest and fragmentation, amid rapid advances in science, technology and innovation, Singaporeans can play a valuable part as bridge-builders and connectors, and Singapore can be a trusted and neutral Global-Asia node of technology, innovation and enterprise. Together, we can learn from the best, work with the best and build a better home for future generations.

I trust colleagues in the House, and all Singaporeans, will support this call as we celebrate SG60 and grow towards the future. [Applause.]

Mr Speaker: Miss Cheryl Chan.

12.01 pm

Miss Cheryl Chan Wei Ling (East Coast): Mr Speaker, our nation celebrates 60 years of Independence this year. Indeed, it is a proud milestone for a young nation and one that I believe many Singaporeans, including myself, celebrates with a smiling heart.

As a country that began with virtually no resources when it first became independent, we have certainly built our assets over the decades with resolve and dedication. But this was never an easy path. The 2025 Budget certainly sets the tone on what it means to look out for all Singaporeans and how we can create our country together in the years ahead. One aspect of the Budget Statement that stood out for me is the human-centric approach and talent development.

Singapore has long recognised the importance of investing in our young, ensuring they receive the best education and opportunities to contribute as our country grows. However, as we navigate the complexities of a globalised economy, it is imperative that we equip our young Singaporeans with the skills and experiences necessary to thrive in an interconnected world amidst increasing tensions across countries.

Today, I will focus my speech on the need to shift our approach towards talent development in Singapore’s current and future workforce.

First, I believe that forging more strategic partnerships with global companies and establishing a new talent development initiative is necessary. By collaborating with MNCs, we can create global rotation programmes where Singaporeans are hired and placed in various roles across the globe. This initiative would provide our young talents with invaluable exposure to diverse cultures, markets, business practices and honing their leadership skills in order to broaden their perspectives.

Many young Singaporeans aspire to work in MNCs given the global exposure, the career development opportunities, the competitive compensation package, the vibrant work culture that is in place, and the networking potentials that these companies offer. By working with MNCs to hire and train Singaporeans, we can help our young Singaporeans meet their aspirations and gain the international experience that is much needed in order to excel in future senior leadership roles.

However, we do acknowledge that MNCs will not automatically hire more Singaporeans. As a result, I believe the Government will need to subsidise the cost of putting Singaporeans in the global job rotation programmes. This should be viewed as an investment in our local talent pool, which I believe can pay off in the long run.

Second, a differentiated look at the way we embrace talents and allocate resources to support their development. Let me elaborate this on three aspects.

The first, global talents with a much more local emphasis. This is an issue that I believe is not unique to Singapore. Many cities across the world grapple with this and today find that increasing availability of competitive talents providing services from offshore. Over time, this will be a formidable threat to our local workforce without having the overseas talent to even be present in Singapore.

We are also cognisant of a shrinking workforce locally given our low total fertility rate (TFR) and this implies the need to augment workers in different sectors through more options. I totally agree with what Deputy Prime Minister Heng Swee Keat has just said. We need to have all these global bright minds with us, but we also need to find a way in order to create opportunities for Singapore to become the bridges and connectors that he referred to.

The question is how best do we do this such that Singaporeans continue to have equal opportunities to get good employment for a much longer period and also the opportunities to participate in the global arena.

Taking a reference from this company called Atos, an international information technology services company who successfully implemented a global talent policy that aligns with their global and local talent management strategies. It has certainly proved to be effective for the investments they have made.

Being in the digital space, Atos certainly faces the challenge of dynamic market trends and the constraint that needs to retain their own talents. Yet, they are focused on the skills development of their employees, ensuring development pathway and positive employee experience which translates to positive customer experiences that help sustain their business.

We need an equivalent framework that encourages MNCs and large local corporates to provide similar approach in incentivising the development process and retention of talents.

Next, shifting the implementation approach for MNCs and our local SMEs. We are committed to support both the MNCs and our local SMEs. By differentiating Employment Pass quotas and providing targeted incentives, we aim to create such a balanced ecosystem where both sectors can thrive. The Tech@SG Programme, a joint initiative by EDB and Enterprise Singapore, supports this balanced approach, helping both the fast-growing local companies and SMEs to access critical talent.

Businesses thrive when there are economies of scales; and MNCs bring to Singapore important business flows, not only in terms of the scale of business but they also serve a broader region beyond Singapore, with a natural opportunity that allow SMEs to provide goods and services, which in turn help Singapore's economy to be more resilient.

To make this implementation possible, I would like to suggest a few measures to be considered.

One, differentiated quotas. Implement separate Employment Pass quotas for MNCs and SMEs, with a more generous quota towards our SMEs. This way, the SMEs can hire more talented foreigners without increasing the overall number of foreign workers in Singapore.

Two, salary thresholds. Increase the minimum qualifying salary for MNCs to hire foreign professionals in junior roles. This merits the opportunity to develop a sizeable local workforce with time that will enhance the capabilities which can value-add to the company and support rotational roles when the opportunity arises.

Three, skills transfer programmes. Encourage MNCs to implement skills transfer programmes where they are required to train local employees to take on senior roles gradually. Likewise, we need concrete steps need to be in place to ensure that Government-linked companies provide ample internships for the Institute of Technical Education (ITE) and polytechnic students, while we establish the mechanisms for accountability to ensure the initiatives can be successful over time.

Four, talent flow to SMEs. Not everyone who undergoes a global job rotation programme will continue to work in MNCs. We should create a pathway for some of these trained talents to be able to flow into our SMEs. By making them available for the SMEs, they will bring their valuable experiences and skills to strengthen our local businesses. Such talent flow would benefit both the individuals involved and yield significant advantages for Singapore as a whole.

By cultivating a pool of experienced global leaders, we also enhance our ability to retain the MNCs within our borders. These leaders, equipped with a deep understanding of international business dynamics, will be better positioned to drive innovation, foster economic growth and ensure that Singapore remains a hub for global commerce for a long time to come.

Next, about harnessing and broadening our talent pool. I would say, each year, over 9,000 youths sit for the “N” level examinations. Many of these students eventually go on to enrol in our ITEs. Have we considered to allow students who are not academically inclined to enrol in ITE much earlier, say, at the age of 13? This would allow them to begin skills development over a longer horizon and discover their niche in the various trade crafts that are suitable to their own abilities which can be useful, as they explore their future careers. Further, we can consider expanding ITE to have a stronger focus on technical skills development and if they can excel in some specific areas, for example, like cross-skills capability development in our youths, this will prove to be very valuable for the future unpredictable work environment.

These initiatives, as much as I have said, will need to be implemented in phases, allowing us to evaluate and refine our approach that is based on feedback and outcomes. This will ensure that we can address any challenges and make the necessary adjustments in order to make sure they will become successful in the implementation.

And, Sir, lastly, a healthy and successful career pathway must be balanced with one’s well-being and one that caters for their mental health and work-life balance. These are integral to our vision of a happy and thriving society. While economic success cannot guarantee a person’s well-being, expanding the options and pathways available to all Singaporeans for their career choices will help more people achieve their dreams, thus creating a more inclusive and cohesive society for future generations.

Providing diverse opportunities for our citizens not only empower them to excel in their potential, it also fosters a greater sense of fulfillment and purpose. When individuals feel supported and valued, it boosts their overall happiness and contributes to a stronger and more resilient community at work.

While we do not have infinite resources to double down and resolving all challenges, we should have faith that investing in Singaporeans will pay off in the future. We must believe that every Singaporean is capable and responsible and should be given every opportunity that the country can afford.

To enable the future where equity and inclusivity are strong values that anchor this country, we need to commit to ensure that opportunities are accessible to all Singaporeans, regardless of their background. This includes implementing fair and transparent selection processes and providing additional support to those who need it. This is a long-term commitment and a topic we should focus on investing when we have Budget surplus.

Sir, I see Singapore with a future of opportunities and hope. We have many assets that our forefathers and the current generation have built together as a united country. These are rare assets in a fractious world today. I consider this a blessing to have and one we should treasure to preserve and enhance for future generations. Our people is one key asset.

Competition is inevitable, both locally and globally. It exists before and will only be more rampant in the years ahead. Thus, I advocate that we begin to emphasise on our goal of providing more pathways for success. By diversifying our talent development strategies, by offering broad opportunities for exploration from young, we aim to reduce the pressure and allow individuals to find and pursue their unique strengths and interests.

By investing in our young talents and providing them with opportunities for global exposure, we not only secure their future but also fortify our nation's position as a leader in the international arena.

Through our investment for individuals to understand the necessary skills to develop building upon their strengths, our workforce can truly live up to a continuous learning and adaptation mindset in the ever-changing global landscape. This will, over time, result in a more innovative, balanced and sound economy, enabled by the creation of the economic growth destiny that our citizens are a part of. With a healthier and happier workforce, we too look towards a more harmonious and prosperous society.

I urge the Government to take a vital step towards broadening our definition of success and how Singaporeans can have more choices in their career pathway, as we join hands to ensure Singapore’s continued success on the global stage. With this, I rise in support of the Budget.

Mr Speaker: Assoc Prof Jamus Lim, you have a clarification to make?

12.14 pm

Assoc Prof Jamus Jerome Lim (Sengkang): Thank you, Speaker, and just a quick clarification for Deputy Prime Minister Heng. Let me start by declaring that I am a researcher and academic myself who, through collaborations with principal investigators in our autonomous universities, could potentially benefit from the National Research Fund. I will also add, at the outset, that I am fully supportive of increases to our national R&D spending, having called for this in Budgets past. And I share Deputy Prime Minister Heng's concern about how, in many administrations around the world, this has been slashed.

That said, if I may appeal to the Government, when it comes to projects to be funded by the National Research Fund going forward, if we could expand the fields of inquiry to also non-science, non-tech areas, so long as these have a broad societal applicability. I will include here social sciences as well as areas in the humanities and liberal arts, such as design, linguistics, psychology, history and, of course – I am being a bit self interested here – economics as these areas can also indirectly contribute to our more techy or sciencey endeavours.

Lest we forget, Steve Jobs, for example, was a liberal arts major who brought Apple from a pure tech company into a global consumer lifestyle juggernaut. Jack Ma, founder of tech giant Alibaba was also an English major.

Mr Heng Swee Keat: Sir, first, let me thank Assoc Prof Jamus for his support for R&D spending. I am very happy to hear that.

As for his specific inquiry, actually, we have many different pots of research funding for different activities. The National Research Fund oversees the part that is largely related to science and technology. But beyond science and technology, where there are parts that are related to how science and technology may be deployed; we also fund some of those research. For instance, in the field of ageing, it is not just the biomedical aspects of ageing, but also the behavioural aspects of ageing. How do we nudge people towards healthier lifestyle, healthier behaviour. So, where it is closely related, we do fund those projects as well.

At the same time, there are also many different pots of research funding. When I was at the Ministry of Education (MOE), we have and we still have the Academic Research Fund at different tiers that is administered by MOE. We have our research panels that look at the quality of these proposals as well. We have also recently, a few years back, created the Social Sciences and Humanities Research Group that will look at the research in this area.

The question is, how do we bring all of this together? I think for individual researchers, do apply for that, look at what may be relevant. My personal appeal to researchers is that I know there are some who love to look at just the basic research of it. We do fund a lot of that, particularly in the sciences. But there is also a lot of scope for us to fund and do research that can be translated into actual practices, into seeing immediate improvements in the lives of people, whether it is in healthcare, and that is why I mentioned one of the big challenges that we are working on is healthy longevity.

Mr Speaker: Mr Sharael Taha.

12.18 pm

Mr Sharael Taha (Pasir Ris-Punggol): Thank you, Mr Speaker. Sir, I stand in support of the Budget presented by Prime Minister and Minister for Finance Lawrence Wong. The Budget builds upon past Budgets, providing immediate support for today's challenges, investing in our growth and securing Singapore's long-term future while maintaining fiscal prudence.

Mr Speaker, in my speech on the Budget, I would like to focus on three key things.

Firstly, let us take a moment to reflect on the fact that this is the first Budget by our new Prime Minister Lawrence Wong and the 4G leadership. The fact that it has gone smoothly with no distractions is no easy feat.

Secondly, this smooth transition must not be taken for granted. Political stability has been the cornerstone of Singapore's success, shaping our economic growth, social policies and diplomatic standing. It is our "secret sauce" – the ability to plan, think and most importantly, execute for the long term while still tackling the challenges of today.

Thirdly, as we plan for the future while tackling today's challenges, we must stay engaged, listen actively and adapt swiftly. Understanding the powers of our people is key, ensuring that we refine our approaches, improve our policies and respond effectively to evolving needs.

Mr Speaker, let us take a moment to acknowledge and appreciate the smooth, stable and well-planned leadership transition – often a rarity in many parts of the world. With deep respect and gratitude, we recognise the seamless handover of leadership from Senior Minister Lee Hsien Loong to Prime Minister Lawrence Wong. The transition reflects the hallmark of Singapore's governance – continuity, foresight and stability.

If we look at the world around us, Singapore's political stability and mature leadership transition is an anomaly. Many nations struggle with uncertain transitions, political instability and abrupt policy u-turns, leading to wasted investments, stalled progress and loss of public trust.

Take, for example, the US saw political turmoil during the 2020 transition, culminating in the 6 January Capitol riot and repeated policy u-turns across administrations. Some Asian countries experienced drastic shifts in economic and diplomatic policies with each new leader, causing instability. In just three months, one Asian country has seen a president and an acting president impeached. The United Kingdom (UK) continues to face instability with frequent leadership changes, leading to uncertainty in trade, immigration and economic policies, particularly post-Brexit. Even within the Association of Southeast Asian Nations (ASEAN), repeated leadership changes have resulted in policy reversals such as the abolition and reintroduction of the Goods and Services Tax (GST), causing economic uncertainty and deterring long-term investments.

In contrast, Mr Speaker, Sir, Singapore has shown that leadership transition can be done right. Our careful, deliberate succession planning ensures continuity in governance, preserving our progress while allowing for a necessary evolution.

We express our deepest appreciation to Senior Minister Lee Hsien Loong for his decades of steadfast leadership. We also extend our full support for Prime Minister Lawrence Wong and the 4G leadership team as they take on the responsibility of steering Singapore into the future.

Mr Speaker, Sir, as we celebrate 60 years of independence, it is timely to reflect on the foundation of Singapore's success – our political stability. This stability has been the bedrock of our economic growth, our social policies and diplomatic standing. It allows us to focus on long-term plans while tackling today's challenges, even amidst geopolitical tensions and economic uncertainty.

It is something that we must protect and strengthen to uphold the values that have guided our progress. Hence, Mr Speaker, I am pleased that this Budget reflects this continuity and consistency. It builds on the past Budgets while adapting to new challenges and reinforces our commitment to a resilient and forward-looking Singapore.

In an era where countries are turning inwards, onshoring businesses and shifting away from global collaboration, Singapore must stay ahead. The Budget continues our investments in enhancing our global competitiveness, ensuring Singapore remains a top destination for businesses and investors, upskilling our workforce with the skills of tomorrow, investing in innovation and technology, especially in AI, which was explained in great detail by Deputy Prime Minister Heng, and investment in infrastructure to support long-term growth, in particular, the Changi Airport Development Fund and Future Energy Fund.

This Budget sets aside an additional $5 billion for the Changi Airport Development Fund, reinforcing the importance of our ports and airports as strategic national assets. Developing Singapore into a leading air hub requires more than expanding our airport capacity. As regional airports modernise rapidly, we must scale productivity, enhance global connectivity and strengthen Singapore's position as a premier travel and business hub.

Beyond the airport, our broader air hub ecosystem must grow in tandem. Industries such as aerospace maintenance, repair and operations (MRO), logistics and airside services are critical in keeping Singapore competitive. Their growth requires a coordinated strategy, aligning infrastructure expansion, workforce readiness, sustainability strategy and industry development.

We must also strengthen collaboration among key ecosystem players such as Singapore Airlines, Changi Airport Group, the Singapore Tourism Board and the hospitality sector to enhance Singapore's value proposition as an air hub.

Dubai provides a strong example. Its airline, tourism and airport operator are strategically aligned to position the city as a premier travel destination.

Furthermore, as Changi Airport continues to expand, how can we optimise urban planning and resource allocation in our east and north east areas like the Loyang Industrial Estate, Changi Business Park, Pasir Ris, Punggol, in particular, Punggol Digital District and Seletar to reinforce growth and strengthen Singapore's overall aviation sector? What is the Government's long-term roadmap to integrate these elements and ensure Singapore's air hub competitiveness is sustained into the future?

This Budget also allocates a $5 billion top-up for the Future Energy Fund, reinforcing our commitment to securing a low-carbon, sustainable and safe energy future. This is not just an investment in technology. It is an investment in energy security, economic resilience and environmental responsibility. The key question is, how will this fund be used to deepen our understanding of alternative energy feasibility for Singapore?

To make real progress, we need to strengthen research efforts to assess viable alternative energy sources, ensure regulatory readiness, preparing Singapore to govern and implement new energy solutions; build a strong talent pipeline, equipping Singaporeans with the expertise needed for this transition; and engage with international partners to accelerate learning and preparedness, ensuring we lead rather than follow.

More importantly, we must move with urgency from technology exploration to pilot programmes and ultimately, to full-scale industrial deployment. How do we ensure that Singapore transitions at pace and does not lag behind?

I look forward to hearing more about the whole-of-nation approach to developing Singapore as a leading air hub and the details of the Future Energy Fund during the Committee of Supply (COS) debates.

Thirdly, as we plan for the future, we must stay engaged, listen actively and remain adaptable to solve today's problems. It is essential to understand the pulse of our people, refine our approaches and continuously improve our policies, ensuring that we build a stronger, better future together.

A good example of this is the cost-of-living support through the U-Save, and service and conservancy charges (S&CC) rebates, Climate Vouchers, MediSave and Edusave top-ups and SG60 Vouchers, which provides much needed relief.

Some Pasir Ris residents suggested receiving Community Development Council (CDC) Vouchers in cash for greater flexibility, including overseas spending. However, the CDC Voucher system is well-refined, helping Singaporeans while also boosting local businesses, especially our smaller neighbourhood shops. Our stallholders, such as Mrs Wee and Eric at Pasir Ris Drive 4 and 6 wet markets have shared that they have seen their business increase during voucher disbursements.

Keeping spending local ensures that support reaches Singaporeans while strengthening small businesses and hawkers, a vital part of our community and economy.

In my 2022 speech on the White Paper on Singapore Women's Development, I shared the story of Mdm Neo, a Pasir Ris resident caring for her bedridden husband. I called for a further increase in the Home Caregiving Grant to better support caregivers. I am glad that since then, the grant has been raised from $200 to $400, and now to $600, providing much needed relief for caregivers like Mdm Neo.

The Budget reaffirms the Government's commitment to building a Singapore made for families, with stronger support for vulnerable families, seniors and persons with disabilities. Measures such as the enhanced Fresh Start Housing Scheme, higher ComCare rates and initiatives to help seniors age well are welcome steps.

However, retirement adequacy remains a concern, particularly for seniors with insufficient Central Provident Fund (CPF) savings. While the Lease Buyback Scheme is an option for senior homeowners, should we lower ComCare eligibility requirements for seniors with no assets, especially those whose children are also struggling financially?

On persons with disabilities (PwDs), extending the Enabling Employment Credit to 2028 helps offset hiring cost. But are we truly moving the needle on employment opportunities for those with special needs? This ties into workforce transformation efforts. While SkillsFuture grants support workforce upskilling and Senior Employment Credit incentivises hiring older workers, workforce transformation remains slow in hiring seniors and PwDs. How do we move beyond incentives to truly shift workplace culture? Should stronger regulatory measures be even considered? What more can be done to ensure employment inclusivity is not just a policy goal but a reality for all Singaporeans?

Mr Speaker, allow me to give my conclusion and end my speech in Malay.

(In Malay): [Please refer to Vernacular Speech.] This Budget builds upon past policies, providing immediate support for today's challenges, investing in our nation's growth and ensuring Singapore's sustainable future while maintaining fiscal discipline. However, beyond the grants, schemes and vouchers introduced, there are three important points we need to ponder.

First, this is the first Budget under the new leadership of Prime Minister Lawrence Wong and the 4G leadership team. The leadership transition has gone smoothly. This achievement is no mean feat, especially when we look at what is happening in other countries including the US.

Second, the importance of political stability for Singapore's progress. Many countries experience turbulent leadership transitions, resulting in uncertainty, political instability and squandered investments. Ultimately, it is the people who bear the consequences. Political stability is a cornerstone of Singapore's success. It shapes our economic growth, social policies and diplomatic standing. The ability to plan, think and most importantly, implement for the long term while addressing current challenges, is the secret to our success and we must protect it for the sake of our children's future.

Lastly, we must prepare for the future by taking a flexible approach. In planning for the future, we need to continue to listen, understand the people's wishes and make swift adjustments to policies. The people, leaders and businesses must work together to continuously refine and improve policies to shape a stronger and more resilient Singapore. Only through unity and efficient leadership can we continue to progress as a stable and successful nation. Onward Singapore.

Mr Speaker: Mr Don Wee.

12.31 pm

Mr Don Wee (Chua Chu Kang): Mr Speaker, Sir, I rise in support of the measures in this Budget to enhance Singapore’s competitiveness and position us for the future.

Singapore must continue to lead in green finance and sustainability. To this end, I urge the Government to liberalise the GST treatment for input tax claims on carbon credit trading-related expenses. Businesses that purchase voluntary carbon credits to manage their emissions targets would benefit from enhanced tax deductions.

Additionally, I propose that gains derived from qualifying green investments made by Singaporean investors overseas be exempted from corporate tax, similar to the foreign-sourced dividends exemption. This would encourage more businesses to participate in sustainable investments globally.

The shift towards electric mobility is crucial for our sustainability goals. Can the Government allow businesses to claim input tax on GST incurred for expenses related to EVs? This will support early adoption and accelerate fleet transitions.

Furthermore, to ease the financial burden on SMEs, I suggest channeling the additional supply of Certificates of Entitlement (COEs) towards commercial vans, which will help lower operating costs and, ultimately, benefit end users. Mr Speaker, Sir, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Enterprise Singapore administers numerous grants and schemes to support SMEs in their green transition. However, these are largely based on a reimbursement model, which creates uncertainty in capital recovery. As a result, many SMEs hesitate to invest in expensive equipment.

To improve accessibility, I propose that Enterprise Singapore offer upfront financial support, especially for vendors who have cleared the agency's onboarding criteria. Additionally, the Government, leveraging its data on registered businesses, could use AI to prequalify SMEs for relevant assistance schemes and grants, and then inform these companies that qualify and welcome them to submit their applications.

To further encourage sustainable investments, Enterprise Singapore could support the leasing of energy-efficient equipment like electric cranes, allowing SMEs to claim these expenses instead of requiring outright purchases, followed by applications.

SMEs require targeted funding support to invest in carbon pricing models, value-chain emissions management and decarbonisation projects. I propose further tax deductions or co-funding mechanisms, with a limited implementation window of two to three years to assess effectiveness.

I also welcome the Government's expansion of the Partnerships for Capability Transformation (PACT) scheme in 2024, which fosters deeper collaboration between MNCs and SMEs. Could the Government provide insights on the utilisation rate of this scheme? We should start with ourselves by encouraging large local buyers, such as GLCs and NTUC FairPrice, to join the scheme and help their SME suppliers with green transformation.

Sustainability is an area where SMEs and MNCs can work together. MNCs, as "queen bee buyers", can guide SMEs towards meeting global environmental, social and governance (ESG) standards. Presently, ESG reporting applies only to listed firms, but many countries are mandating sustainability compliance across entire supply chains. SMEs should start identifying and reporting their carbon emissions. How can the Government help these SMEs master the business opportunities in this area?

Last year, I highlighted the shortage of heavy vehicle parking near drivers' residences, forcing companies to cover additional transport costs. Could the Government convert vacant premises, such as unused schools or JTC sites, into temporary parking lots or allow these heavy vehicles to park overnight? I understand this requires temporary land use amendments and adjustments to car park charges, but with the right policy intent, I am confident the Government can resolve these challenges creatively.

I commend the Government for introducing 20% wage support for workers with disabilities earning below $4,000 per month. However, inclusivity hiring requires additional workplace training for supervisors and colleagues. To further incentivise employers, I propose: one, tax rebates for businesses that adopt inclusive hiring practices; two, higher foreign worker quotas for companies hiring persons with disabilities; and three, bonus points for inclusive companies in Government project bids.

I also urge MOE to provide more Edusave Awards opportunities to children studying at Special Education Schools. Additionally, families with more than one special needs child face immense financial strain, as one parent often has to stop working to provide care. Can the Government offer enhanced financial assistance to such families?

(In English): Enterprise Singapore administers numerous grants and schemes to support SMEs in their green transition. However, these are largely based on a reimbursement model, which creates uncertainty in capital recovery. As a result, many SMEs hesitate to invest in expensive equipment.

To improve accessibility, I propose that Enterprise Singapore offer upfront financial support, especially for vendors which have cleared the agency’s onboarding criteria. Additionally, the Government, leveraging on its data on registered businesses, could use AI to pre-qualify the SMEs for relevant assistance schemes and grants.

To further encourage sustainable investments, Enterprise Singapore can support the leasing of energy-efficient equipment like electric cranes or electric generators, allowing SMEs to claim these expenses instead of requiring upfront purchases.

SMEs require targeted funding support to invest in carbon pricing models, value-chain emissions management and decarbonisation projects. I propose further tax deductions or co-funding mechanisms, with a limited implementation window of two to three years to assess effectiveness.

I also welcome the Government’s expansion of the Partnerships for Capability Transformation scheme in 2024, which fosters deeper collaboration between MNCs and SMEs. Can the Government provide insights on the utilisation rate of this scheme and any potential areas for improvement? Can we also encourage the local "queen bee buyers", like NTUC Fairprice and the Temasek-linked companies to be part of this scheme and help embark key SME suppliers on this green journey?

Sustainability is an area where SMEs and MNCs, as well as the local large corporations, can work together. These “queen bee buyers,” can guide SMEs towards meeting global environmental, social and governance (ESG) standards. Presently, ESG reporting applies only to listed firms, but many countries are mandating sustainability compliance across the entire value chain. Government can help the SMEs to start tracking their emissions now, so as to avoid future trade barriers.

Last year, I highlighted the shortage of heavy vehicle parking near the drivers’ residences, forcing companies to cover additional transport costs. Can the Government convert vacant premises, such as unused schools or JTC sites, into temporary parking lots to allow these drivers to park overnight? I understand that this requires temporary land use amendments and adjustments to car park charges, but with the right policy intent, I am confident the Government can resolve these challenges creatively.

I commend the Government for introducing 20% wage support for workers with disabilities earning below $4,000 per month. However, inclusivity hiring requires additional workplace training for supervisors and their colleagues. To further incentivise employers, I propose: (a) tax rebates for businesses that adopt inclusive hiring practices; (b) higher foreign worker quotas for companies hiring persons with disabilities; and (c) bonus points for inclusive companies in Government project bids.

I also urge MOE to provide more Edusave Awards opportunities to children studying at special education (SPED) schools. Additionally, families with more than one special needs kid face immense financial strain, as one parent often has to stop working to provide care. Can the Government offer enhanced financial assistance to such families?

Singapore has many social support schemes for lower-income families, but eligibility criteria can be complex. Essential workers, who need help the most, often lack time, knowledge, or digital access to navigate these schemes. Similarly, they may struggle to identify suitable upgrading opportunities, especially with rising job and training scams. I urge the Government to develop a systematic framework to proactively reach out and guide these workers. Since the Government has household data on income, education and occupation, SkillsFuture can pre-qualify Singaporeans and directly recommend accredited courses tailored to their needs.

In conclusion, Mr Speaker, Sir, this Budget positions Singapore for the next lap of growth while ensuring that businesses, workers and families receive the support they need. I strongly support these measures and urge the Government to further refine tax policies, expand SME support, accelerate sustainability efforts and simplify access to social assistance. With this, I affirm my support for the Budget.

Mr Speaker: Dr Lim Wee Kiak.

12.42 pm

Dr Lim Wee Kiak (Sembawang): Mr Speaker, Sir, I rise in support of the Budget. On behalf of residents of Sembawang group representation constituency (GRC), I thank the Government for the generous support provided to all Singaporeans and for the forward-looking Budget, which further invests in our economy, our infrastructure and most importantly, our people.

The Budget Statement reports a surplus of $6.4 billion for this financial year (FY), which the Prime Minister attributes to better-than-expected corporate tax collection. We also acknowledge the Government's commendable efforts in confiscating approximately $3 billion from a money laundering syndicate last year. Furthermore, a significant sum of $6 billion was seized between January 2019 and June 2024, linked to criminal and money laundering activities. It demonstrates a robust approach to tackling financial crime. While the return of $416 million to the victims and the forfeiture of $1 billion to the state are positive steps, it is understood that a substantial portion remains tied up in ongoing investigations and court proceedings.

In this context, I would like to ask the Prime Minister: did the confiscated funds contribute to the reported surplus?

This question is pertinent given the devastating impact of scams on many Singaporeans, some of whom have tragically lost their entire life savings. Therefore, would the Government consider utilising a portion of this confiscated money to provide much-needed assistance and support to Singaporeans who have suffered such devastating losses. Such a measure would not only provide crucial financial relief but also demonstrate the Government's empathy and commitment to supporting citizens affected by financial crime.

Mr Speaker, I would now like to turn to the main body of my speech today, focusing on three key issues vital to Singapore's future: energy resilience, people resilience and environmental resilience.

First, let us address energy resilience. Together with many fellow Members of Parliament (MPs) in this House, I have expressed concerns about our heavy reliance on natural gas and the need to explore diversified energy options. In fact, I spoke about the potential of nuclear energy for Singapore back in 2009, during my first term as an MP, before the unfortunate Fukushima incident.

Therefore, I am particularly pleased to hear the Prime Minister addressing the possibility of deploying small modular nuclear reactors (SMRs) during his speech. These reactors are touted as being significantly safer and present lower risks compared to conventional nuclear reactors, like those in Fukushima. However, understandable concerns remain among Singaporeans, primarily regarding safety and the potential locations of these reactors.

I therefore pose these questions: will these SMRs be situated on one of our offshore islands, as far as possible from our population centres? Or might they be located deep underground, within our granite bedrock, offering potential for easier containment in the event of any incident? Furthermore, the high capital cost and long gestation period associated with nuclear reactors are well-known. What is the estimated cost for these SMRs and how does the Government propose to fund this significant undertaking?

Next, understandably, with the talk of general elections approaching, the media has been very busy trying to speculate where will be the hot spots. Let me help the media – there is only one true hot spot in Singapore, that is in Sembawang. It is our Sembawang hot spring! I am pleased that my cut at the Ministry of National Development (MND) Committee of Supply debate in 2016, urging the Government to consider building a hot spring park on Ministry of Defence (MINDEF)-owned land, ultimately led to the creation of Sembawang Hot Spring Park and, now, a space for all to enjoy.

However, hot springs are a natural phenomena, subjected to change, shifts and new formations due to ground movement. Therefore, I hope the ongoing construction of the North-South Corridor expressway adjacent to the Sembawang Hot Spring will not adversely affect this valuable resource of ours. Furthermore, a few years ago, a dormitory operator in Sembawang reported the discovery of another hot spring on their premises. I understand the leases of these dormitories are not being renewed, as the land is slated for redevelopment. I urge the Government to prioritise the preservation and protection of any new hot springs that may be discovered in the area.

The potential of geothermal energy generation using underground heat in Sembawang has also been discussed. This presents a promising source of renewable energy and a valuable opportunity to diversify our energy sources. Can the Minister provide an update on this project? Specifically, I would like to know the exact location of the geothermal exploration and what is the potential impact it may have on our environment, more importantly, on the existing Sembawang Hot Spring.

Another important element in our pursuit of energy resilience is solar. Despite our limited land size, Singapore has made commendable progress in incorporating solar power into our energy mix. The SolarNova programme, launched in 2014, has successfully deployed solar panels across Government buildings, public housing and key infrastructures, proving that the solar panel deployment is both cost-effective and scalable.

However, we can and should do more. Many buildings and houses still possess untapped roof spaces suitable for solar panel installations. I urge the Government to further incentivise and encourage these building and homeowners to embrace solar energy. One potential approach is to incorporate solar panel installation requirements directly into our Building and Construction Authority (BCA) building code, ensuring all future buildings contribute to our power grid. Furthermore, like the climate vouchers initiative, could the Government consider providing grants to private property owners to offset the cost of solar panel installation? This would not only accelerate the adoption of solar energy, but also empower individuals to contribute directly to our national sustainability goals.

Let us now turn to the heart of our nation's strength: our people.

People are Singapore's most valuable resource and our adaptability and unity are hallmarks that we must safeguard. In our early years, the kampung spirit fostered strong community bonds. Extended families lived together, often with limited Government support, relying on local village or clan associations for mutual aid. Everybody knew their neighbours, creating a tightly-knitted community.

Singapore's rapid development over the past 60 years has transformed our living landscape. Today, most reside in Housing and Development Board (HDB) estates with modern amenities, served by Residents' Networks under the People's Association (PA). While these networks organise beneficial programmes and events, it is an unfortunate reality that neighbours living on the same floor can remain strangers even after many years. Distressing incidents, such as residents passing away unnoticed until the discovery of a foul smell, highlight the gaps in our modern social fabric.

Clearly, we need to create more opportunities for connection and strengthening of bonds between neighbours. PA excels at organising large-scale community events that foster unity and raise awareness amongst hundreds or even thousands of attendees. But the nature of such events means that they are less effective in cultivating close neighbourly ties.

In the Canberra division of Sembawang GRC, we have been working to address this challenge since 2008 by organising small-scale "floor parties". These gatherings encourage neighbours on the same floor to connect over simple food and drinks in their own shared lobby or corridor. The results have been remarkable. We have seen relationships blossom and a renewed sense of community emerge. We capture these moments with a group photo of the whole entire floor and encourage neighbours to exchange contact information, recognising that in emergency, neighbours are the first line of support.

We have witnessed heartwarming instances whereby neighbours offered to drive their neighbours to hospital during emergency, working together to extinguish fires before the Singapore Civil Defence Force (SCDF) arrival, and cooking and delivering meals to those living alone and facing mobility challenges. This strong community spirit shone brightly during challenging times, like the recent COVID-19 pandemic.

The resilience of our people must be continuously nurtured. We cannot leave this to chance. I urge the Government to invest more in initiatives that promote neighbourliness and strengthen our bonds within our community, building a more resilient and interconnected society.

Finally, I want to address the critical issue of environmental resiliency. We are undeniably facing increasingly unpredictable and extreme weather conditions, a trend that is projected to worsen. The Government plays a pivotal role in bolstering our resilience through comprehensive policies and initiatives. The Sustainable Singapore Blueprint and the Singapore Green Plan 2030 outline ambitious yet necessary goals for sustainability, including reducing carbon emissions, increasing the use of renewable energy and promoting waste reduction. The recent initiative to enhance energy efficiency by providing Climate Vouchers to all households, including private property owners, for the purchase of energy-efficient appliances is a commendable step.

Beyond national efforts, promoting individual actions, such as the 3Rs – reduce, reuse and recycle – is crucial. I recall when I first entered politics in 2006; there was only one recycling bin for every five blocks of HDB. While we encouraged the residents to recycle, the limited infrastructure presented a significant challenge. And in this very House, I advocated for increased recycling bins and dedicated recycling chutes in new HDB developments. Canberra was even offered as a pilot project to the then-Ministry of Environment to implement one recycling bin per block. This project proved highly successful and paved the way for islandwide adoption later. Now, new HDB projects incorporate dedicated recycling chutes.

Building upon this progress, I encourage individuals with innovative ideas and a passion for contributing to this vital green industry to step forward. Collaborative efforts between all stakeholders and the Government are essential for achieving the ambitious goals outlined in the Singapore Green Plan and ensuring the environmental resilience for our nation.

In conclusion, Mr Speaker, as we celebrate SG60 this year, we reflect upon the remarkable achievements of our Pioneer, Merdeka and Majulah generations. They built the foundation upon which our nation stands. Let us honour their legacy by continuing their work, strengthening our resilience across all vital sectors – energy, people and environmental – and securing a brighter future for generations to come.

Mr Speaker: Mr Lim, you can go back to your hot seat. Ms Sylvia Lim.

12.55 pm

Ms Sylvia Lim (Aljunied): Mr Speaker, I wish to focus on managing costs and resources for all. I will address three critical areas: one, budget marksmanship; two, the concept of affordability; and finally, the challenges faced by some vulnerable Singaporeans.

First, on budget marksmanship. As highlighted by fellow Members, the Ministry of Finance's (MOF's) budget forecasting this year has been notably inaccurate.

In the previous Budget Statement, the Government projected a modest surplus of $0.78 billion for FY2024. However, revised figures revealed an $8 billion increase in total operating revenues, rising from the estimated $108.6 billion to $116.6 billion. To put this in perspective, $8 billion equates to $8,000 million, a substantial underestimation.

Prime Minister Lawrence Wong attributed this unexpected revenue surge primarily to a higher corporate income tax collection, which only accounts for less than $3 billion of the increase. The remaining $5 billion plus over collections include significant rises in vehicle quota premiums or COEs at nearly $1.9 billion more, and GST at $1.2 billion more. Additional increased contributions came from Statutory Boards, stamp duties and personal income taxes.

In September last year, midway through the fiscal year, Prime Minister Wong responded to a Parliamentary Question (PQ) from Workers' Party (WP) MP Louis Chua, reiterating the projected surplus of $0.78 billion. This raises some questions. Was there an awareness at that point of the significant deviations from projections? If so, should an updated estimate have been provided? If not, why was this discrepancy not identified earlier?

Sir, the higher than expected COE and GST collections reflect the financial pressures Singaporean families have endured recently. Escalating cost of essential items, such as food, are particularly concerning. The Prime Minister aptly noted, "Singaporeans are still adjusting to these new price realities. Some have had to tighten their belts, rethink spending habits or make difficult trade-offs to manage their expenses."

While external factors contribute to inflation, it is important to recognise that COE and GST are outcomes of domestic policies. Offering ad hoc vouchers and handouts in response to the cost of living, may come across as missing the wood for the trees.

Sir, next on defining affordability. The Government's approach to easing cost of living pressures and ensuring public housing affordability warrant scrutiny. Current measures suggest that Singaporeans can only manage expenses with the aid of vouchers, subsidies and grants. For instance, on utilities and household essentials. Reliance on rebates and vouchers indicates that, without such assistance, basic necessities may be out of reach for many.

On public housing, the necessity of substantial housing grants, which were further increased in 2023 and again in 2024. This implies that, without them, most citizens would struggle to afford HDB flats.

On childcare and education, the dependence on subsidies and fee caps suggested that, without these interventions, these services might be unaffordable for the average family.

In 2023, then-Deputy Prime Minister Lawrence Wong noted that the Singapore dream was no longer about the five Cs – cash, car, credit card, condominium and country club; but it was about fulfilment, meaning and purpose in life. Could it be that the five Cs simply hold no relevance today as they are no longer attainable to many? Specifically, the growing dependence on housing grants prompts questions about future affordability. Parents today are understandably anxious about the housing prospects for their children. Such reliance on Government transfers raises concerns about the sustainability of such support.

In a Straits Times opinion piece on 24 February, Professors Linda Lim and Pang Eng Fong queried this approach for the long term. They observed that, "The persistent need for subsidies for basic goods and services like food, accommodation and utilities in one of the world's richest countries, indicates that prices are too high and wages too low to enable a substantial segment of Singaporeans to make ends meet."

Sir, such a concern is not confined to this House, nor to economists. Earlier this week, a member of the public named Joe called into a CNA TV programme to pose a most pertinent question to the Government, "Can the Minister reassure us that the Government is looking into the rising cost of living and not just providing handouts?"

Sir, looking ahead, I also wonder how much more the Government will collect from Singaporeans every year in taxes to fund these handouts. Will there be an endless upwards spiral in prices and increased handouts, in the name of affordability?

Sir, finally, I wish to talk about supporting vulnerable segments of society. As we commemorate 60 years of Singapore's Independence, it is timely to reflect on the challenges faced by certain groups, particularly homemakers, whose financial security requires attention. Currently, CPF members have the autonomy to nominate beneficiaries for their CPF savings upon death, even to the exclusion of immediate family members. This poses a potential risk to non-working spouses, typically wives, who have dedicated themselves to managing the household and consequently have limited CPF savings of their own.

For families with fewer resources, CPF savings constitute a significant portion of liquid assets upon a member's death. According to a DBS Bank study released this month on two million of its customers, retirees aged 65 and above were found to rely on CPF funds to cover 55% of their median expenses. This highlights the importance of CPF savings in retirement planning. In situations where a CPF member nominates non-family beneficiaries, a surviving spouse and any children could be left without a financial safety net.

Notably, during divorce proceedings, CPF monies accumulated during the marriage are considered matrimonial assets and are subject to division. Courts are empowered to award a non-working spouse a significant share of the working spouse's CPF balances. The principle here is that the working spouse was only able to concentrate on work because the other spouse focused on attending to the family at home. Therefore, if a spouse's position is recognised in a divorce, it is all the more justified to consider protections for the non-working spouses who remain in the marriage until their partner's death.

Sir, to safeguard these vulnerable spouses, I propose a policy change to require spousal consent for any CPF nomination that excludes them. This could be implemented by mandating the spouse as a necessary witness to such a nomination. Such a measure would acknowledge CPF funds as shared assets within a marriage and ensure that both parties are aware of and agree to the distribution plans. In cases where consent is not obtained, a default provision could allocate 50% of the CPF balances to the spouse, with the member's nomination applying to the remaining half. Sir, I intend to raise this issue during the COS debates for the Ministry of Manpower (MOM). I hope the Ministry will give this proposal some consideration during that debate.

Sir, to conclude, this Budget, being a prelude to the General Election, offers benefits across the spectrum, ensuring that both affluent and less-privileged Singaporeans receive some support. These measures will help households for now, but the issue is how sustainable such an approach is. I believe it is vital to seriously look at the three areas I have highlighted: doing better at Budget marksmanship; managing the cost of living other than through handouts; and providing vulnerable segments of society who risk being overlooked in our nation's progress.

Mr Speaker: Mr Edward Chia.

1.03 pm

Mr Edward Chia Bing Hui (Holland-Bukit Timah): Mr Speaker, Sir, in today's volatile world, where global headlines are filled with conflict and economic turmoil, Singapore's stability is more than just a strength. It is our greatest competitive advantage. It is what gives Singaporeans confidence in the future and what continues to attract investments, create good jobs and secure prosperity. This stability is about good governance, a responsible fiscal approach and a united people. If we want to continue finding stability in a world of flux, we must continue making the right decisions and not just the popular ones.

One of the biggest tests of our stability today is the rising cost of living. As an MP for Zhenghua, I have witnessed first-hand the challenges that residents face. While data indicate that inflation has eased, prices remain high and families continue to feel the pinch. Singaporeans are adjusting, tightening their belts and rethinking spending habits. Resource-low families are making difficult trade-offs to make ends meet.

That is why we took decisive action, launching Zhenghua's monthly $1 Deals and Project Sama Sama, ensuring families, especially those who are resource-low, can access essential food and daily necessities affordably and conveniently. It is reassuring that these concerns are reflected in Budget 2025, with measures, such as the CDC Vouchers and LifeSG credits, offering timely relief. But while short-term relief is necessary, we must also address structural cost issues to ensure that the rising cost of living does not erode Singaporeans' quality of life.

One area where the Government has taken a bold structural step is preschool education. By capping preschool fees for Anchor and Partner Operators, early education has now become more affordable, with fees after subsidies being comparable to primary school fees, inclusive of after-school care. This is a significant step forward, ensuring that every child, regardless of their background, have a good start in life.

However, Sir, affordability must not come at the expense of quality. Preschool teachers play a vital role in shaping our young minds and their work must be fairly compensated. Given the fee caps, how will the Government adjust funding for Anchor Operators to ensure that preschool teachers are paid fair wages and have adequate resources for professional development? Affordability, wages and social support all intersect at one issue – fiscal management. And that brings me to my next point.

Some argue that the tax burden on Singaporeans is high and we have sufficient surpluses to reduce the tax burden. But let us set the record straight: Singapore's tax burden remains one of the lowest in developed countries. Unlike other nations that rely heavily on personal income and consumption tax, our two largest revenue sources are corporate tax and the Net Investment Returns Contribution (NIRC).

And as Prime Minister Wong shared in his Budget speech, Singapore expects a budget surplus in FY2024 and FY2025. These are encouraging figures, surpluses give us the confidence and resources to invest in our people and secure good jobs for everyone.

The reality is that the Government spending has increased significantly, not just for social and healthcare support, but also for initiatives that will secure Singapore's economic competitiveness and protect our island from the impacts of climate change. A budget surplus today does not mean we can spend recklessly tomorrow. Instead, we must remain disciplined and focused on delivering real outcomes for Singaporeans. Ensuring that economic growth translates into good jobs and higher real wages is one key measure of success.

In 2023, I raised a PQ on real wage growth trends and projections, as I was deeply concerned about whether Singaporeans' wages rise in tandem with living costs. Thankfully, Singaporeans experienced real wage growth in 2024 in tandem with higher-than-expected economic growth. Economic growth must continue to translate into real wage growth, good jobs and meaningful opportunities for Singaporeans. But how do we exactly go about doing this?

One initiative I championed last year in my Budget 2024 speech was the adoption of Employee Stock Ownership Plans (ESOPs). ESOPs grant employees the option to purchase shares at a set price upon meeting performance goals, aiming to retain key staff long term. Crucially, ESOPs instil a sense of ownership, boosting motivation and performance. This also translates into high real incomes and enables employees to build their asset base. The promotion of ESOPs can complement the new Global Founder Programme announced in Budget 2025. As we encourage global founders to anchor and grow more new ventures in Singapore, we should ensure that the investments also benefit employees of the investee companies.

To promote ESOP adoption, we should introduce an ESOP tax relief, such as a lower income tax rate when employees exercise their stock options. This will anchor talent in Singapore and help Singaporeans grow their income and asset base. It can complement the Global Founder Programme by driving investments in start-ups, attracting top talent and giving employees a stake in asset appreciation.

But beyond ESOPs, we need a comprehensive, multi-pronged approach to sustain real wage growth and meaningful job creation. First, we must leverage the announced Enterprise Growth Investment Fund and the $1 billion private credit growth fund to include blended capital solutions that drive impact investments. By aligning financial instruments with corporate purpose and societal impact, we can support businesses that prioritise innovation, sustainability and meaningful job creation.

Blended capital, combining grants, recoverable grants and equity from diverse sources, such as foundations, bridges philanthropy and impact investments, unlocking additional funding streams. To accelerate this, agencies like EDB and the National Volunteer and Philanthropy Centre (NVPC), which have developed the Company of Good framework and accreditation, should collaborate to develop programs that expand blended capital deployment.

Beyond mobilising resources, blended capital can reduce financing costs while enhancing social and economic outcomes. It strengthens corporate purpose, fosters sustainable business growth and creates meaningful employment opportunities, ensuring that enterprises contribute to both economic progress and societal well-being.

Second, we must strengthen SMEs, which employ over 70% of our workforce. Whether it is foreign talent or multinational enterprises (MNEs), the concern is that foreign talent and MNEs compete with local jobseekers and local enterprises. Such concerns are valid only if it is a zero-sum game. However, the reality is that it is a non-zero-sum game. There are complimentary advantages. Maximising the complementary advantage for the individual would mean the Government's consistent support in skills upgrading, so that Singaporeans always boost their capabilities and seize new opportunities.

For local enterprises, we need to strengthen the enterprise ecosystem and the network effect between local enterprises and MNEs. This works both ways. Despite the high cost of operating in Singapore, MNEs stay committed in Singapore due to the relevant enterprise ecosystem that provides MNEs with high quality supplies and expertise. Local enterprises can collaborate with MNEs to innovate, create new products and services, and grow internationally by leveraging the MNEs network and referrals.

As globalisation trends shift toward localisation and onshoring, there is a growing risk that MNEs may relocate key manufacturing, R&D and corporate functions away from hubs like Singapore. To build economic resilience against such external shocks, we must strengthen the nexus and integration between our local enterprises and MNEs. As one CEO of a large local enterprise aptly put it, "MNEs may adjust their investment focus based on global geopolitical trends, but local enterprises are here to stay. This is our home base."

By fostering the growth of strong local enterprises, we can anchor critical capabilities, sustain high-quality jobs and ensure long-term economic stability for Singapore. By strengthening the complementary relationship between local and foreign workers, as well as between local enterprises and MNEs, we can create a synergy that drives shared growth. This ensures that the partnership is a non-zero-sum game, but a collaborative effort that generates greater opportunities and benefits for local workers and businesses.

Third, we must continue powering ahead with workforce upskilling. Employers play a critical role in aligning workers' skills with the evolving demands of industry transformation. It is imperative that we provide them with stronger support to ensure Singapore's workforce remains future-ready. The changes to the SkillsFuture Enterprise Credit Scheme, where employers are provided with an online wallet with credits to offset training costs, are widely welcomed by employers as they address a common pain point – cash flow.

I would like to call on the Government to review other support schemes and implement similar updates that will resolve enterprise transformation challenges related to cashflow, so that enterprise transformation can be expedited and inclusive.

The NTUC CTC Grant has been instrumental in co-funding employer-led initiatives that boost productivity, redesign jobs and enhance career development. The SkillsFuture Workforce Development Grant further strengthens this by increasing funding support while streamlining the application process, making it easier for businesses to invest in talent development.

The Jobs-Skills Integrator (JSIT) initiative, announced in Budget 2023, is another critical piece of the jigsaw puzzle. By serving as an intermediary that links industries, training providers and employment facilitation partners, JSIT ensures that training programs are directly aligned with market needs. Can the Government share how these schemes complement each other in supporting businesses and workers to adapt to evolving industry demands and skills requirements?

At the same time, work-study programs are critical in bridging the gap between education and employment. I fully welcome the expanded support for work-study programs under the SkillsFuture Level-Up programme, particularly the introduction of the Part-Time Long-Form Training to cater to part-time upskilling. The opening of Singapore University of Social Sciences' (SUSS's) new city campus is another positive step, making work-study opportunities more accessible to working professionals.

On this note, I would like to ask the Government if there are plans to encourage more employers to offer work-study arrangements. What policies can be introduced to minimise workplace disruptions while ensuring workers can upgrade their skills without compromising productivity?

By aligning workforce upskilling with employers' transformation needs and industry trends, we enable both businesses and workers to seize new opportunities and drive growth. A strong focus on growth and top-line expansion ensures that companies have the resources to invest in talent development, fostering continuous learning, innovation and sustained wage increases.

Fourth, we need to take AI by its horns and improve its adoption among enterprises. The newly minted $150 million Enterprise Compute Initiative that will empower enterprises with AI tools and resources will certainly be a game-changer in bolstering enterprise capabilities. Given the importance of AI adoption among enterprises, I would like to ask the Government what are the current resource limitations in scaling up the Enterprise Compute Initiative so that more enterprises can accelerate AI customisations and adoption? Particularly for SMEs, what programmes are available to help them leverage AI tools? By empowering local enterprises to maximise the usage of AI tools, this will improve the overall firm’s productivity which translates to sustained real wage growth for Singaporeans.

Finally, Singapore invests heavily in R&D, but more must be done to translate research into plug-and-play industry solutions. I propose that we strengthen collaboration between industries and Institutes of Higher Learning (IHLs) by co-locating R&D offices on campuses. This integration allows students, researchers, and businesses to work closely together, accelerating innovation and ensuring the real-world application of research.

Internationally, successful models demonstrate the impact of such integration. Stanford University’s close ties with Silicon Valley have fostered groundbreaking startups like Google and HP, while the Massachusetts Institute of Technology’s (MIT’s) Industrial Liaison Program connects companies with faculty and researchers, ensuring innovations translate into commercial applications.

By adapting these models, Singapore can strengthen industry-IHL partnerships, expand co-location efforts, and provide greater support for research commercialisation to drive enterprise transformation, economic growth and high-quality job creation for Singaporeans.

Mr Speaker, Sir, in conclusion. Budget 2025 builds upon the Government’s consistent investment in our economy and our people. We have been able to deepen these commitments while keeping individual tax burdens low compared to many developed countries. However, the true impact of these investments depends on effective execution. In an increasingly volatile world, Singapore’s stability is our foundation, giving us the confidence and conviction that we can deliver on these policies and secure a better future for all.

Most importantly, Sir, our unity as Singaporeans remains our greatest strength. I have witnessed this firsthand in Zhenghua, where residents often tell me they would rather let others benefit from local assistance schemes, such as the monthly $1 Deal and Project Sama Sama. This selfless Spirit of looking out for one another, of caring for our neighbours, is what defines us as Singaporeans. It is this collective sense of community that will see us through any crisis and propel us towards an even stronger Singapore. Mr Speaker, Sir, I support the Budget.

Mr Speaker: Mr Leong Mun Wai.

1.18 pm

Mr Leong Mun Wai (Non-Constituency Member): Mr Speaker, Sir, even before Budget 2025 was announced, many Singaporeans had expected that the Government would be generous in giving handouts to Singaporeans because this year is an election year.

Indeed, about $3.8 billion of special transfers will be distributed this year, compared to about $3 billion in both 2023 and 2024.

In recent years, Government handouts have become regular. It has become a national past time of sorts to monitor the timetable of handouts each month, which is also publicised in the media and in the HDB lift lobbies.

Can this really be healthy for our society? Comments are already circulating on social media that the new 5Cs of today are Cash, CDC Vouchers, Climate Vouchers, CPF top-ups and Community Health Assist Scheme (CHAS) cards. I am sure that the first generation PAP leaders would never have allowed this to happen.

While the PAP Government's vouchers may help many Singaporeans deal with rising costs in the short term, they are not enough to help Singaporeans in the long term or solve Singapore's structural economic issues. The Progress Singapore Party (PSP) supports some short-term financial assistance in the Budget to help deal with the high and rising cost of living. However, over the past four Budget debates, we have also argued that instead of giving out short-term ad hoc handouts, we should have long-term permanent schemes to strengthen the social support for Singaporeans.

The schemes proposed by PSP over the years, including a Minimum Living Wage, Affordable Homes Scheme, National Healthcare Scheme with MediShield and CareShield premiums paid by the Government, and Caregivers Allowance will create financial security for Singaporeans and empower them with the resources to pursue their career aspirations, form families and build a better life.

On the other hand, is the SG60 Voucher which will benefit the billionaire living in a good class bungalow and a 1-room rental flat resident equally, truly a good and fair use of our fiscal resources?

It is the PAP's patchwork of scheme of handouts and vouchers that will breed dependency among Singaporeans and not PSP's proposals.

PSP's recognises that it is unrealistic to expect living costs never to increase, but we maintain that the PAP's current budget approach and policies around taxes, Reserves and property prices are the main driver of the high cost of living in Singapore. Long before the Ukraine War and supply chain disruptions, Singaporeans have found it difficult to cope with the rising cost of living. This is a persistent structural problem caused by the PAP Government.

The Government has collected a lot more revenue from GST, COE and land sales over the past few years. This will eventually increase the cost of living for Singaporeans. The Government has collected about $8 billion more revenue each year than its original estimates in 2022, 2023, and 2024. Will it do it again for 2025?

The PAP Government has always claimed that there is tight fiscal headroom, but if year after year surpluses are always bigger than what is estimated, then it really calls into question why the Government decided to inflict so much pain on Singaporeans by raising GST in 2023 and 2024 amid high global inflation.

When I questioned Prime Minister Lawrence Wong on budget marksmanship at the debate last year, he said before COVID-19, our fiscal marksmanship was not too bad, and our forecast accuracy was not as good now because of COVID-19. Does the Prime Minister expect our budget marksmanship to be better this year? Or will we end up having a larger surplus than we anticipated again? Budget marksmanship is important so that Parliament and Singaporeans have a clear view of the fiscal resources available to us.

During the debate on the Public Finances Motion last year. I explained that the Government transfers a large part of the surplus Budget resources arising from the Net Investment Returns Contribution (NIRC) each year to many endowment and trust funds that are intended for future spending over the long term. This has camouflaged our huge structural surplus Budget position. The same thing has happened this year, with about $20 billion parked away.

It is also questionable whether so much of today's resources should be used for certain projects. For example, the Government has parked another $5 billion in the Changi Airport Development Fund, even though over the years we have already put $6 billion there. We believe such a large infrastructure project should be funded by the Significant Infrastructure Government Loan (SINGA) framework so that we can evaluate the commercial viability of such projects better.

Our country's fiscal position is extremely strong, much stronger than what the PAP Government would like to portray.

Yesterday, Ms Foo Mee Har claimed that Singapore could face fiscal vulnerabilities like Hong Kong, if we use land sales to fund our expenditure like what PSP had advocated. PSP has only proposed that if a piece of land is sold on a 99-year lease, the proceeds should be recognised as revenue spread over 99 years. It is unlikely to create the fiscal vulnerabilities Ms Foo suggested. I would remind Ms Foo that last year, even Senior Minister Lee Hsien Loong said our proposition was not unthinkable.

Ms Tin Pei Ling suggested yesterday that we should put back into the Reserves what was taken out during COVID-19. She may not realise, but the $40 billion that was taken out has already been more than recovered, with the official foreign reserves increasing more than $200 billion since 2020, through the issuance of Reserves Management Government securities.

The Government's financial position is strong, but ordinary Singaporeans financial position is weak. An OCBC survey in November 2023 found that fewer Singaporeans are able to comfortably spend on things beyond the basics.

In March 2020, the Government tabled the Resilience Budget, which was aptly named, because there is a need to make Singaporeans more resilient. After all the CDC Vouchers and short-term schemes from the Budgets of the over the last five years, have Singaporeans become more financially resilient?

Judging from the conversations that PSP has had with many Singaporeans, the answer is no. That is why PSP believes there is an urgent need to reimagine our Budget approach and public policies. Our objective is to empower Singaporeans so that they can be financially resilient without relying on ad hoc handouts. How can we do this?

We need to better utilise the NIRC and our budget resources to benefit Singaporeans so that they can become truly resilient. The NIRC amounts to about $27 billion in 2025. However, as I have explained before, Budget resources amounting to about 80% of the NIRC is not spent in the same year but parked in endowment and trust funds.

There are more and more of such funds. There needs to be more scrutiny over the use of these funds, as many will not directly benefit Singaporeans in the short term. Instead of parking funds in endowment funds and spending on special transfers that do not create long-term financial security for Singaporeans, we can fund PSP's four main policy proposals.

Firstly, we have proposed the removal of land cost from public housing under the Affordable Homes Scheme and the construction of quality rental flats for young Singaporeans under the Millennium Apartment Scheme. We can implement the Affordable Homes Scheme without reducing the reserves, unlike what Minister Indranee has repeatedly claimed, but will empower Singaporeans in the following ways. Singaporeans of all generations will enjoy affordable public housing.

As AHS flats cost less, Singaporeans will not have to deplete their CPF balances to pay off HDB mortgages. They will have adequate CPF savings for retirement without having to downgrade to smaller flats in retirement.

Yesterday, Mr Henry Kwek suggested that our schemes will put a downward pressure on resale values. This will not happen, because Singaporeans who sell their Affordable Homes Scheme flats will have to repay the land cost with accrued interest to the Government. This will maintain stability in the resale market and allow Singaporeans to continue upgrading to private properties if they choose to do so. Mr Kwek pointed out that many of his residents see their HDB flat as a key pillar of their retirement planning. I would like to point out that it is the PAP's inaction on lease decay that threatens resale value and some Singaporeans' retirement plan. PSP's Affordable Homes Scheme will empower Singaporeans and free them from such concerns.

Our second proposal is to effectively create a national healthcare scheme by having the Government pay the MediShield and CareShield premiums for all Singaporeans. Again, the national healthcare scheme will empower Singaporeans in the following ways. All Singaporeans will be able to enjoy a basic level of benefits when they need hospital treatment or certain outpatient treatments free of charge, paid for by the state, without having to worry about rising insurance premiums in the future. Singaporeans will have more MediSave balances to pay for other healthcare costs not covered by MediShield Life, freeing up their cash for other purposes.

Our third proposal is to introduce a gross minimum living wage of $2,250 a month. We also support progressive wage increments up to the median wage of $4,500. These policies will empower lower-income Singaporeans with the financial resources to attain a minimum standard of living in a high cost-of-living environment more quickly than the Government's Progressive Wage Model. Singaporean workers will also enjoy further wage increments when they improve their skills.

Our fourth proposal is the PSP Family Plan, which will reimagine our policies to support families. During the Population White Paper Debate in 2013, Senior Minister Teo Chee Hean said, "I hope our birth rate can increase to at least 1.4 or 1.5, which was our birth rate not so long ago, around the late 1990s and the early 2000s." We are not sure if Senior Minister Teo still has these hopes, but PSP certainly does. That is why our PSP Family Plan is a whole-of-society approach to better support family formation.

Our two most important proposals are the enhanced Job Sharing Scheme and the Caregiving Allowance Scheme. These proposals will benefit all parents, including single parents.

The enhanced Job Sharing Scheme will empower parents to opt for flexi-time work. It will allow them to remain in the workforce while spending more time to care for the child. At the same time, employers will benefit from retaining their workers with children and employ more workers with Government subsidies.

The Caregiving Allowance Scheme will pay one parent or grandparent an allowance of $1,250 per month if they are full-time caregivers of children below the age of seven. This will empower families to explore different childcare arrangements and strengthen extended family bonds.

Mr Speaker, Sir, in conclusion, Singaporeans have worked hard to build Singapore from third-world to first in the last 60 years. However, more problems have emerged in the lives and livelihoods of many Singaporeans in the last 20 years.

We do not want a first-world Singapore where the next generation has to live in smaller and smaller flats that are also more and more expensive relative to income. We do not want a first-world Singapore where public transport only seems to be more and more crowded, expensive and unreliable. We do not want a first-world Singapore where a small group of elites and foreign billionaires coming here to pay lower taxes get to enjoy large Good Class Bungalows, play golf at country clubs and drive around on congestion-free roads in their Bentleys and Lamborghinis while the elderly and destitute sell tissue paper at hawker centres.

We want a Singapore where Singaporeans are no longer financially stressed, can form families when they are ready, are free to pursue their careers and start businesses, are free from worries about healthcare and retirement cost, and enjoy a fulfilling retirement life, looking after their grandchildren as a choice. This is the first world we should aspire to create this SG60. This is the first world Singapore that PSP will fight for.

We urge Singaporeans to think beyond the short term and dream bigger than the PAP Government.

Notwithstanding our reservations, PSP will still support Budget 2025 to provide Singaporeans with the short-term assistance that they need until the long-term schemes are in place. For country, for people.

Mr Speaker: Mr Alex Yam.

1.37 pm

Mr Alex Yam (Marsiling-Yew Tee): Mr Speaker, I rise today in support of the 2025 Budget, conscious of the many challenges that are confronting us as a small and open economy, yet buoyed by hope as we approach SG60 this year.

At its very core, this Budget is a pledge to every Singaporean. It places our people at the heart of our nation's progress. Indeed, no matter the global uncertainties that swirl around us, it is a reaffirmation that the fruits of our progress must be shared widely with Singaporeans. This Budget is also an expression of our readiness to face a more contested and fragmented global landscape.

Mr Speaker, it is obvious. We see economic fault lines emerging: new trade barriers, shifting alliances, competitive races in technology. We are a small city state, but we refuse to be overshadowed. We have proven repeatedly that our size is our advantage. Our agility, our openness and our resilience are the defining factors that keep us ever relevant.

Mr Speaker, although we may be small, our aspirations have always been anything but tiny. Let me share a brief anecdote.

I attended an international forum post-COVID-19, where large powers were competing to dominate the narrative. By pure alphabetical happenstance, Singapore found ourselves sitting in the midst of some of these heavyweights – "U", "R". While they sparred, we quietly worked with fellow small states to give the conference, ultimately, a coherent and balanced outcome.

This story reminds us that size does not define our relevance. A small state can indeed be nimble, collaborative and innovative. Our resilience lies in adapting swiftly, building trust and championing a rule-based order. When others falter or become mired in rivalry, we must step up to facilitate real progress, not just for ourselves but for our region and the world.

Mr Speaker, there has been a lot of talk about an election Budget. The reality is that this year is an election year. As we have seen elsewhere and as we have experienced during this Debate and outside of this House, passions will naturally run high.

A lively debate is part of a healthy democracy. Yet, let us remember that when the dust settles, we must remain, first and foremost, Singaporeans. Each of us is entrusted to safeguard and advance our nation's interests. Our survival ultimately hinges on our unity as a country. No matter the electoral outcome, we must close ranks, striving together for a stronger and more cohesive future. Indeed, it is this unity that has propelled us from the turmoil of our founding years to the globally connected Singapore that we know today.

Even so, we must not stand idle. As the Prime Minister highlighted, we must invest in our people and our industries, especially in areas of semiconductors, biotechnology and digital services, amongst many others, to stay at the frontier of economic opportunity. We must not forget this fact – the world eats small states for breakfast. Let us not serve ourselves on a platter.

In tandem with all these economic strategies, we must also preserve and strengthen our social foundations, especially the family. We must remember that the cornerstone of a strong, cohesive society is built on families, on marriage. In its most fundamental sense, marriage is about commitment – about forging a lifelong bond that nurtures love, respect and responsibility. When a husband and wife come together in this union, they form the primary building block for stable families, which, in turn, form the bedrock of a flourishing nation.

Children benefit the most and most profoundly when raised in a context where love is modelled daily, where values are imparted through the constancy of caring adults who look to each other in partnership, very much like the relationship we have with our people and with one another.

Equally important, of course, is that every child must be valued, never to be cast aside as some inconvenient economic liability. Children are gifts we welcome into our world, each with immeasurable potential, not just for our families but for a stable society and a strong nation.

When our society affirms the priceless worth of every child, whether in the womb or in the classroom, we safeguard not just our demographic future but the moral core of what it means to be a nation that truly cares.

These measures in the Budget reflect these values on two critical fronts. First, it bolsters Singapore's competitiveness by funnelling resources into research, innovation and workforce training. Secondly, and also very importantly, it builds upon the core principle that strong families, built on strong marriages and nurturing home environments, shape the very identity of our nation.

I am, therefore, particularly heartened by the Large Family Scheme and the LifeSG credits. These extend added financial support to families with three or more young children. As a father of four lively youngsters myself, I know firsthand how swiftly grocery bills can mount and how quickly shoes can wear out. This is even more so for families with lower incomes. This Budget continues to support marriage and parenthood and affirms our belief that families remain the anchor for Singaporean life.

At the local level, we have seen similar measures take root. In North West CDC, for instance, the Little Steps programme has been a lifeline for our KidSTART families since 2023. It provides an annual grant of $500 for each child aged between zero and six years old. We have disbursed close to $1.3 million to help 2,069 children in the district since its launch.

While Little Steps is funded through a generous donation, I urge the Government to consider making the national scheme more generous and extend support beyond the age of six to include those below 12. Let us consider how best to support those who choose to have large families before any incentives were introduced so that they, too, may benefit and feel that their contributions have not gone unnoticed.

Many Members, over the course of the last one and a half days, have also spoken about helping working mothers. I, on the other hand, want us to be able to look beyond the working label. All mothers make significant contributions and deserve our recognition and support. Therefore, I believe we can do more. For example, to equalise childcare grants, ensuring that the same level of subsidy, whether a mother is employed or has chosen to remain at home for a season, to dedicate time to caring for their children. Every mother, every parent, contributes immeasurably to our nation's future, and no mother or father should be penalised for putting family first.

Let me now take a moment to talk about policy intent and differences in views on how nations should be governed. As I stated earlier, lively debate is part of a healthy democracy. It is to be expected that in the cut and thrust of politics, there will be disagreement on policy directions. But it is always all too easy to score points by latching onto popular sentiments and making grandiose statements to grab the headlines.

But we must remember that true leadership is not measured by how loudly we speak or how dramatically we posture. True leadership shines through in the quiet, consistent and determined pursuit of policies that genuinely serve Singaporeans for the long term, even when policies are complex and unwieldy. Anyone can cast aspersions and claim to have all the answers; far fewer are willing to endure the gruelling work of finding real solutions that can withstand time and turbulence.

Governing a nation is always challenging, but it is doubly so in a rapidly evolving global landscape. It requires foresight to anticipate risks, prudence to steward our resources, and courage to stay the course when decisions are unpopular, or even detrimental to electoral support.

When we debate this Budget, we must not forget that our goals go beyond mere rhetoric. We must remain steadfast in doing what is necessary for Singapore’s long-term future, whether it is bolstering social support, investing in innovation or ensuring long-term fiscal sustainability, even if the path demands politically tough choices. This is the real test of leadership for Singapore.

Let us not kid ourselves. Look at Ukraine, as an example. In the turbulent world that we live in, not only do I think we need marksman, but marksman do not win wars on their own. We need an entire budget arsenal at the ready for the storms that would come in the future. And that is how we prepare. It is easy to say that is all we need for now. But for a country with little resources except for the precious asset of our people, we need to prepare for the long term.

We, therefore, cannot grow complacent, for many nations today are torn by polarisation and discord. Our unwavering sense of togetherness is the shield that keeps us safe and the compass that guides our progress.

So, may this Budget embolden every Singaporean to look ahead with confidence in this SG60 year, knowing that this Government is committed to uplifting lives, supporting our families and safeguarding our sovereignty.

Indeed, SG60 reminds us of how our founding generation defied the odds. Let us carry that same spirit into this next chapter, forging a future where Singapore remains a beacon of possibility. So long as we stand united, we will prevail – just as we have done for six remarkable decades. Mr Speaker, I support this Budget.

Mr Speaker: Mr Louis Chua.

1.48 pm

Mr Chua Kheng Wee Louis (Sengkang): Mr Speaker, as the final Budget for this term of Parliament, I thought it would be interesting to share some trends I have observed over the past four years.

Let me first begin, however, by stating the obvious: that the projected surplus of $6.8 billion for FY2025 was wildly unexpected, and this on the back of a huge increase in the projected surplus in FY2024, from $0.78 billion as initially put forth last year, to the revised figure of $6.4 billion.

Contrast this with a poll of private sector economists in Singapore in an article run by The Business Times with a headline that goes, "Budget 2025 may run generous deficit of up to $6.6 billion after FY2024 surplus." The combined fiscal surplus of $13.2 billion for FY2024 and FY2025 was also surprising in the context of questions in Parliament towards the end of last year.

In September 2024, I asked for an update on the current cumulative fiscal position of the current term of Government, where Prime Minister Lawrence Wong shared that FY2024 is still ongoing, but the overall fiscal position is estimated to be $0.78 billion. The combined fiscal surplus of $13.2 billion for FY2024 and FY2025 was also surprising in the context of the sizeable $41.6 billion in top-ups to endowment and trust funds in these two years.

We can say that, look, these are resources set aside to meet real needs in the future, but it does not take away the significance of these surpluses that are generated within just these two years alone. Put another way, the amount drawn down from our Reserves to combat COVID-19 amounted to about $43 billion. It was previously said that we have drawn on our Reserves equivalent to over 20 years of past Budget surpluses. We have used a generation's worth of savings to combat a crisis of a generation. Yet, the amount of additional resources we can set aside for endowment and trust funds in just these two years alone is close to $42 billion. In fact, it is closer to $72 billion over the last four years. And let us also not forget that Singapore's way of accounting differs from international norms, such as that of the International Monetary Fund (IMF), the most notable of which is the exclusion of land sale proceeds amounting to $25 billion in FY2024 and estimated at $19.4 billion in FY2025.

Higher than expected surpluses are also not a recent phenomenon. FY2021 was estimated to record a deficit of $11 billion but ended up as a surplus of $1.9 billion. FY2022 was estimated to record a deficit of about $3 billion but ended up a surplus of $1.7 billion. FY2023 estimated to record a deficit of $0.4 billion and although the deficit was wider than expected at $2.5 billion, this was after setting aside an additional $7.5 billion for the Majulah Package Fund, without which, FY2023 would have seen a $5 billion surplus instead.

I do not deny that uncertainty is a fact of life and, yes, revenues and expenditures can go up and down with the economic cycle. The point of all these observations, Mr Speaker, is that if the Government consistently collects more than it needs and runs huge surpluses year after year, it leads one to question the wisdom of raising the tax burden on Singaporeans, such as via the higher GST and the urgency in implementing them, especially as many are struggling with high inflation rates and the cost of living in the past few years.

On this note, last year, I touched on the importance of structural changes instead of one-off handouts. Cost of living concerns are front and centre of Singaporeans' minds, and any additional support to tackle cost pressures are no doubt welcomed by many. This year appears to be the year of vouchers, be it in the form of CDC Vouchers, Climate Vouchers or the new addition to our list of vouchers, SG60 Vouchers.

Given the record surpluses that the Government is enjoying, it is only right and appropriate that this is being shared to Singaporeans who have also contributed directly to the Government coffers. With the General Elections around the corner, it is only natural for Singaporeans to be cynical where these are seen as election handouts tied to the political cycle rather than the economic cycle.

Therefore, I believe that, firstly, it is important to put in place structural levers in our system, as opposed to relying on one-off schemes, which may be politicised, incur a lot of administrative costs and resources to operate on the part of the Civil Service, and create much unnecessary uncertainty on the part of Singaporeans.

Secondly, it is also important to direct our resources to those who need them the most, rather than broad-based handouts to everyone. I am sure many Members have seen the viral video where Prime Minister Lawrence Wong's Budget 2025 speech announcing the CDC Vouchers is being juxtaposed against an election rally speech by Minister Chan, where he put it quite elegantly, "If we give everybody the same – rich or poor – how are we helping the poor?"

Take the CDC Voucher scheme, for example. While I am sure many Singaporeans appreciate cash handouts amid the cost-of-living crisis, the CDC Voucher scheme evolved from one aimed at helping Singaporean lower-income households defray their cost of living in 2020 to one where all Singaporean households are eligible for the same amounts. The amounts given have also varied quite significantly over the years, and it remains a question whether the scheme will be a permanent one and, if so, whether all households will continue to qualify, and just how much are the vouchers going to be worth?

On personal income tax, I note the tax rebate worth 60% of tax payable, or up to $200, was introduced in Year of Assessment (YA) 2025, similar to YA 2024, where it was 50% of tax payable, but capped at $200, and also in YA2019. Should this be a recurring feature of the annual Budget, this would effectively raise the tax threshold from the current first $2,000 of chargeable income. The move is, however, abandoned as part of the SG60 package. Instead of a run-off rebate, we are better off raising the bottom brackets of marginal resident personal income tax rates and increasing the tax-free threshold for the first $20,000 of chargeable income to reflect inflation over time. This was what I raised in a PQ back in 2022, and also in my Budget 2024 speech last year. This is especially so when, based on my estimates, close to 80% of resident taxpayers would only receive the $200 tax rebate cap and does not sound as generous as the 60% headline rebate level highlighted.

Next, I would like to now focus on how the Government can implement structural reforms to our CPF system to enhance the retirement adequacy of Singaporeans, an issue that I have frequently raised, and would only grow in importance due to our rapidly ageing society. This is also a topic which I have repeatedly pleaded with the Government to take urgent action, as there are significant opportunity costs with the Government's inaction.

How should one save up prior to their retirement? A recent DBS report provided several ballpark figures based on one's spending habits and lifestyle. For instance, a retiree who has a conservative lifestyle with a monthly expense of $1,600 would require approximately $550,000 in savings by retirement. On the other end of the spectrum, should a retiree seek to enjoy an aspirational lifestyle with a monthly expenditure of $4,000, they would need approximately $1.3 million in their nest egg. Meanwhile, someone aiming to enjoy a balanced lifestyle with $2,800 in monthly expenses would need to accrue $950,000 in retirement savings.

No matter one's preferred lifestyle, I am sure most, if not all Singaporeans would like to kick back and enjoy as they enter their retirement years. However, many Singaporeans face difficulties in building up a sufficient retirement nest egg for them to do so. According to a 2024 Oversea-Chinese Banking Corporation Limited (OCBC) survey, only 35% of the Singaporeans surveyed were on track with their retirement plans, while only 60% of respondents were working on their retirement plans. This is largely attributed to financial difficulties, such as increased household expenditures and debt repayments, that hinder them from saving up for their retirement.

In a recent Parliamentary reply, the Manpower Minister also noted that 52% of all CPF members have at least $60,000 across their combined CPF balances. While the percentage goes up to 74%, if you only consider active CPF members, I am sure we all will agree $60,000 is a very low bar to cross. While I have been going on like a broken record, I hope we can urgently implement the Lifetime Retirement Investment Scheme (LRIS), which was first accepted by the Government back in 2016. This is also something which I have been repeating in each of the last four years so that we can better support Singaporeans' retirement needs.

For sure, CPF returns are guaranteed by the Government, but is it sufficient in today's context? Yes, CPF members have the option today to enhance their returns via the CPF investment scheme, where members can invest their Ordinary Account (OA) and Special Account (SA) balances in a selection of investment products by external providers.

But can we assume that everyone is confident and capable of making sound investment decisions? I, therefore, read with interest a recent interview by Lian He Zao Bao with Prime Minister Lawrence Wong, where he, too, noted that the Government has been studying the scheme for some time, and I quote, "The challenge is, can such a fund produce returns that are better than the very generous risk-free guaranteed returns that the Government already provides? And would it still have some volatility which would expose CPF members to financial market risk, especially when they retire?" I have three simple answers to this question posed by the Prime Minister.

First, this has already been studied extensively by the CPF Advisory Panel about a decade ago, and they have, in my view, given a considered solution with the LRIS.

Second, think about the difference to the amount of Singaporeans' retirement funds almost a decade on. Had we implemented such a scheme back then, for example, Endowas, an investment advisory firm, which is approved under the CPF investment scheme, highlighted in an advertisement that from 2014 to 2024, "We are looking at 7.99% potential returns yearly for an 80:20 equities and bonds portfolio, compared to 2.5% interest earned yearly if left invested in the CPF Ordinary Account."

Third, if the Government is not confident that our investment entities, be it Temasek or the Government of Singapore Investment Corporation (GIC), can over the long term produce better risk adjusted returns that are better than CPF returns, then we are in serious trouble, and the NIRC framework ought to be thoroughly re-examined.

So, I hope that the Government is cognisant that the longer the delay, the higher the opportunity cost and the real cost to Singaporeans' retirement savings.

Finally, let me touch on the issue of inequality. I believe the deepest divisions in our society today is not based on race, language or religion, but based on socio-economic status. If we do not take a concerted effort to address this issue head on, as we have done with racial and religious harmony, these divisions will only deepen over time.

In this 2025 Budget Statement, Prime Minister Lawrence Wong mentioned that income inequality after Government taxes and transfers is at its lowest since 2000. Indeed, if measured by the Gini coefficient, after accounting for Government transfers and taxes, income inequality appears to be trending down. This is however, on the back of various short term and one-off transfers, such as the GST Assurance Package, CDC Vouchers and other temporary grants. Are these sustainable and expected to persist?

Moreover, much can be said about how median and average household incomes have been growing over the years, but there are several interesting statistics which I wish to highlight from the latest key household income trends report published by SingStat.

After more than a decade since the Progressive Wage Model, which was launched in Singapore, our minimum wage equivalent, the Local Qualifying Salary (LQS), there still appears to be a significant number of households whose household income is less than the equivalent of what is estimated to be the average living wage per worker of $2,990 per month, as estimated in a study in 2022. Putting aside households with no employed persons, as this could include retirees, there continues to be an estimated 17,600 households earning less than $1,000 a month, 61,500 households earning $1,000 to $1,999 per month, and 57,100 households earning between $2,000 and $2,999 per month.

Based on the average household size today, this group of locals represent close to half a million people. Can we truly say that all Singaporeans will be able to adequately pay for just their basic needs?

Let us also contrast this with the other end of the spectrum. From 2014 to 2024, the total number of resident households in Singapore has grown by close to 263,000, from 1.2 million households in 2014 to 1.46 million households in 2024. When we break down this growth by monthly household employment income, the household income group that saw the largest increase over the same period is those earning $20,000 and over, jumping by close to 158,000 households from 2014 to 2024, far surpassing any other income group.

Behind the Gini coefficient statistics lies a stratified reality where we are seeing a widening income and wealth disparity in our society. Therefore, beyond income in inequality, we must also address wealth inequality, which has widened in recent years. Based on the UBS report from 2024, across 29 major countries covered by the report, Singapore saw the highest growth in wealth inequality from 2008 to 2023, increasing by nearly 23%. To quote from the same report, in markets where average wealth growth strongly exceeds median growth like Singapore, it appears that much of the rise in wealth has benefited the upper-income brackets.

Even as we welcome family offices and high net worth individuals to our shores, we must also explore bolder policies, such as stronger minimum wage frameworks, further enhancements to wage supplements and more aggressive redistributive measures on a sustained basis. We should also examine how wealth taxes can play a greater role in narrowing the gap and ensuring a more equitable distribution of resources.

Beyond income and wealth, we must also look at other forms of inequality: educational access, job opportunities and social mobility. While we have taken steps to improve the inclusivity in our education system, more must be done to ensure that every child, regardless of background, has a fair shot at success. And this begins all the way in primary school, where it should not matter as much as today who your parents are and what school they went to in determining primary school placements. Allow me to conclude in Mandarin, Mr Speaker.

(In Mandarin): [Please refer to Vernacular Speech.] First, when the Government has consistently been collecting more than it spends year after year and generated substantial budget surpluses, Singaporeans cannot help but to question the wisdom and urgency of the tax increases, such as raising the GST, during a period of high inflation and cost of living.

Secondly, I hope the Government can implement structural reforms to our CPF system. Many Singaporeans are deeply concerned about whether they will have sufficient retirement funds. Given our rapidly ageing society, this issue will become increasingly important. I hope we can expedite the implementation of the Lifetime Retirement Investment Scheme (LRIS), which the Government first accepted in 2016, to allow Singaporeans who desire higher investment returns but lack the financial knowledge to participate.

Finally, I believe that the most serious divide in today's society is not based on race, language or religion, but on socioeconomic statuses. I hope we can address this issue head on and explore bolder policies, such as strengthening the minimum wage framework, further improving wage subsidies and continuing to implement more proactive redistribution measures. Otherwise, this divide will deepen over time.

Mr Speaker: Mr Mark Lee.

2.06 pm

Mr Mark Lee (Nominated Member): Mr Speaker, Sir, in 1939, the world stood on the brink of chaos, with nations retreating into protectionism, erecting trade barriers, and fragmenting the global economy. The Smoot-Hawley Tariff Act of 1930 triggered a trade war, leading to a collapse in global trade. Businesses faced uncertainty as supply chains were disrupted and access to foreign markets became increasingly difficult. The lack of international cooperation left economies vulnerable to shocks.

Fast forward to 2025 and the parallels are striking. While not on the brink of war, the world is similarly fragmented, marked by rising protectionism, economic nationalism and a lack of trust in multilateral institutions. Businesses must navigate external challenges and domestic constraints in land, manpower and carbon. These headwinds underscore the need for resilience, adaptability and readiness to seize emerging opportunities. Budget 2025 provides a critical roadmap, introducing measures to strengthen economic foundations and enhance enterprise and workforce capabilities.

A recent SBF dipstick poll found that eight in 10 business leaders expressed satisfaction with the Budget and seven in 10 noted increased confidence in Singapore's business environment. We are also encouraged that many recommendations from the business community, including those from the SBF's AfA on Business Competitiveness and SBF Pre-Budget Recommendations together with PwC Singapore, have been incorporated into the Budget. Businesses are reassured that the Government has their back and has reaffirmed the importance of long-term economic growth.

A key focus in Budget 2025 is ensuring that support is accessible not just to large corporations but also to SMEs, which face global uncertainties, domestic cost and manpower pressures, as well as the need for transformation. Equipping them with the right tools and resources is crucial for their survival and growth in this evolving landscape.

The enhancement of the SkillsFuture Enterprise Credit, now operating as a wallet system rather than a reimbursement model, reflects the Government’s responsiveness to SMEs' cash flow concerns. This practical adjustment will significantly benefit smaller businesses. I agree with other Members of the House that other Government schemes can also be reviewed to adopt similar cashflow-friendly models to better support SMEs.

The 50% corporate income tax rebate, capped at $40,000, provides immediate relief to businesses of all sizes, while the minimum $2,000 cash payout offers crucial cashflow support for smaller enterprises facing cost pressures.

The introduction of new CDC Vouchers and SG60 Vouchers will benefit households and will boost heartland enterprises and local retailers, potentially driving domestic retail sales, especially in areas where many SMEs operate.

Beyond immediate cost support, the $150 million Enterprise Compute Initiative will help SMEs tap into AI and digital tools, enhancing productivity and competitiveness.

The extension of the Market Readiness Assistance grant scheme will also support SMEs in expanding overseas, a necessity given our domestic market constraints.

Sustainability is also a key focus, with the transition to a green economy opening new avenues for innovation and growth. The Heavy Vehicle Zero Emissions Scheme and Electric Heavy Vehicle Charger Grant will reduce the cost of transitioning to clean vehicles.

However, to maximise the impact of these schemes, SMEs must be able to access them easily. Simplifying applications and providing clearer guidance will be key. I encourage the Government to continue collaborating with trade associations and chambers to streamline access and advisory support. At the same time, businesses should actively tap into the resources available through organisations like SBF, which play a key role in administering some of these schemes.

Mr Speaker, Sir, Singapore faces a serious demographic challenge with an ageing workforce and foreign manpower constraints. Businesses must therefore fully tap into senior workers as a valuable resource. I strongly support the extension of the Senior Employment Credit and Enabling Employment Credit to 2026, which eases the cost burden for businesses in the short term.

However, longer-term solutions require more than temporary wage offsets. We need job redesign and workplace transformation to fully leverage the experience and capabilities of our senior workers.

The planned increase in CPF contribution rates for workers aged 55 to 65 is necessary for retirement adequacy but presents cost considerations for businesses. While the CPF Transition Offset provides relief, businesses will eventually bear the full impact of higher contributions and rising healthcare costs.

Businesses recognise that seniors bring decades of experience, institutional knowledge and mentorship capabilities. However, to unlock their value, we need a fundamental shift in how work is structured for them. That is why the upcoming Tripartite Workgroup on Senior Employment is so important. It must go beyond financial incentives and tackle the fundamental issue of job redesign and workplace transformation. I would like to recommend a few key areas of focus for the workgroup.

First, flexible work arrangements must become the norm for senior employment. Many older workers want to stay active in the workforce, but rigid work structures prevent them from doing so effectively. We therefore need more job-sharing, hybrid work models, staggered hours and part-time roles that allow seniors to remain productive without overextending themselves.

Second, job redesign must be a priority. The skills landscape is evolving rapidly, and while seniors bring valuable experience, they must be equipped to stay relevant. The Enhanced Training Support Package should be expanded with practical digital and technical upskilling to help seniors transition into roles that are less physically demanding but still leverage their expertise.

Third, businesses need clearer industry-specific guidelines on how to integrate seniors effectively. Not all industries have the same needs, and we should be looking at sector-based strategies. In knowledge-intensive sectors, seniors can mentor younger employees and provide advisory expertise, like in areas of risk management and succession planning. In service industries, their experience and interpersonal skills make them well-suited for customer-facing roles. In technical fields, they can focus on quality assurance, training and oversight.

At the same time, I urge businesses, especially SMEs, to see senior employment as an opportunity, not just a necessity. With manpower shortages, seniors offer stability, knowledge and mentorship, making them a valuable, untapped resource.

Beyond senior employment, I also welcome the Budget’s enhanced support for PwDs transitioning from school to the workforce. Like our senior workers, PwDs represent an underutilised talent pool. Companies that embrace inclusivity will not only benefit from diverse perspectives but will also build more resilient and innovative teams. But inclusion for seniors and PwDs alone is not enough. Businesses must also prepare for the seismic shifts brought by technology.

The rapid pace of technological change is reshaping industries and making skills obsolescence a growing concern, not just for rank-and-file workers, but increasingly for professionals. AI and automation are redefining job roles, forcing businesses to reassess how they value human capital.

Enterprise transformation and workforce transformation must therefore go hand in hand. Businesses adopting new technologies need workers with the right skills, and workers upgrading their capabilities need jobs that make full use of them. Without this alignment, talent risks being underutilised or displaced.

The SkillsFuture Workforce Development Grant is a step in the right direction, but its implementation can be refined for greater impact. Rather than focusing primarily on formal courses at IHLs, there should be stronger support for workplace-based training, where skills are immediately applied and training directly addressing business needs.

Last year, I proposed to MOE the introduction of a classification framework for SkillsFuture courses, featuring a Mobility Index, measuring how well a skill improves career prospects across industry and an Industrial Heat Index, tracking demand in booming sectors. This can be developed in collaboration with trade associations and chambers and can help workers make informed training choices and guide businesses in investing in relevant skills development. I urge MOE to revisit this proposal and integrate it into the MySkillsFuture portal.

Another refinement is raising targeted subsidies for future-relevant skills. Courses in such high-demand future relevant skills areas should receive higher subsidies or even full subsidies for specific worker groups that the Government identifies as needing reskilling, such as mid-career workers or those in shrinking industries, as well as seniors or PwDs. A tiered subsidy model should also be considered, where an initial batch of trainees receives full funding, provided they complete the course and meet a high passing grade that could also encourage uptake while ensuring accountability.

Beyond tapping into our local workforce, we must also recognise the critical role of foreign manpower in sustaining business operations and economic growth. Singapore has always thrived by remaining open to global talent, and this must remain a key pillar of our economic strategy. Initiatives like the Global Founder Programme, and the Overseas Networks and Expertise (ONE) Pass reflect a clear understanding of the need to attract top talent to drive innovation and growth in key sectors like biosciences, medtech and semi-conductors. The Global Founder Programme encourages seasoned builders, operators and innovators to establish their next ventures in Singapore, helping to develop a stronger pool of globally competitive startups and enterprises. At the same time, the ONE Pass ensures Singapore remains a top-of-mind destination for high-skilled professionals, securing the expertise needed to maintain our competitive edge.

However, it is equally important to calibrate and track the right skills transfers and innovation to our local workforce and enterprises, enhancing local capabilities and alleviating concerns from Singaporeans about the role of foreign professionals in our economy. I urge the Government to continue to do so.

As we push forward in these high-growth areas, we must also address the acute shortages of skilled and semi-skilled workers in foundational sectors like manufacturing, which support these advanced industries. To this end, I propose four refinements to our foreign manpower policies.

First, expanding the Non-Traditional Sources Occupation List, particularly for the manufacturing sector, to allow businesses to recruit higher-skilled work permit holders for specialised roles that are difficult to localise.

Second, expanding the list of non-traditional source countries for work permit holders to address the drying up of traditional sources like Malaysia and China.

Third, expanding traditional support for companies undergoing transformation, such as conditionally expanding foreign workers dependency ratio ceiling and extending the duration of support under the Manpower for Strategic Economic Priorities Scheme.

Finally, we must introduce greater flexibility in cross-deployment of foreign workers, particularly for skilled and semi-skilled roles. Current manpower restrictions prevent businesses from optimising foreign workforce allocation, even when there is clear economic justification to do so. The Government can consider piloting cross-deployment between majority-owned entities across sectors, enabling businesses to re-allocate workers where they are most needed. Also, by facilitating movement between firms with strategic contractual relationships, such as those in supply chain partnerships or ecosystem clusters, will allow businesses to share manpower resources more effectively.

These proposed refinements will not undermine the Government's broader objectives of workforce localisation, but instead, help businesses better utilise existing resources and stay competitive without unnecessary bottlenecks.

Mr Speaker, Sir, while manpower remains a key challenge, businesses also face significant cost pressures from rising land costs. While Budget 2025 did not announce specific measures to address this, it is crucial to ensure that industrial land policies continue to support business competitiveness.

Arising from our AfA report on business competitiveness, I continue to urge the Government to consider extending industrial land lease tenures to better account for the long lead times required for development and amortisation of capital investments. Additionally, a more flexible lease renewal structure, such as longer renewal periods for businesses investing in productivity or rolling lease extensions for those demonstrating strong economic contributions, could provide companies, especially SMEs, with greater certainty for long-term investments. These adjustments would help mitigate the impact of rising land costs and support companies in sustaining their growth and transformation efforts

Mr Speaker, Sir, nothing excites the business community than dollars and cents. The $14 billion top-up to funds dedicated to productivity, R&D, Changi Airport development and Future Energy is exciting and will help Singapore pull further ahead as a global hub and overcome our energy constraints.

However, let us also ensure that our SMEs can benefit from these investments. I suggest that larger corporations and Government-linked companies that receive some of these investments be encouraged to partner with SMEs through initiatives like the Partnership for Capability Transformation programme, helping to diffuse capabilities and create opportunities throughout our business ecosystem.

Finally, the $1 billion Private Credit Growth Fund diversifies financing options, particularly for businesses lacking traditional collateral or track records, providing patient capital and alternative financing solutions to support high-growth enterprises. I urge the Government to consider the management of these funds with private sector players, so that these funds can be deployed effectively to support both large local enterprises as well as our SME ecosystem.

Mr Speaker, I want to end by quoting renowned economist, John Maynard Keynes. He once said, "The political problem of mankind is to combine three things: economic efficiency, social justice and individual liberty."

A good Budget is not just about numbers on a spreadsheet. It is a statement of our priorities, a reflection of our values and a commitment to our future. I am not a politician and do not understand the difference between an election Budget and a non-election Budget. But I do know this; a good Budget must be fiscally responsible, inclusive and future-ready.

Budget 2025 checks all the right boxes. It is prudent without being restrictive, supportive without being excessive and strategic without being short-sighted. It provides immediate relief where needed, invests in long-term competitiveness and ensures that Singapore remains strong, resilient and ready for challenges ahead. Most importantly, it does all this without compromising the stability of future generations.

Mr Speaker, Sir, this is the kind of Budget Singapore needs, not just for this year, not just for the next election, but for the decades ahead. Let us embrace it, act on it and work together to build a Singapore that continues to thrive, far beyond SG60. I support the Budget.

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 2.25 pm until 2.45 pm.

Sitting resumed at 2.45 pm.

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

Debate on Annual Budget Statement

Debate resumed.

Mdm Deputy Speaker: Order. Mr Faisal Manap.

2.45 pm

Mr Muhamad Faisal Bin Abdul Manap (Aljunied): Madam, let me begin by acknowledging the considerable thought and effort that must have gone into the formulation of Budget 2025.

The world is growing more complex and the impact of global developments are bound to have a significant impact on Singapore, given our dependence on international trade and investment. I am heartened by the proposal, such as the increased assistance levels under schemes such as ComCare and the increased Government support under the Progressive Wage Credit Scheme. At the same time, I once again urge the Singapore Government to review the need for a statutory minimum wage to be introduced to ensure that the lowest earners in Singapore will be able to cope better.

Madam, Singaporeans are a pragmatic people. They will always worry about bread and butter issues first. The rising cost of living have been felt more keenly by all Singaporeans in the last few years. The Singapore Government itself is cognisant of this; hence, the announcement of measures, such as CDC Vouchers, U-Save rebates and so on.

I note with some interest, however, that Bloomberg reported on 22 February 2025 that a poll conducted among 1,002 Singaporeans by Milieu Insight indicated that 55% of respondents viewed these measures as inadequate in helping them cope with the rising cost of living. I know that a similar poll conducted the year before was even worse, with 62% viewing support measures as inadequate.

Taken together, it is clear that Singaporeans want the Government to look beyond the disbursement of payouts to help Singaporeans cope with the cost of living and consider structural changes to existing schemes towards keeping cost of living affordable for all Singaporeans.

My colleagues in the Workers' Party (WP) have floated several proposals in this House on previous occasions – most notably, when we table a Motion calling for the Government to review its policies, so as to lower cost of living pressures on Singaporeans and their families.

Madam, today, I wish to draw attention to the plight of the middle class in Singapore; sometimes described as the "sandwich class", as they are earning too much to qualify for the bulk of social assistance and support, but earning too little to have a significant financial cushion to help them deal with various trials and tribulations, which may derail their journey through life. There is also a particular subset of this group, one defined by their age, that leaves them in an unenviable position of bearing responsibilities of caring and supporting aged parents as well as young children.

Madam, residents in my division of Kaki Bukit and Aljunied GRC have approached me for assistance. For example, one resident needed legal assistance in a matter involving his brother's insurance claims. He was deemed ineligible for assistance from the Legal Aid Bureau, but the cost of hiring a lawyer was prohibitive for his family and him. Another individual informed me that because his household income did not satisfy the means test threshold, his mother was not qualified for MediFund scheme.

He compared himself to his relative, whose elderly mother lives in a rental flat and receive MediFund assistance, even though his relative is more financially secure than he is. He remarked that by having his mother staying with him and caring for her, he feels that he is being penalised for his filial piety.

In situations like this, Singaporeans in the middle class are like a sandwich without fillings. They are left with choices they find neither savoury nor sweet.

Madam, I understand that we cannot treat the country's finances as a well of infinite wealth. Trade-offs have to be made and assistance has to be directed to where it is most needed. I also acknowledge that instances such as the ones I have cited may not be representative of the bigger picture. Even so, when such cases do arise, I hope that the relevant agencies will be able to exercise flexibility and review each case more holistically in assessing an applicant's eligibility for assistance.

Madam, the next issue I wish to raise has to do with jobs. The ability to cope with the cost of living is not just a function of the price of goods and services, but also the ability to afford them. A report published by The Straits Times on 8 February 2025, covered the experiences of several Singaporeans who had faced employment disruptions.

The report noted that residents' unemployment and long-term unemployment rates remain low and the incidence of discouraged workers was also at a low point. Economists interviewed for the article noted that even so, there were plausible reasons for job insecurity among Singaporeans. News of an retention exercises, the increased prevalence of contract work, disruptions caused by technological changes are some of the factors fueling job insecurity.

Madam, I note that the Prime Minister has announced greater support for reskilling and retraining opportunities under SkillsFuture and Workfare Skills Support schemes respectively. I am not against the notion that our workforce needs to remain attuned to the needs of the job market and adequately trained. However, I believe we need to take a more proactive approach.

In January 2025, the results of a Graduate Employment Survey focusing on graduates from the five local polytechnics were released, indicating an employment rate of 54.6%, down from 60% in 2023 and 59% in 2022. The results of a similar survey focused on university graduates showed a fall in employment rates to 79.5% from 84.1% the previous year. These are worrying statistics and if the downward trend persists in subsequent years, will continue to fuel insecurity among Singaporeans beyond fresh entrance into the workforce.

I call upon the Government to consider offering incentive schemes to companies that employ more Singaporeans than required by dependency ratio. This incentive could include tax breaks, reduction in Government charges, or preferential access to state incentive. On a related note, as the Government invest in making Singapore more attractive to global companies, it should also consider encouraging such companies to play their part in nurturing and developing our local workforce.

Speaking broadly, Madam, my concern is the mental burden borne by the middle class in Singapore. Members of the House would recall the Motion on Mental Health and Well-Being, which was passed in February 2024. The Government has also acknowledged the importance of mental health and well-being and have announced several measures to address the matter. I have today highlighted two issues which adversely affect the middle class in Singapore. I hope that more attention will be paid to their plight, so that we can better understand their worries and take measures to address them.

Mdm Deputy Speaker: Ms Nadia Samdin.

2.53 pm

Ms Nadia Ahmad Samdin (Ang Mo Kio): Madam, in Malay, please.

(In Malay): [Please refer to Vernacular Speech.] In his 2025 Budget speech, the Prime Minister reminded us that our country rose from rather difficult challenges 60 years ago. At that time, we would not have been able to withstand the complex global environment without instilling order and efficiency in our society.

When people think about Singapore now, what are the images that usually come to mind? Clean streets, a safe city, strict laws and a stable national system. In just 60 years, we have transformed into a modern metropolis. What will be the dreams, aspirations and choices of our people today that will shape our country's future in the next 60 years?

To face our future, I would like to emphasize two things. Firstly, we must ensure that Singapore remains as a country where everyone has their own dreams and is supported to achieve those dreams. Second, we must also form a new social compact. This spirit should celebrate the differences in our society and also further strengthen the bonds between all communities, as our pioneers did when they started to build this nation.

(In English): Madam, just 60 years ago, it would have been hard to imagine Singapore as the city we are today. This country was built on the dreams and pragmatic choices our Pioneers made amidst a challenging world order.

Today, we face new turbulent times. We would not have survived the chaos if we did not build order and efficiency into our society.

When people think of Singapore today, what picture comes to mind? Clean streets, safe city, strict laws, stable systems, but what are the dreams, aspirations and choices that will build our next bound? I will make two main points.

We must ensure that we continue to be a Singapore that can dream of hopeful opportunities, endless possibilities and a future where no one is left behind. We must cultivate a new social compact – one that welcomes diversity and strengthens the bonds between all communities, no matter how different, just as our Pioneers did when they built this nation together.

Today, we are living longer with innovations in technology that seek to make life better. In his Budget Statement, the Prime Minister talked about how we ended 2024 on a strong footing. Our economy grew. Singaporeans generally saw wage increases that outpaced inflation and income inequality after Government taxes and transfers is at its lowest since 2000. But somehow in coffee shops and online, some sentiments would indicate that life feels otherwise. Statistics and indexes do not translate.

Singaporeans continue to feel the pinch from higher prices, an epidemic of stress plague students and workers and the daily grind somehow does not spark that much joy. The promise of the Singapore dream seems out of reach. With the changing of the guards to our 4G leadership, I hope for a renewed vigour, a cautious optimism amidst the global contest of might, a version 4.0 of the Singapore dream, if you will, where our people can increasingly define success by their own measures, where Singapore can hold multiple versions of life and success that we each want and that there is space for each one of us here; where we lean into our strengths rather than be caged by how society sees weaknesses.

Not everyone will start from the same place in life, but having tailored support that can help meet people's needs where they are, in a timely way, is critical and must sit at the centre of the schemes that we design.

Take for example, the dream of a large family. For some young couples in Singapore, this feels out of reach due to the costs associated with raising a child. Every parent wants the best for their child. The pressures of balancing work, childcare and maintaining a home sometimes discourage young couples from expanding their family as they are uncertain if they can provide the same level of support and opportunities for a household with more children.

I am heartened by the recent steps the Government has taken to ease some of these burdens, such as the move towards shared paid parental leave last year and the introduction of $500 in Child LifeSG Credits for all children aged 12 and below. The additional support of up to $16,000 for each third and subsequent child, is a welcome measure that recognises the challenges of growing a family in today's economic climate.

It is strategic in that this scheme is not just for newborns, but for existing families where at least one child is six or younger, and alleviates the dilution of household finances when an additional child arrives towards a more equitable distribution of resources.

I am also grateful that implementation was immediate, a fairly unusual timeline, but necessarily decisive in the face of our declining TFR. I hope we can also do more to support grandparents who often play an important role in caregiving, in terms of learning new skills and forming care networks.

While financial support is important, it is equally crucial to address the underlying issues that makes starting and growing a family so challenging. I touched on some of these points in my recent speech for the Motion on families: for couples, with fertility health and treatments, as many are getting married later at a later age.

And secondly, while the Government provides significant grants and subsidies for housing, education and healthcare beyond financial costs, the most precious resource of all time is scarce for daddies and mommies to spend with their little ones. Surveys also reflect that long work hours and stress from work are the top obstacles couples face in getting pregnant.

Ultimately, we must work towards creating an environment where families feel empowered by the decision to have children. This will not be resolved in one Budget or by the Government alone, but will take a shifting of mindsets in society, support from employers and a redefining of what success looks like beyond the corporate ladder, followed by the ability to live that life on our own terms.

As industries evolve and technology becomes more integrated into every sector, middle-aged workers are increasingly finding themselves at crossroads. Some global companies have also decided it no longer makes financial sense to operate some roles in Singapore and instead choose to move to regional neighbours with cheaper labour costs or replace labour with automation. This is our reality.

There may be someone else who is cheaper, but given our nimble size, we can be faster, and with Singaporeans' talent, we can be better.

For those who lose their jobs, the fear of being left behind is overwhelming. It is not just their dreams which are paused, but that of their whole families deferred. How do we ensure they are empowered to rejoin the workforce with relevant skills quickly?

The SkillsFuture framework as a whole has received a reboot – for example, the Jobseeker Support Scheme announced last year as well as the expansion of the SkillsFuture Level-Up Programme targeting mid-career Singaporeans to pursue upskilling, which will now be given a monthly allowance to those who continue to work part-time. This is a good step, which acknowledges the reality where not everyone can afford to take full-time off.

Beyond structural unemployment and displacement due to cost pressures, some are also forced to slow down due to caregiving needs. By 2030, around one in four Singaporeans will be 65 and above. And our caregiving needs are growing.

To this end, while it is not quite the full Carer's Allowance, I support the move to raise the maximum qualifying per capita household income for the Home Caregiving Grant as well as the increment of the quantum to offset caregiving costs. I hope that over time, we can look into doing more for caregivers' mental health and financial well-being, recognising the key role they play.

This leads me to my final group – our seniors. Madam, our elders who contributed to Singapore's growth and prosperity today face a different Singapore. Some are struggling with a reality that they did not foresee. While the idea of life after leaving the workforce was perhaps once associated with relaxation, many find themselves battling poor health and limited financial resources.

As of October 2024, Singapore has 64,000 older seniors of whom 60% are frail to severely frail and 4% at high risk of social isolation. A 2023 study by the Singapore Management University's Centre for Research on Successful Ageing revealed that only half of the respondents surveyed felt there was at least a 50% chance they would have to lower their standards of living.

I am also glad that we have geared up to focus on preventive health to encourage longer health spans.

We must also extend our reach to those who are isolated, ensuring they have access to the resources they need. Whether that means bringing services to their doorsteps or encouraging them to come out and participate in more inclusive community activities, outreach efforts cannot be touch and go as some seniors may be tentative at first. I hope we can find solutions to offer active ageing programmes, mental health services and daily rehabilitative exercises to our seniors in private estates, where the space to build centres is often difficult to find. I would love to see an active ageing centre in a park or utilise a container concept, for example.

For seniors living in older private estates, extending the Enhancement for Active Seniors programme is a good move and answers the appeal of many of my colleagues and I. These seniors may be deemed asset rich but cash poor and feel left out of various schemes. I look forward to hearing more about how the Ministry will be rolling this out and hope we can also increase awareness on support schemes such as the Home Caregiving Grant.

Madam, we continue to write our Singapore story in a time where Singapore is becoming increasingly diverse, with many increasingly isolated in our own bubbles. Globally, we see people fragmenting into us versus them. We grow intolerant of different perspectives, focused on the needing to be right and someone else wrong, and in our frustration forget that society is stronger because of diverse views, that the collective pull is stronger than the sum of its parts.

Against the odds, we have built a society where different cultures, perspectives and backgrounds have coexisted in relative harmony. Harmony is not the absence of differences, but what prevails in spite of it. Our harmony can only be sustained if we recognise that we are interconnected by the same collective responsibility and have an active citizenry which trusts not just in the Government, but also in each other.

I hope that in the spirit of SG60, more can be done to encourage ground-up activities and programmes in local communities and between different groups. A social compact is not something bound on paper, nor does it come with an expiration date after a single Budget cycle. It is a living, breathing commitment – one that transcends generations, upheld by every government and every citizen.

Budget 2025 is a reaffirmation of this commitment – a promise that the Government is striving to build a society where every individual can thrive regardless of age and circumstance. It is a call to join hands.

For those who laid the foundations of Singapore, for all of us who call this nation home today, and for the generations who will inherit this legacy, we must renew our shared promise and reignite the Singapore dream – to protect and steward the progress we have made, to provide stability and security, even in the most uncertain times, and to break new ground so that future generations can dream even bigger than we ever thought possible.

This is the vision that we carry forward for Singapore's future. I look forward to participating in the COS debates.

Mdm Deputy Speaker: Senior Minister of State Desmond Tan.

3.05 pm

The Senior Minister of State, Prime Minister's Office (Mr Desmond Tan): Mdm Deputy Speaker, this year's Budget arrives amid significant uncertainty for both businesses and for our people and workers.

On the union ground, we see a mixed picture. On the one hand, some companies are hiring. On the other hand, companies are also doing restructuring and laying off employees.

For example, the aerospace industries, while seeing a robust recovery since COVID-19, are also grappling with some of the increase in operational cost as well as difficulty in hiring people. In the service sector, unions have reported a more cautious outlook in the domestic F&B as well as retail sectors, citing increasing operational costs as well as competition with our neighbouring countries. Even manufacturing companies in some unions are taking a wait-and-see approach, depending on how international trade and tariffs pan out.

On the workers' front, while two thirds of the workers that we surveyed express satisfaction with their wages, welfare and work prospects, one in three also fear job losses within the next three months. Cost of living remains a top concern, with food, healthcare, groceries and utilities ranking as the top four worries in our survey.

It is therefore reassuring to see a responsive Budget this year that empathises with what our people and our businesses are going through on the ground and tackles them head on. But more importantly, I feel it is also a responsible Budget because it presents long-term strategies for our businesses and our economy, ensuring that they remain competitive and our workers' skills remain up-to-date and relevant.

The Prime Minister in his speech mentioned that to achieve 2% to 3% annual growth will require us to continue to uphold some fundamentals. One of them is to deepen the tripartite partnership as a cornerstone of economic stability.

As Singapore approaches SG60, it is a fitting time to reflect on the pivotal role that NTUC plays in fostering industrial peace and economic stability and in promoting workers’ welfare.

Born in the turbulent 1960s, NTUC emerged as a unifying force amidst chaos, rallying unions to prioritise long-term interest and stability over short-term disruptions and gains. Despite being outnumbered by pro-communist unions, NTUC, under leaders like Devan Nair and Ho See Beng, focused on workers' welfare, eventually winning over unions and laying the groundwork for industrial harmony.

Post-Independence, NTUC played a critical role in navigating crises like the British military withdrawal, persuading workers to accept difficult but also necessary changes, such as the Industrial Relations (Amendment) Act, which prioritised stability and investment for the long-term good of Singapore. The 1969 Modernisation Seminar marked an important turning point, redefining unions as partners in progress and establishing Singapore's unique tripartite model.

Though the COVID-19 crisis seems like a distant memory, it was a severe test of our tripartism. Both our workers' lives and livelihoods were in great danger. NTUC was at the very forefront, securing job stability, wage support and training opportunities for thousands and thousands, particularly in the aviation and aerospace industry as well as retail and for self-employed persons.

In a recent media article titled "Do Singapore Unions have a PR problem?", my unionists and I acknowledged the image issue that NTUC has and the scepticism shared among some members of the public towards the Labour Movement in view of a spate of high profile layoffs in 2024. In that very same article, CNA reported about 2,000 dispute cases that were handled by unions in 2022 and 2023 as well as about 3,000 by the Tripartite Alliance for Dispute Management in the same period.

While some of these cases were addressed publicly, the majority, in reality, was negotiated behind the scenes. After spending nearly three years in NTUC and working alongside many, many union leaders and staff, I am really in full admiration of the relentless, often behind-the-scene, and effective work that goes on and is put in by our union leaders and our NTUC staff – unheralded but nonetheless vigilant bargaining and consensus building to secure the best outcomes for workers of all collars, ages or nationalities while ensuring at the same time that our business and our economic pies continue to grow and expand.

Going forward, geo-economic divisions, economic volatility, demographic changes and technological and sustainability advancements will reshape the global labour market, driving changes in job creation, skill demands and work patterns. In this rapidly changing landscape, one thing is clear – the skillsets that brought us success yesterday may not be sufficient to secure our future. To remain competitive, both as individuals and as a nation, we must embrace a culture of innovation, learning and continuous upskilling.

The latest Future of Jobs report indicates that 39% of our current skills will either evolve or become obsolete within the next five years, which is, thankfully, lower than the 44% in 2023 and 57% in 2020, possibly due to more workers having completed training, reskilling or upskilling measures.

These findings reflect the growing recognition of the value of upskilling and reskilling among workers. I believe our advocacy for greater training opportunities and the support of the Government on this front have yielded positive results.

I urge more employers to prioritise training initiatives for your employees. I hope employers should not be afraid to lose an employee because the employee is better trained. It is essential to look beyond the short-term disruptions or losses and invest in the long-term growth and development of all our workers and employees, which ultimately will benefit the entire industry and our economy as a whole.

Data from the Infocomm Media Development Authority (IMDA) showed that AI adoption among large enterprises in Singapore rose from 16.7% in 2018 to 44% in 2023. For SMEs, the increases are slightly lower, from 3.5% to 4.2%. SMEs cited reasons such as the lack of need for AI due to the scale of their business and perceived high costs of implementation vis-à-vis the return of investment. This raises an urgency for higher AI adoption among local SMEs to reap the benefits of AI and for Singaporeans to be upskilled.

The CTC initiative is NTUC's response in 2019 to navigate these rapidly evolving and changing landscapes, supporting our enterprises through enhancing their business productivity and upskilling our workers.

A general manager, Chew Zi Xuan, from Chew's Agriculture, a company that is unionised under my union, the Singapore Industrial and Services Employees' Union, said, "The CTC Grant has been a lifeline for us, ensuring that our older employees retained their jobs while receiving training. They have learned to operate new machinery and conduct quality control checks. This support has made our senior employees feel truly valued and empowered."

I am always heartened to hear stories of such positive feedback from the employers of how CTCs has not just benefitted their businesses but also their employees. Let me share an example of how concretely CTCs can support enterprises and benefit workers.

STMicroelectronics, a global leader in semi-conductors, has been a pillar of Singapore's manufacturing sector since 1969. Operators at STMicroelectronics were required to manually load and unload wafer cassettes, each weighing up to five kilogrammes, throughout 12-hour shifts.

The physical strain led to fatigue, slower production speeds and high turnover rates. Recognising the need for change, STMicroelectronics partnered with the United Workers of Electronics and Electrical Industries through the CTC to implement five robotic systems to take over these manual tasks.

The results were phenomenal. The robots now operate 22 different machines, running efficiently 24/7, leading to a productivity gain of no less than 10%. But more importantly, workers were not displaced, they were trained in robotic operations, maintenance and Industry 4.0 technologies, preparing them for future higher-value roles.

The impact on their growth has been very significant. Operators are now progressing to become technicians, technicians to become assistant engineers and assistant engineers to full-fledged engineers. This structured Career Development Plan ensures that workers experience career progression. The numbers speak for themselves. In the end, 111 employees have benefitted from this initiative, 91 of them PMETs and 20 rank-and-file workers seeing career progression and wage outcomes and directly benefitting from them.

We are therefore very thankful for the Government to acknowledge our effort in the CTC and announced a top up of $200 million for CTC Grant in the Budget and also extending CTC Grant 2.0 to support employer-led training that leads to formal qualifications and certifications.

Just to give an update, I am happy to update that we had formed over 3,000 CTCs to date, approved more than 480 transformation projects, helped over 7,000 workers receive an average of 5% wage increment above their annual increment or benefit from career development plans or from skills allowances.

I urge more companies to come on board, to partner with NTUC, to join us on the CTC journey and leverage on the grants available to accelerate your business transformation and upskill your workers.

The success of CTCs encouraged us to expand our reach and explore how CTCs can benefit more companies, more clusters or even the entire sector. One such example is the formation of the tripartite partnership between NTUC, SkillsFuture Singapore and one company, ST Engineering. The partnership draws on the synergies between SkillsFuture Singapore's "Queen Bee" programme and NTUC's CTC initiative to deliver comprehensive support for ST Engineering Land Systems and its ecosystem of suppliers in business transformation and workers upgrading. This is also backed by the ST Engineering Staff Union.

As a first of its kind partnership, the programme seeks to upskill at least 1,000 workers and about 40 SMEs within the Precision Engineering sector of the ST Engineering Land Systems’ supplier network while building on a robust ecosystem that offers both the breadth and the depth in technology and engineering capabilities.

This is what the CTC is all about: regardless of whether we are supporting a company or a cluster of companies or a sector, future-proofing businesses while uplifting our workers.

Another initiative NTUC have had in place for quite some time to promote upskilling and reskilling is the NTUC-Education and Training Fund Collaborative Fund (NCF) and Union Training Assistance Programme (UTAP) through defraying the cost of training. Unionised companies enjoy an annual $50,000 NCF funding support while union members get to utilise up to $250 or $500 UTAP training credits.

From 2022 to 2024, over 75,000 union members have benefited from training through NCF and UTAP, reflecting a 22% average annual growth in skills development. One of the workers who benefitted from NCF is Brother Phil, Manufacturing Manager, Operations at Hamilton Sundstrand Pacific Aerospace Pte Ltd. At 35 years old and with 11 years of experience in the company, Brother Phil has always been committed to operational excellence. However, to take his leadership capabilities to the next level, he needed to strengthen his coaching skills, conflict resolution and performance management skills. Through the NCF co-funded training, Brother Phil has acquired new soft skills and enhanced his ability to lead teams, foster a positive work culture, and drive innovation and productivity.

In the past two Budget speeches, I have called for greater support for mid-career workers. The Labour Movement is therefore grateful to hear that individuals can apply for the SkillsFuture Mid-Career Training Allowance of up to $3,000 per month for selected full-time courses, and it will be extended to selected part-time courses from early 2026. We are hopeful that this initiative will encourage mid-career workers to pursue lifelong training.

I feel for this group of workers, partly also because we have quite a number of them in Pasir Ris, who are going through a mid-career transition and experiencing both job placement as well as skills upgrading challenges. I hope that we will continue and NTUC will continue to push for this group to help them pivot their career and also have relevant skillsets to move into a new career.

To support workers’ training and employment facilitation, NTUC has expanded in the national personalised placement landscape from two to 27 career and job centres, with around 110,000 jobseekers placed since February 2020. We have also developed and are using stronger AI platforms to guide jobseekers in their career search.

Ms Angela Guo sought a career switch from F&B to human resources (HR) for better work-life balance and more time with her child. Despite lacking HR experience, she approached NTUC’s e2i for help. Her career coach, Mr Wang, guided her through an employability programme, providing industry-specific mentorship, resume advice and encouragement to upskill. Angela now is pursuing a part-time HR degree and successfully transitioned into a HR role, achieving her goals while building skills for her new career path.

Job security is key amid technology and industry changes as it provides the stability and the confidence for our employees and our workers to adapt and to grow. NTUC will continue to support our workers with initiatives to expand training and upskilling opportunities.

Mdm Deputy Speaker, allow me to speak in Mandarin, please.

(In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, Prime Minister Wong's "Onward Together for a Better Tomorrow" Budget not only addresses current challenges but also establishes long-term growth strategies, helping workers upgrade their skills to prepare for the future and ensuring our economy remains competitive.

The Budget has received positive feedback from workers. The Government has introduced various measures to support mid-career workers, platform workers, freelancers, low-wage workers, young workers and families, middle-age workers for their retirement adequacy and help Singaporeans with the cost of living. These measures and schemes have taken into account workers' views and concerns.

This year, our economy faces many uncertainties, such as inflation triggered by global situations and the impact of disruptive technologies on companies' manpower needs. On the employment front, businesses are sending mixed signals: some companies are conducting phased retrenchments, while others are actively recruiting.

Facing these uncertainties, workers should take the initiative to strengthen themselves and seize economic opportunities. NTUC provides various upgrading and training programmes and I encourage everyone to make full use of them.

Since 2019, NTUC has promoted the establishment of the Company Training Committee (CTC) within companies, to enhance employee skills in a targeted manner and facilitate transformation. To date, NTUC has helped establish over 3,000 CTCs and funded 480 training programmes. This year, the Government announced an additional $200 million to support the CTC initiative. We hope that more employees will initiate CTCs to upgrade their skills and strengthen their ability in the future economy and enterprise competitiveness.

Another initiative is the NTUC-Education and Training Fund Collaborative Fund (NCF) and the Union Training Assistance Programme (UTAP). Companies that join the union can receive up to $50,000 in NCF funding annually to support training programmes, while unionised employees can receive UTAP training subsidies of $250 or $500.

Fellow workers, these programmes and subsidies are tailored for you, so please make good use of them to upgrade your skills.

As the saying goes, "30% is destiny, and 70% is hard work". This hard work includes constantly seeking innovation and change, and learning new skills. Those who strive and learn will win. Let us unite, continue to work hard, upgrade ourselves and create a better future!

(In English): As we look ahead, the challenges of the next decade will be unlike those we have faced before. Yet, the strong foundation of tripartism built by generations of government, employers and union leaders, are well-equipped to navigate this future.

NTUC and the Labour Movement remain steadfast to support all our workers. Whether you are a delivery rider battling the elements on the streets or a mid-career professional adapting to AI, or a senior worker seeking renewed purpose, the Labour Movement fights tirelessly to uplift your voice, to secure your livelihood and to future proof your potential.

Because when workers win, Singapore wins. And on this momentous year of SG60, in solidarity with our tripartite partners, the labour movement will march forward with our workers for our country, Singapore. Mdm Deputy Speaker, I support the Budget.

Mdm Deputy Speaker: Mr Keith Chua.

3.26 pm

Mr Keith Chua (Nominated Member): Mdm Speaker, in his Budget Speech, the Prime Minister reminded us of how far we have come as a nation since our Independence 60 years ago. We have moved from third world to first world and we have seen our economy improve from a state of bare survival to one of resilience. Most of us have our basic needs met in housing, education, healthcare and employment.

Despite the continuing global and external uncertainties, we are well positioned to face these challenges together. Our multiracial and multi-religious society remains cohesive and harmonious and we continue to enjoy political stability, peace and security despite external tensions. We must treasure all this and preserve what has taken decades to build.

I described last year’s Budget under three broad themes.

Firstly, being faithful in stewarding our limited resources from our fledgling state and seeing this steadily grow to our current levels. In Budget 2025, we continue fiscal prudence and good stewardship.

Secondly, continuing to introduce measures and initiatives that were directly targeted at taking care of the welfare of our people, which also includes our foreign workers in our midst. In Budget 2025, we enhance help for many groups.

Thirdly, being a blessing to one another, sharing as we ourselves have been blessed and how we have also shared beyond our borders. In Budget 2025, we enhance the spirit of giving.

Budget 2025 continues the path forward, deepening and strengthening many areas covered from last year's Budget. It is commendable that we managed to achieve much through last year's Budget and still end the fiscal year 2024 with an estimated surplus of $6.4 billion.

Similarly, Budget 2025, with extensive immediate support initiatives and significant longer-term investment for our future, is forecast to end with another surplus of $6.8 billion. This year’s forecast surplus is extremely helpful to navigate local and global uncertainties should the need arise.

Mdm Speaker, we continue to look at measures to support all Singaporeans and work toward the commitment that no one is left behind. May I declare my interest as a board member of two social service agencies in mental health services, suicide prevention and also on a working group on Project Hayat.

Budget 2025 will enable many to continue to thrive and, at the same time, move others forward to not just survive, but also to thrive. Nevertheless, we need to recognise there remain vulnerable groups that our current and future policies need to address. Let me start with persons with disabilities and special needs, including autism. This Budget provides for avenues of support for such persons post-18 years of age and, more specifically, in the area of employment.

However, we must also find avenues for those who may not be in a position to work. These individuals also deserve to have access to an acceptable level of quality of life. It would not be appropriate to see them as a burden to society just because they may not be considered economically productive.

Persons with mental illness are also a broad vulnerable group. Much has been debated in this House on mental health and well-being and the many interventions we have and continue to introduce. In previous speeches, I have put to this House specific consideration for better employment support for persons in recovery from mental illness. Would the Government reconsider the position for support for persons in recovery both by way of some form of disability allowance or support during treatment and rehabilitation when they are unable to work and be gainfully employed, particularly if their financial situation warrants such support? In addition, would the Government reconsider support for employers of persons in recovery in ways similar to the Enabling Employment Credit and SG Enable grants as it relates to persons diagnosed with a mental health condition? And here I would just like to add my appreciation to many employers who are already providing this support by employing persons in recovery.

In some cases, the mental illness may be so debilitating that these individuals require a very long recovery time. Can we better support them, so no one is left behind?

This Budget continues the advocacy for lifelong learning. Should we take a closer look at the options and consider where we may need to tailor these for vulnerable groups so that they, too, can benefit? Persons with intellectual disability or autism may need tailored courses in their adult life. Some may need to, or desire to, to reskill. I hope we will provide these options, especially where the levels of learning may need to be moderated. In other words, Mdm Deputy Speaker, may I suggest we provide or expand appropriate skills and other courses for these special groups?

I am pleased to see the inclusion in the support of caregivers. I hope we will comb through all caregivers progressively and comprehensively and, over time, give them the necessary support.

Mdm Deputy Speaker, I would now like to address the issue of suicide prevention and support for individuals and families affected by suicide. Suicide is tragic and a most painful encounter, whether by family, friends or communities. In 2023, based on statistics from the Samaritans of Singapore, we lost 322 lives to suicide. It is the leading cause of death for those aged between 10 and 29. There is also the increased risk of suicide amongst the elderly. Suicide cuts across all age groups and all strata of society. One suicide affects many, many others, including family, friends and communities.

There are many who attempt suicide and need support. Families and friends who care for individuals with suicidal ideation also need support and help.

Project Hayat is a community-led effort guided by a work group comprising policymakers, suicide experts, researchers, community workers and helping professionals, religious leaders, corporate leaders, representatives from the media, and people whose lives have been impacted by suicide.

Project Hayat presented a White Paper to the Government in late-September 2024 covering 23 recommendations for a national suicide prevention strategy in Singapore under the S.A.V.E.L.I.V.E.S framework, using the acronym, each highlighting a specific course of action. The research conducted for the White Paper included direct interviews with key stakeholders from countries with national suicide prevention strategies, such as Indonesia and South Korea; focus group discussions with people in Singapore who have been directly and indirectly affected by suicide, including parents, youths, educators, first responders, healthcare and emergency services personnel, religious leaders, media representatives; and the first phase of public consultation with more than 500 respondents sharing their views on suicide and suicide prevention. I understand the Government has provided an initial response to the White Paper through the Minster for Health. The paper identified several vulnerable groups. I will expand on three of these groups.

First, the youths and adolescents as a vulnerable group. According to data from SOS, as mentioned earlier, suicide remains the leading cause of death for nearly 30% of young people aged between 10 and 29 over the last five consecutive years. This is until 2023. Based on a study of 221 patients aged between 10 and 19 who were presented to hospitals’ emergency departments for suicidal or self-harm attempts in 2021, not all adolescents at risk of self-harm and suicidal behaviours have serious mental health disorders but, instead, have psychosocial problems and emotional regulation difficulties. Of these, only 48.4% of the patients studied had ongoing psychiatric or psychological support. More than half of the patients had “ambivalent intent”, that is, confused about whether they truly wanted to end their own lives, which highlights impulsivity and the lack of emotional regulation.

The study found a predominance of female patients, in this case, 85.5% over male patients. Hence, focusing on risk factors for females, such as eating disorders and past history of self-harm, can inform risk management strategies in schools and in communities.

Second, migrant workers as a vulnerable group. In a 2021 study of non-resident suicides which occurred in Singapore between 2011 and 2014, it was found that most resident suicide cases did not have a known physical or mental health issue, prior to suicide attempts or suicide notes.

Based on the analyses of available suicide notes, relationship and health problems emerged as the top two suspected triggers for suicide. The researchers, therefore, hypothesised that the unique situation of working abroad may increase non-residents’ vulnerability in general, while adverse life events, such as relationship and health issues, may be too overwhelming to bear, especially when support services are not readily available and accessible.

The third vulnerable group identified in this White Paper, the neurodiverse population, I will just share an anecdote from the parents who lost their child who had autism spectrum disorder (ASD) to suicide and recounted this in the focus group discussions: “I don’t think he can understand why he cannot seem to get along as well with other children as maybe his classmates can, so I think there’s also the feeling of rejection…. I always thought that if he had managed to live to COVID, perhaps he would still be alive, because we are all just in our safe little space, he doesn't have to go out and socialise. I always wish that he had that two extra years, [it] just didn’t happen.”

Three other vulnerable groups identified in the White Paper include the elderly, caregivers and lesbian, gay, bisexual and transgender (LGBTQ) community.

Recommendations for vulnerable groups in the White Paper include strengthening governance and policy, involving communities of people at risk of suicide and those with lived experience of suicide in all aspects of policymaking and implementation of suicide prevention policies.

A key feature of suicide prevention efforts across the world is to ensure that people who have been affected by suicide are involved in all aspects of suicide prevention, including policymaking, implementation, research and advocacy. Involving individuals who belong to communities at greater risk of suicide, survivors of suicide, and those who have lived experiences of suicide is essential in bridging gaps in suicide prevention.

We need to value data and research: investing in research on the upstream determinants of suicide amongst the vulnerable groups, and to conduct further research to determine additional priority groups in Singapore. There is a strong link between upstream factors and social determinants that heighten suicide risks among vulnerable groups and those who are experiencing loneliness or hopelessness in their lives. More research is required on priority populations that are at greater risk of mental health challenges, self-injury or suicide and to develop evidence-based interventions that are tailored for these respective communities.

Another recommendation is to involve families and communities: strengthening family support initiatives to manage mental health and suicide prevention, and strengthening collaboration with religious and community leaders. Family-focused programmes should be developed to equip families with the knowledge and skills to recognise early signs of distress, facilitate open and supportive communication, and offer practical strategies to assist loved ones facing mental health struggles.

As trusted figures within communities, religious and community leaders hold significant influence and are often seen as sources of support and guidance, making them well-positioned to promote mental health awareness and reduce the stigma surrounding suicide. Leaders can foster an environment of compassion, understanding and acceptance to reduce stigma, as well as play a key role in identifying individuals at risk and providing timely support.

Support schools and educators and, here, more specifically, to adolescents: establish suicide prevention protocols in schools for suicide prevention, crisis response and postvention support. In focus group discussions conducted under Project Hayat, participants have expressed concern that school staff, counsellors and teachers may be insufficiently equipped to provide psychological support or conduct suicide risk assessments for students in need. It was also found that many educators may lack the necessary training to identify warning signs, manage crises or intervene effectively in suicide-related situations, leaving a critical gap in the support network for vulnerable students.

By developing and implementing clear protocols and comprehensive training programmes, schools can ensure that educators, school counsellors and students are better prepared to respond to suicide risks. And this would involve equipping school staff with the tools to recognise early signs of distress, intervene appropriately, and provide ongoing support to students facing mental health challenges.

Mdm Deputy Speaker, as this is a Budget for all Singaporeans, we must continue to find ways to adequately support the many vulnerable groups where these are not yet in place.

I have covered those with mental health conditions, persons with disability and special needs, caregivers and proposed for more to be done to prevent suicide. We will need to work together, Government and society, to ensure no one is left behind.

I would like to conclude on the spirit of giving and the increased support in the Budget to encourage a generous society. Many large charities today started small. Just like our nation, this will have taken time, most likely decades of tireless efforts of dedicated individuals and the supporters, including Government and private donors —

Mdm Deputy Speaker: Mr Chua, you have one and a half minutes, so I would ask you to round up.

Mr Keith Chua: Okay. Our charities, both large and small, continue to form part of our social support network, providing daily care to many beneficiaries. Many smaller charities will find funding a continuing challenge. Smaller charities will be essential to address gaps as we work towards the objective of caring for everyone who needs help.

I hope the three groups mentioned by the Prime Minister, the Community Chest, the Collective for a Stronger Society and the President's Challenge will find ways to channel this increase in resources to some of the smaller charities who will be essential in ensuring that no one is left behind. We are an increasingly caring and generous society. The multiplier effect when everyone who can, gives, will be extraordinary. I hope future Budgets will continue to nurture the spirit of giving and see greater collaboration between public and private initiatives that will ensure that no one is left behind. Mdm Deputy Speaker, I support Budget 2025.

Mdm Deputy Speaker: Mr Mohd Fahmi bin Aliman.

3.46 pm

Mr Mohd Fahmi Aliman (Marine Parade): Mdm Deputy Speaker, this year's Budget, themed "Onward Together for a Better Tomorrow", reflects our collective ambition to build a more inclusive and resilient society, as Singaporeans contend with job insecurity amidst rising costs of living. It is a Budget that prioritises uplifting all Singaporeans, including our lower-wage workers, by strengthening social safety nets and ensuring sustainable economic growth. As we move forward, it is crucial to reinforce our commitment to these workers, ensuring that they receive fair wages, improved working conditions and the respect they deserve.

Singapore's approach to uplifting lower-wage workers has never relied on a single measure, but rather a comprehensive suite of interventions, including the PWM, the Local Qualifying Salary (LQS), Workfare Skills Support (WSS) and the Workfare Income Supplement (WIS). These policies form the foundation of our commitment to ensuring sustainable and inclusive wage growth for our lower-wage workers.

Today, I want to focus on the following three areas to strengthen the protections for our workers, especially lower-wage workers: one, enhancing Workfare to boost retirement adequacy of older lower-wage workers; two, improving working conditions for lower-wage workers, especially outsourced workers; and three, empowering workers via M³ Focus Area 4 (FA4).

As economies evolve, workers, especially those in lower-wage roles, must be empowered with better protections, stronger financial security and opportunities for long term stability. Enhancing Workfare schemes can provide older, lower-wage workers with greater retirement adequacy, ensuring that they can transition into later years with dignity. At the same time, improving working conditions, particularly for outsourced workers, is crucial to fostering fair and sustainable employment practices. Together, these focus areas aim to build a resilient and inclusive workforce that can thrive in a rapidly changing economic landscape.

Let me commence by focusing on two key pillars of support, LQS and WIS, and examine how they can be further strengthened to better support our workers in the years ahead. WIS plays a crucial role in supplementing the income and retirement savings of lower-wage workers while encouraging regular employment.

I appreciate the Government's commitment to continuously enhance WIS. This year, WIS payments will increase to $1.4 billion, benefitting half a million lower-wage workers. I am also heartened to note that most of these enhancements are targeted at vulnerable groups, such as our older workers and PwDs. As the Government regularly reviews Workfare, I seek an assessment of how effective WIS has been in improving the wages and retirement adequacy of lower-wage workers in Singapore.

We must also do more to secure the long-term financial well-being of our older lower-wage workers. Many lower-wage workers retire with significantly lower CPF savings, affecting their ability to afford healthcare and daily necessities in their later years. WIS payments increases with age, but currently max out at 60 years old, even though many workers continue working well beyond that. I urge the Government to introduce additional age tiers beyond 60, with progressively higher WIS payments, to better support older workers who remain active in the workforce.

Additionally, the minimum WIS payout, in both cash and CPF, is just $10 per month. Given the rising costs of living, I urge the Government to review and raise this amount to provide more meaningful support for workers.

LQS ensures that local workers are employed meaningfully, rather than on token salaries for firms to access foreign workers. It serves as an important wage floor, ensuring that lower-wage workers receive a minimum level of pay across various sectors. We appreciate the Government's efforts in increasing the LQS to keep pace with rising local wages, such as the recent increase from $1,400 to $1,600 announced in Budget 2024, with the LQS threshold for part-time local employees raised to $10.50 per hour.

Therefore, I call on the Government to update on the effectiveness of LQS since it was introduced and whether its implementation has led to unintended consequences, such as job losses. In particular, I hope that LQS has truly contributed to raising wages for lower-wage workers across the board and that the data does reflect this desired trajectory too. Relatedly, it would be helpful for the Government to clarify its broader policy approach towards LQS implementation. For instance, the wage percentile of which LQS should be set at to effectively support our resident lower-wage workers while balancing against business costs and sustainability.

While we have made progress in uplifting wages, we must ensure that lower-wage workers have good working conditions and are not taken advantage of. One critical issue is the need for proper, accessible rest areas for outsourced workers, such as the cleaners and security officers. Many of these workers still struggle to find adequate spaces to rest during their breaks. The lack of rest areas can result in them working beyond their maximum cap of overtime, which is 72 hours every month for security officers.

In 2021, I raised this issue in the House and, in the same year, the WorkCare Grant was introduced by MOM to provide financial support for companies setting up rest areas for outsourced staff. However, applications for the Grant have closed since 31 August 2023. I ask the Minister for Manpower whether a review of the criteria and eligibility for the WorkCare Grant has been conducted? Would the Government consider upstream policy measures, such as exempting dedicated rest areas for outsourced workers from the Gross Floor Area (GFA) calculation for new developments? This could incentivise building owners and developers to incorporate proper rest facilities at the planning stage.

Another persistent issue is the leave resetting for outsourced workers. The MOM statistics show that 18,800 full-time resident employees in their first year of employment are receiving only seven days of paid annual leave. Many of these are lower-wage and outsourced workers, such as cleaners and security officers.

For outsourced workers, each time a service buyer changes contractors, their leave entitlements may be reset, even if they continue in the same job, at the same site. This creates instability, as workers may repeatedly lose accrued benefits despite continuing in the same role. Although tripartite advisories encourage continuity of benefits, they appear insufficient. I call on the Government to work with NTUC and our unions to conduct a thorough review of leave resetting for outsourced workers and explore stronger measures to protect them from unfair disadvantages.

Mdm Deputy Speaker, allow me to speak in Malay, please.

(In Malay): The evolving global economy and rapid technological advancements demand that we equip our workforce with the necessary skills and career mobility to thrive. Focus Area 4 (FA4) on Employment and Employability of M³ provides a structured framework to achieve this goal through several strategies.

First, FA4 connects workers by facilitating access to job openings, understanding industry needs and providing career guidance. It ensures that individuals are matched with suitable career pathways for long-term growth, not just filling job vacancies. Through initiatives, such as job fairs, career counselling, workshops and industry partnerships, we can help workers transition effectively into sustainable employment.

Second, skills upgrading and lifelong learning are key. In recognising that the skills required in today's economy are constantly evolving, especially in the green, digital, and care sectors, we must empower individuals to adapt to changing job requirements and remain competitive in the workforce. Training programmes and upskilling initiatives must be designed to bridge skill gaps and prepare workers for emerging industries.

FA4 also focuses on helping individuals navigate changes and build resilience. This includes digital literacy training, promoting competencies relevant to the digital economy and providing support for workers transitioning to new industries. Allow me to outline our key priorities which will focus our efforts and resources on three crucial workforce groups namely: platform workers, mid-career switchers (PMEs) and senior workers.

These three groups represent vital segments of our economy, each with unique needs and challenges. We recognize the valuable contributions of platform workers, the potential of our PMEs navigating career transitions and the wealth of experience that our senior workers bring. It is imperative that we support and empower each of these groups to thrive in our evolving economic landscape.

As part of our efforts to ensure the success of FA4, I call on the Government to continue strengthening support for skills upgrading, job placement initiatives and career transition programmes. By doing so, we can future-proof our workforce and ensure every worker has access to meaningful employment opportunities.

(In English): Madam, "Onward Together for a Better Tomorrow" is more than just a theme; it is a vision for an inclusive and progressive Singapore. This year's Budget lays a strong foundation for uplifting lower-wage workers, strengthening retirement adequacy and improving working conditions. It also reinforces the values of dignity, respect and fairness for all workers, regardless of their job.

Beyond lower-wage workers, the Budget also addresses the needs of families, businesses and our economy, ensuring that Singapore continues to thrive in a rapidly changing world. It is a comprehensive plan and supports many facets of our society.

With unwavering dedication, the NTUC stands ready to champion the needs and the interests of our Singaporean workers. NTUC continues to advocate for our lower-wage workers, to better their lives and livelihoods. NTUC cares and is taking action to enhance their working conditions and welfare. Because every worker matters. Rest assured, NTUC will take action for you and with you. For these reasons, Mdm Deputy Speaker, I support the Budget.

Mdm Deputy Speaker: Mr Gerald Giam.

4.00 pm

Mr Gerald Giam Yean Song (Aljunied): Mdm Deputy Speaker, many mid-career professionals, managers, executives and technicians (PMETs) are under pressure. Some are in industries that are shrinking or being disrupted, where jobs are disappearing faster than new ones are created. Others see their roles changing because of automation or AI. Some even face the anxiety of being told to reapply for their own jobs as part of restructuring exercises, effectively forcing them to compete with their colleagues or external candidates for roles they have already been performing. Such practices not only create stress and uncertainty but also serve as a way for companies to bypass retrenchment obligations while reshuffling their workforce.

While overall employment levels have continued to rise in tandem with the growing population, some displaced workers face difficulties transitioning into a new job at the same skill level and salary. Many struggle to break into growth sectors despite efforts to reskill, as employers often favour candidates with industry-specific experience or are younger. While most employers prioritise merit, some hiring processes may still be influenced by informal networks, creating additional challenges for mid-career jobseekers trying to break into new industries.

The Labour Force 2024 Report showed that some 41,200 PMET residents are unemployed and, of these, 10,700 have been unemployed for more than six months. The data also shows that long-term unemployment affects PMETS more than non-PMETS. These PMETS are workers who have spent decades in their industries, built up expertise and contributed to the economy. Many have significant financial responsibilities, including housing loans, children's education and elderly parents to care for.

When these PMETS get retrenched or step away from the workforce for a period due to caregiving responsibilities, re-entering the job market becomes a daunting challenge. Even those who are currently employed may be preoccupied with day-to-day operational work and get blindsided by technological changes that make their skills obsolete. A worker who has spent years in corporate operations, for instance, may find it difficult to transition to a technology-driven role without a structured pathway to bridge the gap. Even if they secure interviews, they are often offered roles at significantly reduced salaries, making it difficult to maintain their financial obligations. Some are forced into contract or gig work, with little stability or opportunities for development.

The longer they remain unemployed or underemployed, the harder it becomes to re-enter the workforce, as employers perceive them as outdated or overqualified, rather than seeing the value of their accumulated skills or experience. Some may drop out of the workforce completely after years of discouragement.

The Government has introduced several schemes to help workers upgrade their skills and transition to new jobs. The SkillsFuture Level Up programme provides Singaporeans aged 40 and above with $4,000 in SkillsFuture credit, along with a training allowance of 50% of their average income over the latest available 12-month period, capped at $3,000 a month for selected full-time courses and $300 a month for selected part-time courses. The Skills Future Jobseeker Support scheme, which bears similarities with the Unemployment Insurance schemes proposed by the Workers' Party since 2006, will also offer financial support of up to $6,000 over six months for involuntarily unemployed workers taking part in job search or related activities.

On top of that, career matching services run by Workforce Singapore and its partners help jobseekers refine their resumes and prepare for interviews and, in the future, as announced in this Budget, there will be an expanded network of job placement centres at all CDCs. These are important steps, but more needs to be done to ensure mid-career workers secure meaningful employment.

Training and reskilling alone do not ensure job placement. For mid-career workers facing immediate job displacement, waiting years for the benefits of these programmes to materialise is not a viable option. Many are unable to afford the temporary drop in income that often comes with switching sectors, often making it difficult for them to commit to full-time training programmes.

While some industries are shrinking, others, including healthcare, sustainability and advanced manufacturing, are expanding. Mid-career PMETs should have clearer pathways to transition to these high-demand sectors through structured job placement and industry partnerships. The Career Conversion Programme (CCP) is designed to help mid-career individuals transition into new jobs or sectors with better long-term prospects through training and salary support. This is a well-intentioned programme.

However, there still remain deeper structural barriers that make it difficult for these workers to secure new jobs at comparable skill levels and salaries. The CCP requires employers to hire the workers before they can receive training, presenting the same barriers for jobseekers who are already struggling to get past the initial job screening process. We need a more structured and targeted job placement programme, where mid-career jobseekers can have their applications and CVs reviewed and refined by specialists in their field. These specialists can then actively match and recommend them to employers, including those enrolled in the CCP, increasing their chances of securing a placement. Once hired, these workers can then benefit from the CCP to receive the necessary training and salary support for a smoother transition into their new roles.

Additionally, WSG can introduce structured returnship programmes to help professionals re-enter the workforce after a career break, whether due to retrenchment or caregiving responsibilities. Unlike the CCP, which requires career conversion, these returnship programmes would provide a pathway to employment and mentorship, allowing mid-career professionals to rebuild industry-relevant experience without starting over at entry level positions.

Mdm Deputy speaker, mid-career and older PMETs need more structured redeployment pathways and stronger financial support for career transitions. They have spent years contributing to the Singapore economy. Many have built businesses, trained younger colleagues and helped shape their industries. Our nation and our economy cannot afford to overlook the experience and skills of these workers. Let us give every Singaporean who wants to work, retrain and contribute, the best possible chance to do so. Madam, I support the Motion.

Mdm Deputy Speaker: Mr Derrick Goh.

4.07 pm

Mr Derrick Goh (Nee Soon): Mdm Deputy Speaker, before I start, I would like to declare that I am the Head of Group Internal Audit at DBS Bank. Mdm Deputy Speaker, Budget 2025 is a critical opportunity for Singapore to chart our course ahead amid an increasingly complex environment. It is the second Budget advancing Forward Singapore to renew our social compact for a stronger and more united society, with Prime Minister Lawrence Wong at the helm. By reaffirming Singapore’s resilience and unity as we celebrate SG60, Budget 2025 has outlined key strategies to uplift livelihoods, strengthen our economy and reinforce our social fabric.

As Singapore sails ahead in increasingly choppy waters, it is imperative that we remain resilient in uncertainty and find strength in unity. To this end, I wish to highlight three key themes related to Budget 2025: first, upholding fiscal prudence in a volatile world; second, growing Singapore’s economy; and third, doubling down on social resilience and safety.

Madam, a key principle of Forward Singapore is about upholding fiscal prudence and responsibility. A recent OECD report commended Singapore’s robust fiscal framework, which has given us the strength to navigate uncertainties more effectively than other nations. Especially for a small country like Singapore, the Ukraine situation is a stark reminder that we can only count on our own people and financial resources in times of crisis.

This principle is now set against the backdrop of an external environment fraught with risks, intensified geopolitical rivalry and evolving trade wars. Slower growth is expected in 2025 of between 1% and 3%, reflecting global headwinds and trade uncertainties.

Recognising cost of living concerns faced by Singaporeans, I welcome the additional measures to provide relief, such as the enhanced CDC Vouchers, as part of the Assurance Package that continues to make our GST scheme a progressive one when viewed holistically. Taken together with the SG60 package, this is akin to a “Singapore Dividend”, where every citizen shares in our nation’s success, with those who need more help receiving greater support.

In FY2024, Singapore reported a Budget surplus of $6.4 billion. This was primarily attributed to an unexpected surge in corporate income tax collections, while Budget 2025 expects a surplus of $6.8 billion, driven by higher expected operating revenues, with corporate income tax as the greatest driver at $32.7 billion, or an increase of 5.8% from FY2024.

Madam, with significant investments required for healthcare for an ageing society and infrastructure development, we must not be complacent and cannot rely on cyclical windfalls. A basic financial planning concept is that in the long run, certain expenditures must be matched with equally certain revenue streams. Hong Kong’s challenges in balancing its budget is due to its narrow tax base and reliance on tax collection from its cyclical real estate sector. To criticise the GST increase because of recent fiscal surpluses misses this fundamental point and takes only a limited view of the overall GST scheme.

As a finance professional, the fiscal surplus, whether expected or unexpected, speaks to a prudent and conservative approach, which I believe all sensible financial experts, with a heavy responsibility of a stewardship role, would adopt. It is the basic value system of not spending more than one has.

To me, the more important question is how we will use these surpluses to further enhance our infrastructure and capabilities for Singapore to be an even more vibrant financial centre, compelling tourist destination and flourishing metropolis. Beyond Terminal 5, there are many, many exciting plans shared previously that can be accelerated, such as redeveloping Paya Lebar and the Jurong Innovation district, revitalising Clarke Quay and boosting our arts scene to achieve what London is to Europe.

I look forward to the Prime Minister’s sharing of his insights on these aspects and would like to ask if there will be enhancements to Forward SG’s plans, given a global landscape that is now more complex than when it was first launched, and what is the Government’s thinking to realise those plans faster.

On the topic of projections, the Net Investment Returns Contribution (NIRC) is projected to rise from $24 billion in 2024 to $27.1 billion in 2025, an increase that is higher than the prior year. Given prevailing global uncertainties that may slow long-term returns, and the already modest GDP projections for 2025, can the Prime Minister share his insights about MOF’s assumptions on why this is so?

Also, if indeed surpluses are expected to continue, are there opportunities to recalibrate the pace and amount of taxation to allow markets to be more efficient, and to ease rent and labour cost pressures while still upholding fiscal prudence?

I now turn to growing Singapore’s economy.

Madam, an open and vibrant economy underpins our ability to deliver on the Forward SG agenda. It enables job creation, social mobility and sustained prosperity. Hence, I am glad that Budget 2025 has introduced several initiatives to support businesses and enhance our financial markets.

SMEs remain the backbone of our economy, contributing nearly half of GDP and employing 70% of our workforce. Beyond financial incentives, it is essential that SMEs are uplifted with the know-how in the advent of AI and have a clearer commitment and path towards sustainability. Workers, too, need to adapt as the world rapidly transforms. While Singapore has made strides in digital adoption, many SMEs still face resource constraints and expertise gaps.

On this note, can the Prime Minister provide assurance on stronger safety nets to support SMEs and workers who face challenges in keeping pace with technological advancements? Aligned with Forward SG’s plans, how may we better ease such anxieties and increase effectiveness in upskilling? At the upcoming COS debate, I plan to seek clarifications if more support will be provided to SMEs to accelerate AI adoption, develop customised AI solutions and facilitate collaborations with research institutions to pilot new innovations.

On sustainability, while Singapore is committed to achieving net-zero emissions by 2050, we must balance this with shifting economic and political realities. Significant changes in global trends, including the US’ withdrawal from the Paris Climate Agreement and major banks pulling out of the Net-Zero Banking Alliance, highlight the complexities of decarbonisation commitments.

While I agree with the Government’s directions to play our part to decarbonise, global developments are confusing. With Singapore’s carbon tax slated to increase from $25 currently, to up to S$80 by 2030, this will also increase business costs. Businesses will wonder if these costs will eventually pay off, in the face of mixed signals on the world’s fight against climate change.

Against this shifting backdrop, can Government clarify its stance on our green transition; whether there will be a recalibration to our earlier planned pace and trajectory so that SMEs can manage the associated costs better and be incentivised to progressed on their decarbonisation journey? I will at COS, seek additional support for business to do so and clarifications if revenues collected from carbon tax will be reinvested to assist SMEs in adopting decarbonisation practices.

In strengthening financial markets, I strongly support the Government’s moves to revitalise the Singapore Exchange (SGX) to further enhance our status as an international financial centre. The recent Monetary Authority of Singapore announcement of the $5 billion Equity Market Development Programme is a welcomed move. However, I strongly advocate the adoption of an ecosystem approach in this endeavour. This could include: one, plugging in specific high-growth sectors that the Government is already supporting, like pharmaceuticals, biotechnology and precision engineering; two, encouraging Singapore-based flagship companies, or companies owned by Singaporeans or new Singaporeans who are on the Forbes list, to list or dual-list on SGX; and three, urging family offices and high-net-worth individuals to list or dual list their businesses.

Singapore must also stay flexible to seize emerging opportunities amid volatility. The Johor-Singapore Special Economic Zone exemplifies this strategic flexibility, aiming to enhance economic resilience and deepen bilateral relationships. However, we must ensure this collaboration does not compromise Singapore's competitiveness. Learning from the experience of Hong Kong and Shenzhen, the Johor-Singapore Special Economic Zone should complement Singapore's strengths, so that it is a win-win situation for both countries.

Madam, Forward SG is about strengthening our social compact and also ensuring that all Singaporeans feel secure and are cohesive. Today, threats such as scams, drug abuse, fire hazards and radicalisation pose growing risks to our communities. While our nation remains one of the safest in the world, recent trends highlight areas where more measures are necessary.

Scam cases rose by over 10% to nearly 50,000 in 2024, while losses surged by 70% to more than $1.1 billion, despite stronger enforcement and technological safeguards. Particularly troubling is that over 80% of scam cases now involve "self-effected" transfers, highlighting how criminals exploit human psychology and AI-driven deception.

Similarly, the increasing prevalence of youths’ engagement with harmful substances necessitate stronger mitigating strategies. In 2024, there were 126 new drug abusers under the age of 20 arrested, which is 30% more than 2023. This is despite enhanced measures by our agencies. This trend is compounded by the emergence of harmful vapourisers which contain drugs. As youths are the future of Singapore. I urge the Government to step up inter-agency collaborations, such as among the Central Narcotics Bureau, Health Sciences Agency and schools to guide our youths towards healthier paths.

Regarding community cohesion, neighbourhood disputes continue to be high, with monthly noise-related feedback at over 2,100, and this number remains more than five times that in 2019. It is deeply concerning that some of these neighbour disputes have escalated into violence, with a few having serious outcomes. This highlights the critical need for robust resolution mechanisms.

The passage of the Community Disputes Resolution (Amendment) Bill that has now come into law will strengthen mediation and community engagement efforts. I look forward to its early pilot and hope we can scale the measures island wide faster so more residents and neighbours, including those at Nee Soon, can benefit sooner. Building a safer and more cohesive Singapore is a shared responsibility and I look forward to speaking more on these at the COS debates.

Madam, I will now conclude. Amid turbulence, Forward SG charts our path ahead, ensuring that every Singaporean has a meaningful stake in our future. As we mark SG60, Budget 2025 is a reminder of how far we have come as a nation, built on the collective determination of our people. As it is said, we cannot direct the wind, but we can adjust our sails. We can confront challenges ahead with confidence, knowing that Singapore has always found resilience in uncertainty and strength in unity. Let us remain steadfast and bold in shaping a brighter and more inclusive future. Let us move Onward Together for a Better Tomorrow!

Mdm Deputy Speaker: Mr Desmond Choo.

4.22 pm

Mr Desmond Choo (Tampines): Mdm Deputy Speaker, thank you for the opportunity to join in the Budget debate.

This year's Budget is one that truly uplifts all Singaporeans. It particularly places workers' interests at its core, with particular emphasis on supporting households and families. In this 14th Term of Parliament, our Government has also consistently kept young workers at the centre of our national policies.

We have seen the Youth Panels supported by the National Youth Council give our young people a voice in national discourse. We have witnessed the ITE Progression Award providing graduates under 30 with both career opportunities and financial stability. And we have made significant strides towards becoming a more equitable society, with enhancements to the Workfare Skills Support Scheme enabling lower-wage workers to advance their skills earlier.

[Mr Speaker in the Chair]

Today, I want to focus specifically on how we can better support our youths and young workers.

Our young Singaporeans are entering the workforce with promising futures ahead. By many measures, Singapore's economy stands strong. We grew by 4% last year. The forecasts for this year is 2% to 3% growth. And a recent IPSOS global study ranked our youth development as the highest in the world. Our young people are capable, dynamic and engaged. That is something to be proud of. It speaks to the hard work and dedication of the Singaporean people and the investments this nation has made in its future.

But behind these statistics, there is another reality we must confront. We have listened to young Singaporeans. More than 10,000 of them shared their hopes and fears with NTUC's Youth Taskforce. Careers are a top concern. And there is good reason for this concern, especially in 2024 and 2025. The Joint Autonomous Universities Graduate Employment Survey revealed that 79.5% of university graduates found employment within six months last year. This is down from nearly 84% one year ago and 94% just two years ago. For our polytechnic graduates, full-time employment has fallen from 60% to 54.6%.

But by no means, these numbers are bad. Compared to anywhere internationally, we are still in a good position. But these are not just statistics. Their anxieties are real, these are real lives, real dreams, real futures colored by worries.

Indeed, our youths already know and must embrace adaptability and resourcefulness in an increasingly competitive job market. Trends like AI and sustainability will continue to displace existing jobs while creating new ones. Our younger Singaporeans must continuously improve their existing skillsets, even beyond formal education and learn new ones to keep pace with market trends.

To ensure our younger Singaporeans thrive in this dynamic environment, we must help them to build a mindset that prioritises lifelong learning and adaptability. As the saying goes, "The future belongs to those who learn more skills and combine them in creative ways." That is why I want to focus on some specific steps we can take to support our young Singaporeans.

Take Wen Qi as an example – a young woman who studied business analytics. She shared how she had completed her required internship, but watched as her friends took on two, three, sometimes four internships just to compete for that first job. The anxiety she felt was real – wondering if doing what was expected would still be enough in a world that constantly demands more. Fortunately, Wen Qi found an employer who valued quality over quantity. She is doing well now. But not everyone is so lucky.

Youths' internship experiences vary widely, depending on the company’s resources and day-to-day experience with their internship supervisors. These trends illustrate two key issues in the internship space: the availability of internships in the market and the quality of internships that our youths undertake.

So today, I am proposing two pathways towards a more hopeful future for our young people. We need not just have more internships but also better ones.

Over the years, our system has somehow evolved into one whereby students feel compelled to stack internship upon internship, often delaying their graduation, sometimes working without pay, all in the hope of securing that first job. Internships matter and are important. They open doors. They build skills. They create connections. They allow young Singaporeans to be ready for the workforce. But the measure of an internship cannot just be about that it happened. The measure must be what our young people learnt, how they grew, what doors it actually opened.

We will need our industry partners to help even more. Create meaning opportunities for young people. It must also support companies that do right by our students. The Government could boost funding support for Singapore companies to expose young Singaporeans to quality internships, either locally or abroad. These initiatives can build on existing programmes like Enterprise Singapore’s Global Ready Talent Programme.

The Government could perhaps also relax its 30% local shareholding requirement to include more MNCs as host companies to increase the number of internships. We can also look towards successful models like Europe's Erasmus Plus programme, which does not just place young people in jobs and internships. It financially supports them while they learn.

Next, we need to establish clear standards for these internships. Standards that protect our young people from exploitation or meaningless work and ensure that they are building real skills for real careers. Currently, various IHLs prescribe their own guidelines for students who undertake internships or industry attachments. This include issuing interns a contract of service which lays out key employment terms beyond current workplace protections, establishing standards for internship quality will raise quality across the board and provide interns with a structured learning environment. A national internship standard can define clear internship scopes to ensure structured learning, establish measurable learning outcomes for both hard and soft skills, promote best practices and supervision, mentorship and performance appraisals.

We can take inspiration from France, Belgium and Luxembourg's Convention de Stage, which requires internships to have a tripartite agreement between the intern employer and school. NTUC is here for youths, and we are ready to work with tripartite partners to establish these standards.

My second proposal addresses an urgent reality. The days of a single career for life are probably over. Our young workers will navigate multiple transitions throughout their working lives. Even young professionals are not spared from retrenchment, as seen in the tech sector in 2023 and 2024. Surveys by NTUC and the Institute of Policy Studies found that younger workers expect to switch careers multiple times, but feel only moderately prepared for it. That means our young people need to be prepared to adapt to learn new skills and to reinvent themselves throughout their careers.

NTUC is committed to equipping young workers with the skills they need to thrive in this rapidly changing employment environment landscape. Next month, Young NTUC and Mentoring SG will launch a sustainability mentorship programme to help youths to enter this growing field. However, we will still need broader system systematic support for young professionals facing job disruptions. Early career professionals must be given the opportunity to explore new career interests and take calculated risks such as switching industries before it becomes too late.

For example, Luke, a 37-year-old career mentor embodies what is possible when they embrace change rather than fear it. After university, Luke did not stop learning. He used his SkillsFuture credits to earn a graduate diploma in anti-money laundering that helped him secure a promotion. Then, seeing the changing landscape, he took courses in data analytics to transition to a new role. Now, he is planning to master AI and machine learning.

Luke did not just adapt to change. He got ahead of it and in doing so, he wrote his own future.

But here is the thing: Luke should not be the exception. He should be the rule.

I had previously called for Government subsidies for a second degree or diploma. I am encouraged that the SkillsFuture Level-Up Programme now subsidises diplomas and training allowances for mid-career workers. But more can be done for young professionals.

That is why I am proposing we expand the SkillsFuture Mid-Career Training Allowance to workers under 40. We should broaden course offerings for Career Conversion Programmes to match growth sectors, like AI and sustainability. We should lower the SkillsFuture credit eligibility age from the current 25. We should expand the use of these credits beyond courses to include career coaching and skills profiling.

We will need to help those who are otherwise be on the wrong side of the growth curve, no matter how young or old they are.

Our young Singaporeans are the architects of our future. As we celebrate 60 years of Independence, let us recognise that their contributions will define Singapore's next chapter.

Young NTUC, marking its 20th anniversary this year, is committed to deeper engagement with our youth. Let us provide our younger Singaporeans with policies, resources and mentorship. The success of our youth is the success of Singapore.

Mr Speaker, I support the Budget.

Mr Speaker: Ms Jean See.

4.32 pm

Ms See Jinli Jean (Nominated Member): Mr Speaker, I thank the Prime Minister for the comprehensive Budget Statement.

I appreciate that Budget 2025 would enhance existing programmes and introduce new initiatives, such as the Large Families Scheme, that respond to Singaporeans' changing aspirations and needs as well as the SG Culture Pass, an ActiveSG credit top-up that will boost interest and careers in arts, heritage and sports.

Mr Speaker, I support the Budget. It will set our sails to catch favouring winds as we forge ahead in an uncertain economic climate. Even then, social and economic changes are uneven and unsettling, for vulnerable Singaporeans more so than others.

A 2022 Harvard Business Review article on perceived job insecurity among American workers sets the impact in context, "Whether you've been laid off, downsized, forced to take early retirement, or seen contract work dry up, losing your employment is one of life's most stressful experience. Aside from the obvious financial anguish it can cause, the stress of losing a job can also take a heavy toll on your mood, relationships and overall mental and emotional health."

In Singapore's context, who are the emerging groups of vulnerable workers where we must lean forward?

Two groups come to mind: those who could be hit hard by layoffs when their employers re-organise or restructure and those would be hard-hit by market shifts, such as freelancers and agency workers. Both groups see the same overcast on the horizon – that of possible job loss. Allow me to elaborate.

First, those who could be hit hard if companies re-organise or restructure and take the decision to lay off staff.

A mother and daughter sat close to me at a crowded food shop. I caught this remark by the daughter, a lady in her thirties.

"我最怕的就是裁员", which translates to "I am most fearful of being retrenched."

Retrenchment is a heavy topic for mealtime conversations. However, it is a topic that is increasingly par for the course as firms push ahead with merger and acquisition (M&A) and business reorganisation and restructuring.

No age group of workers is immune to retrenchment. Quarterly labour market reports for the first to third quarters of 2024 showed that while retrenchment incidence remained the highest for resident workers aged between 50 and 59, retrenchment incidence had risen for those aged between 30 and 39.

Many of us strive for immunity by working harder, often at the expense of our health. A 2024 survey by health technology provider Telus Health revealed that two-thirds of Singaporean workers showed signs of burnout, particularly those under the age of 40.

If the Government, employers and unions fail to recognise and respond to the prevalent perception of job insecurity, workers can become increasingly stressed and disillusioned.

Second, those who would be hard-hit by market shifts. They include freelancers and agency workers.

In July 2024, Hollywood video game performers went on strike to seek fair artificial intelligence regulations for the gaming industry because performers asserted that gaming companies had condoned replicating of performers' likeness and voices without informed consent and fair compensation. Because performers were largely freelancers and paid by the hour, their incomes took a hit when companies reduced contracted hours in favour of exploiting AI as a substitute.

If service buyers fail to respect and uphold fair use of AI, creative freelancers will become increasingly vulnerable to diminishing earnings and prospects.

Apart from creative freelancers, agency workers could be hard-hit when user firms respond to market shifts. User firms hire agency workers on temporary basis for projects and specific roles where these workers' skills are needed. Many agency workers service hotels, F&B, supermarkets, e-commerce logistics and banks. Unlike in the past, when companies turned to staffing agencies as stop gaps, companies are increasingly hiring agency workers as a shortcut to organisational flexibility and fluidity.

In a 2021 article by The Bureau of Investigative Journalism, Matt Creagh, a UK Trades Union Congress employment rights policy officer said, "It's easy for employers to hire agency workers because you don't have the fixed costs of a directly employed workforce and it's much easier to fire an agency worker. You just ring up the agency and say, 'We don't want them coming back in.' If you have an agency workforce, they're more likely to be on the statutory basic terms and conditions – minimum holiday, minimum wage, minimum rest breaks."

If user firms and staffing agencies fail to respect and uphold employment regulations and fair employment practices, agency workers will become increasingly vulnerable to decaying skills and being shortchanged in compensation, particularly those who are lower-wage and lower-skilled.

The pace of change is accelerating and will hit home for workers. How might we lean forward to protect and uplift this emerging vulnerable workforce?

Separate reports from the World Employment Confederation and the World Economic Forum's Future of Jobs point to two trends taking root this year: one more companies will strive to build flexibility into the workforce; and two, more companies will seek to exploit AI at functional levels. Together, these trends will disrupt how work is done and valued. Nonetheless, Singapore must press on with innovation and growth to counteract the demographically-driven reduction in innovation. Allow me to explain.

In 2010, Japanese inventors were the biggest producers of patents in 35 global industries. By 2021, they only led in three global industries. The Economist linked Japan's decline in disruptive innovation to its demographic decline, which, in turn, was an outcome of falling total fertility rate and limited immigration.

Turning to Singapore, Singapore's TFR has been falling, from 1.12 in 2021 to 0.97 in 2023.

Singapore must press on with innovation efforts to counteract demographically-driven reduction in innovation. Innovation raises productivity and, ultimately, standards of living.

Budget 2025 is thus progressive yet protective.

Progressive, because the Budget allocates significant funds to reinforce innovation and technology as engines of growth for the economy and enterprises. The Budget also offers financial incentives and tax perks that encourage businesses to grow strategically through M&A and significant grants to transform jobs and upgrade workforce capabilities. Together with the $5 billion programme to strengthen the Singapore stock market, Budget 2025 will fuel a dynamic and evolving Singapore economy.

Protective, because the Budget also allocates significant funds for various employment credit schemes and the Progressive Wage Credit Scheme that reinforce employment of vulnerable segments, including lower-wage workers, senior workers, persons with disabilities and ex-offenders.

The Budget also defrays cost of part-time long-form training programmes for Singaporeans aged 40 and above and enhances the training allowance for lower-wage workers. Together with the SkillsFuture Jobseeker Support scheme that was announced in 2024, Budget 2025 will improve employment and employability outcomes for these groups. Nonetheless, the paradigm of job security is changing. Many of us, including the lady I met at the food shop, are still struggling to make sense of it.

We struggle because being uncertain about our job security makes us feel helpless. Feeling helpless goes against the ethos of self-resilience ingrained in Singaporeans from young. Our ethos compels us to show that we can deal with all curveballs, to the extent that we might hold ourselves accountable if our jobs are made redundant.

Herein lies the paradox of self-resilience. We pride ourselves in taking tough times in stride, but this ease is built up when we endure hardship. It is not easy holding ourselves up when life deals us a low blow that knocks the wind right out of us. Thus, it does not matter whether we lose our jobs because of a layoff or, in the case of freelancers and agency workers, cancellation of assignments. Job loss is a blow that inflicts extended psychological, emotional and financial pain.

Because we extol self-reliance, even in such situations, we hesitate to seek help.

We can do more to lean forward to protect and uplift Singaporeans who are emerging vulnerable workers. Alongside clarifications, I would like to offer three suggestions of how we could lean forward as a country.

First, reframe self-resilience so that seeking help is not a sign of weakness but an affirmation of courage and determination. The experience of losing a job is distressing, especially when dependents look to us for finances, care and support. Some who lost their jobs have to care for aged parents. Some are parents of young children.

Would the Government consider applying flexibility to the income criteria of the basket of support for families schemes? This would allow a worker who is involuntarily unemployed or a freelancer who can prove significant loss in average monthly net trade income compared to the past two years to still qualify for the schemes if they fulfil all other criteria sans the income criteria.

Doing so could further encourage retrenched workers to apply for the SkillsFuture Jobseeker Support scheme, particularly professionals, managers and executives. It would be helpful if scheme applicants could be concurrently linked with other assistance, such as subsidised counselling support as well as workplace advisory for those who exited on unfair terms.

Second, reframe shared accountability so that enterprises and workers are committed to upholding the social compact. For instance, agency workers often slip beneath the radar when it comes to upskilling. Because agency workers are hired by staffing agencies but report for work at user firms, agency workers' training needs are often overlooked. Without support and paid time-off to attend training, agency workers could suffer from skills decay and these workers could become less and less valued by the market.

I appreciate the Government's allocation of the additional $200 million to NTUC's Company Training Committee Grant (CTC Grant) to help more companies transform and upskill their workers. Nonetheless, as a unionist interacting with firms, I observed that firms expressed enthusiasm when discussing the use of the CTC Grant for new systems or technology but needed more persuasion when the union broached job redesign or training.

In response, I share my takeaway from the book "Good to Great" by business researcher Jim Collins. Grants can help firms to bring in the right technology to jumpstart productivity. To scale and sustain, businesses must "have the right people on the bus".

My pitch to bosses: tap on the CTC grant. Work with unions to power a flywheel of momentum that strengthens the people who will build your business with you. Thus, would the Government consider adopting the CTC approach for grant programmes managed by sector agencies? Through this approach, we can encourage more firms to practise fair and reasonable employment and hiring, redesign jobs to raise job worth, train lower-skilled workers, including agency workers in the firm as well as start programmes to attract and develop Singaporean talent. Doing so would reinforce shared accountability to develop and value Singapore workers and uplift the workforce across the board.

Third, reframe shared responsibility so that the lead Government agencies are motivated to co-shape development roadmaps with unions, employers and relevant fellow agencies as core stakeholders. For instance, as a unionist representing workers in the food sectors, I note that stakeholders in the food sectors must contend with concurrent developments in the food space, such as the new Food Safety and Security Act and developments in the manpower space, such as the Progressive Wage Model for the food services sector, foreign manpower regulations, Workplace Fairness Act and flexible work arrangements.

As agencies' priorities do overlap, it would be helpful for lead agencies to engage the core unions and employer groups from the outset when the agencies set goals and design regulatory implementation. Doing so would ensure that workers' interests are equally valued.

A similar approach could apply for areas that impact broad swathes of workers across sectors including PwDs, agency workers and freelancers. As the economy evolves, these groups might become even more vulnerable if they lack updated work protection and training. Thus, lead Ministries and agencies could initiate multi-stakeholder workgroups to discuss protection and provisions for emerging vulnerable groups.

We could take a leaf from the Government’s approach to platform workers. Then, the whole-of-Government leaned forward for platform workers and rolled out the new Platform Workers Act this year with strong support from platform operators and NTUC’s platform work associations. Platform workers can now be represented, protected and supported.

Thus, would the Government consider strengthening legal protection of freelancers and agency workers? Creative freelancers look to the Government to instil in service buyers, respect for creatives’ intellectual property rights and rights to timely payment and fair terms, and to uphold justice if buyers wilfully violate such rights. Agency workers too count on the Government to look out for them, particularly those engaged by user firms that fall under the Progressive Wage Model. Strengthening legal protection for these emerging vulnerable workers would provide them with a peace of mind.

To further uplift persons with disabilities, would the Government consider increasing the range of accessible SkillsFuture training courses, including guiding training providers to provide reasonable accommodation for persons with disabilities to attend the training?

To conclude, allow me to share a verse by 19th century American poet Ella Wheeler Wilcox titled “The Winds of Fate”.

"One ship drives east and another drives west

With the self-same winds that blow.

‘Tis the set of the sails

And not the gales

Which tells us the way to go.

Like the winds of the sea are the winds of fate,

As we voyage along through life,

‘Tis the set of a soul

That decides its goal

And not the calm or the strife."

We are at the turning of a chapter in Singapore’s journey. If we unite as a people, SG60 can be one defined by resilience that is empathetic as well as a shared accountability and responsibility for the growth and well-being of fellow Singaporeans, particularly those who are more vulnerable. Whether we are the Government, business owners, employers, unions or workers, the choice is upon us to be the heroes of our own story.

Mr Speaker: Mr Patrick Tay.

4.47 pm

Mr Patrick Tay Teck Guan (Pioneer): Sir, I rise in support of Budget 2025. I would like to distil this year’s Budget to what I coin as a 3C Budget – Coping with cost of living; Caring for all with a focus on seniors, families, PWDs and ex-offenders including students; and the third "C" – Catalysing company training and transformation.

For the past 60 years, through solidarity with workers, Singapore has overcome economic hardships, achieved higher wages, stronger labour protections and expanded opportunities for all.

This unity remains key to our success and shared prosperity. Amidst global trade tensions, rising costs and rapid technological change, we must remain steadfast in our commitment to ensure that no worker is left behind but instead equipped with the skills and protections needed to thrive in an evolving economic landscape.

It is therefore critical that this momentous 3C Budget recognises that sustainable growth is only made possible when workers are fairly compensated, their rights are protected, and their well-being is prioritised.

To this end, I will focus my speech on what I call strengthening the 3 "Cs": core, competency and capability. First, strengthening the Singaporean Core; second, strengthening the workers' compact; and third, strengthening human capital capabilities.

The first "C" – strengthening the Singaporean Core, is a call I have persistently made since my maiden speech in Parliament in 2011. Since then, I have had many conversations with Singaporean workers and have heard their fears and anxieties about growing competition with foreign manpower, especially the PMEs.

They worry about job displacement, stagnant wages and having fewer opportunities to advance. These sentiments were echoed during NTUC’s engagements with about 10,000 Singaporean PMEs through the Joint NTUC-SNEF PME Taskforce, which I co-chaired with the Singapore National Employers' Federation (SNEF) in the midst of the pandemic from 2020 to 2021.

Over the past decade, I have advocated for a compendium of measures to level the playing field for our local PMEs, including stronger deterrence against errant employers who discriminate against Singaporeans, a foreign PME dependency ratio, stricter Employment Pass application conditions, continuous enhancements to the Fair Consideration Framework, and many others.

I am heartened that these calls have been answered through the implementation of the Complementarity Assessment Framework (COMPASS) and the recent passing of the landmark Workplace Fairness Act, which protects workers against the most common types of workplace discrimination, such as age and nationality. The Act also strengthens unions’ capabilities to represent our members by conferring an expanded suite of individual remedies and penalties for discriminatory employment practices.

The current economic climate is an uncertain one and challenges lie ahead. Last year, we saw many high-profile retrenchment exercises impact local PMEs. Following trends like generative AI and geopolitical turbulence, we can expect the same this year.

We must take a proactive approach to protect local jobs and invest in skills training so that our workers remain ready, relevant and resilient. Ready with the new skills, relevant to the new jobs and resilient to the new changes.

NTUC has always continued to work closely and do more for PMEs to enhance their job security and ensure fair job opportunities.

In 2020, NTUC proposed a Fair Retrenchment Framework outlining three key principles to guide companies on responsible retrenchment practices, the first of which is "Protecting the Singaporean Core" by helping Singaporeans keep their jobs while due considerations are given to foreign workers. This Framework was then incorporated into the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

Where retrenchment is unavoidable, I strongly urge the Government to take a firmer stance in ensuring that employers not just give early notification to unions and affected workers and compensate them fairly but also prioritise Singaporeans for job opportunities and career support.

Foreign manpower can help fill critical skill gaps and support sectors facing labour shortage, but we cannot over-rely on external labour. We must also take a concerted effort to build our local bench strength. This means investing in skills training and creating more opportunities for career progression.

I therefore welcome the SkillsFuture Workforce Development Grant, the redesigned SkillsFuture Enterprise Credit, and the $200 million top-up of NTUC’s CTC Grant to help companies offset workforce transformation costs and support job redesign. After years of lobbying, I am also glad that more resources will be set aside for schemes that groom Singaporean workers to become leaders in the corporate sector by sending them for overseas work postings and leadership milestone programmes.

A stronger Singaporean Core means a stronger economy for Singapore, one that is more competitive and less reliant on external labour. Beyond fair opportunities, we also need to ensure quality opportunities for Singaporean workers. This means good wages, good welfare, good work prospects, workplaces free from discrimination and harassment and more meaningful tasks at work so that we fully maximise the true potential of every Singaporean worker. Supporting local employment must be a strategic priority for the Government to help Singaporeans, especially Singaporean workers earn a better living and live a better life.

The second "C" I want to highlight is strengthening the workers' compact. In 2023, after a year-long engagement with over 42,000 workers through the #EveryWorkerMattersConversations, NTUC released its renewed workers' compact with recommendations for five groups of workers, including mid-career workers, older workers and vulnerable workers.

One of the recommendations from the workers' compact as well as the NTUC-SNEF PME Taskforce was short-term unemployment support for the involuntarily unemployed. I thank the Government for hearing NTUC's call to launch the SkillsFuture Jobseeker Support Scheme, which will support workers in bouncing back from employment setbacks. In NTUC's latest Survey on Economic Sentiments, 34% of workers, including PMEs, expressed concerns about losing their jobs or not having their contracts renewed in the next couple of months. Amongst PMEs, those aged 50 to 59 were most likely to be concerned. I therefore continue to call the Government to consider extending the Jobseeker Support Scheme eligibility to mid-career and senior workers in the broad middle.

Mid-career PMEs is a worker segment that I have consistently advocated for. This group faces unique challenges but can receive less support from the Government in view of their higher income. Mid-career PMEs often struggle with stagnation in career progression, or job instability as industries transform. While they typically have more dependents to take care of as part of the "sandwiched generation", they can take a longer time to find a new job when they become unemployed. Upon re-entry to employment, there is also an increasing propensity for them to suffer from wage loss.

NTUC’s 2022 #EveryWorkerMatters Conversations Survey had revealed that mid-career workers, defined as aged 30 to early 50s, experienced a relatively higher level of anxiety about jobs as compared to younger and older age groups. Despite this, they remained positive about upskilling as an enabler to take up higher-value work. I am therefore happy that the Government has heeded our calls for greater support for mid-career workers through the SkillsFuture Level-Up programme, which offers a $4,000 credit top-up and monthly allowances for those who take time off to pursue full-time training.

According to the World Economic Forum, 70% of Singapore's workforce will need to undergo reskilling or upskilling by 2030. The same report also found that six in 10 Singapore firms have identified skills gaps as a potential barrier to their business transformation efforts. The SkillsFuture Level-Up programme is thus a positive step towards enhancing career mobility for mid-career PMEs, enabling them to deepen their skills and pivot into new growth sectors.

A next step could be expanding career conversion programmes tailored specifically for experienced professionals transitioning into new industries. Workers could also be given the option to tap on SkillsFuture credits for career coaching and mentorship, which would benefit mid-careerists navigating upskilling or a career transition. In this regard, NTUC is innovating, together with PMEs, to tailor support needed for job placements and career coaching.

With regard to older workers and vulnerable workers, I recognise the Government’s efforts in enhancing the Workfare Skills Support scheme for lower-wage workers aged 30 and above, as well as the extension of the Senior Employment Credit for older workers, uplifting Employment Credit for ex-offenders and Enabling Employment Credit for Persons with Disabilities. I hope the Government continues to strengthen the workers' compact by empowering these workers in their upskilling aspirations and transition into more resilient career pathways by creating support ecosystems.

My third and final "C" is strengthening human capability, which is critical as we adapt to the "new normal" of work. Last Thursday, I had an opportunity to speak to and engage with a group of senior HR leaders and head honchos during an event organised by the Institute of Human Resource Professionals (IHRP). Collectively, we agree that HR and human capital professionals play a vital role in ensuring fair, progressive and responsible practices for their workforce. It is therefore critical that HR professionals are well-equipped with a strong knowledge of not only Singapore’s employment legislation and regulations, but also the Labour Movement, tripartism and wider tripartite framework, including how to build more progressive workplace practices and workplaces that uphold the values of diversity, equity and inclusion.

One key recommendation that emerged from the Joint NTUC-SNEF PME Taskforce is to enhance fair employment practices through improving HR standards. I urge the Government to work with tripartite partners to develop requirements for basic HR certification, either by IHRP or other internationally recognised organisations of equivalence. This is especially critical for MNCs employing foreign HR professionals who operate within and beyond the Singapore context.

Following the rise of Automated Employment Decision Tools (AEDT), which are AI technologies that substantially assist or replace discretionary decision-making in hiring or promotions, I also submit that guidelines or regulations be introduced to ensure companies and HR's responsible use of AI. Measures, such as requiring companies to conduct a third-party bias audit or to disclose where such tools are used to rank candidates or assess employees for promotion or even dismissal, could be considered.

In an evolving economic, demographic and regulatory landscape, and after what we witnessed during the pandemic, HR professionals are increasingly playing a strategic role in key business decisions and, hopefully, more in the boardroom as well as in addition to operations and compliance.

Strengthening our human capital capability and leadership as well as developing the NextGen HR leadership pipeline not only ensures that businesses attract, develop and retain top local talent, but they also foster progressive and inclusive workplaces that support workers at all levels.

In conclusion, I thank the Government for accepting and implementing all of the nine recommendations of the PME task force. To ride the wave of change, be ahead of the curve, and not be hit by curveballs, we need to strengthen the 3Cs – Core, Compact and Capability. This is to also reaffirm our commitment to safeguarding Singaporean workers' lives and livelihoods.

In the past 60 years, Singapore has stood in solidarity with our workers during times of crisis and change. From industrialising in our early days, to the Financial Crisis in 2008, to the more recent COVID-19 pandemic, we knew that the only way to move forward is to do so as One United People. Today, the nature of work, workplaces and workforce have changed. Yet, one truth remains constant – when we invest in and protect and equip our workers throughout life, our entire nation prospers. That same solidarity must guide us now as we advance our growth frontier in an inclusive way, so that we move onward together for a better tomorrow. Mr Speaker, Sir, I support the Budget.

Mr Speaker: Mr Xie Yao Quan.

5.02 pm

Mr Xie Yao Quan (Jurong): Sir, off the bat, I wish to say this: rather than seeing Budget 2025 as an "election Budget", I prefer to see Budget 2025 as yet another quintessentially "Singaporean Budget" and yet another quintessentially "People's Action Party (PAP) Government Budget" – for this Budget is thoughtful, it is balanced in addressing both current and long-term priorities, it is inclusive and, above all, it places Singaporeans, both born and yet to be born, at the heart of everything this PAP Government does. And just like in previous Budgets, by successive PAP Governments, over the past many decades.

We have come to expect our Budgets to look and smell like this, but really, we should never take it for granted. Because it speaks of a special brand of governance and political leadership that we have been fortunate to have here in Singapore, a special political will to do right by our people and a special compact between the political leadership and citizens. It has become quintessentially Singaporean, it permeates all our Budgets, but it is special and, indeed, it is exceptional.

This Budget comes on the back of a $6-plus billion surplus for FY2024 and another $6-plus billion in surplus projected for FY2025. If elections were really the prime motivation behind this Budget, the Government must be mad to not have spent down more of this surplus on short-term measures, whether cash or vouchers. Instead, the Government has set aside just about $3 billion in this Budget on CDC and SG60 vouchers and just about 5% of the Budget on cost-of-living support measures and the SG60 package overall and left that $13 billion surplus over these two FYs on the table, in an election year.

Why? I think, very simply, because it allows this Government to achieve a more or less balanced fiscal position, over its whole term of Government, from 2020 to 2025, if we exclude the amount drawn down from past Reserves in this term of Government.

The COVID-era Budgets may be quite a distant memory already for some, but back in FY2020, just five years ago, at the start of this Government's term, we incurred an unprecedented deficit of more than $50 billion. Not $5 billion or $6 billion, but over $50 billion in deficit. And then, we ended FY2021, FY2022 and FY2023 more or less balanced. And so, this surplus in FY2024 and the projected surplus in FY2025 – and importantly, excluding the drawdown from past Reserves – taken together, these will really just allow the Government to finish its five-year term more or less balanced. And this is also what successive PAP Governments have committed to do.

Therefore, rather than seeing these surpluses as potentially fomenting cynicism amongst Singaporeans, that somehow, the Government has been collecting more taxes and monies than the nation needs, I think Singaporeans can, instead, draw confidence that these surpluses represent this PAP Government's consistency and the will to maintain fiscal prudence over its entire term of Government, across many terms of Government past, and well into future terms of Government, if the PAP were to continue receiving the mandate to form the Government of Singapore. This is how we should be looking at the surpluses for these two FYs.

Sir, this is a record Budget, the $143 billion in projected expenditure. So, the amount of resources that the Government is deploying to take care of Singapore and Singaporeans is really not in question. But what is equally important and perhaps more important as we deploy ever more resources, is to make sure that these resources are allocated effectively.

The Prime Minister and Minister for Finance himself has emphasised this in his Budget Statement. So, on this note, I wish to make three suggestions – not about deploying more resources, but about achieving a more effective allocation of the resources that we are deploying.

First, on support for our seniors. I put it to this House that our framework to determine which senior gets how much support – in other words, our means-testing framework, based primarily on per capita income (PCI), to determine how resources to support seniors are allocated, is due for a fundamental rethink, in order to remain fit for purpose in our super-aged future.

The classic pain point arising from our current PCI-based means-testing framework is this: take an elderly couple, retired, with a child who is already an adult, working and single. If this single, adult child continues to stay with the elderly couple, then all three of them are taken as one household; this child’s income from work is taken into the assessment of the household's per capita income; and based on our current means-testing framework, the elderly couple will be deemed to have more means in this household because of the higher PCI.

But if, instead, this single, adult child moves out and stays separately from his or her parents, then in one stroke, the elderly couple is now taken as one household, on their own, with zero income and deemed in our current means-testing framework to have much less means, even if it can be said that a single child who is able to buy and move out to his or her own place probably has more means to support his or her parents, compared with someone who does not have his or her own place and continues to stay with his or her parents.

This current means-testing framework, based on per capita income, can mean all the difference for our seniors; whether they qualify for a Blue or Green CHAS card; whether they get Silver Support every three months or not; whether they get 80% or 60% or lower subsidies in a B2/C-class ward in our public hospitals and so on.

To be clear, no means-test will be perfect or, in economic parlance, no means-test will be perfectly efficient. Every means-test will have its inefficiencies and trade-offs. And in an earlier era, where our population was much younger and the resources needed to support our seniors were on a much smaller scale, the inefficiencies in our current means-testing framework for seniors might not have mattered as much.

Indeed, while there were inefficiencies in the allocation of resources to seniors specifically, there were probably also efficiencies in having a common means-testing framework for the whole population generally; there were efficiencies in having a means-testing framework that also applied to working adults and young children, as it applied to seniors.

And, indeed, with a much younger population, the efficiencies could well have more than made up for the inefficiencies. But, as our population continues to age rapidly, as we have many more seniors and as we spend much more per senior and, as the average household structure around our seniors in our society continues to change, I think the balance has fundamentally shifted. And the inefficiencies in our current framework to allocate resources to seniors matter much more now. So, we should get it right and we should fundamentally rethink to make sure our allocation framework remains fit for purpose.

My suggestion is to decouple the means-testing framework for seniors from the means-testing framework for the rest of the population – for working-age adults and young children – going forward. And also, to anchor this refreshed means-testing framework for our seniors on two key considerations that matter most to our seniors.

One, our seniors are at a different life stage. They are most likely not working at all, or working at a much reduced pace, suitable for their current life stage and drawing much lower pay. In other words, current assessable income will not be the most accurate nor the fairest way of assessing a senior's overall means. Instead, I think lifelong income, proxied by lifelong contributions to CPF, is probably the most accurate and the fairest way to assess a senior's means, at his or her current life stage.

Two, our seniors do not want to be a burden to their child, no matter how well the child is doing, or how filial he or she may be. And therefore, while we place a lot of value on personal responsibility and family support, we also need to recognise this basic desire of most seniors in Singapore, to not want to burden their children and I put it to this House that our public policy should be tilted in favour of this basic wish of our seniors to not burden their children. In other words, our means-testing for seniors should move away from including their children's means, whether the children are staying with them in the same address or not.

In summary, my first suggestion is to rethink and rebase our means-testing framework for seniors specifically. Move away from per capita income at the household level, towards a senior's lifetime earnings primarily, proxied by lifetime contributions to his or her CPF, at the individual level.

Sir, my second suggestion is on our allocation of resources to the full-time education of our students, before they enter working life. Specifically, I urge the Government to allocate even more resources to ITE students and to reduce the gap in our allocation of resources between ITE and other post-secondary students. To be clear, successive PAP Governments have been strongly committed to education, to investing in Singaporeans and developing their potential through education. Indeed, the very first PAP Government invested one-third of its yearly Budgets from 1959 to 1963 in education; more specifically, to provide basic education for a very young and growing population. And also, to be clear, over the more recent decades, successive Governments have invested strongly in ITE in particular. Therefore, our ITE system has grown by leaps and bounds and produced very, very good outcomes.

I now have young residents, who are starting out in ITE as Year 1 students, telling me that choosing to go to ITE has been the best decision of their lives. So, we ought to be very proud of how far our ITE system has come.

And yet, I think we can do more and strike an even better balance in our allocation of resources to ITE relative to other segments of higher, post-secondary education.

Today, we are spending around $16,000 per student in ITE, compared to around $18,000 per full-time diploma programme student, primarily in polytechnics. So, Government recurrent spending on ITE is around $2,000 lower per student compared to its spending on polytechnics; and this difference of $2,000 per student has been quite consistent since at least 2012, 2013.

Of course, more spending on education does not automatically or always produce better educational outcomes. But I think there is something to be said about the principles, the equity and the reconcilability of this structural gap in Government recurrent spending between ITE and other segments of higher education in our system. I do believe there is scope to consider a reallocation of spending to achieve a better balance and a smaller gap.

With extra funding, ITE can do a lot more to develop their students even more effectively, in various areas. Help its students even more effectively to discover aspirations, passions, diverse interests and individual strengths and talents. And ultimately, this will help preserve and enhance social mobility in Singapore.

Sir, my third suggestion is on our allocation of resources to adult education and the entire SkillsFuture movement in Singapore. Specifically, while I applaud the Government’s very bold moves to put resources directly in the hands of our workers and adult learners, and empower them to take charge of their own learning, in other words, very major moves on the demand side, I also urge the Government to invest boldly and allocate appropriately on the supply side, to build deep and broad and enduring capabilities to uplift the entire adult education ecosystem.

I see opportunities in three areas. One, let us uplift the overall quality of adult educators and trainers in Singapore. In both the pre-school and formal schooling systems, we have established and maintained a laser-sharp focus on educating the educators, through the National Institute of Early Childhood Development and National Institute of Education respectively, to ensure a high quality of educators in these spaces. We can, and we should, do the same for adult education.

Establish a laser-sharp focus on educating the adult educators through a sharpened mandate for the Institute for Adult Learning. Let us aim for a world-class pool of adult educators and trainers in Singapore, a world-class pool of dedicated, full-time practitioners in adult education, on the supply side.

Two, let us uplift the stature, recognition and career advancement pathways for our adult educators and trainers in Singapore. We must raise a unified fraternity of adult educators and trainers in Singapore, with a high level of professional pride and identity.

On a related note, Minister for Education Chan Chun Sing has said in a speech recently and I quote, “It cannot; it must not; and it must never be the case that ‘only good teachers go to good schools’”, and this applies to our formal schooling system.

I put it to this House that we should aim for the same in our adult education and training, especially in our IHLs. In our autonomous universities and our polytechnics and our ITE Colleges, the best educators and faculty members must not go to undergraduate teaching only; the best must also teach in adult education and training, and be part of that fraternity of adult education practitioners.

Mr Speaker: Mr Xie, you have less than two minutes.

Mr Xie Yao Quan: Three, let us create scholarships for the adult education and training space, just as we have done for both the preschool and formal schooling systems. Let us create scholarships, to attract and capture a fair share of our best talents, to become both adult educators, and educators of these adult educators.

Sir, in conclusion, notwithstanding these comments, I stand in support of the Budget.

Mr Speaker: Ms Yeo Wan Ling.

5.21 pm

Ms Yeo Wan Ling (Pasir Ris-Punggol): Mr Speaker, as I reflect on the significant progress Singapore has made in advancing the development of women, I wish to recognise the pivotal role that the Labour Movement has played in driving this transformation. Over the years, we have witnessed a profound shift in the landscape of women’s rights, opportunities and empowerment. Central to this journey, the Labour Movement has been unwavering in its commitment to advocating for policies and programmes that not only uplift women but ensure they thrive through the many undulating seasons of their lives.

The NTUC Women and Family unit has prioritised engaging with women and gathering feedback through various channels to stay attuned to the ground. Regular surveys, kopi chitchats, small group discussion hosted by our union leaders and extensive outreach efforts ensure that the voices of our working women are heard and reflected in policy decisions.

In 2020, NTUC partnered with the Singapore Council of Women’s Organisations and the People's Association Women Integration Network to lead the Conversations on Singapore Women’s Development. These dialogues engaged nearly 6,000 participants, across more than 160 conversation sessions. The insights gathered culminated in the White Paper on Singapore Women’s Development, aligning national priorities with the real experiences of women.

The NTUC Women and Family unit works closely and regularly with the PAP Women’s Wing’s research group, where I declare I am the Women's Wing Research Group Team Head, to explore critical issues affecting women in the workplace. Through quarterly surveys, we reflect the voices of thousands of women, and we research on issues such as flexible work arrangements, challenges related to heavy menstrual bleeding, financial burdens and resources available to caregivers, and concerns about retirement and re-employment.

The extensive feedback we have gathered through ground sensing empowered us to influence policies and implement concrete action plans. Examples of these efforts include the introduction of the Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR) and the Workplace Fairness Legislation.

Indeed, the NTUC has always taken action to create inclusive workplaces, to better the lives and livelihoods of our caregivers in the workplace. Back in 2013, the NTUC Women and Family unit launched Project Liquid Gold to advocate for better support for working mothers who wish to continue breastfeeding after returning to work. The initiative aimed to raise awareness of the importance of breastfeeding and encourage employers to provide dedicated nursing spaces in the workplace.

While this initiative sparked many good conversations, even today, mothers continue to struggle to find suitable spaces for breastfeeding. Some are forced to express milk in washrooms or meeting rooms, sometimes blocked just by sheets of mahjong table paper. One breastfeeding mother I spoke with, was so frustrated with her boss who told her to breastfeed in the shared common toilet, that on the occasion of him celebrating the birth of his grandson, she took the opportunity to ask him, nicely but firmly, if he would think twice about having his grandson being fed with milk prepared in the public toilet. Good on you, sister! And it is precisely conversations like this that helps to push the boundaries on what is possible and fair in the workplace.

Today, Project Liquid Gold has evolved into the Better Workplace Campaign, expanding its focus to support women and promote work-life harmony. The campaign recognises and highlights progressive employers who implement flexible work arrangements and work-life harmony practices, as well as adopt policies to address workplace harassment. Employers are rewarded with either a wellness corner or a lactation space in their offices. The campaign not only inspires others to adopt similar practices but also helps close the gender perceptions by creating more inclusive, equitable and supportive work environments for women employees.

Beyond advocacy, the NTUC Women and Family unit together with our partners, have launched several initiatives aimed at empowering women and caregivers. One such initiative is the Women Supporting Women Mentorship Programme, which was first introduced in 2020. Since its launch, the programme has steadily expanded, now reaching 10 constituencies across the island, with 300 mentors and 300 mentees.

Recognising that not all women are prepared for intense one-on-one mentoring, we introduced with one of our partners, SG Her Empowerment, the SHE Supports Friendship Circles, a many-to-many mentorship model. Today, our Friendship Circles have garnered the support of 22 professional female groups from women in construction to women in cybersecurity, from working caregivers to women wanting to return to the workplace. Our circles form a network of 30,000 females, and we support each other through issues such as Balancing Work and Caregiving, and breaking into new exciting careers such as NGOs and Digital Entrepreneurship spaces.

Mentorships are critical in equipping and empowering women to reach their potential at work and in life. Mdm Nurhani, a 52-year-old mother of five, retrenched during the COVID-19 pandemic, was somebody who was part of the mentorship programme. For two and a half years, she struggled to find a job and through Yayasan MENDAKI’s Women @ Work programme and the NTUC Women Supporting Women Mentorship Programme (WSW), she met Ms Noorfarahin Bte Ahmad, a Union Leader and an NTUC WSW Mentor. Through shared life experiences, Mdm Nurhani regained her confidence to secure a job with INSEAD Business School as a Development Coordinator. We have many other examples of how mentorships and female support can positively impact lives, and we call on the Government and progressive companies to provide more resources to mentorship programmes, both at community and national levels to empower and embolden women to reach for the stars both at home and in the workplace.

Mr Speaker, while taking care of the mental well-being and confidence of women in the workplace is important, another critical pillar to support women staying and re-entering the workforce are progressive workplace policies and cultures. A recently concluded Marriage and Parenthood Survey, conducted by the NTUC Women and Family Unit and PAP Women’s Wing with over 1,000 respondents, revealed key Government priorities for our parents. They are prioritising flexible work arrangements, improving access to affordable childcare and healthcare services, and increasing financial assistance and subsidies for families.

The Labour Movement has advocated for flexible work arrangements (FWAs) since the 1990s and caregivers have shared that FWAs are their most preferred form of support in balancing work and caregiving. While we thank the Government for heeding our calls for Enhanced Paternity and Shared Parental Leave, and indeed, it has started to move the needle in reframing gender stereotypes in parenting, with two-thirds of our survey respondents agreeing that their partners shares parenting responsibilities equally, parental/caregiving leave forms just a part of a broader caregiving ecosystem. Other initiatives, such as FWAs, and caregiving support such as childcare services, trusted helpers at home, completes this ecosystem of comprehensive support for women and their families; and allows women to return to the workplace with peace of mind.

Our young families have shared that they face financial pressures while raising a family. I had spoken previously at the PAP Parliamentary Motion on Supporting Singaporeans in Starting and Raising Families that this would need to be taken with the view of providing more employment opportunities for return to work mothers, allowing for more sustainable long term financial independence. I shared that we would expand our popular C U Back (CUB) at Work Programme which helps caregivers, especially women, return to work with flexible work options to more segments of underserved women workers.

FWAs are a sustainable way for caregivers to stay in the workforce, and more needs to be done to make FWAs more inclusive and accessible across different job types. The CUB Programme will now expand to PME jobs such as accounting and office administration. In addition, the NTUC Woman and Family Unit will re-engineer our CUB Programme to cover new to the workforce pregnant mothers, ensuring that they enjoy their full maternity benefits while being secured of permanent employment after their delivery. Through CUB, we hope to demonstrate to all employers that they can support our workers to better balance their work and life demands at every stage of their lives, while accessing a larger, and productive pool of Singaporean talent.

Mr Speaker, for FWAs to be sustainable it is critical that FWAs are normalised within corporate cultures. With SMEs employing up to 70% of the Singaporean workforce, SME employers with less resourcing often struggle to find temporary replacements when staff go on FWAs or parental leave. SME owners may also face financial strain when reimbursing employees for parental leave.

In light of Singapore's Budget 2025 announcements, which encourages Singaporean to have larger families, and given that women are child bearers and traditionally take on a larger share of caregiving, we call on the Government to consider additional support to SMEs that employ a higher number of women. Such targeted assistance for SMEs would align with the Government's push for larger families and increased workforce participation for our females.

In addition, in the spirit of promoting inclusive workspaces, FWAs go a long way to providing a means of livelihood for PwDs. Ensuring that there is availability of suitable jobs with FWA is critical to securing our Singaporean workplaces as places for our PwDs to be empowered with independence and dignity. We call on the Government to build up a base of job coaches, so that jobs can be effectively redesigned to win-win outcomes for our employers and their PwD employees.

I also thank the Government for extending the Enabling Employment Credit to end-2028, which provides wage offsets for companies to hire employees with disabilities. Indeed, workers with disabilities will also want to reskill and upgrade, so that their skillsets remain relevant. Depending on circumstances, PwDs may need more support for training, and the Government has an Open Door Programme Training Grant which funds employers up to 95% of course fees by SG Enable's Enabling Academy.

However, employers and workers may require more industry-specific training that is offered outside Enabling Academy. Could the SkillsFuture Enterprise Credit be expanded to support the training of differently-abled employees, who may require some forms of training to be tailored to their needs as well as industry requirements?

Mr Speaker, as family nucleus become smaller in Singapore, many families rely on trusted childcare and domestic helpers to provide vital support at home. Recognising the importance of fostering strong, harmonious relationships between employers and migrant domestic workers, the NTUC Women and Family unit, in collaboration with the Centre for Domestic Employees, launched monthly advisory clinics in 2021. These clinics serve as a platform for employers to understand their responsibilities and build positive, respectful relationships with their migrant domestic workers.

Through these clinics, we observed that the majority of employers wanted advice and tips on creating strong, healthy relationships with their helpers. Many pointed to shifts in the workforce: migrant domestic workers are increasingly younger, often from the millennial generation. One employer shared that she was unsure of how to navigate her relationship with her young helper who was in her 20s, as her previous helpers were all in their 40s. She shared very pragmatic concerns, such as how to set boundaries on the use of handphones and the use of social media within the home. Unlike the more extreme hateful relationships we see frequently played up in social media, I was very heartened to see that many Singaporean employers genuinely care for their migrant domestic workers, though they are often unaware of the resources available to better support them.

Our clinics have since evolved into a programme, Getting To-Gather: Power of Women (POW). Under this programme, we brought in resources and partnerships to build healthy employer-migrant domestic workers relations, such as the Centre for Domestic Employees, Rice Company and the Association of Employment Agencies, amongst others. Our POW events are well-attended with attendees in the 100s, and feature care carnivals and awards that celebrate the positive relationships between migrant domestic workers and their employers. This shows the important role that our migrant domestic workers play in the ecosystem of care for Singaporean families, and we call on the Government to provide more support and assistance to our families in regard to greater access and affordability of migrant domestic workers. In addition, our families have asked for further assistance on being able to get temporary monthly work permits for replacement migrant domestic workers when their permanent helper goes on home leave.

In conclusion, while much has been made to support women and caregivers, and making the workplace an inclusive one, we have miles to go before we sleep. From policy advocacy and flexible work arrangements, to mentorship and returner programmes, the NTUC remains dedicated to ensuring that all women – regardless of their circumstances and where they are in the lives – receive the support they need to reach for the stars, both at home and in the workplace.

Together, we can create a more inclusive society where women are empowered, supported and given the opportunity to reach their fullest potential. Every woman worker matters. Mr Speaker, I support the Budget.

Mr Speaker: Mr Melvin Yong.

5.35 pm

Mr Melvin Yong Yik Chye (Radin Mas): Mr Speaker, I stand in support the Budget, which seeks to help Singaporeans tackle cost pressures and address anxieties related to inflation.

Sir, I was happy to read that real income increased in 2024, following a decline in 2023. This shows that the measures put in place by the PAP Government, which includes bringing in good investments and creating good jobs, keeping the Singapore dollar strong to combat imported inflation, expanding the Progressive Wage Model to uplift wages of lower-income workers and various other schemes, have borne fruit.

While inflation this year has eased and is expected to average between 1.5% and 2.5%, the price increases of the past will not go away and we will have to adapt to the new reality of higher prices. This is why I am glad that the Government has taken decisive moves to help Singaporeans cope with higher prices.

In my speech today, I wish to highlight how we must improve consumer protection, so that consumers can reap the full intended benefits from the various support measures provided by the Government. We must not allow unscrupulous businesses to profiteer from these support measures, at the expense of our consumers. I will also highlight how we can do more to uplift the wages of our lower-income brothers and sisters, so that they do not get left behind as Singapore progresses.

Sir, in NTUC's latest survey on economic sentiments conducted from November to December last year, more than half of the survey respondents felt that their income had not increased sufficiently over the past 12 months to meet the rising cost of living. The additional $800 in CDC Vouchers, additional U-Save rebates, increase in ComCare assistance schemes and the new SG60 Vouchers, will certainly help Singaporeans from all walks of life better cope with today's higher prices.

In Radin Mas, we have rolled out various community initiatives last year to help our own residents cope with cost pressures. We launched the "Radin Mas Care For You Vouchers", where each month, a set of local discount vouchers is distributed to 3,000 eligible households residing in Radin Mas. Led by our three hawkers' and merchants' associations, the participating hawkers, merchants and market stallholders have contributed more than $500,000 worth of discounts to our residents in the past seven months.

We opened JamPacked@Radin Mas, a community minimart to allow lower-income residents to redeem $50 worth of groceries monthly. These daily essentials are contributed by our supermarkets and kind donors. But instead of distributing pre-packed bags of groceries, residents come down to the minimart to redeem what they need. This cuts down on waste, which in turn, encourages more frequent and generous donations by donors.

We also set up a community fridge at Telok Blangah Crescent, to allow residents to collect free fruits and vegetables, which have been rescued from the nearby markets. Since we launched what we call "the Magic Fridge" in November 2024, we have given away more than 1,000 kilogrammes of free fruits and vegetables.

Sir, these initiatives are made possible because of the generous donations and contributions by individuals and organisations. In Radin Mas, we have a strong community spirit where those who have more, chip in to help those who have less. I would like to take this opportunity to thank all our generous sponsors and community partners, for working together with me and my team to help our most vulnerable residents.

In his Budget speech, the Prime Minister announced that over $600 million will be set aside by the Government and Tote Board to match donations made to charities and social causes, in an effort to encourage philanthropy. I fully support this. But we should do more to encourage philanthropy in all forms, beyond just monetary donations. I hope that the Government will encourage a more caring Singapore and encourage more ground-up initiatives, like what we have started in Radin Mas, across our nation.

Beyond Government initiatives and community-led programmes, the private sector too must play its part in our whole-of-nation effort to help curb rising cost pressures. NTUC and our enterprises are committed to do our part in ensuring that essentials remain accessible and affordable for Singaporeans.

Between 2019 and 2024, the NTUC FairPrice Group provided approximately $330 million in Pioneer Generation, Merdeka Generation, Senior Citizen and CHAS discount card holders, as well as LinkPoints rebates to help ease the financial burdens on households. Over the same period, FairPrice has also returned more than $250 million in rebates to NTUC union members and FairPrice members.

But, Sir, we must ensure that Singapore has a robust consumer protection regime and a price transparent market, to ensure that consumers fully reap the benefits of Government and community-driven initiatives to cushion our rising cost-of-living. According to the annual complaints statistics by the Consumers Association of Singapore (CASE), consumers suffered close to $2 million in pre-payment losses in 2024, this is more than quadruple, four times of the losses reported in 2023. These losses were driven primarily by industries with large, lumpy expenses, such as renovation, bridal and the beauty and spa sectors.

Beyond pre-payment losses, e-commerce related complaints also reached an all-time high, surpassing even the peak brought about by the COVID-19 pandemic. These are deeply troubling trends and we must take decisive actions to foster a more trusted business trading environment and protect consumers from losing their hard-earned monies to unscrupulous businesses.

Mr Speaker, the last major amendment to the Consumer Protection (Fair Trading) Act was in 2018. This was well before the boom in e-commerce, an industry that had its growth supercharged by the COVID-19 pandemic. As president of CASE, I urge the Government to convene a panel to comprehensively review and update our consumer protection laws. CASE stands ready to lead this effort. We will engage extensively with the business, legal and academia communities to ensure that a right balance is struck between protecting consumers while balancing Singapore's reputation on ease of doing business, when proposing both legislative and non-legislative changes.

Sir, we must also improve price transparency in the marketplace. Over the past few years, I have advocated for the nationwide implementation of unit pricing in Singapore. I first raised the issue in this House in 2022, speaking about the need to use unit pricing to combat "shrinkflation", a phenomenon where retailers keep the price of a good unchanged, but shrink its volume or shrink its quality.

Unit pricing helps consumers see through pricing gimmicks quickly and easily. Several countries have long implemented unit pricing, such as the UK, Australia and New Zealand. Locally, the Price Kaki app launched by CASE has already implemented unit pricing in 2023. We now have unit pricing on the app for over 6,000 items, including groceries and household products. Since its implementation, we have received much positive feedback on the usefulness of the unit pricing feature; and I am of the view that the time is now right for unit pricing to go beyond the Price Kaki app.

I urge the Government to mandate the display of unit pricing in all major online and physical retail stores. As a start, we could adopt the same parameters as our Disposable Carrier Bag Charge, where only larger players need to comply with the requirement. The implementation of unit pricing will help consumers combat shrinkflation and allow them to stretch their dollar when shopping for groceries and other essential items.

Sir, while inflation is important, the most sustainable way to help our workers cope with the cost of living is to ensure sustained real wage growth and better job opportunities. Mr Lim Swee Say puts it best, when he said that "a job is the best welfare and full employment is the best protection for our workers." While I am heartened that Singapore's Gini coefficient, which measures income inequality, fell to a record low in 2024, we must continue our efforts to uplift our lower-wage workers.

Last year, we celebrated the 10th anniversary milestone of our Progressive Wage Model (PWM), a unique Progressive Wage Model. From the very beginning, NTUC championed the idea of a wage ladder that would correspond to workers' skills, productivity and job responsibilities. With the strong support of our tripartite partners, what started with the cleaning sector has now expanded into nine sectors and occupations, covering more than 155,000 lower-wage workers.

More importantly, this has translated into actual wage increases. From 2017 to 2022, PWM workers in the cleaning, security and landscape sectors saw a cumulative wage increase of 11%. This is higher than the median worker in the same period. Beyond just wage growth, workers are also leveraging PWM as a catalyst to actively advance their career and upgrade their skills, ensuring that they are well-equipped for better job opportunities and higher-paying job roles in the long run.

I call on the Government to continue its strong support for PWM. Let us jointly uplift our lower-wage workers by providing them with stable jobs that have a progressive wage ladder and good career prospects. NTUC will always stand alongside our lower-wage workers, taking action to uplift their wages and work prospects to ensure that no worker is left behind.

Mr Speaker, Budget 2025 comes amid an extremely uncertain geopolitical environment. Tensions between big global powers are rising and trade wars loom on the horizon. The use of tit-for-tat tariffs by major economies as a foreign policy tool will impact Singapore's open and trade-dependent economy.

I am heartened that Budget 2025 takes decisive steps in helping Singaporeans navigate through the uncertainty by investing in our workers and in providing a slew of cost-of-living support to all segments of Singapore. As we spend prudently to support our nation, we must remember the importance of enhancing consumer protection and price transparency. We must help consumers make informed purchasing decisions and not fall prey easily to unscrupulous businesses.

NTUC cares for our lower-wage workers and will always strive to improve their lives and livelihoods. We must continue to review sectors where the introduction of PWM can result in better wages and better work prospects for our lower-income brothers and sisters.

I will also continue to work with the Government agencies and industry stakeholders to improve our work environments, workplace safety and mental health of all workers. Here, I would like to record my thanks to the hon Member Hazel Poa for suggesting in her speech yesterday for a right to disconnect, something that I have been championing since 2020. I am glad that more Members, including the Progress Singapore Party, are now supporting this too.

Sir, as we celebrate SG60, there is much that we can be proud of. But we must continue to do all we can to ensure that no one is left behind as our economy progresses.

Sir, I support the Budget.

Mr Speaker: Senior Minister of State Heng Chee How.

5.49 pm

The Senior Minister of State for Defence (Mr Heng Chee How): Thank you, Mr Speaker. Thank you for allowing me to join this debate. Although this is later in the afternoon now, it is not time to disconnect yet. I stand here as a Labour Member of Parliament to once again speak up for and focus on advancing the interests of our older workers.

First of all, I must observe and say that our older workers have made much progress in terms of their employment, in terms of their wage and employability over the decades.

How come? It is due to the enlightened policies of the People's Action Party Government and the hard work of the tripartite partners.

The employment rate of older workers aged 55 to 64 has risen from 66.3% in 2014 to 70.4% in last year. Wages for workers aged 50 and above have also risen faster than median income. Training participation rates for those aged 50 to 64 in the resident workforce have also increased from 27.1% in 2014 to 33.5% in 2024.

The percentage of active CPF members who turn age 55 and who have been able to save up to their cohort Basic Retirement Sum has increased from six in 10 in 2016 to about seven in 10 in 2022. MOM projects it to reach eight in 10 by 2027.

The Labour Movement is certainly heartened that our work advocating for improvements for the sake of our older workers, together with the support and partnership with our tripartite partners, have borne fruit systematically to improve older workers' livelihoods. Older workers have even more improvements to look forward to.

To boost the retirement adequacy of both current and future cohorts of senior workers, NTUC has advocated for increases in CPF contribution rates for our senior workers. I thank the Government for raising the CPF contribution rates for senior workers again in 2026 and extending the CPF Transition Offset towards companies in order to facilitate this improvement. I look forward to the scheduled increases up to 2030 in line with the recommendations of the Tripartite Workgroup on Older Workers. These increases will allow the contribution rates of those aged above 55 up to 60 to match those of younger workers.

The Government has also supported the tripartite consensus and announced the next statutory increase in the retirement and re-employment ages to 64 and 69 respectively, to take place from 1 July 2026. On our part, the NTUC and our enterprises have moved ahead and raised our retirement and re-employment ages from 1 January 2025. The Public Service has also announced that it will raise its retirement and re-employment ages from 1 July 2025, which is a year ahead of the national timeline.

Additionally, the new Matched MediSave Scheme will help eligible older workers increase their MediSave balances and better cater for their healthcare needs. The extension of the Senior Employment Credit till end-2026 is also welcome. This will help businesses defray part of their hiring costs for older workers. That should make older workers more attractive to hire.

Just in January this year, Parliament passed the Workplace Fairness Bill into law. This Act is an important step in our fight against ageism and all forms of discrimination in the workplace. Unions will work proactively and sensibly with companies to foster age neutrality and fairness in the treatment of older workers in our workplaces.

We have, indeed, achieved much. But how do we ensure that we can hold on to our gains and build positively on them as we move into the future?

This is not a trivial remark, because we must not underestimate the immensity of the challenge. As many colleagues have already said in their speeches, the world is entering into a very difficult and turbulent geopolitical and geo-economic era. What we are seeing now is a world where win-win mindsets wane. And instead, we see law-of-the-jungle and beggar-thy-neighbour instincts rise and be on the ascendant.

In such a climate, safeguarding our gains and achieving further good progress is not going to be easy. It requires sustained, strong mutual understanding of joint interests and ever closer collaboration on the part of the tripartite partners to look for bold and innovative pathways forward.

I cannot over-emphasise this, because if you look back, progress has not been easy. But compared to the path ahead, I think the path that we have trodden so far is still relatively more stable. The road ahead is not going to be like that. I expect it to be a lot more bumpy.

While the employment and labour force participation rates for our older workers have reached new highs in recent years and even bucked the trend in the rest of the world, it is not without its challenges.

Through NTUC's extensive engagements with PMEs through the work of our PME task force, many older PMEs have shared that they had faced significant hurdles in getting back into work after mid-life job loss. Many also indicated that new jobs often entail substantial downward adjustment of the pay and job nature. This points to the need for more concerted efforts to help middle-aged jobseekers adjust and transit so as to benefit from their continued contributions while managing the negativities.

NTUC understands these challenges that our older PMEs are facing. Initiatives, such as the SkillsFuture Jobseeker Support scheme, stem from our work with our tripartite partners to innovate practical help. We thank the Government for introducing the scheme. Examples of this close collaboration, looking forward, analysing what the real challenges are based on our older workers and finding win-win ways, practical pathways, practical arrangements that are sustainable and implementing them in good time is our hallmark. This must continue to describe our joint approach going forward.

Earlier, I said that I expect the road ahead to be more bumpy.

This is firstly because the lower-hanging fruits that policy levers can achieve have been well harvested over the past years. More importantly, we must expect the international business environment, likely one where there will be a pronounced increase in nativist and protectionist behaviour by countries big and small, to put pressure on our businesses' cost and market access.

As a result, there will be knock-on effects for both enterprises and their workforces. The inherent vulnerability of older workers is, therefore, likely to be put under more pressure. In this regard, our tripartite partners must carefully monitor the external environment and its impact on our economy and labour market and, at the same time, plan ahead together to move swiftly to seize opportunities and be able to protect our joint gains and not let them slip away.

In this regard, it is opportune that the Government is convening a Tripartite Workgroup on Senior Employment to frankly and cohesively take stock of these ongoing headwinds and forge new consensus and effective ways of maximising value for both businesses and our older workers. I fully support such a forward-looking approach. We really need this. We have to come together, look at the picture together and find the way forward together.

Next, I want to speak about the importance of training in the face of such uncertainty.

Against this backdrop of heightened uncertainty and economic challenge, it is important that we keep our focus on strengthening our fundamentals. This remains our best bet to tackle all scenarios. For older workers and their companies, one such fundamental must be the workforce competency. This relates directly to a company's competitiveness and resilience and an older worker's employability and work prospects.

The NTUC's Survey on Economic Sentiments 2025 found that workers' career confidence decreases as they get older. Sixty-six percent of younger workers, defined as those below 35 years old, said that there would be sufficient good jobs in the market for them. When older workers, those 55 years old and above, are asked, 43% had that confidence.

Earlier findings from NTUC's #EveryWorkerMatters Conversations also found that a significant proportion of older workers are worried that they would not be given equitable consideration and access to skills upgrading and training opportunities compared to younger peers.

If you are talking about these concerns in a stable environment, it is one thing. It is a challenge. But if you are talking about these concerns in such a time of volatility, then I think we have to be even bolder, and I believe that it is a great opportunity, in fact, for Singapore Inc to once again rise to the occasion and upskill our workforce, older workers included, to uplift our competitiveness, enhance our enterprise resilience, improve our career adaptability and forge ahead of other economies. We have done that before. Every time we had a crisis, we upturned the downturn. We turned; we not only made lemonade out of lemons, but we turned challenges into opportunities, and we must do so because, if we do not and others do, then both our companies and workers will pay dearly for it.

NTUC stands ready to work hard and work hand in hand with businesses and the Government to move in these areas. On company-level business road mapping and workforce training, NTUC’s CTCs continue to scale, broaden and deepen their effectiveness within the companies and the sectors to benefit workers of all levels and wages. Here, I join my fellow Labour Members of Parliament in thanking the Government for the $250 million further injection in support of the CTCs.

NTUC is also reimagining our Job Security Council to achieve faster, wider and better outcomes in industry manpower, skills, job design and match outcomes, in close liaison with the Government and industry.

Beyond safeguarding the interests of older workers currently in the workforce, the tripartite partners must also press on with innovative thinking on how to further activate, mobilise and enable more Singaporeans to rejoin and participate in our economy. Getting more Singaporeans to participate in our economy is important to businesses, certainly very important to our returning workers and very important to our overall national resilience.

In a speech I made at the Budget debate back in 2019, I specifically pointed to the potential benefit of enabling a considerable number of middle-aged caregivers to remain in work or to return to work for the purposes of increasing the participation of Singaporeans within our workforce and economy.

At that time, I had pointed out that for that to happen, it certainly takes a host of adjustments in companies, workers and Government policy. And this ranged from flexible work arrangements to job redesign to self-employment on the part of the labour market and what employers and businesses can do because when you make your jobs more flexible, then it is not a zero one, either a full-time job or there is not a job. There are different combinations in which a person can continue to have the opportunity to stay at work while catering to care responsibilities, for example.

But for those who have already left because of whatever the reason, including where the companies do not yet offer those flexible arrangements, to come back is a different proposition because they have to care for someone at home. Therefore, for them, it is not only whether there are potential employers with flexible work arrangements ready to receive them back. It is also that they need a system that creates affordable, accessible and sustainable senior care of various types so that they, as caregivers, have truly viable alternatives to provide that care to their loved ones and then they can come back. And that, pairing up with the availability of flexible work arrangements on the company's side, that will make things happen.

I believe that, since then, and with the more recent advent of initiatives, such as the Ministry of Health's (MOH's) Healthier SG, Age Well SG and various relevant initiatives on the part of MOM, I think this is a time for us to really relook how we can look at integrating the solutions both on the manpower or the labour market side as well as on the social and health side as a continuum in order to enable this return to work to happen for middle-aged caregivers in a substantial way. I think we are more ready than before.

Mr Speaker, we have shown care for our older workers as a Government, as tripartite partners, not only in words but in deeds. As a result, we have made very substantial progress for our older workers, often bucking global trends.

The environment we must deal with will be increasingly challenging. We must come together even more to seize opportunities, overcome constraints and to forge ahead for the sake of our older workers, for the sake of Singapore.

Forward Singapore! Mr Speaker, I support the Budget. [Applause.]

Mr Speaker: Miss Rachel Ong.

6.06 pm

Miss Rachel Ong (West Coast): Mr Speaker, I am deeply appreciative of Budget 2025, a thoughtful and responsible Budget that addresses a wide range of needs to support Singaporeans, from alleviating the cost of living to providing meaningful assistance across diverse demographics. I thank Prime Minister and Finance Minister Lawrence Wong and his team for their leadership.

As I have engaged with residents, many have expressed how the disbursements projected for this year come at a timely moment as families plan their budgets for the year ahead.

Today, I wish to focus on an urgent and critical issue: strengthening mental health support for seniors in Singapore. Earlier this month in Parliament, I spoke about the importance of mental health support for children and youths. In this Budget Debate, I call for immediate action to address the growing mental health challenges faced by our seniors.

The correlation between mental health struggles and suicide is well-documented and, for seniors, this issue is particularly alarming. Seniors aged 60 and above now account for nearly 30% of suicide cases in Singapore. Many of them face profound grief, loss and significant societal changes as they age. Yet, they are the least likely to seek help, either from healthcare professionals or informal networks, compared to younger cohorts. This highlights the urgent need for targeted intervention to support their mental well-being.

While our existing mental health strategies have made strides, more can be done to support our seniors. Singapore is not just ageing; we will soon become a super-aged society. It is time we recognise and address the unique mental health challenges faced by our seniors.

Our seniors face a series of irreversible losses; spouse, friends, physical health, employment and independence. Many, particularly men, are unprepared for widowhood or retirement and struggle with isolation as they try to build new support systems.

The stigma surrounding mental health worsens the issue. Many seniors fear being labelled "siao", or “crazy” in English, and the term 精神问题, “mental health problem”, carries strong negative connotations. Psychiatric care is often equated with institutionalisation. Unlike younger generations, who benefit from awareness campaigns, seniors often suffer in silence, avoiding help due to societal perceptions.

The rise in scams targeting seniors adds another layer of distress. Many who lose their life savings in financial and love scams feel too ashamed or afraid to confide in their families, intensifying their emotional turmoil. This sense of shame, rooted in our Asian "face-saving" culture, can spiral into severe depression or even suicide.

Additionally, digital isolation has become a growing concern. As society becomes more digital, many seniors struggle to keep up, leaving them unable to access important services or stay connected with loved ones. The shift to online banking, tele-health and digital Government services has made it harder for those without digital literacy to reach essential resources, thus increasing frustration and feelings of helplessness.

A senior from Depot Road shared with me just two nights ago, “我英语不好，电脑不会” or “I’m not good in English, nor do I have computer skills". This dear resident earnestly appealed for more patience and understanding from the community at large.

Furthermore, the increasing reliance on digital communication by younger generations means fewer face-to-face interactions with seniors. Some observe that children or extended family often choose video calls over in-person visits, deepening their sense of isolation. Here are the proposed interventions to support the mental health of our seniors.

First, may I acknowledge the excellent work already done by our Government and agencies for the welfare of our seniors, including the Agency for Integrated Care (AIC), Age Well SG, Healthier SG, SG Digital Office, as well as Active Ageing Centres I have the joy of working with across Dover, Depot and Telok Blangah; Active Global, FaithActs, Montfort Care, NTUC Health, St Andrew’s Senior Care, St Andrew's Hospital and Sunlove. Building on these efforts, we must make mental wellness the next frontier in ensuring Singapore is a safe place to age well.

Before outlining specific interventions, it is important to recognise the diversity among seniors. They go through distinct life stages; young seniors in their 60s-70s, seniors in their 70s-80s, and seniors 80 and above, each facing unique challenges that require tailored mental health strategies.

The first proposed intervention: Pre-Retirement Mental Health Preparation and Workplace Support. Mental well-being must be developed early. Just as we encourage financial planning for retirement, we must also advocate for mental health preparation before seniors enter their later years. Missing this window to equip them with coping strategies could mean missing the opportunity altogether.

The transition out of active employment is a critical mental health juncture. For many, work provides more than income. It is tied to identity, purpose and social connections, especially for men. The loss of these can lead to anxiety, depression and even cognitive decline, if not addressed early.

I call on MOH and MOM to collaborate with employers and unions to incorporate pre-retirement planning that prepares young seniors in their 60s emotionally for this transition. This planning should help them adjust to new routines, social networks and purpose-driven activities. Additionally, the Government can consider incentivising companies, unions and associations like the Singapore National Employers' Federation to implement structured mental health programmes for seniors, similar to the support we provide businesses hiring seniors.

Second, strengthening Community-Based Support Networks and Senior-Led Initiatives. Once seniors leave the workforce, staying engaged in meaningful activities becomes essential for their mental well-being. Social connection is the most powerful safeguard against mental health decline in seniors. Community engagement and support groups must, therefore, form the core of our strategy, providing spaces where seniors feel a sense of belonging and purpose.

First, we need targeted support groups for new retirees, widowers and those struggling with depression. Organisations like Silver Ribbon and the Samaritans of Singapore (SOS) have shown that peer-led support, particularly from those who have navigated similar challenges, is highly effective in reducing isolation amongst our seniors. It is especially crucial to ensure support for seniors in their 80s, who often experience the loss of close friends and spouses, leading to a shrinking social circle.

Intergenerational interactions also offer a meaningful form of community engagement.

At Telok Blangah, NTUC Health partners Blangah Rise Primary School every third Monday of the month to run sports activities, where our seniors and students connect. Feedback has shown that these precious seniors look forward to the innocence and unreserved nature of our youths, while our children enjoy spending time with our seniors, especially those who miss their grandparents. I hope to replicate such initiatives across more neighbourhoods.

Let us also rethink volunteering opportunities for seniors. Many are eager to contribute but find traditional models rigid. Recently, I met a resident in her early 70s who wanted to pass on her tui-na techniques, a vocation she has practised for decades, as a way of giving back upon her retirement.

By offering skills-based initiatives beyond hobby-centric programmes, we can engage seniors who are willing and able to share their skills and expertise. For example, at our Telok Blangah Legal Clinic, a retired lawyer continues to contribute his knowledge to both the volunteer team and residents.

Beyond structured programmes, we should empower seniors to take ownership of their community spaces. The "Ibasho" model from Japan offers a compelling example. What began as a simple café run by seniors in Ofunato has evolved into a thriving hub with a garden, ramen shop, farmer’s market and daycare.

Closer to home, we see a similar concept in the Health District @ Queenstown’s FaithActs Active Ageing Centre, which includes upcycling workshops, digital clinics and cooking classes. Such endeavors give seniors a sense of purpose and foster inter-generational bonds. Imagine retired hawkers mentoring younger residents to prepare meals for vulnerable families or seniors who love gardening teaching students to build gardens in schools. At Telok Blangah, Chef Benny Se Teo shared his cooking skills with our community, with sessions so popular that we are planning another one in March.

As a growing number of our seniors of tomorrow will be different from the seniors of today, we will need to evolve our approach to meet their changing needs and aspirations. To further empower them, I propose extending grants, similar to those given to youths-led initiatives, to retired seniors interested in starting community programmes. With the right support, their experience and wisdom can drive meaningful projects that strengthen communities and address local challenges.

Third, destigmatising mental health. Addressing mental health among seniors requires understanding the unique challenges they face. Unlike younger generations, who increasingly embrace the idea that "it is okay not to be okay", many seniors still harbour deep-seated fears and misconceptions about mental illness.

Most mental health resources in Singapore are in English, leaving non-English-speaking seniors underserved. To bridge this gap, we must use media platforms familiar to them, such as Channel 8, Suria and Vasantham, to openly discuss mental health issues through dramas and talk shows. This will spark conversations in coffee shops and hawker centres, often where our seniors gather. Radio, too, remains a trusted source for information and entertainment, making it an ideal medium for airing mental health segments in various dialects.

This Saturday, the Telok Blangah Community Club will host a “Mental Health Wellness Carnival” designed for Chinese-speaking seniors, with hopes to extend this to other languages. Our Government’s success in using targeted communication during the COVID-19 pandemic shows the power of reaching seniors where they are at, achieving remarkable uptake rates and safeguarding this vulnerable demographic. Similarly, by positioning mental health as an essential part of overall well-being, we can break the stigma and promote proactive measures.

To shift the narrative, we need culturally sensitive, language-specific and community- driven initiatives. We must meet seniors where they are, physically and emotionally, creating an environment where seeking help is seen as a strength and not a weakness.

The question is, who should lead this change and what should the model be? This also calls for a community partnership model, one that involves religious organisations. Temples, mosques and churches are trusted spaces for many of our seniors. Training paracounsellors within these communities can provide support, and when religious leaders share their personal stories about mental health challenges, it not only humanises the issue but also encourages the congregants to seek help without fear of judgement. I encourage the Government to collaborate more closely with religious organisations in reaching out to our seniors.

Fourth, addressing scam-induced psychological distress. This emotional toll of scams is often underestimated, leaving many seniors ashamed to seek help or confide in their families, resulting in isolation and distress.

To address this, I propose empowering the Community Centre Teams as points of contact for seniors to report scams, offering a more approachable alternative to contacting the Police. Additionally, Police and community centers should partner with mental health professionals to provide trauma-informed counselling, helping victims regain confidence and dignity. Most importantly, we must educate families to respond with empathy, not blame, through public campaigns that emphasise support. Seniors often feel "stupid" for falling victim to scams, compounding the emotional pain of losing their life savings.

Fifth, deepening support for seniors and caregivers. To address the mental health and caregiving challenges facing seniors and their caregivers, we must take a holistic approach. First, training counsellors to effectively address grief and loss issues in the elderly is essential, recognising the unique emotional toll of ageing and the varied ways seniors process these emotions. Equally important is equipping caregivers with the skills to identify and manage mental health symptoms in seniors, especially those with high dependency needs, such as dementia.

Caregivers often bear immense emotional and financial burdens, and we must provide more support. Many caregivers, particularly those who are the sole, unmarried children of the seniors, sacrifice their career and personal savings, often leading to financial insecurity in their own later years.

I propose the Government to consider solutions like dedicated caregiver savings schemes, leveraging CPF contributions and providing financial assistance to families in need, as I raised in Parliament in 2022. Encouraging families to provide care over hiring foreign domestic workers should be supported through policy.

Additionally, we must expand training and respite services for caregivers, ensuring affordable, accessible programmes and support. These services should also extend to foreign domestic workers, who play a critical role in dementia care and face high stress and burnout. Recent reports of elder abuse remind us that our workers need mental health support and training to care for vulnerable seniors. By investing in the well-being of both seniors and their caregivers, we foster a community where dignity, compassion and mutual care are at the heart of our shared future.

Mr Speaker, the challenges our seniors face in mental health are unique and complex, requiring solutions that are as individualised as their journeys. Our approach must be comprehensive and empathetic, starting with prevention through workplace support for those nearing retirement and continue with the community initiatives like the “Ibasho” model, empowering seniors to remain active and engaged members of society.

For those in immediate need, we will strengthen our efforts through destigmatising, trauma-informed counselling and greater professional support. And just as importantly, we must prioritise and support the caregivers who are essential to the well-being of our seniors.

Our seniors have built this nation with decades of hard work and sacrifice. Now, it is our turn to care for them, ensuring they deserve the mental health support they need. Let us build a Singapore where our seniors are not only respected but cherished, and where we provide them with the care, dignity and support that reflect the immense value they have brought to our society. The time to care for them is now, let us honour their legacy by ensuring they can age with the security and compassion they deserve.

With this, Mr Speaker, I fully support Budget 2025, “Onward Together for a Better Tomorrow”.

6.23 pm

Mr Speaker: Whether it is about mental well-being for seniors or the right to disconnect, I think the call is quite loud. Second Minister for Finance, would you like to move to adjourn the debate?