경제 지속 성장의 도전 과제 및 대응 전략

The Chairman : Head V, Ministry of Trade and Industry. Mr Liang Eng Hwa.

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Growing Our Economy and Trade

Mr Liang Eng Hwa (Bukit Panjang) : Mr Chairman, I seek to move, "That the total sum to be allocated for Head V of the Estimates be reduced by $100".

Sir, the Singapore economy surprised on the upsize with a higher-than-expected growth of 4.4% in 2024; significantly above the guided range of 1% to 3% that we came to expect. This is good news for Singapore as it meant more economic activities, better jobs opportunities, more tax revenues to strengthen our fiscal position and better standard of living for all Singaporeans.

Credit to Ministry of Trade and Industry (MTI) and our economic agencies for managing our economy well to achieve the above-trend growth despite our inherent domestic constraints. The question is: can we do it again in 2025?

In the latest January release, MTI has again maintained the gross domestic product (GDP) growth forecast for 2025 as between 1% to 3%. How important is it for us to push for higher growth; beyond the 1% to 3% range?

Economic growth creates good jobs and helps sustain real wage growth for our people. A more vibrant economy invigorates the business ecosystem and generate business opportunities for the enterprises. In our context, having a strong and growing economy enable us to stay plugged to the global trade and investments flows; and also enable Singapore to stay closely abreast of new developments and advancements in the growth frontiers areas, such as the advance manufacturing, innovations and digital space and so on.

Having a growing economy also allows us to participate in the global supply chains and enhances our economic resilience. In other words, having a sizeable and growing economy helps us stay relevant internationally.

Sir, over the last decade, many of the regional economics with much bigger scale domestically and have the capacity to grow at faster growth rate, have their size of economy surpassing Singapore; countries, such as Indonesia and Thailand. Vietnam, Malaysia and the Philippines are not far behind. It imperative that we continue to seek growth; be it a more moderate pace.

Back to my earlier point whether we can and should grow beyond the 1% to 3%. range, I would say let us always strive to pick up that additional 0.5% to 1% of growth where we can. To do that, it requires us to steadfastly work on overcoming our tight constraints on land and workforce and now also carbon. To create new capacities for higher growth, the hard truth is that we need structural productivity improvements to create new growth capacities. This includes pressing on with enterprise transformations, skills upgrade and continual infrastructural build-up.

In this Budget and earlier Budgets, a number of support schemes have been introduced and many enhanced. Sir, our circumstance also does not permit us to compete on costs alone. We need to differentiate with our other value propositions, such as the availability of educated and skilled workforce, our world class infrastructure, our premier status as a financial centre, our reputable legal system and our pro-business environment, just to name a few.

One area of strategic importance and where we can differentiate is to bolster Singapore's position as centre of excellences for technological and innovation developments. It enables us to attract cutting-edge high performing companies to Singapore and to anchor value here. Semiconductors and biomedical sciences are among the high-performing sectors that we should target and to build an ecosystem conducive for its developments.

In this regard, can I ask what are MTI's plans to grow our research and innovation ecosystem; and, in particular, to support the development of sectors, such as semi-conductors and biomedical sciences?

Our next bound of economic growth can also come from strengthening our position as a global hub for startups and innovation. Can MTI share how it intends to attract and support high-performing, innovative companies into Singapore?

Gearing up our enterprises to embrace AI solutions are also necessary enablers to achieve productivity improvements and competitiveness. The Productivity Solutions Grant and SMEs Go Digital schemes already assist enterprises to utilise off-the-shelf solutions for marketing and business analytics.

In this year's Budget, the support is extended to more customise solutions tailored to the enterprises' needs. The new $150 million Enterprise Compute Initiative brings in major cloud service providers to help companies access and embed AI solutions in their business, including computing power with the help of expert consultancy services. This is a meaningful new initiative and can help companies develop new use cases and commercially viable and creative applications as well. I look forward to more details of this scheme later.

Can I suggest that besides partnering the cloud service providers, I hope that MTI can also include our local institutions of higher learning (IHLs) and their students to help enterprises develop tailored solutions and commercial use cases. These could be structured as IHLs' industry projects and/or as internship opportunities for the students, so that our IHLs and students are also able to participate in industries' AI developments and to keep their curriculums relevant and updated.

Sir, the Prime Minister and Finance Minister in his Budget Statement speech said that we now face a new geopolitical contestation that will reshape the global economy and dampen prospects for global growth. He mentioned that as a small and open economy, Singapore will certainly feel the impact.

So, can I ask the Minister what are the possible scenarios that Singapore could face and how it will impact us? What could be the worst-case scenario for us? Against this backdrop, of trade and technology decoupling, how would the re-organising of the supply chain impact the future of Singapore's manufacturing sector? How would MTI ensure that manufacturing continues to be a key pillar of our economy?

Sir, last Friday, the world saw on live TV stunning exchanges between United States (US) President Trump, Vice President JD Vance and Ukrainian President Zelensky. In that heated exchange, the Ukrainian President was told, "he has no cards to play".

Sir, I am not weighing in into that debate, but I am sure it is not a good feeling to be told this by a major power. It is a sobering reminder that, as a country, we must never be caught in a situation where we have no cards to play.

When Singapore became Independent in 1965, we indeed have very few or have weak cards to play. That is why over the last 60 years, we have been so single-minded and obsessed about strengthening Singapore; whether it is in security, economy, social unity, among others and, importantly, to always be in a strong fiscal position and to have strong reserves.

This is so that Singapore will always have strong cards to play to defend our national interest and not to be dictated or at the mercy of others. And importantly also, to have the means to mitigate the impact and fallout come what may. In the new, more-contested and technology-driven economic landscape, we again need to re-evaluate our economic competitive positioning and to up the game.

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I hope that we will always be bold, as a country, to seek new growth frontiers and continually look to remake and invigorate our economy to stay viable, so that Singapore will always have strong cards to play to survive and to thrive in these extraordinary times.

[(proc text) Question proposed. (proc text)]

Strengthening Trade Relations

Mr Desmond Choo (Tampines) : Mr Chairman, our economy has long thrived on our ability to remain open, connected and deeply integrated into the global trade networks.

However, the international order has been weakening. In recent years and, in fact, weeks and days, protectionist measures and escalating geopolitical conflicts across major nations have become the norm. We are at a precarious crossroads as a small, open economy where commerce accounts for over three times our GDP.

The ongoing US-China trade tensions which have seen both nations imposing trade tariffs against each other will cause supply chain shifts and trickle-down effects on our economy. We have also seen first-hand how conflicts, such as the Russian-Ukraine war, have caused inflationary pressures on the cost of living globally.

Could the Ministry share the impact of global geopolitical tensions on Singapore's trade relations with other countries and our strategy for navigating this? What strategies will the Ministry utilise to ensure that we can adeptly navigate an increasingly fragmented global economy?

Concurrently, we remain committed to our resolve to strengthen global trade relations. For example, participation in platforms, such as the ASEAN's Regional Comprehensive Economic Partnership is vital in our mission to encourage closer regional cooperation. Could the Ministry share our efforts in working with our global neighbours or, in fact, regional ones, to avoid the fragmentation of the global economy?

Sustained economic success is dependent on our ability to remain nimble, adjusting our trade strategies in tandem with the ever-changing geopolitical landscape. It is hence imperative for us to ensure our trade strategies are resilient and responsive to opportunities and uncertainties to ensure our economic success beyond SG60.

Impact of Geopolitics and Tariff Plans

Ms Mariam Jaafar (Sembawang) : Sir, global supply chains are being reorganised amid the shifting geopolitical landscape and the emergence of tariff plans. The recently announced US tariffs on Canada, Mexico and China are expected to place significant barriers on trade, increasing tariff costs in the three countries by a whopping $250 billion. Countries have responded with retaliatory tariffs as well as tried to delay and negotiate the way after the rollout. But just yesterday, stocks tumbled, as President Trump announced that he is moving forward with the proposed tariffs, adding that time had run out to reach a deal. More tariffs are expected to be announced in the coming months. Exactly what, it is unclear. But what is clear is that all companies will be affected.

These, alongside other geopolitical uncertainties like increased protectionism, non-tariff barriers, such as subsidies and export controls, and disruptions caused by climate change, technological changes, among others, as well as changes in security of the world, will make companies reassess their supplier base and their own footprint. For a hub economy like Singapore, the impact on trade and our value proposition and attractiveness as a place for foreign direct investment (FDI) in key sectors like manufacturing, biopharma and the digital economy will be impacted.

What assessment has MTI made of the potential impact scenarios on key sectors like manufacturing and Singapore's overall position as a global hub, and what responses are being planned?

Surviving Geo-economic Uncertainties

Ms Tin Pei Ling (MacPherson) : The convergence of geopolitical tensions, the US-China trade war, strategic competition in artificial intelligence (AI), and political realignments are reshaping the global economy, supply chains and technological deployment. Singapore, as a small, open economy, is particularly sensitive to these shifts.

The US-China trade war resulted in increased tariffs on approximately $1.4 trillion in imports. The tariffs have disrupted global supply chains, leading to uncertainty and volatility in markets. The rivalry is so strong that the US and China are willing to risk hurting their own economies, and one can imagine small countries like us can become unfortunate collateral damage.

Then, there is also the strategic competition in AI, exemplified by China's advancements. Such advancement challenges US technological dominance. This rivalry contributes to geopolitical tensions, influencing global trade policies and economic alliances. I had spoken on this during my Budget Debate speech and will do so again at the Ministry of Digital Development and Information's (MDDI's) Committee of Supply (COS).

Singapore's economy relies heavily on global trade and investment. Singapore's manufacturing sector accounts for about 20% of our GDP. This sector relies on the seamless flow of raw materials, components and finished goods across borders. Our deep integration with the global supply chain ensured our economic success but can also make us vulnerable. Therefore, changes in external demand, supply chain reorganisation and shifting geoeconomic landscape will certainly have an outsized impact on our economy and, ultimately, livelihoods of Singaporeans.

As such, considering these macro factors and impact, what are MTI's plans to build resilience into our supply chains and manufacturing sector? How might our manufacturing sector shape up looking ahead?

One way to build resilience is to ensure that trading partners' interests and ours continue to remain aligned. Put bluntly, to deepen their invested interests in us and ours in them. Now that the multilateral trading system is under pressure, how is MTI working to strengthen our trade links with the region and the world? Can MTI provide more details on how we intend to diversify our trading partners amidst the trade tensions, and how Singapore companies can benefit from these partnerships?

Growing Our Economy

Ms Jessica Tan Soon Neo (East Coast) : Mr Chairman, geopolitical tensions, trade policy shifts and technological advancements are driving significant changes in the global trade landscape.

The concept of reglobalisation is emerging as businesses seek to create more resilient and adaptable supply chains. This involves strategies like nearshoring and friendshoring.

The US-China trade dispute has significantly impacted global trade as trade between the two countries has decreased. Companies are also diversifying their production capacities to other markets. Apart from tariffs, weather conditions, geopolitical conflicts and cybersecurity concerns have made supply chains increasingly complex.

Against this geoeconomic landscape, businesses need to adapt. They need to rethink their sourcing, production and delivery strategies. They are diversifying their supplier base, investing in more stable regions if there is something more stable these days, and adopting innovative strategies to build more resilient and responsive supply chains. This is reshaping Singapore's manufacturing sector. What impact will this have on the future of Singapore's manufacturing sector, and what are MTI's plans to ensure that manufacturing continues to be a key pillar of our economy?

Global Shifts – Impact on Manufacturing

Mr Mark Lee (Nominated Member) : Chairman, global supply chains are being reorganised amid shifting geoeconomic dynamics, presenting both challenges and opportunities for Singapore.

Manufacturing remains a cornerstone of our economy, contributing nearly 20% of our GDP and providing over 450,000 good jobs for Singaporeans. As competition for high-value manufacturing investments intensifies, it is critical that we safeguard our position as a leading advanced manufacturing hub.

What impact will these global shifts have on the future of Singapore's manufacturing sector and how is MTI ensuring that manufacturing remains a key pillar of our economy? Specifically, what measures are in place to strengthen our supply chain resilience, attract high-value investments, and deepen our local talent pipeline to secure good jobs for Singaporeans? Given the increased focus on automation, sustainability and regional diversification, how will Singapore position itself to stay ahead in the evolving global manufacturing landscape?

The Chairman : Mr Saktiandi Supaat, you can take your two cuts together.

Strengthening Trade Links

Mr Saktiandi Supaat (Bishan-Toa Payoh) : Mr Chairman, since a long time pre-Independence, our geographical centrality has made trade the lifeblood of Singapore's economy. Our 15 bilateral and 12 regional Free Trade Agreements (FTAs) are key to our open economy driven by trade in goods and services.

But the world's multilateral trading system is coming under real pressure. During President Trump's first presidential term, the United States (US) withdrew from the Trans-Pacific Partnership. As Trump 2.0 starts this year, the US has already announced a host of tariffs on imports from China, Canada and Mexico. What are the risks of the imposition of specific and reciprocal tariffs by the US on our major trading partners likely to affect Singapore?

In the current backdrop, how is MTI working to strengthen our trade links with the region and the world? Can MTI elaborate on how we intend to diversify our trading partners amidst the trade tensions, and how Singapore companies can benefit from these partnerships?

Johor-Singapore Special Economic Zone and Supply Chain

Mr Chairman, the technology and innovation engines mentioned in Budget 2025 hews closely to our manufacturing Industry Transformation Maps (ITMs), namely, for precision engineering, energy and chemicals, marine and offshore, aerospace and electronics.

The announcement of the Johor-Singapore Special Economic Zone (SEZ) agreed between Singapore and Malaysia is an exciting prospect. Covering a range of different economic sectors over nine "flagship" areas, the SEZ contemplates centralising manufacturing activities in Pengerang, Pasir Gudang, Tanjung Pelepas, Iskandar Puteri, Sedenak and Senai-Skudai.

Added to this is the uncertainty of how global supply chains are being restructured, as a result of vulnerabilities that had been exposed by COVID-19, geopolitical tensions in specific regions and changes in the national priorities of particular countries.

What impact will the Johor-Singapore SEZ and changes to the global supply chains have on the future of Singapore's manufacturing sector and other sectors, and what are MTI's plans to ensure that manufacturing continues to be a key pillar of our economy and also how can we take advantage of opportunities as companies and global companies reallocate their supply chains from other places?

Planned Obsolescence and Right to Repair

Mr Dennis Tan Lip Fong (Hougang) : Chairman, we should consider having regulations against plan of obsolescence of products to prevent products which are designed with limited lifespan, as they increase waste, consumer costs and environmental damage. We should introduce regulations providing for the right to repair, as such laws can encourage longer product life cycles and reduce waste and carbon footprint. This is especially so as Singapore, with her limited land and resources, can ill afford an unchecked rise in e-waste, or, in fact, any waste.

The disposal of electronics in landfills result in hazardous pollutants, while the constant need for new products strains our supply chains and increases reliance on raw material extraction. Addressing planned obsolescence and promoting the right to repair are crucial steps towards a secular economy and long-term sustainability.

Singapore's Extended Producer Responsibility scheme holds producers accountable for e-waste disposal, but it does not cover non-electronic products, which also contribute to carbon emissions. It does not go far enough in tackling planned obsolescence or ensuring consumers can repair their devices. There are no laws penalising manufacturers for intentionally shortening product lifespans, nor do we have regulations guaranteeing access to spare parts or repair manuals.

Many Singaporeans have experienced the frustration of purchasing an affordable product online, only to have it malfunction within a short time. Without access to spare parts or repair options, consumers are left with no recourse but to dispose of the faulty item and buy a replacement. This not only wastes money but also contributes to unnecessary waste. A right to repair framework would address such common consumer grievances by ensuring that products are repairable and that manufacturers provide the necessary support for maintenance and longevity.

In France, their anti-waste law includes measures, such as repairability indexes for electronic devices. This index requires manufacturers to assign a repairability score to their products, ranging from one to 10. France also banned intentionally shortening the lifespan of products and imposes heavy fines on companies engaging in planned obsolescence. A phone or vacuum cleaner that lasts four years instead of two would half the electronic waste across time.

Sweden introduced tax incentive to make the repair of goods more affordable for consumers. Valued-Added Tax (VAT) on repair services for items, such as bicycles, shoes and clothing was halved from 25% to 12%, effectively lowering the cost of these services. Additionally, consumers can claim back from income tax half the labour cost of compliance repairs performed by technicians in their home, up to a certain limit. These measures are designed to make repairing goods more financially attractive than replacing them, thereby extending product lifespan and reducing environmental impact.

By making repairs more economically viable, there is an increased demand for skilled technicians and repair services, leading to job creation and the growth of small businesses specialising in maintenance and refurbishment.

By adopting similar right to repair laws, Singapore can enhance consumer rights, reduce electronic waste and foster a more resilient economy. A National Repairability Framework requiring manufacturers to disclose the expected lifespan of their products and provide standardised repairability ratings would greatly enhance consumer protection.

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Additionally, an independent consumer advocacy body should be set up to monitor and report cases of planned obsolescence, ensuring transparency and accountability. Transparency and access to information are key to empowering consumers to make informed choices. A mandatory repairability rating system prominently displayed on product packaging would enable consumers to compare products based on their expected longevity and ease of repair. This would help consumers avoid purchasing products with artificially short life spans, ultimately leading to more sustainable consumption habits.

Additionally, public education campaigns can be launched to raise awareness about repair rights and available services, ensuring that consumers are equipped with the knowledge to extend the life of their products. Responsible businesses that already prioritise product quality, longevity and repairability would benefit from increased consumer trust and brand loyalty over businesses that rely on planned obsolescence to drive sales. By fostering a market where durability and sustainability are rewarded, we can shift industry standards towards more ethical and environmental friendly practices.

Comprehensive Consumer Protection

Ms Sylvia Lim (Aljunied) : Chairman, my cut today is focused on consumer protection for online scams. As to why I am filing this card for MTI instead of other more obviously connected Ministries, this is because I believe that the Competition and Consumer Commission of Singapore can play a major role in this area.

At the outset, I wish to acknowledge the work of the different agencies, some around the clock, to prevent, detect, disrupt and respond to online scams. Some of my own residents were saved from losses due to interventions during ongoing transactions.

However, as consumers continue to lose a record amount of money to scams across a wider range of sectors and to increasingly sophisticated criminals, an overarching body to set and enforce standards and protections for consumers will be desirable over the current sector-specific and somewhat fragmented approach. For example, the Shared Responsibility Framework falls under the purview of the Monetary Authority of Singapore (MAS).

However, as an integrated financial regulator with a focus on prudential oversight and supervision of the financial services sector, it would be difficult to expect the MAS to also protect and enforce consumer rights. Consumer complaints are often directed to channels, such as the Financial Industry Disputes Resolution Centre (FIDRec) or the Consumers Association of Singapore (CASE), but both have limitations, including in enforcement. Further, the current approach also means that solutions like the Shared Responsibility Framework, which is currently limited to phishing scams, only apply to banks and telcos.

With investment scams and job scams making up 29% and 14% of all scam losses in 2024, the Government will constantly have to play catch up with evolving scam methodologies across various sectors. Consumers need a stronger advocate in their fight against scams.

Accordingly, I believe that the Competition and Consumer Commission (CCCS) is best placed to take on such a central role with a focus on consumer rights. CCCS is a statutory board and has the power and legal authority to set and enforce national consumer protection standards. Critically, it will be able to protect consumer rights across a range of sectors and be a single point of contact for scam victims seeking redress.

This has recently been done in Australia with the passage of the Scams Prevention Framework Bill 2025. The Bill established the framework within the Competition and Consumer Act 2010, and under the supervision of the Australian Competition and Consumer Commission. As noted by the Minister at the Second Reading of that Bill, the legislation operates across a whole range of sectors, including social media platforms, and allows consumers to look at a trusted, centralised point within Government.

Sir, consumers bear the brunt of online scams and should be at the centre of prevention, detection, recovery and enforcement strategies. Our approach would be strengthened by having a centralised consumer protection agency, like CCCS, set and enforce such standards across a range of sectors.

E-commerce

Mr Melvin Yong Yik Chye (Radin Mas) : Mr Chairman, the annual complaints statistics released by CASE showed that e-commerce complaints reached an all-time high in 2024, surpassing even the peak caused by the COVID-19 pandemic.

E-commerce has fundamentally changed the way consumers shop, creating new consumer protection concerns and exacerbating existing unfair business practices.

In my Budget debate speech, I spoke at length about the importance of ensuring that our consumer protection regime and legislation are updated and remain fit-for-purpose in this e-commerce era. What is the Ministry’s plan to tighten and enhance consumer protection for Singaporean consumers, who are increasingly turning to e-commerce?

Progress Update on IMC and SME Pro-Enterprise Office

Mr Mark Lee (Nominated Member) : Chairman, as a result of feedback from the Alliance for Action on Business Competitiveness, Senior Minister of State Low Yen Ling announced the establishment of the SME Pro-Enterprise Office (PEO) to tackle regulatory challenges and strengthen Singapore’s pro-business environment. In parallel, the Inter-Ministerial Committee (IMC) for Pro-Enterprise Rules Review was formed to ensure that regulations remain agile, business-friendly and aligned with Singapore’s economic competitiveness.

Can MTI provide an update on the progress of the IMC and the SME PEO, and how these initiatives are working together to streamline processes, reduce compliance costs and ensure that pro-enterprise policies translate into real benefits for SMEs? How will these efforts help Singapore businesses stay competitive amidst rising costs and global headwinds?

Alliance for Action on Business Competitiveness

Mr Neil Parekh Nimil Rajnikant (Nominated Member) : Chairman, in February 2024, MTI and the Singapore Business Federation launched a bold collaboration – the Alliance for Action on Business Competitiveness. Over nine months of consultations with more than 100 business leaders, 13 trade associations and 17 public agencies, this alliance produced 27 recommendations to tackle key challenges in manpower, land use and regulatory frameworks. These recommendations serve not merely as proposals but as a roadmap to transform obstacles into opportunities, whether through diversifying our talent pool, extending industrial land lease tenures or streamlining regulatory processes.

Alongside this, as mentioned earlier, an Inter-Ministerial Committee on Pro-Enterprise Rules Review was established under Deputy Prime Minister Gan Kim Yong. This committee is focused on reducing compliance costs and easing regulatory burdens, particularly for SMEs. A key outcome is the launch of the SME Pro-Enterprise Office under Enterprise Singapore, which is being welcomed by all trade associations and SMEs. This one-stop centre promises to be a game-changer by providing direct, hands-on support to businesses navigating complex regulations.

Mr Chairman, these initiatives underscore our strong commitment to cultivating a vibrant and competitive business environment. I seek an update from MTI on two fronts. First, how is the implementation of the Alliance for Action’s recommendations progressing? What specific measures are in place to ensure their effective and timely execution? Second, how will the SME Pro-Enterprise Office engage with businesses to alleviate regulatory challenges and integrate their feedback to keep our framework agile and responsive?

Easing Regulatory Compliance and Cost

Ms Jessica Tan Soon Neo (East Coast) : Mr Chairman, regulatory requirements are important for maintaining a stable and trustworthy business environment in Singapore. Hence, to operate a business in Singapore involves compliance with several ongoing regulatory requirements. Depending on the business sector, there may be additional sector-specific mandatory compliance requirements. With businesses, especially smaller businesses, facing increasing business costs, what efforts are being made by the Government to simplify and streamline rules and regulations to reduce compliance costs for businesses?

The IMC for Pro-Enterprise Rules Review was established in April 2024 to improve regulatory efficiency and to ease compliance burdens, especially for SMEs. MTI also announced the establishment of the SME Pro-Enterprise Office (PEO). Can MTI provide an update on the IMC for Pro-Enterprise Rules Review and the SME PEO?

Update on SME Pro-Enterprise Office

Mr Keith Chua (Nominated Member) : Mr Chairman, businesses need to continue to manage costs efficiently, especially in a competitive environment. As mentioned by Members previously, can MTI provide an update on the the IMC for Pro-Enterprise Rules Review and the SME Pro-Enterprise Office (PEO).

Specifically, what are the key areas that have been most helpful for SMEs? What has the feedback from SMEs been so far? Are we seeing positive response by SMEs in accessing the services? Will new SMEs also find the PEO beneficial?

Innovation, Growth and Sustainability

Mr Edward Chia Bing Hui (Holland-Bukit Timah) : Mr Chairman, Singapore’s next phase of economic growth hinges on reinforcing our position as a global hub for startups and innovation. Despite a strong entrepreneurship ecosystem, startups continue to face challenges in securing growth funding, with valuations under pressure and increased dilutions for founders and employees. How will the Long-Term Investment Fund and Private Credit Growth Fund help address these challenges?

Beyond capital, networks are crucial in scaling enterprises. Strong global networks enable startups and high-growth enterprises to internationalise. How is MTI fostering an ecosystem where personal networks support enterprise scaling?

As Singapore strengthens its status as a global wealth hub, many high-net-worth individuals possess vast business networks. How is MTI engaging these individuals to deploy patient capital and activate their networks to help local enterprises expand internationally?

Our commitment to net-zero by 2050 requires decisive action, particularly in decarbonising the power sector. Higher renewable energy costs may impact business competitiveness. Can MTI provide an update on strategies to ensure a sustainable transition while maintaining economic competitiveness?

Singapore, as a leading financial hub, is well-positioned to shape the carbon trading market. However, transparency and accuracy challenges remain. Given our reputation for trust and competence, how is MTI nurturing a carbon trading ecosystem that leverages on Singapore’s strengths?

A key aspect of carbon trading is transferring international mitigation outcomes, requiring corresponding adjustments via G-to-G agreements. How is MTI collaborating with regional partners to develop beneficial frameworks?

Energy efficiency remains a priority. While past Budgets have introduced grants for energy-efficient systems, will MTI enhance these grants to accelerate adoption? Given the high energy consumption of large buildings, will MTI introduce grants for large building owners to drive meaningful energy savings? Specifically, as land intensification in business parks presents an opportunity to deploy district-wide energy solutions, such as district cooling, how is MTI ensuring that these projects incorporate energy efficiency targets at the design stage?

MTI has introduced several initiatives to enhance the business environment. The Inter-Ministerial Committee for Pro-Enterprise Rules Review and SME Pro-Enterprise Office (PEO) were launched in 2024. Can MTI provide an update on their impact on improving regulatory processes and benefiting businesses?

Collaboration between multinational enterprises (MNEs) and local businesses is key to scaling globally. The Partnerships for Capability Transformation Scheme fosters such partnerships, but what is the utilisation rate of the scheme relative to its budget? Does the scheme require enhancements to strengthen the complementary relationship between MNEs and local enterprises and support local enterprises to scale globally?

Personal relationships are critical in business. With the trend of onshoring and MNEs relocating key functions closer to home, how is MTI ensuring that MNE decision-makers remain in Singapore, enriching our business networks?

For local enterprises to scale, economies of scale are crucial. I propose the existing merger and acquisitions (M&As) support programmes could be expanded to include joint ventures and shared services. Additionally, grant schemes, such as the Enterprise Development Grant and the Productivity Solutions Grant, could be restructured to offer higher grant quantums for joint enterprise development rather than individual efforts.

Turning to Singapore’s tourism and lifestyle sector. Tourism is a key pillar of Singapore’s economy. Last year, the Singapore Tourism Board (STB) announced the Tourism 2040 roadmap. Can MTI provide an update on its progress and future efforts to keep Singapore competitive as a top global destination?

Singapore’s local arts scene has immense potential to offer unique, authentic experiences for travellers seeking cultural depth. How is MTI working with local arts practitioners to integrate their content into tourism and enhance Singapore’s appeal to repeat visitors?

At the same time, the nightlife sector has faced significant challenges. Nightlife is not only a lifestyle offering but also a complementary component of Singapore’s broader tourism experience. Does STB view nightlife as an integral part of our tourism strategy? If so, how is it supporting the industry to remain relevant and aligned with evolving consumer preferences?

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Singapore’s economic resilience depends on fostering innovation, transition to a low-carbon economy, strengthening local enterprises and revitalising tourism. By supporting startups, enhancing business networks, advancing sustainability and promoting tourism, we can cement Singapore's global hub status.

The Chairman : Ms Foo Mee Har, you can take your two cuts together.

Attracting Innovative Companies

Ms Foo Mee Har (West Coast) : Chairman, Singapore is home to some of the world's most innovative companies. Over the years, we have built a strong reputation as a trusted, forward-looking hub for technology and enterprise. This is reflected in the World Intellectual Property Organization's (WIPO's) Global Innovation Index, where Singapore ranks fourth globally, behind only Switzerland, Sweden and the United States.

To solidify our position as a global innovation hub, 2025 Budget introduced key initiatives to attract top entrepreneurial talent, deepen financial markets and drive research-led enterprise growth. These measures will build upon Singapore's strengths as a global startup hub, where a business-friendly environment, world-class infrastructure and commitment to innovation have fostered a thriving deep-tech, fintech and research-driven ecosystem.

Our startup ecosystem continues to gain global recognition, with Singapore rising from sixteenth position in 2020 to seventh in 2024 in the Global Startup Ecosystem Ranking. However, to sustain this momentum, we must ensure that startups at every stage of growth have the capital needed to scale successfully from Singapore. While we have a thriving early-stage funding ecosystem, high-growth companies often face challenges in securing capital to scale and expand.

I want to ask how will Singapore enhance venture capital participation, attract global investors and build a deeper late-stage financing ecosystem? How will the new $1 billion Private Credit Growth Fund contribute to nurturing high-growth enterprises and keep them anchored in Singapore?

Sir, the Global Founder Programme, announced to encourage global founders to anchor and grow ventures in Singapore, is a welcome initiative. However, how will this programme be structured to qualify candidates? More importantly, how do we ensure these founders remain rooted in Singapore for the long term and contribute meaningfully to the broader enterprise ecosystem?

Integration is key. How will we embed them effectively into our economy? We must ensure these global founders choose to scale with Singapore rather than to relocate to larger markets once their ventures take flight.

Research and Innovation Ecosystem

Chairman, Singapore's commitment to research and development (R&D) has been a cornerstone of our economic strategy, keeping us competitive in an increasingly knowledge-driven global economy. Through our annual budget, we have consistently invested in innovation as a driver of growth, with the Research, Innovation and Enterprise 2025 (RIE2025) plan allocating $28 billion – approximately 1% of GDP – to strengthen our technological and scientific capabilities.

These sustained investments have positioned Singapore as a leader in key high-value sectors, including biotechnology and semi-conductors. Budget 2025 reinforces this commitment by further investing in R&D infrastructure. However, while world-class infrastructure is essential, its full impact depends on a skilled workforce, the ability to commercialise research and strong industry adoption.

To fully realise the potential of these investments, we must address three critical factors. First, talent development. How will the Government strengthen our talent pipeline to support these R&D facilities? Second, commercialisation. What measures will help translate research breakthroughs into viable industry applications? Third, sectoral growth. How will these facilities drive broader industry development and create opportunities for local enterprises to scale and compete globally?

Sir, strong R&D support has been central to attracting and retaining MNEs. MNEs have long been a cornerstone of Singapore's economy, driving innovation, investment and job creation. They contribute significantly to GDP, high-value employment, R&D and global trade connectivity. However, we must recognise the growing vulnerabilities associated with MNEs amid the shifting geopolitical dynamics.

Rising protectionism, global trade realignments and economic nationalism are prompting some MNEs to reassess their global supply chains, restructure their Asian operations and diversify investments. These factors introduce uncertainties in the long-term business commitments and investment flows, posing challenges to Singapore's role as a strategic hub for global enterprises.

Given these challenges, I ask the Minister: how will Singapore strengthen its value proposition to retain and attract MNEs? What long-term strategies will ensure that we remain a critical global business hub despite shifting geopolitical currents?

Global Hub for Startups and Innovation

Mr Neil Parekh Nimil Rajnikant (Nominated Member) : Chairman, Sir, strengthening Singapore's position as a global hub for startups and innovation will be key to driving competitiveness and increasing productivity. With increasing global competition, we must continually enhance our startup ecosystem to remain at the forefront of innovation.

I have three questions for the Minister. First, can MTI share how it intends to attract and support top-tier startups, specifically in deep-tech and sustainability sectors? Second, how will MTI further strengthen funding access, talent attraction and market expansion support to help these companies grow and thrive in Singapore? And lastly, could we consider a regulatory sandbox model, allowing high-growth startups to test innovations under controlled conditions as we have already successfully done in the fintech industry?

Commercialisation of Intellectual Property

Mr Mark Lee (Nominated Member) : Chairman, Singapore universities and research institutes produce a wealth of intellectual property (IP) in the form of patents, which hold significant potential to drive innovation and economic growth. How can the Ministry work with universities, businesses and other stakeholders to accelerate the commercialisation of these research patents, ensuring that their benefits are retained within our local economy? Specifically, are there plans to enhance existing initiatives or introduce new measures that prioritise local enterprises in acquiring and licensing university patents at accessible rates?

This would empower Singapore-based companies to leverage homegrown innovation for growth by ensuring that local businesses are the primary beneficiaries of our research investments, we can strengthen our domestic innovation ecosystem and build globally competitive enterprises.

Support for Internationalisation Efforts

Mr Keith Chua (Nominated Member) : Enterprise Singapore has a comprehensive set of schemes to help enterprises in their internationalisation efforts. Amid the uncertain global economic environment including emerging protectionism, what are MTI's plans to ensure the schemes remain relevant in supporting local enterprises with the potential and desire to internationalise and grow?

From the recent efforts in internationalisation, which sectors have fared well and continue to show scope for more companies to consider? From the recent efforts, have there been useful lessons that may benefit companies contemplating internationalisation given the increasingly crowded local domestic market in sectors, such as retail and food and beverage? Will local lenders look favourably on funding internationalisation for local enterprises?

Internationalisation

Ms Jessica Tan Soon Neo (East Coast) : Mr Chairman, Enterprise Singapore has several schemes to help companies including SMEs in the internationalisation efforts. In Budget 2025, several of the schemes, such as the enhanced Market Readiness Grant, that helps SMEs defray the costs of overseas market promotion, business development and market setup and the Double Tax Deduction for Internationalisation scheme that allows businesses to claim a 200% tax deduction on qualifying market expansion and investment development expenses, have been extended. The Enterprise Financing Scheme has also been enhanced.

Can MTI share how many companies have utilised these schemes and how successful their internationalisation efforts are? Geopolitical uncertainties and trade tensions will have a significant impact on SMEs as they look to internationalise. The threat of increased tariffs and regulatory compliance will mean higher cost and complexities for SMEs in their internationalisation efforts. Trade disputes will impact market access and cause supply chain disruptions. How will MTI ensure that the schemes remain relevant to support our local enterprises and what can be done to help SMEs mitigate the risks of internationalisation amidst the geopolitical uncertainties and trade tensions?

The Chairman : Mr Mark Lee, you can take your four cuts together.

Mr Mark Lee (Nominated Member) : Chairman, Singapore's economic success has always been built on our ability to connect with the world. As a small market, our businesses must look outward to scale, compete and seize opportunities beyond our shores. Enterprise Singapore provides a comprehensive suite of schemes to support enterprises in their internationalisation efforts, but as global competition intensifies and economic uncertainties persist, we must ensure that our strategies remain agile and responsive.

How is MTI ensuring that these schemes continue to be relevant and effective in helping local enterprise with the desire and potential to internationalise? Are there plans to enhance support for companies venturing into high-growth markets or navigating new trade barriers? How will we position Singapore businesses to stay competitive globally while ensuring that they have the right resources and networks to succeed abroad?

Private Credit Growth Fund

For our local companies to scale and expand globally, access to capital is crucial. The newly announced $1 billion Private Credit Growth Fund is a welcome initiative to provide more financing options for high-growth companies. Could MTI share more details on how this fund will be structured and deployed to best support businesses? Will the Government consider the management of these funds with private sector players? Specifically, what market gap does this fund seek to address and how will it complement existing financing schemes to enable more local enterprises to grow, internationalise and compete on a global stage?

Facilitating Mergers and Acquisitions (M&As) as SME Growth Engines

M&As should be seen as strategic growth engines for SMEs, enabling them to scale, innovate and compete effectively in regional and global markets. However, the high professional fees associated with M&A transactions covering advisory, due diligence and integration, often deter SMEs from pursuing such growth opportunities. Would the Ministry consider introducing a new grant scheme or expanding the Enterprise Development Grant to help SMEs defray these costs, thereby encouraging more firms to explore M&A as a viable growth strategy?

Beyond financial support, SMEs often struggle with articulating their valuations and long-term potential to potential partners and investors. To address this gap, could the Government collaborate with Trade Associations and Chambers to establish an Enterprise Financing Advisory Centre as a public-private partnership? This centre could guide SMEs through the M&A process, equipping them with the expertise to structure deals effectively, secure suitable financing and maximise synergies post-merger.

Additionally, workforce transitions remain one of the most complex aspects of any merger, particularly for SMEs with limited HR and change management resources. Would the Government consider enhancing the Career Conversion Programme to provide up to 90% salary support, capped at $7,500 per month, specifically for workers who need to be redeployed post-merger? This would help SMEs retain valuable talent while ensuring that workforce restructuring does not become a barrier to M&A-driven growth.

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By strengthening financial, advisory and workforce support mechanisms, we can foster an environment where M&A is not just an option for SMEs, but a strategic enabler of growth and transformation.

Enterprise Compute Initiative

The Government has introduced various funding measures to support businesses in adopting AI and digitalisation, helping them transform their processes and systems. However, beyond financial support, SMEs often require deeper guidance to fully integrate these technologies into their operations. How are MTI and other agencies ensuring that SMEs can effectively utilise the Enterprise Compute Initiative scheme, particularly in leveraging AI and digital tools to enhance productivity and competitiveness? In particular, how will the $150 million Enterprise Compute Initiative announced at Budget be structured to provide SMEs with the capabilities and technical support they need to accelerate their digital transformation?

Harnessing AI

Ms Jessica Tan Soon Neo : Mr Chairman, businesses, especially SMEs can benefit from AI adoption to enhance efficiency by streamlining business processes and reducing the need for manual interventions. AI tools can enable the analysis of vast amounts of data to provide insights to allow businesses to uncover trends and valuable insights to better understand customers, predict market trends, optimise supply chains. This allows for more informed decision-making and operational efficiency. AI can help catalyse innovation and provide competitive advantage by creating new products, services and processes that drive growth and competitiveness.

But AI adoption can be challenging for SMEs as it can be expensive, and SMEs have limited budgets and lack specialised skills and may not have quality data and large datasets. For businesses to truly reap the benefits of AI solutions, fostering a culture of innovation is essential. It is imperative to rethink and redesign processes and implement new workflows.

There are many schemes to support businesses to adopt AI. What is the rate of utilisation of these various existing support schemes and adoption of AI by businesses in Singapore. What impact has AI helped to achieve for businesses? For the new Enterprise Compute Initiative announced in Budget 2025, what are the criteria for businesses to be eligible?

Helping SMEs

Mr Don Wee (Chua Chu Kang) : Chairman, Enterprise Singapore plays a crucial role in supporting our SMEs through various grants and schemes in their green transition. However, the current reimbursement model creates uncertainty in capital recovery, discouraging SMEs from making much-needed investments in sustainable equipment.

To improve accessibility, I propose that Enterprise Singapore provide upfront financial support, particularly for vendors who have already cleared the agency’s onboarding criteria. Additionally, by leveraging AI and Government business data, we can proactively prequalify SMEs and invite them to apply for the relevant assistance schemes, thus removing the guesswork and streamlining support.

Finally, to further drive sustainable investments, Enterprise Singapore can facilitate the leasing of energy-efficient equipment, such as electric cranes and electric generators, so that SMEs can claim these expenses without the burden of outright purchases.

Supporting Heartland Enterprises

Mr Desmond Choo : Chairman, with more than 80% of Singaporeans residing in the heartlands, our heartlands are not just merely residential zones, but the essence of our nation’s identity.

Last year, we saw the introduction of the Heartland Enterprise Placemaking Grant (HEPG). Since its announcement, it is heartening to know that about 40 heartland merchants have expressed intent to leverage on this scheme as of September 2024. For example, Quan Shui Wet Market received the HEPG. It is a third-generation wet market business that has expanded into a fresh food grocer and now serves over 500 households daily. The company, which currently does not have presence in the east of Singapore, tapped on the scheme to gain exposure and market insights on residents in the east at the Marine Parade’s Easty Breezy Bazaar. It is a success.

Considering the sheer number of heartland merchants in Singapore, it might seem that 40 expressions of interest for the scheme might need further enhancements. Could the Ministry share how many heartland merchants have successfully secured the HEPG as of date, and what outcomes might be observed in terms of business growth and community engagement for these merchants? Has there also been feedback from stakeholders on how the scheme can be enhanced? Could the Ministry also provide an update on the effectiveness and outreach of its initiatives promoting the vibrancy of heartland businesses?

As we commemorate SG60 this year, let us restate our commitment to ensuring our heartlands remain dynamic, vibrant and reflective of the Singaporean spirit. Singaporeans are ever ready to support local. Hence, we must provide our local businesses with the help they need to enable them to help themselves ensure the viability and sustainability of their trades.

The Chairman : Next Member is not here. Mr Keith Chua.

Update on Heartland Enterprise Placemaking Grant

Mr Keith Chua : Mr Chairman, MTI and EnterpriseSG launched the Heartland Enterprise Placemaking Grant in 2024. Could MTI provide an update on the response to this grant from the merchants and how many applications have been received and how many have been approved.

Based on activities and events organised thus far, how has the response been from residents and the wider community? Have merchants benefited from increased footfall and business growth?

Key to all business is staying relevant and competitive. The alternatives, such as large malls located in the heartlands, also draw significant footfall. Will there be regular reviews to ensure this scheme achieves the intended outcomes?

Tourism 2040

Mr Neil Parekh Nimil Rajnikant : Chairman, Sir, the Tourism 2040 roadmap is aimed at setting out Singapore’s long-term strategy to drive quality tourism growth and strengthen our position as a leading global destination. Recent data indicates a positive momentum. Tourism receipts reached S$22.4 billion between January and September 2024, a 10% increase compared to the same period in 2023.

As mentioned by Minister Chee, Changi Airport's upcoming T5 will enhance our capacity to handle up to 50 million additional passengers annually.

Given these developments, could MTI provide an update on the progress of our tourism development efforts? Also, what strategies are in place to refresh our tourism and lifestyle experiences, ensuring Singapore remains an attractive destination amidst growing global competition?

Mr Speaker : Ms Usha Chandradas. You can take your two cuts together.

Johor-Singapore Special Economic Zone

Ms Usha Chandradas (Nominated Member) : Chairman, my first cut has to do with the Johor-Singapore Special Economic Zone (JS-SEZ) and whether specific initiatives have been put in place or will be put in place in order to support the arts community in opportunities overseas. I note that the arts and creative industries have not been expressly included in the 11 identified economic sectors of focus for economic cooperation.

One immediate area of interest to local artists is that of affordable studio spaces. I have heard of Singapore artists seeking rental spaces in Johor Baru due to high costs in Singapore. In fact, one common refrain in the local art scene is that the artwork produced locally tends to be small in size, simply because artists cannot afford large studio spaces for production.

Given the JS-SEZ’s goal of enhancing cross-border collaboration, are there plans to facilitate artist-friendly rental agreements, co-working studio spaces, or grant schemes to encourage creative businesses to expand within the zone? Could there also be bilateral initiatives, such as cross-border artist residencies, public art projects, or co-organised arts festivals, to connect Singapore and Malaysian creatives into the larger regional arts ecosystem? These initiatives could well be integrated into the economic sector of tourism which has been identified as an area for potential cooperation between the two countries.

As we develop the JS-SEZ together with our partners, it is important that arts and culture are not sidelined in favour of purely commercial interests. I hope that MTI can work with the Ministry of Culture, Community and Youth, and the arts community to explore ways to leverage this partnership so that we can support artists in securing affordable workspaces and good cross-border creative opportunities. I hope the Ministry can consider these suggestions and provide updates on its plans for Singapore's creative industries in the development of the JS-SEZ.

Future Plans for Music Festivals

My second cut is on Singapore’s future plans for music festivals. These festivals serve as an important meeting point for musicians, industry professionals, fans and the general public to create meaningful shared experiences and a lasting sense of community. They also offer substantial economic and soft power benefits. This is something that our regional neighbours have managed to successfully harness. Thailand’s Wonderfruit Festival, for instance, has evolved into a globally acclaimed event, attracting international visitors and elevating the country’s cultural prominence.

There is a widely held impression in the public sphere that the music festival scene in Singapore is far less vibrant than it was some years ago. To be clear, in my use of the term “music festival” I am referring to outdoor music events with a running theme, featuring more than three acts, and fringe activities like food and beverage stalls or artwork displays.

A Straits Times article in October last year noted that many events, A Straits Times article in October last year noted that many events, such as Baybeats, Mosaic Music Festival and the Singapore International Jazz Festival, all debuted between the 2000s and mid-2010s. However, of all of these festivals, only Baybeats remains. It features mostly niche local and regional acts, as well as free admission. I note that there has been some recent movement in the scene. The Yuewen Music Festival debuted in Singapore in December 2024, and the Sunda Music Festival is scheduled to take place in April this year. This is promising and I have four questions on the Ministry’s future plans.

Firstly, has the Ministry performed any assessments on how music festivals can have an impact on tourism and the economy and, if so, what have the results of those studies been? Secondly, is MTI engaging with the local music community to gather feedback on how music festivals can support their needs? Thirdly, has any funding been allocated for the development of these music festivals under the tourism development funds or otherwise? Finally, is there a timeline in place so that the music community and general public can be updated on future developments?

The Chairman : Mr Mark Lee. You can take your two cuts as well.

Decarbonising the Power Sector

Mr Mark Lee : Chairman, Singapore has set an ambitious goal of achieving net-zero emissions by 2050, but we must ensure that our transition to a low-carbon economy does not come at the expense of our competitiveness, especially as Singapore faces intensifying regional competition. Many of our regional peers are also advancing their sustainability agendas, but they are doing so while keeping energy costs low and maintaining a strong industrial base.

Can MTI provide an update on its measures to transition to a low-carbon economy, particularly in decarbonising the power sector while ensuring that energy remains cost-competitive for businesses? How will Singapore strike the right balance between sustainability and economic viability, ensuring that our industries remain attractive for investment and job creation, even as we push for green transformation?

Sustainability Reporting and Decarbonisation Roadmap

For Singapore to move forward, businesses must integrate sustainability into their operations. The Sustainability Reporting Grant and Singapore Emission Factor Registry, launched by SBF, have been instrumental in simplifying sustainability reporting. However, businesses, especially SMEs, continue to face challenges due to the complexity and resource-intensive nature of reporting requirements.

To further support businesses, would the Government consider developing a national standardised software with data templates to streamline sustainability reporting and reduce compliance burdens? Additionally, SMEs often lack inhouse expertise to navigate sustainability requirements. Could the Government work with trade associations and chambers to develop a step-by-step decarbonisation roadmap, equipping SMEs with clear guidance on sustainability adoption?

The Chairman : Next Member is not here, Ms Tin Pei Ling.

Low-carbon Economy for Digital Future

Ms Tin Pei Ling : The transition to a low-carbon economy, bolstered energy security and an increased supply of green energy are pivotal to sustaining and advancing our digital economy and aspirations. As digital technologies, particularly AI, become more integrated horizontally and vertically across industries and sectors, the demand for data centres and higher computing power will increase. The consequent demand for energy will also rise exponentially.

According to the Goldman Sachs Research, global power demand from data centers is projected to increase by 50% by 2027, with a potential rise of up to 165% by 2030 compared to 2023 levels. Such a surge is attributed to the accelerating deployment of AI technologies and proliferation of digital services.

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Further, training advanced AI models requires substantial computational power, also leading to heightened energy demands. For example, processing a unit of text in Gen AI models can emit a carbon footprint comparable to driving a gasoline-powered vehicle for five to 20 miles.

Hence, integrating green and clean energy sources into the digital economy is crucial. We will also have to diversity our energy sources to guard against geopolitical uncertainties and ensure our energy security. Thus, can MTI update on its measures to transition Singapore to a low-carbon economy, including the decarbonisation of the power sector?

How does the Government also intend to leverage our position as a financial hub and robust financial infrastructure to support our transition to a low carbon economy and securing green energy for our future needs? How does the Government plan to more actively participate in the carbon markets and position ourselves as a credible, vibrant, highly liquid and highly connected hub for carbon credit markets? And in doing so, how does the Government see itself partnering private companies, big and small, in achieving these aims?

Energy and Decarbonisation

Ms Jessica Tan Soon Neo : As a small resource constraint country, Singapore imports almost all of our energy needs. Ensuring stable and secure energy sources while transitioning to clean energy is a challenge.

Singapore is committed to achieving net-zero emissions by 2050. Singapore has made significant actions through strategies outlined in Long-Term Low-Emissions Development Strategy (LEDS) and Singapore Green Plan 2030 as well as the implementation of measures, such as the carbon tax and electrification of transport. Can MTI provide an update on the measures to transition to a low carbon economy, including decarbonising the power sector? What trade-offs will Singapore need to consider as we transition?

In Budget 2025, Prime Minister Wong announced that to meet our growing energy needs and to reduce carbon emissions, Singapore will study the potential of deploying nuclear energy and build capabilities in nuclear energy with a focus on small modular reactors. Can MTI share more details on Singapore's nuclear strategy and plans including safety, reliability and environmental impact of the deployment of nuclear.

Energy Fund

Mr Sharael Taha (Pasir Ris-Punggol) : Mr Chairman, the Future Energy Fund reinforces our commitment to a low carbon, sustainable and secure energy future. This is more than just a technological investment – it strengthens energy security, economic resilience and environmental responsibility.

As Singapore explores sustainable energy solutions, small modular reactors have emerged as a potential long-term option for clean and reliable power. Given rapid advancements in small modular reactor technology globally, how will the fund be deployed to assess its feasibility for Singapore?

What steps are being taken to enhance research, regulatory readiness and talent development? How are we working with international partners to accelerate learning and preparedness? How do we move swiftly from exploration to pilot programs and, ultimately, full-scale deployment?

The Chairman : Mr Saktiandi Supaat. Your two cuts together, please.

Energy and Decarbonisation Infrastructure

Mr Saktiandi Supaat : Thank you, Mr Chairman. Mr Chairman, Singapore has pledged to reduce its greenhouse gas emissions to between 45 and 50 million tonnes by 2035, which will put it on course to reach net-zero emissions by 2050. Can MTI update on its measures to transition to a low carbon economy, including by decarbonising the power sector?

Part of our strategy is to increase our clean energy imports from four gigawatts to six gigawatts by 2035, which is projected to meet one-third of our energy needs. Following the award of Conditional Approvals for multiple projects to import low carbon electricity from Indonesia, Vietnam, Cambodia, and even Australia , can MTI share what infrastructure is required to ensure imported energy sources are seamlessly fed into the Singapore energy grid in future?

We are also exploring the feasibility of alternatives such as nuclear power or hydrogen power plants. Considering the topped-up Future Energy Fund, what is the impact of decarbonisation on Singaporeans from an energy pricing perspective?

Liquefied Natural Gas and Hydrogen Strategy

Mr Chairman, liquefied natural gas (LNG) and hydrogen play a big part in our energy future. While we continue on our energy transition to low carbon energy, we must also ensure our energy security in the midst of increasing geopolitical tension and increasing electricity consumption year-on-year – with the exception of 2020 when COVID-19 hit.

Presently, natural gas has been powering around 95% of Singapore's electricity supply while coal, petroleum products and other energy products like biomass and solar supplied the rest. Singapore has also established itself as a leading LNG and bunkering hub in Asia, backed by investments including our LNG plant that can store more than 300,000 cubic metres of LNG. How relevant is LNG for Singapore, in terms of energy security?

As for hydrogen, besides the construction of hydrogen-ready power plants, can MTI share what are our hydrogen strategy plans and what are the use cases for Singapore over the next five to 10 years?

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The Chairman : Deputy Prime Minister and Minister for Trade and Industry.