4 key issues from second day of Budget debate  

SINGAPORE - As the House sat for a second day to debate the Government’s Budget, MPs turned their attention to support for workers, businesses and caregivers.

Many spoke about the link between creating a good environment for local companies and boosting wages for Singaporeans, while others asked if more could be done to help businesses tap artificial intelligence (AI).

Amid Singapore’s green transition, MPs also suggested ways to encourage businesses to decarbonise.

In all, 26 parliamentarians spoke. The House sits again on Feb 28, with Prime Minister and Finance Minister Lawrence Wong wrapping up the debate.

1. Artificial intelligence for businesses and people

Businesses can tap AI to transform and help workers upskill, several MPs suggested on both days of the Budget debate.

The topic was also raised by Deputy Prime Minister Heng Swee Keat, who chairs the National Research Foundation. He unveiled

an initiative to study how AI technologies can be put to practical use.

Called Applied AI, it will focus on healthcare, education, finance, advanced manufacturing, connectivity, logistics and transport, among other sectors.

The Government will also spend more to develop researchers who can bridge AI technologies and domain expertise, DPM Heng said on Feb 27, as he spoke about investments in research, innovation and enterprise.

Mr Edward Chia (Holland-Bukit Timah GRC) and Mr Henry Kwek (Kebun Baru) were among the MPs who urged greater adoption of AI.

Mr Chia asked if the $150 million Enterprise Compute Initiative to arm businesses with AI tools and cloud computing resources – recently announced in the Budget – can be scaled up so more businesses can benefit, particularly small and medium-sized enterprises (SMEs).

This would improve companies’ overall productivity, leading to sustained real wage growth for Singaporeans, he said.

Mr Kwek suggested that Singapore should build a national AI system in line with the country’s values. Off-the-shelf models may not fully account for considerations such as social harmony, security and ethical decision-making, he said.

He suggested that a centre of excellence for AI alignment be set up. This would work with AI service providers to develop models that meet Singapore’s standards.

Such a national system would mitigate against the risk of misaligned incentives or governance issues as Singapore moves to use AI in governance and business processes, Mr Kwek said.

“By establishing a strong foundation in AI alignment, Singapore can contribute to the development of ethical AI standards worldwide, shaping the rules that govern AI at the international level,” he added.

Meanwhile, Dr Tan Wu Meng (Jurong GRC) reminded the House that the promises of AI should not be the preserve of just a few.

He urged the Government to “democratise access to AI” by making the Enterprise Compute Initiative available to businesses of all sizes, and ensuring that every child gets a chance to learn the technology and has access to good quality AI models.

“It must be AI for the people, regardless of your socio-economic background, regardless of what you’re doing, regardless of whether you’re born into a tech-savvy family with lots of internet access who can pay for the latest model – or whether you are growing up starting with less,” he said.

“It must also be AI not just for big businesses with deep pockets, but also small companies.”

2. Sustainability, climate and energy

In the face of shifting geopolitics, some MPs sought clarity on Singapore’s green transition.

Mr Derrick Goh (Nee Soon GRC) noted that the US had withdrawn from the Paris climate agreement, and that global trends towards decarbonisation are uncertain.

Singapore had earlier announced that

its carbon tax would rise from the current $25 to as much as $80 by 2030.

Mr Goh asked if the cost would pay off “in the face of mixed signals on the world’s fight against climate change”.

He also asked if there could be more support for businesses to decarbonise.

Mr Don Wee (Chua Chu Kang GRC) asked that companies that voluntarily buy carbon credits to manage their emissions targets receive higher tax deductions, and that profits from qualifying green investments by Singaporean investors overseas be exempted from corporate tax.

This would encourage more businesses to make sustainable investments globally, he said.

He also proposed that firms that invest in electric vehicles be able to claim GST relief, which would spur early adoption and accelerate fleet transitions.

On clean energy, Dr Lim Wee Kiak (Sembawang GRC) said the installation of solar energy panels should be incentivised for both building and home owners.

Dr Lim’s suggestions included adding a requirement for solar panels in the Building and Construction Authority’s code for new buildings, and providing grants to private property owners to offset solar panel installation costs.

Doing so will empower individuals to contribute directly to national sustainability goals, he said.

On the first day of the debate, Workers’ Party MP Dennis Tan (Hougang) had also asked about emissions from international aviation and shipping, which are not covered under Singapore’s climate targets.

The planned expansion of Changi Airport, including the construction of Terminal 5, will lead to “a staggering increase in flights and consequently aviation emissions”, he said.

“What are our Government’s plans for cutting aviation emissions per plane seat, so that we will not inadvertently be accelerating climate change with the increase in airport capacity and flights?” Mr Tan asked.

3. Strengthening SMEs

Forging a good environment for local companies, especially SMEs, to do good business and create good jobs was a topic that came to the fore.

Miss Cheryl Chan (East Coast GRC) suggested a suite of moves to ensure multinational companies help nurture promising Singaporeans while securing space for SMEs to thrive.

Her proposals included Employment Pass quotas tiered in favour of SMEs, and a job rotation programme under which the Government would subsidise a multinational company’s cost of hiring and placing a Singaporean on an overseas stint. Those who wished to move on from their current employer could then be matched with an SME, she added.

Meanwhile, Mr Chia called for more collaboration between local enterprises and multinationals.

“Local enterprises can collaborate with MNEs (multinational enterprises) to innovate, create new products and services, and grow internationally by leveraging the MNEs’ network and referrals,” he said.

Nominated MP Mark Lee applauded moves in this Budget to invest long-term in energy, aviation and research, and suggested that the Government encourage larger players that benefit most from these investments to rope in SMEs as partners, such as through the Partnerships for Capability Transformation (Pact) scheme.

This would help create business opportunities and expand capabilities in the economy, he said.

Pact is a government scheme that defrays costs when a large company engages a smaller one, such as a supplier or joint venture partner.

Taking a different tack, Mr Wee suggested Enterprise Singapore revamp the way it evaluates SMEs for financial support, and how this support is disbursed.

“I propose that Enterprise Singapore offer upfront financial support, especially for vendors who have cleared the agency’s onboarding criteria... (and) use AI to pre-qualify SMEs for relevant assistance schemes and grants.”

4. Helping caregivers

Several MPs also spoke at length about helping caregivers to stay in or return to the workforce.

Senior Minister of State for Defence Heng Chee How reiterated his previous point from the 2019 Budget debate on the potential economic benefit of providing such assistance.

But achieving this would require companies, workers and the Government to make adjustments, including flexible work arrangements, affordable and accessible senior care, and redesigned jobs.

“With the advent of and strides made under Healthier SG, Age Well SG and the numerous relevant initiatives of the Ministry of Manpower, I urge that we seriously revisit this area and unleash its value.”

On the first day of the debate, Dr Tan had also underscored the need to keep employment a viable option for caregivers, as they risk losing their skills and relevance with time, which makes finding a good job later more difficult.

Non-Constituency MP Leong Mun Wai suggested an allowance be given to caregivers, which he said would create financial security for this group of Singaporeans, empowering them to pursue their career aspirations, form families, and build a better life.

The Progress Singapore Party MP proposed a $1,250 monthly allowance for parents or grandparents who are full-time caregivers for children under seven.

Labour MP Yeo Wan Ling (Pasir Ris-Punggol GRC) urged more support for families to access and afford migrant domestic workers (MDWs), noting that a shrinking family nucleus increases the need for domestic help.

“In addition, our families have asked for further assistance on being able to get temporary monthly work permits for replacement MDWs when their permanent helper goes on home leave,” she said.

Mr Alex Yam (Marsiling-Yew Tee GRC) said the Government could do more to support mothers, such as by equalising childcare grants.

He called for the same level of subsidy to be provided whether a mother is employed or chooses to remain at home to care for her children, to send a message that every parent contributes immeasurably to Singapore’s future.