Hansard, Tuesday, 28 February 2023

1 Mr Yip Hon Weng asked the Minister for Education (a) what are the considerations when selecting (i) primary schools for relocation to new towns and (ii) single-sex schools to become co-ed schools respectively; and (b) how far in advance will such decisions be made known to parents so that they can plan ahead for Primary One admissions for their children.

2 Mr Gerald Giam Yean Song asked the Minister for Education (a) whether the Ministry has plans to relocate schools other than Anglo-Chinese School (Primary) that are currently located in higher income neighbourhoods like Bukit Timah to the HDB heartlands; and (b) what are the Ministry’s consideration in deciding to relocate schools.

3 Mr Gerald Giam Yean Song asked the Minister for Education (a) whether the Ministry has plans to convert more single-sex primary and secondary schools to co-educational schools; and (b) if so, what are the considerations for doing so.

Mr Speaker, Sir, may I have your permission to take the first three Parliamentary Questions (PQs) together, please?

Please do.

Mr Speaker, Sir, when planning the locations of new schools and reviewing the distribution of schools across Singapore, including possible relocations, the Ministry of Education (MOE) takes into account current and projected residential populations to meet educational needs both at the national and at the local levels. In deciding whether or which school to relocate, we are also mindful that each relocation case and its circumstances are unique.

In general, all new schools that MOE opens are co-ed, as is the case of schools opening in recent years in Punggol or those slated to be opened in Tengah. This is to ensure that these new schools meet the local demand for school places for both boys and girls, especially since home-school proximity is an important consideration at the primary school level.

In the specific case of ACS (Primary) School, ACS Board of Governors had discussed with MOE on a possible move of one of their two primary schools in the Bukit Timah area to the heartlands to serve a different community and to inject more diversity into their student profile. In the course of these discussions, MOE offered a Tengah school site to the ACS Board of Governors (BOG), but explained that it would not be tenable for the school not to take in girls at its Tengah location as that would constrain school options for families in the area. MOE was glad that the ACS Board was open to this request, and subsequently, ACS Board informed MOE that ACS (Primary) School would be the relocating school.

MOE does not have a plan to proactively convert existing single-gender schools to co-ed schools, but we have had several such cases over the decades. As the circumstances for each case are different, MOE takes a customised approach and discusses with key decision-makers in each school to facilitate the transition and provide the necessary support.

Where there are major changes for schools, including relocation and turning co-ed, MOE will give advance notice as far ahead as possible once plans are firmed up, and will work with the schools on transition arrangements to minimise impact and inconvenience for existing students and their families.

Mr Yip Hon Weng.

Thank you, Mr Speaker. I declare that I am on the board of governors of a mission school and the parent of children in an ACS school but not ACS (Primary). I thank the Minister for his reply. Can I find out what is the Ministry's thinking on single-sex schools and whether the long-term direction of the Ministry is to allow the establishment of more single-sex schools to introduce more options in the education landscape or that we are moving towards more co-ed schools?

Mr Speaker, Sir. I will make two points. First, MOE neither have or not have a preference between single-sex or co-ed school. Many of these schools have a history and that is why they are where they are now. Having said that, there have also been a number of single-gender schools that have turned co-ed, which may or may not involve relocation in recent years. These include Canossa Catholic Primary School, De La Salle School, St Anthony's Primary, Geylang Methodist Primary, Fairfield Methodist Primary. So, each case is unique and we will work with the stakeholders accordingly.

The second point I will make is that I would reiterate what I have said just now. For every new town, we need to find and create spaces that provide for the local community needs. So, for example, we will prefer the schools to be co-ed because that would better meet the local community needs. Imagine you have three new schools in a new town. Imagine we have a total of six children – three boys, three girls. If all the three schools are co-ed, the chances are that each of the school will have 50% boys and girls. But if one of the schools is not co-ed and it is a single-sex school, then, mathematically, what it means is that the other two remaining schools, chances are that, will have an imbalance between the boys and the girls.

Mr Gerald Giam.

Thank you, Mr Speaker. I declare that I am an alumni of ACS but not ACS (Primary), and I am the parent of a student in one of the ACS secondary schools.

Given the shrinking cohorts of students, will more schools in older estates in the future be moved to new estates in this fashion? And did MOE conduct any consultation with existing and future Tengah residents who are likely to be the parents of future ACS (Primary) students? Lastly, what would happen to the ACS (Junior) site on Winstedt Road after the school moves out in 2039? I understand that there might have been some recent enhancements done to the campus and would that go to waste when the campus is returned to MOE.

Mr Speaker, Sir, on the first question, the answer is that we will look at the demand according to each of the redevelopment plans in the respective new towns. We also have plans to rejuvenate the old towns. So, whether it is a new town or a old town, we will have to look at the current demand and the projected demand in planning for our schools.

The second to the third question – what will happen to the site at Winstedt Road after 2039 – I think the answer is that it will be returned to the state.

The Member's second question is?

My second question is related to the third question because if there were some enhancements done on the site, then would it be a waste.

Yes, so from now to 2039, we have a good 15 to 16 years to go. So, after 2039, the site will be returned to the state. On the other question on whether the ACS board consulted its stakeholders, I think the ACS board did consult the relevant stakeholders but it had to keep it to within a tight circle, given some of the sensitivities with this move, particularly, price sensitivities related to the property market.

Mr Gerald Giam has also brought up a very important point. In making any decision, we have to consult not just the current generation of stakeholders but also future stakeholders. And in any democracy, as I mentioned the other day, one of our biggest challenges is that it may not always be possible for you to consult your future stakeholders because they are not there yet. Because the future residents of Tengah have not even gotten their flats yet and they may or may not know whether they will be residents of Tengah.

Having said that, there is where leadership comes in, from both MOE and the ACS board. We have to project not just the needs of the current generation, but also the needs of the future generation. Since the announcement has been made, I think our ground feedback has generally been positive, particularly for the people staying in the West to have the added options of the new schools, including ACS in Tengah. Not just ACS in Tengah but also the broader plans of the siting of the various new schools in the Tengah and Hong Kah area.

4 Mr Louis Ng Kok Kwang asked the Minister for Social and Family Development for FY2021/2022, what is the average and median social worker to caseload ratio at family service centres.

Mr Speaker, in Financial Year (FY) 2021, the average and median social worker to caseload ratios at Family Service Centres (FSCs) were 1:19 and 1:20 respectively.

Mr Louis Ng.

Thank you, Sir. I thank the Minister for the reply. I spoke up about the workload of social workers during my Budget debate speech last year. Two clarifications. One, it seems like the caseload has dropped, so could I ask what efforts the Ministry of Social and Family Development (MSF) has put in, in terms of reducing the amount of work for our social workers? And two, whether there is also a similar reduction in the amount of administrative work that social workers are doing in the last FY?

I do not have specific answers to those points raised. Generally speaking, we look at the sector very carefully, all the time, and we look at work environment. It is not just about the workload. We look at the organisation, the environment in which they work in. We look at the kind of challenges they meet and in fact, whether the challenges are those that they enjoy overcoming.

One of the areas we always look at is how to uplift the management quality so that when you come to work, every Monday is a Friday and every Friday is a Monday. It is that kind of place where you want to come to work and really feel sad that it is a Friday and you are going for your weekend. We are not there yet, but I can say that some of the FSCs are doing far better than others and we really want to uplift their quality of work. Certainly, the load with which our social workers are facing is one of the many factors that we are looking at.

5 Ms Mariam Jaafar asked the Minister for Transport considering the continued rise in motorcycle COEs whether additional measures to the changes implemented in March 2022 to encourage prudent bidding are being considered.

To help buyers obtain their motorcycles sooner, motorcycle dealers bid for and hold onto some Category D Temporary COEs or TCOEs, which can be used to first register a motorcycle before subsequent transfer to a buyer upon purchase.

With rising Cat D COE quota premiums, there were some concerns that dealers were speculatively bidding and holding on to TCOEs. Thus, in March 2022, the Land Transport Authority (LTA) adjusted the Cat D COE bid deposit from $200 to $800, and shortened the Cat D TCOE validity period from six months to three months, to encourage prudent bidding behaviour.

We will continue to monitor the situation closely and consider further actions, if necessary.

Ms Mariam Jaafar.

I thank the Senior Minister of State. We agree that the Government has done quite a bit in trying to contain the issue of motorcycle COEs, including the move on prudent bidding. It did have an impact for a few months after the implementation. But motorcycle COEs are now going up again. This is a really important issue to the people who actually rely on their motorcycles to do their work. Can the Ministry say more if it is willing to consider raising the bid further? Or if that is not the issue, are there any other moves that can help to bring down motorcycle COEs?

I thank the Member for her supplementary questions. Let me say that we share the same concerns. I think many other Members of Parliament, including the Government Parliamentary Committee Chairman Mr Saktiandi Supaat has also raised these concerns.

As I have said, we understand the concerns of the potential buyers of, for instance, motorcycles, particularly if it is for their livelihood. So, we closely monitor the situation. As I have also noted in my earlier reply, we have made some moves in March with regard to the validity period – we shortened it and raised the bid deposit. To reduce the quarter-to-quarter volatility for the COE premiums, we have changed the method of computation for COE quota, which would also help in terms of the motorcycle COE premiums.

But some of these changes, the impact may take some time to flow through. We are monitoring the situation and we are prepared and will consider further actions if necessary.

Mr Pritam Singh.

Thank you, Mr Speaker. Just a question for the Senior Minister of State, in view of the reply to the hon Member Ms Mariam Jaafar. In the last decade, I understand LTA had allowed for the transfer of up to 25% of COEs originally put aside for Cat D motorcycles and allowed them to be transferred to the Open Category. That number then was reduced to 10% and I think now, the transfer is not allowed anymore – or at least, that policy has ceased, that is, the move from motorcycle COEs to the Open Category, to Cat E.

Can I ask has LTA ever transferred COEs from the open category to Cat D, for the motorcycles, to raise the number of COEs available for motorcycles?

I would say that, as the Member has pointed out, we have stopped the contribution of the number of the COEs from the motorcycle category, Cat D, into Cat E; whilst the others would have continued to contribute a certain percentage. I stand to be corrected but I do not think that there has been instances where we have actually done the reverse.

6 Mr Leon Perera asked the Minister for Law (a) what is the average timespan of a manually-handled court case as compared to one managed under the Integrated Case Management System (ICMS); (b) what is the number of State Courts cases that have been adjourned over the ICMS system failure on 7 February 2023; and (c) what is the typical frequency and duration of ICMS maintenance.

Mr Speaker, the State Courts' Integrated Case Management System (ICMS) was officially launched in 2015. The State Courts decide on matters relating to their case management systems, such as procurement and maintenance. The following is based on information received from the State Courts.

The ICMS is used to manage all criminal cases in the State Courts. Judges and litigants may use ICMS to access case records, schedule hearings, upload documents, file applications and generate Court orders. An average of around 184,000 criminal cases were filed each year from 2018 to 2022 on ICMS.

The ICMS currently undergoes scheduled weekly and monthly maintenance, which takes about four or 10 hours, respectively. Scheduled maintenance is carried out after Court operating hours to minimise disruptions to users.

After the disruption to ICMS happened, the State Courts activated their business continuity plans to ensure that Court hearings could proceed despite the disruption. This included printing hard copy documents, where appropriate, for parties to refer to and Judges recording their notes on Microsoft Word.

As a result, the vast majority of criminal cases were not affected. The average time to manage these cases manually on 7 and 8 February 2023, as compared to the average time if the cases had been managed under ICMS, was not specifically tracked.

Only 16 of the 2,037 criminal cases scheduled on 7 and 8 February 2023, that is, less than 1% of the scheduled cases, had to be adjourned. Minimal disruption was caused to these adjourned cases.

Mr Perera.

I thank the Senior Parliamentary Secretary for her reply. Just two supplementary questions and I understand, of course, that you will have to relay this information from the State Courts. The first question is: is there a plan to overhaul the system? It seems to me that weekly maintenance that can take between four and 10 hours is quite burdensome and there is also feedback from some lawyers that the system is a bit clunky and slow, and sometimes, glitchy – that was reported in the media article. So, I am wondering if there is going to be a more thorough overhaul coming up in the future.

And my second question is, I understand that the system for requesting criminal case management conferences is, right now, not integrated with ICMS. You would have to go to a separate page on the Attorney-General's Chambers (AGC) website. So, is there a plan to integrate that functionality into ICMS?

I thank the Member for the question. I want to clarify on the point of the timing for the maintenance. Actually, it is four hours for the weekly maintenance and 10 hours for the monthly one, which are done during times when the Courts are not in operation. That takes about 328 hours of downtime, out of a total of 8,760 hours in a year. So, it is about only 3.7% of the hours in a year. In a way, it is a small number.

The second point I want to mention is the fact that we note some of the feedback given by the lawyers. I know that it was largely coming out from the article, so I am not sure if it is necessarily representative. But that is something we can look into and I take the feedback back. I think it is something that we want to continually improve on. There are suggestions made on the integration of the Criminal Case Management System (CCMS). That is something we can take back and look into.

7 Mr Louis Ng Kok Kwang asked the Minister for Home Affairs of the number of children under 12 years old who were injured in taxis and private hire cars respectively in the past five years, how many were not (i) wearing seat belts and (ii) seated in child car seats at the time of the accident.

Mr Speaker, under the Road Traffic Act, we require all passengers to wear seat belts when travelling in motor vehicles. For passengers under 1.35 metres in height, we require them to be properly secured using approved child restraints, which include child car seats, or using seat belts when seated in booster seat cushions. The latter applies for all motor vehicles except taxis.

Between 2018 and 2022, 48 children under 12 years old were injured in taxis. As the use of child restraints and seat belts when seated in a booster cushion for passengers under 1.35 metres in height is not required for taxis, we do not have readily available data on whether children were seated in child restraints or wearing seat belts during an accident.

For private hire cars, between 2018 and 2022, 63 children under 12 years old were injured in private cars. At the time of the accident, 35 were not wearing seat belts and 28 were not secured using child restraints or seatbelts while on a booster cushion.

Mr Louis Ng.

I thank the Minister of State for the reply. Could I ask whether the Ministry of Home Affairs (MHA) can start tracking, in terms of number of children who are injured in taxi accidents? I think we need to understand that the magnitude of problem, and then, decide whether there needs to be a shift in the policy.

And second clarification relates to the first. Could I ask MHA, from a safety standpoint, why is that this exemption for taxis under the Road Traffic (Motor Vehicles, Wearing of Seat Belts) Rules of 2011? From a safety standpoint, why is that an exemption? I know I have asked the Ministry of Transport (MOT) that, but perhaps, I could hear from MHA what their perspectives are.

Sir, I thank the Member for the supplementary questions. This is not the first time the Member has been asking, and in fact, one is we take his suggestion. And second, since the time he started to ask until today, I think we can agree that there have been positive developments.

And if you look back at the answers provided by my colleagues from MOT as well as MHA, you realise that because there are diverse needs within the society, for the transport aspect of it. But at the same time, we also look at the safety of the passengers. And today, you have the ride hail app, which provides that option to those who may want to take this option. At least, three companies have provided that option. This is a very positive development. During some of the pilots that either MOT or MHA had, the response was quite mixed.

So, I think it is something that we need to navigate carefully, but my personal view is that things have moved positively and we need to continue this journey, putting in mind the diverse needs of our people with safety at the forefront.

8 Mr Yip Hon Weng asked the Prime Minister with the use of ChatGPT by civil servants to write reports and speeches (a) what are the types of reports that will still be done exclusively by civil servants; and (b) how will the Government ensure and validate the accuracy of ChatGPT-assisted reports and speeches.

Mr Speaker, Sir, as part of our efforts to utilise technology to encourage innovation and productivity in the public sector, the Government is exploring how large language models, such as those underlying ChatGPT can help officers do their work more effectively. One such effort is the development of Pair, in which we see potential in helping civil servants with parts of the writing process, such as summarising long reference material, exploring related ideas, or improving the clarity of writing.

Pair is still being developed. The Government aims to pilot this with a number of agencies and will carefully evaluate the results before determining how best to roll it out to the broader civil service. To ensure data security, the Government has struck an agreement with Azure OpenAI, the large language model provider, for Government information to remain confidential. In addition to these technical safeguards, work that contains highly confidential or sensitive information will still be written exclusively by civil servants.

As suggested by the name "Pair", the intent is for it to serve as an assistive tool that civil servants can leverage to improve their productivity, rather than entirely automating the writing process. Ultimately, civil servants using the tool are still directly responsible for making policy decisions, as well as crafting, refining and customising the content of documents to ensure that they are relevant, accurate and appropriate.

The Government is committed to ensuring that we are well-positioned to benefit from innovations, such as ChatGPT, while managing the associated risks.

Mr Yip.

Thank you, Mr Speaker. I thank the Senior Minister of State for his reply. I have two supplementary questions. First is, how much productivity gain is expected to be achieved as a result of this initiative; and two, will the affected civil servants be redeployed to other portfolios or take on other forms of work.

Sir, it is a little bit too early to calculate the expected gain in productivity. The tool is still being developed. The second question about redeployment, our experience in other parts of Government, with the use of productivity enhancement tools or automation, has resulted not in redeployment of personnel, so much as redevelopment of job roles and the tasks that officers are engaged in.

This has been our experience for a number of years across the number of Ministries and agencies. It remains to be seen what the effect will be of this tool, as I said, it is early days yet.

9 Mr Louis Ng Kok Kwang asked the Minister for Sustainability and the Environment in each year since 2019, how many complaints relating to secondhand smoke from neighbours has the Ministry received.

Sustainability and the Environment): The National Environment Agency (NEA) received about 400 instances of feedback on smoking in homes in 2019. In 2020 and 2021, the number increased to about 2,000 each year, as more people worked from home during the COVID-19 pandemic. Feedback on smoking in homes has since decreased to about 900 instances in 2022.

Mr Louis Ng.

Thank you, Sir. Could I just ask the Senior Minister of State for the data of the 900 instances last year, how many are first-time complaints and how many are repeated complaints?

Second, while it is increased and then decreased, I think the data still shows that pre-pandemic, and now, post-pandemic the data look like it is doubled the number of complaints. So, I have asked this before, could I ask again, what is the threshold that we are looking at before we will really look into changing our policies? Is there a specific number of complaints we need to receive, like high-rise littering, before something changes?

I do not have the number of repeat complaints and first-time complaints, but of the 900 instances of feedback, 622 are actually unique feedback. So, that is the information I have. As regards to threshold, let me first again reiterate, as I have done many times, that we take a serious view about second-hand smoke and we sympathise with every case that is affected by second-hand smoke.

So, we take a multi-prong approach, both at the local level as well as at the national level. At the local level, every time there is an instance of such a case, we go down, send advisory, encourage or verbally advise the smoker, as well as look at whether enforcement can be done, if the second-hand smoke is actually emitting from the common corridor. And this is what we have done.

On the national level, we have done many things, just at this Budget, we have announced that there will be an increase in tobacco tax, and we hope that that would deter smoking and reduce the prevalence of second-hand smoke too; amongst others, legal age limit and so on.

So, it is not the threshold. We continue to look at how we can improve the situation and mitigate the cases, and every case does matter to us. I think we also need to, not to trivialise the issue because it is serious, but we need to put this in context and have a proper perspective. And that is, 900 is out of 21,300 smoking feedback for 2022.

In addition, we all know that we live in a very high-rise, highly dense, highly urbanised society. If you look at it, first, the number of residential developments, for instance, is ever increasing. So, it is not static. And we are talking about, just for HDB flats, more than a million HDB flats.

We need to take that in perspective, every case we take it seriously and we do sympathise with the resident. We will do whatever we can to address this, but we also need to put this in perspective and be pragmatic about it. It cannot be that we spent an inordinate amount of expenses and effort when enforcement may not be effective. So, we continue to look at what else we can do, including legislation for smoking at homes.

Mr Louis Ng, a very quick one. You just have about a minute plus.

Just a quick one. I mean, to put things into perspective, every other day, one person in Singapore dies that is attributed to second-hand smoke. And I think that is a perspective that we should really look into.

Indeed, as I have said to the Member, we take every case seriously. So, when we take the case seriously, it means that we are also very serious. We are also concerned about the outcome of second-hand smoke.

Thank you. On that serious note, order, end of question time. The Clerk will now proceed to read the Orders of the Day.

[Pursuant to Standing Order No 22(3), provided that Members had not asked for questions standing in their names to be postponed to a later Sitting day or withdrawn, written answers to questions not reached by the end of Question Time are reproduced in the Appendix.]

[(proc text) Order read for consideration in Committee of Supply [3rd Allotted Day]. (proc text)]

[Mr Speaker in the Chair]

Mr Chairman, I beg to move, "That the total sum to be allocated for Head V of the Estimates be reduced by $100."

Sir, as in every MTI COS debate, we start by taking stock of the economy. So, let me kick off by asking the Minister on how has the economy fared in 2022 and what he sees as the outlook for 2023.

In the Budget Statement debate, Deputy Prime Minister and Finance Minister painted a mixed outlook going forward. Major economies like US and EU are seeing slower growth and may enter into recession. The war in Ukraine may escalate or prolong, which could further weigh on global trade, hold up energy and food prices and dampened consumer and business confidence. The bright spark is the reopening of the China economy, which could boost demand for the global economy.

However, the intense rivalry and competition between major powers has led to countries taking unilateral actions to decouple in trade, technology, finances and investments. To shore up their economic security, we have seen countries like US introduced the Chips Act; and China implemented the Export Control Law to reduce dependencies on other countries.

Sir, globalisation is no longer what it used to be and we are entering into a period of geopolitical instability. Domestically, Singapore is also running up against serious internal resource constraints; among others the ageing resident workforce, rising wages, decarbonisation, high rental and land costs, higher taxes among others.

Against this backdrop, can I ask the Minister how would Singapore navigate and respond to this increasingly complex and uncertain operating environment? How do we stay competitive and how should our businesses prepare for these challenges?

Sir, we are increasingly seeing the emergence of transformative technologies disrupting existing business models and industries. The proliferation of disruptive technologies such as AI, blockchain, Web3 are expected to have uneven impact across businesses; with some embracing the changes and others falling behind. The gap will likely widen.

The global shifts towards renewable energy are another challenge that businesses must contend with. The journey to transit to low or zero carbon is expected to be a taxing one for businesses especially the SMEs. Besides higher carbon taxes, the immediate impact would be the initial higher energy costs and the additional resources needed for the shift.

Next, comes the manpower crunch that businesses faced. Notwithstanding layoffs in the tech sector, the labour market continues to tighten. The turnover of foreign labour, where the experienced workers go on home leave whilst the newer inexperienced workers take on, add to the tightness of the manpower situation. I am also concern about the overdrive mode of our domestic economy, especially in the service sector. It would further squeeze to the limited manpower availability and drive up costs.

Sir, there may well be more businesses to do out there for the businesses, but companies are just unable to find the manpower to benefit these opportunities in the near term.

Improving productivity and efficient utilisation of resources are the only way out to create new capacity for further growth. The ITMs are our main playbook to improve productivity and to press on with innovations and internationalisation. Can I ask the Minister for an update on our industry transformation efforts so far?

Sir, at last year's Budget, the Minister for Trade and Industry unveiled the Singapore Economy 2030 vision and strategies. Under this vision, there are four key pillars identified which would drive new growth, namely services, manufacturing, trade and enterprises. I would like to ask the Minister how have we progressed towards this vision?

Sir, while we should be concerned about our inherent constraints and strive hard to overcome them, our economic fundamentals and propositions remain strong. Our handling of the pandemic and the balanced approach that we have taken has lifted our credentials. We are the early movers to reinstate air travel which helps to strengthen our air hub status and our premier status as an international convention centre.

Investors see attractiveness in our overall economic proposition and are even prepared to pay the premium to invest or hub in Singapore. Before the pandemic, we do not have a single facility that produce vaccine. But in the next two years, five pharmaceutical companies will be setting up plants here, which can churn out a billion doses of vaccines annually. It will create new job opportunities and new economic value add.

Credit goes to EDB, MTI and the other agencies for continuing to attract quality investments to Singapore despite the intense competition and more challenging circumstance.

Sir, the Government has announced the planned implementation of the BEPS 2.0 Pillar Two in 2025; where would see higher corporate tax rate. We would need to sharpen our competitive edge to attract and retain investments. The $4 billion top up of the National Productivity Fund, which has had its scope expanded to include investment promotion as a supportable activity, is one of the new tool kits. Can I ask the Minister how he sees the impact to our attractiveness as an investment destination with this move?

Sir, venturing beyond our shores, is also another growth strategy to help overcome our domestic limitations. The Global Enterprises Initiative and the SME co-investment fund are targeted to support and help businesses scale up and be globally competitive.

Can I ask the Minister how are we supporting our firms to capture opportunities from the region and other emerging markets? Also, what steps is Singapore taking to strengthen our trade, economic and digital linkages with other economic partners?

Sir, our economic successes have brought us benefits but also problems as well. But it is always a better position having to deal with the problems of success than to deal with problems of failures. Fortunately for us, we are in a position to build on our past successes and strengths to secure an exciting future for all of us in the new era.

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

Sir, Singapore must plan to re-establish our position as a global business hub, in this post-COVID era.

Last year, MTI announced our Singapore Economy 2030 vision across four key pillars of Services 2030, Trade 2030, Manufacturing 2030 and Enterprise 2030. Among other things, we aim to grow our export value from $805 billion to at least $1 trillion from 2020 to 2030 and double our offshore trade value from US$1 trillion to US$2 trillion over the same period.

These are challenging targets considering the economic conditions and headwinds. Global unemployment is expected to rise by millions both this year and next, which may force countries to become more protectionist. Soaring interest rates discourage investments into R&D and training. Also not forgetting the phased carbon tax and measures that will be coming in force to secure Singapore's longer-term future.

Can the Ministry provide an update on our progress towards the four key pillars of Singapore Economy 2030? Based on prevailing investment trends, can I see the Minister's crystal ball or trend forecast in terms of how will the structure of the Singapore economy evolve over the next decade? Does it create jobs, disrupt potential jobs and set the tone for our future generations?

Mr Sharael Taha, both cuts, please.

Thank you, Mr Chairman. The National Productivity Fund was established in 2010 and has been instrumental in driving productivity in Singapore's businesses. Deputy Prime Minister Wong mentioned that the National Productivity Fund will be topped up with an additional $4 billion and the scope of the fund will be expanded to include investment promotion as a supporting activity.

While we expand the scope of the fund to anchor more quality investments into Singapore, how do we ensure that the funds are effectively used by businesses to drive real productivity improvements that will lower the cost of doing business in Singapore?

Given that $4 billion is half of what we spend on the Ministry of National Development (MND) and about the same amount that we spend on the Ministry of Social and Family Development (MSF), what will be the measure of success for the National Productivity Fund?

Mr Chairman, the cost of doing business in Singapore is continuously rising. This is especially due to the rising cost of labour which can be attributed to the tight labour market. Aspiration of workforce to have higher pay each year and our collective desire to pay our lower-wage workers better through the Progressive Wage Model.

Our strong currency also means Singapore-based businesses are finding it harder to compete through costs in the global market. Furthermore, additional headwind such as the impending carbon tax and the implementation of base erosion and profit-sharing BEPS 2.0 Initiative, would add even more cost to doing business in Singapore. While businesses in Singapore face these pressures, in the meantime, the US and other countries are rolling out subsidies to build up their industries and hence, reduce Singapore's attractiveness for investments. As tax equalisation in BEPS 2.0 also implies that we have one less instrument to assist us in attracting investments into Singapore, how can we generate non-tax incentives to enhance our business competitiveness to continue to attract foreign investments when we lose preferential tax rates as one of our competitive levels?

Sir, across the world, we see exciting innovations catering to the needs and well-being of seniors. These range from technology to monitor health conditions at home, to senior-friendly food, to robotic pet dogs that keep lonely seniors mentally and emotionally engaged.

Singapore is one of the most rapidly ageing societies in the world and faces a manpower shortage in the care sector. While various agencies such as the MOH, GovTech and IMDA have led the way in certain areas, can more be done to collaborate with the private sector and encourage local enterprises and startups to expand into such technology?

There is some evidence that the testing and tailoring of aged care innovations could bring about profits for local businesses. For example, a Singaporean-based company called SilverActivities designs and evaluates games, applications and devices suited primarily for seniors. Their products are designed to stimulate, train and preserve the seniors' cognitive functions such as memory, problem-solving, language and learning.

Nursing homes have given glowing testimonials of their products. Companies such as SilverActivities have the potential to expand out into international markets when the time is right. In a recent blog article published by Enterprise Singapore entitled "Silver economy: Is the business of ageing a sunrise industry?", the author pointed out that in the Asia Pacific region, the silver economy market was projected to be worth US$4.6 trillion by 2025, just two years from now. Market opportunities were identified to be in telemedicine, healthtech, elderly nutrition and assisted living.

There are opportunities for Singapore to pioneer, pilot and grow silver industry players that may in time export these goods and services to other countries facing the same demographic challenge. How is the Government catalysing the potential of the Silver Economy?

Thank you, Sir. Mr Chairman, it was evident during the global panic in the earlier phases of the pandemic that Singapore has to be self-reliant with resources to combat and resist the spread of the next wave of infectious diseases, and that it is important to have a strong biotech and biomedical industry of our own.

Our efforts to promote and grow the sector have been in place since 2000. And we have seen increases in manufacturing value add and growth in jobs in the sector. Indeed, figures from 2018 showed that we employ five times more biomedical researchers per capita than the US. The sector also was a bright spot during the economic hard times of the pandemic years.

It is also the case that the Government has invested a lot in the sector. The sector does well when it comes to manufacturing, although commentators have said that there is room for improvements for innovation capability.

Yet, in spite of this view, some of our biotech enterprises are doing promising, innovative work in interesting areas. For example, as Singaporeans, we are proud of our food heritage and it seems a match made in heaven for our companies to focus on what is going into our bodies and how our bodies react to what we consume. Thus, the research and innovative work done by startups and early stage companies into precision gut microbiomes here in Singapore deserves our full support.

I believe that there are currently efforts to maintain Southeast Asia's first and only gut microbiome transplant bank, along with building the world's largest multi-ethnic Asian gut microbiome database. The gut microbiome is neglected at our own peril, as it has also been found to play important roles in regulating our immune systems and controlling brain health and function.

This field therefore appears to hold promise when it comes to providing insight tailored to the specificities of a population and has implications for more efficient use of our resources in our health efforts, from developing effective preventive health strategies to managing or minimising chronic illness, to having more tailored and accurate public education advice when it comes to dietary habits suited to the genetics of our mostly Asian population.

The work is cutting edge and is especially cogent in light of the launch of Healthier SG last year. It would also make sense to have such knowledge and input be taken on board into our public health systems in an age of rising health and other care costs.

Are our systems sufficiently set up to be able to support such companies to be able to first secure the necessary funding to first research, then develop and market cutting edge products for us to export to the rest of the world?

While I note Minister of State Low Yen Ling's reply to me in a Parliamentary Question (PQ) outlining the steps taken to address concerns over potential manpower and talent shortages, particularly at the senior, C-suite levels, I would like further clarification about the success rate of our schemes after more than two decades in training Singaporeans to equip enough of us with the right skillsets to be able to found, lead and expand our companies to make Singapore a prominent player within the biomedical and biotech fields.

On accessible support for small businesses, it is an economically difficult time especially for small and micro-businesses as they battle rising costs and inflation amongst other global headwinds in the wake of COVID-19. Additionally, these businesses would also be particularly hard hit by our green transformation.

Climate change is an amplifier. While it might sometimes melt into the background as other more pressing and tangible economic concerns take precedence, its impact and undercurrents do not go away. Small and micro-businesses will soon feel the trickle-down effects of increased environmental regulations and pressures. And it is important that sufficient and flexible support is provided for them to build capacity on sustainability matters in these times.

This is also, as Senior Minister of State Teo mentioned last week, that we will be enhancing our public procurement strategy, to take into account public sector sustainability efforts. Our small and micro-businesses should not feel confused or overwhelmed by the diverse schemes and other support options available to them with the attendant KPIs and targets.

Additionally, could the Government introduce a variety of nudges and incentives to encourage small businesses to more quickly integrate sustainability, in particular environmental sustainability, into their businesses.

I would also like to ask how the Government has taken steps to ensure that access to funding and support to navigate and successfully apply for green financing schemes are provided. For example, the Enterprise Innovation scheme could have sustainability integrated as part of the criteria for tax deductions as well as for grants under the co-investment fund. The Enterprise Sustainability programme can also be expanded to include support to access sustainable financing opportunities.

Sustainability should be a driving focus of innovation and economic resilience and the Government is a key enabler to making this core to our small businesses.

Finally, on an EXIM bank. During last year's debate, during the Second Reading of the Carbon Pricing (Amendment Bill), my Sengkang colleague Assoc Prof Jamus Lim and I both spoke about the need for an EXIM bank and the role that such a bank can play in our efforts to assist our homegrown businesses, in particular our SMEs, internationalise. This is especially important as our domestic economy has natural limits due to our small size. The role of such a bank can be particularly helpful as we move along the great green transition, where we can seek help for our businesses in a changing world where climate concerns take front and centre.

We further noted that while former MTI Minister Lim Hng Kiang expressed reservations about financial and implementation risks that would be involved in setting up an EXIM Bank, apart from the Workers' Party's proposals, MTI's own Economic Strategies Committee has also called for such a bank. Additionally, structuring an EXIM bank well could in fact give us a key competitive advantage.

To address concerns about an EXIM bank turning into something akin to an aid agency, exposures to overseas customers could also be managed by lending to a borrower and having the borrower provide vendor financing to its international customers, as a borrower would be more familiar with the market in which it operates.

Singapore has limited options when it comes to sustainable energy. Our green financing needs would quite naturally be cross-border in nature. Many EXIM banks from China to Thailand and Hungary have also rolled out green financing facilities, also because EXIM banks have proven to have played a role in preventing complete collapse during times of economic crisis. They also provide some level of security to businesses by being the lender on record rather than have naturally higher-risk private banks or financial institutions be lenders through difficult times.

An EXIM bank can also play a part in developing and exporting green standards by being a sustainable lender or a ranger for capital market instruments. This means the EXIM bank would have full direct information about sustainability-related covenants and information on lenders and issuers to which they issue their products or lend funds to. It can then use these to address data challenges that can cause gaps in regional or even global green and sustainability financial markets. This would thus be a way in which Singapore can use to punch above our weight and bringing the world along in the transition to green financing.

Edward Chia. Not here.

During the COVID-19 pandemic, many Singapore SMEs faced significant challenges. For most, the pandemic has led to a significant decrease in demand for many products and services which has resulted in a decline in revenue.

They faced cash flow problems and find it difficult to meet their financial obligations, pay employees and invest in the future. This was especially so for those with high rental costs and depend mainly on physical stores and delivery.

The supply chain disruptions were severe and many could not access the resources and materials they need to operate. For many others, finished products could not be shipped or distributed. Most SMEs were not equipped for remote work. There were challenges communicating, coordinating and managing the businesses which led to problems with productivity and reliability of service. This is especially so for those who have not embarked on their digital transformation to complete their sales and marketing online.

During such challenging circumstances, what measures did the Government take to help local SMEs tide through the COVID-19 pandemic?

Businesses face several difficulties especially when operating costs are rising faster than expected with a higher inflation environment. As costs increase, businesses may need to raise prices to maintain their profit margins. However, there is usually a lag in price adjustments especially for those in the contract manufacturing or with ongoing or unfulfilled contracts. The cost of goods and operating costs continues to rise but these companies continue to face outstanding obligations leading to reduced profit margins.

Under such circumstances, many companies will face cash flow problems which is further exacerbated by higher borrowing costs and a tighter credit market. In a tightened financial market, businesses will have difficulty accessing financing especially those with high levels of debt or have a poor credit rating.

As such, what can businesses do to adapt to rising operating costs and tightened financial markets and what will the Government do to help them?

Chairman, our SMEs continue to navigate a challenging environment including rising costs. Financial markets are currently pricing the US Federal Funds Rate to reach 5.25%, reinforcing the view that interest rates will remain higher for longer. The interest burden for businesses are expected to at least be double compared to last year.

Locally, the GST increase would also impact smaller SMEs who are not GST-registered and a higher CPF salary ceiling announced in this Budget will add further pressures to businesses. In this regard, what further measures will MTI provide to support SMEs and encourage them to adapt in such a challenging environment?

Generally, SMEs are vulnerable to interest rate hikes and are keen to know if MTI will consider continued interest rate subsidies under the Enterprise Financing Scheme before they decide on whether to take more risk to pursue growth opportunities?

I have received feedback from SMEs welcoming Deputy Prime Minister’s response during the Budget debate, where he said that agencies will continue to streamline and improve the application process for Government assistance schemes, balancing convenience and accountability. On this point, can MTI share more details on what refinements to the existing administrative processes for Government schemes are being considered? Will there be more forums for SMEs to provide further feedback?

Mr Chairman, we would all agree that the Job Support Scheme, SGUnited Jobs and Skills, Enterprise Financing Scheme and other COVID-19 measures have helped our businesses tide over the difficult COVID-19 years.

We have after close to three years emerged from COVID-19 but unfortunately, we have to now deal with escalating food and energy prices and high inflationary pressures. Our companies are struggling with high business costs and manpower challenges. While the extension of the Enterprise Financing Scheme (EFS) and Energy Efficiency Grants (EFG) will help businesses sustain, many may not be able to afford to invest to build their business for the future because of the high interest rates.

Will MTI consider allowing SMEs to negotiate a temporary shortening of payment terms or payment advancement over a limited period? How can Government encourage our financial services ecosystem to support our SMEs to still invest in their businesses for the future?

With Budget 2023, it is clear that the Government is moving away from “handouts” to a Budget that “invests to build for growth, sustainability and resilience”. The $4 billion top-up to the National Productivity Fund (NPF) will help to support the much-needed productivity enhancements and the reskilling of workers. It will however require companies to drive change like job redesign, digitalisation, automation, reskilling and so on, and change is hard work. It is likened to many of us trying to get fit and learning to use “new muscles” and new diets. It will take time but to do this, we must. It is the foundation to staying healthy and competitive.

If driving productivity is hard work, transformation and innovation is even more hard work. It will take leadership at the very top to make it happen.

I am encouraged to hear the story of Jumain Sataysfaction, a Singapore food manufacturer whose bosses had an “a-ha!” moment when they participated in the Meatless Meat Challenge organised by Singapore Polytechnic’s Food Innovation and Resource Centre (FIRC), Singapore Food Manufacturers' Association (SFMA) and Enterprise Singapore (EnterpriseSG). They worked closely with the polytechnic students to finalise their concepts for creating a new product range with plant-based options. The Singapore Polytechnic (SP) students with their lecturers’ coaching translated the concepts into actual food products with relevant marketing and communication strategies. A new plant-based satay product was created and aptly named "SOVEG". SOVEG will soon be showcased at the upcoming Gulfood exhibition in Dubai. So, it is possible.

The new Enterprise Innovation Scheme announced by Deputy Prime Minister will help reduce the financial barrier for SMEs to embark on innovation projects like SOVEG. But to bring an innovation from creation to the market will take investments. How will MTI facilitate and encourage our Singapore companies to get started in their innovation journey and take it from creation to production to market?

Well, while it is a welcomed move to have the Government to step in to encourage innovation and share risks with SMEs on their innovation journey, there are many business leaders who are sceptical about the take-up rate and the short-term impact as innovation does take time to bear fruit and most SMEs are looking at "today" rather than "tomorrow". Innovation indeed is not easy. So beyond grants and financial assistance, how else is MTI going to help to develop a strong and vibrant innovation ecosystem?

We hear too often that Singapore’s market is too small. Our companies highlight uncertainty as the key barrier when internationalising. The uncertainty of demand, unfamiliarity of business climate and the ability to find suitable partners are some of the issues.

To support Singapore companies with their aspirations to internationalise, Enterprise Singapore (ESG) collaborated with SBF to set up Global-Connect@SBF. Let me share the story of Hot Spicy Mama, an SME offering tasty Singaporean flavoured ready-to-eat condiment products. In 2022, Global-Connect@SBF assisted Hot Spicy Mama to sell their products in Qatar and will be helping them to explore other markets in Middle East and South Asia. Beyond Singapore seems to be the way to go, but for those who are venturing overseas, Budget 2023 seems a little light on internationalisation.

Will MTI consider SBF’s recommendation to extend the Market Readiness Assistance (MRA) grant to cover manpower costs for related overseas market promotion, business development, or market set-up activities? How will the Government provide geopolitical intelligence support for our businesses in their market risk assessment and in navigating the geopolitical challenges as well as facilitating their internationalisation efforts?

Last year, MTI Minister Gan Kim Yong painted the vision of Singapore Economy 2030, refreshed Industry Transformation Maps (ITMs), signed digital economic agreements and green economy agreements to rally our tripartite partners to seize the many opportunities in our turbulent world and stay relevant in the global economy. I would like to ask Minister to give an update of the progress of Singapore Economy 2030 vision and the sectorial strategies as laid out in the ITMs?

Strategy without execution is daydreaming. So, execute we must. There is no silver bullet. Together, Forward Singapore is the only way to go.

I am glad you are referring to the F&B businesses and not something else. Ms Jessica Tan.

Mr Chairman, high inflationary pressures in 2022 have impacted the labour market. As Singapore emerges out of the pandemic, businesses require more manpower to operate at higher levels. Yet, some businesses we have spoken to, find themselves unable to fill positions for skilled jobs. Businesses from the manufacturing sector find themselves short of adequate talent, impacting the operations of businesses.

As of 2022, manufacturing accounts for approximately 20% of Singapore's GDP. Widespread operational constraints will impact the industry, leading to a decrease in output as they struggle to fill needed jobs. Operational constraints will also impact our attractiveness to foreign investments and affect Singapore's position on the global value chain. What should businesses do to adapt to the tight labour market and manpower challenges?

The Jobs Growth Initiative (JGI) scheme was successful in encouraging local hires amidst the COVID-19 crisis. Firms expanded their local workforce. With our tight labour market, businesses shared that talent is constantly moving around companies or industries. How do we help businesses find the appropriate talent to ensure consistent operations?

Our talent base needs to be skilled to match the growing sectors that require talent. I had asked a list of questions on the capability of the new Job-Skills Integrators, how will they be supported and funded to work with businesses and workers. Does their role include working with businesses to align career planning and training to upskill their employees to stay relevant as the businesses transform.

If we are able to plan for the reskilling and training of our talent in alignment with the profile of talent required to support the economic opportunities and growth, we will be able to grow a strong talent base and capabilities and provide fulfilling careers for workers.

It is imperative to develop our local leadership and talent. Local talent has a better understanding of the local market, including customer needs, cultural nuances and regulatory requirements. This can help businesses to better meet the needs of their customers and compete more effectively in the local market. This is especially so in Asia where the diversity of cultures and operating environment vary substantially.

However, when there is a tight local labour market, businesses will face much difficulty. There is a much smaller pool of available candidates, businesses struggle to find workers with the specific skills and experience that they require.

This is further exacerbated when there is an increased competition for talent within a single industry. Businesses will have to compete for the same pool of candidates. Many will have to offer higher salaries or better benefits to attract and retain employees and driving up business costs.

If businesses are unable to fill critical roles or have to rely on inexperienced workers, this can lead to lower productivity and profitability. Eventually, without a sufficient supply of skilled workers, businesses will struggle to expand or take on new projects.

As such, what can businesses do to adapt to the tighter labour market and manpower challenges? What is the Government doing to develop talent locally and preparing them to take on leadership roles and help their companies grow?

Mr Chairman, the manufacturing share of total GDP increased from about 15% in 1965 to nearly 30% by the early 1980s, but it has been declining since the late 1980s to hover around 20% today. The vision of Manufacturing 2030 is to be a global business innovation and talent hub for Advanced Manufacturing. However, while the manufacturing sector share of total GDP has stayed around 20%, its share of total resident employment has been on a steady decline since around 1990 and now hovers around 12%. The question to be asked is what must be done to create the manpower to achieve the vision of Manufacturing 2030.

As Singapore gets closer to the world technology frontier, the pace of technological diffusion slows down, thus moderating Singapore's per capita GDP growth. It will be the development of indigenous innovation such as the innovative activities and vision in Manufacturing 2030 that shall provide the additional growth to the Singapore economy in its mature phase. Central to achieving the vision, is the supply of both innovators and workers who make career choices to work in manufacturing.

First, what can be done to increase the supply of workers who make career choices to work in manufacturing? As the standard of living and wealth increase and educational attainments are higher, workers' preferences tend to shift. There are job tasks that people willingly perform when they are relatively less well-off but which they shun when they are richer.

An important idea from the assignment model of matching workers' skills and abilities to job tasks, is that a competitive labour market leads workers with different skill sets to be matched with job tasks of different complexities based upon their comparative advantage. Such a competitive equilibrium is socially efficient. However, suppose that workers' job preferences shift for reasons that are unrelated to comparative advantage. Let us say a job in the financial services sector now becomes more attractive than the job in the manufacturing sector. In that case, the size of the economy's total GDP will be suboptimal as people without comparative advantage choose to work in the financial services sector. The employment share of the manufacturing sector will then be sub-optimally low, while the employment share of the financial services sector will be sub-optimally high.

What might be done to facilitate the entry of more workers with the aptitude and skills to job tasks in the manufacturing sector?

Second, what can be done to help increase the supply of innovators? Factors such as the family environment and exposure to inspiring role models affect the likelihood of an individual to become an innovator. There could also be intrinsic abilities to innovate that might not be distributed equally among individuals. From a policy point of view, what can be done to harness the intrinsic abilities of individuals to innovate from an early age and provide the opportunity for them to develop these talents.

Can more scholarships, internships and exposure opportunities be given to students at the different stages of their education ladder to discover whether they have the passion for innovating? This must be done in conjunction with the different stages of innovation, from basic research to applied stages and on to the marketing of the new products or processes.

Translating inventiveness into the actual flow of ideas requires not just intrinsic talent but also education and training. There is also an issue of access to financial resources that can inhibit innovation. A talented individual who could potentially become a major contributor to creating new ideas that will lead to new products that can be marketed, might be born into a financially constrained family. What can be done to reach such individuals to help them achieve their potential to contribute to indigenous innovation?

Mr Chairman, an integration of all these efforts from the early stages of education to creating new ideas at the workplace will help to develop the country as an innovative global business hub to realise the vision of Manufacturing 2030.

Our Manufacturing and Services sectors have traditionally been strong drivers of our economy. Manufacturing contributes 20% to 25% of annual Gross Domestic Product (GDP), while our diversified services sector represented 74.1% of jobs at end-2022.

However, weakening growth around the world, protracted supply disruptions and synchronised interest rate hikes have slowed down our manufacturing output recently. Given the large and diverse range of services that fall under the umbrella of the Services sector, the Government should pay attention to equitable growth across different service industries in addition to the sector as a whole.

How have our Manufacturing and Services sectors performed over the past year and what is the Government doing to develop the sector and create good jobs given rapid changes in product cycles and consumer behaviour?

Our Advanced Manufacturing sector is well-known for exporting petrochemicals, pharmaceuticals and precision engineering products but changes to carbon transition will disrupt this. Singapore has also been a leader in financial services. But other developing economies are growing these capabilities and will vie for the pie at lower costs.

What are the growth and/or emerging industries and how can our firms seize opportunities in these areas?

Ms Jessica Tan. Two cuts, please.

Mr Chairman, the global economy continues to be challenged with inflationary pressures. To stay competitive, Singapore needs to remain attractive to global investors. Global companies choose to invest in Singapore for our skilled labour, as seen in our Manufacturing and Services sectors. We have also focused on developing our local companies in these sectors. How have our Manufacturing and Services sectors performed?

In order for our local companies to remain competitive, they need to innovate and stay up to date with technological developments to create more efficient processes. With rising costs of operations, businesses will need support.

Amidst global uncertainties, in the past year, we saw retrenchment and unemployment levels go up as businesses restructured their operations. Some workers might be at risk of redundancy and retrenchment. Our talent base is limited. Businesses need to transform and build capabilities in order to create better jobs and remain attractive. While reskilling is important for workers to transition to more relevant jobs, there needs to be alignment of jobs in demand and training. What steps is the Government taking to develop the sector further to create good jobs in these sectors?

Mr Chairman, Singapore's economy grew by 3.6% in 2022, amid a challenging economic environment and external backdrop. Good growth will create good jobs and sustainable businesses, and keep our economy resilient. Last year in the Ministry of Trade (MTI)'s Committee of Supply (COS), Minister Gan revealed Singapore Economy 2030 vision to strengthen our local businesses for sustainable growth in the services, manufacturing and trade sectors, as well as the Enterprise 2030 strategy to foster a vibrant ecosystem of Singapore enterprises that are future-ready and globally competitive. What is the progress of the strategies of Singapore Economy 2030? What are the growth and emerging sectors and how can businesses seize opportunities in these areas?

Last year, the Industry Transformation Maps (ITMs) for five sectors from the Advanced Manufacturing and Trade cluster were refreshed. The refresh of ITMs aimed to better support companies in research, innovation and digitalisation. They also set out to help SMEs by providing avenues for partnerships and better position companies for global opportunities. Can MTI share more details on how companies are doing and will be able to benefit from these ITMs?

The objective of the refreshed ITMs is to encourage the use of Industry 4.0 technologies. How are companies transforming and leveraging digital and tech solutions? How has the Government invested to transform and groom companies to adopt new solutions to remain competitive?

Sir, the 23 Industry Transformation Maps outline ambitious but achievable targets to ensure our business sectors remain competitive. These are now undergoing a refresh and complementary industries have also been clustered to encourage synergies between them. Could the Minister provide an update on when the remaining refreshed ITMs will be launched?

Enterprise Singapore administers the Enterprise Development Grant (EDG) to, amongst other things, assist companies with transformation. Would the Minister be able to share some insights into the effectiveness of the EDG in supporting businesses' transformation?

Separately, while it is important for the Government to support businesses as they transform, it is also important to ensure that they do not become reliant on Government support. The Government had put in significant resources to ensure that companies remain afloat during the pandemic, like the Job Support Scheme and Jobs Growth Initiative. These schemes have since tapered off, but other schemes continue to provide funding to companies.

I would like to ask if the Ministry is aware of the number of unprofitable businesses that rely on Government funding schemes to stay in business and whether there are any plans to deal with this. When such businesses eventually face the risks of going under as Government schemes ceases or are tightened, there is a risk that the directors of these companies who had guaranteed loans may become personally liable and face bankruptcy. Will the Ministry consider measures to assist such individuals, as they are also victims of the pandemic, albeit belatedly suffering the effects.

As businesses transform, there may arise a need or opportunities for mergers and acquisitions (M&A). The EDG currently supports the planning, assessment or potential mergers and acquisitions and post-M&A integration. However, the biggest cost in M&A is in the actual work done to close and effect the M&A, including drafting the M&A contract – but this is specifically not allowed under EDG. Would the Ministry consider extending EDG to support this as well.

Mr Shawn Huang, both cuts, please.

Mr Chairman, building up advanced manufacturing capabilities is important for a country in order to remain competitive and successful in the global economy.

Advanced manufacturing capabilities can contribute to economic growth by driving innovation, creating new products and services and increasing productivity and efficiency. This can lead to new business opportunities, job creation and increased competitiveness in the global market.

These capabilities drive technological advancement by enabling the development of new materials and production techniques. This can also help to enhance a country's reputation as a leader in technological innovation. It is critical for national security as these capabilities enable the production of key components and systems that are essential for defense and other critical applications.

For environmental sustainability, many new materials and advanced process are required to develop new products that contribute to environmental sustainability, enabling the production of more efficient and environmentally friendly products and reducing waste and emissions.

Today, there are significant potential for growth and innovation for robotics and space. Robotics can be used to automate production processes, increase efficiency and enhance quality control while space manufacturing can enable the production of advanced materials and components that are critical for space exploration and other applications.

These sectors will drive significant technological advancement as new products and services are developed and new materials and production techniques are used. As such, how are we building our manufacturing capabilities for the future?

Mr Chairman, developing innovative capabilities is essential for the progress and relevance of the enterprise as well as for the collective ecosystem of the industry. There are many downstream benefits such as better trained manpower, competitive learning and more rapid adoption of technology as well as sharing of best practices and collaboration for the joint development of innovative technologies.

Innovation is a key driver of economic growth and enterprises play a critical role in driving innovation. By developing new products, services and processes, enterprise can create new markets, attract investment and create jobs.

In a globalised economy, enterprises that are more innovative are better able to compete on a global stage. By investing in innovation, enterprises can gain a competitive edge and contribute to the country's overall competitiveness.

Innovation can also lead to increased productivity and efficiency, which can help to reduce costs and increase profits. This can help enterprises to reinvest in their businesses, create new opportunities and contribute to the country's economic growth.

Innovative enterprise are more able to contribute to social progress by developing products and services that meet the needs of a growing and diverse population. They can help to improve access to education, healthcare and other critical services and create new opportunities for individuals and communities, especially in the area of employment.

How is the Government supporting enterprises in growing their innovative capabilities?

Sir, the pandemic has accelerated digitalisation and transformed the way business is done. Budget 2022 provided a big push for our SMEs in their digitalisation journey, with $200 million to enhance schemes for them to build digital capabilities.

While this is gaining momentum, in tandem also with the commendable efforts in digitalising our heartland merchants and residents by the SG Digital Office, little has been said specifically on SME digitalisation in Budget 2023.

Given this, what is MTI's assessment of the digitalisation progress of our SMEs so far?

The need for SMEs to embark on or continue their digitalisation journey is an urgent one. What initiatives and measures is the Minister considering to further accelerate the digitalisation of SMEs in this Budget?

Mr Chairman, over the past year, Singapore has clearly stepped up in its green ambition.

We have committed to net-zero emissions by 2050 and passed the Carbon Price (Amendment) Bill in this House. We will raise carbon tax from $5 per tonne of emissions to $50 to $80 by 2030 to provide an economy-wide price signal to reduce emissions.

The public sector has also stepped up and made the commitment to reach net-zero carbon emissions five years earlier, by 2045.

These decisive commitments made in last 12 months should now translate to decisive actions.

We have seen sustainability efforts gather pace across Government agencies as well as large corporations. However, the picture is mixed with SMEs. According to UOB's SME Outlook Study in 2022, whilst three in five of Singapore's SMEs believe in the importance of incorporating sustainability practices, they face challenges in implementation.

Sir, the net-zero goal will increasingly become a prerequisite in the expectations of customers, investors as well as regulators across the world. It is urgent that we support our SMEs to take action to stay competitive and relevant.

Companies are increasingly subjected to tighter sustainability reporting and regulations, particularly those with trading partners such as the EU, which have placed higher standards. As more trading partners follow similar measures in meeting their own goals of net zero by 2050, our businesses will face growing pressures to adapt or face obsolescence.

It is critical that the Government supports industry to achieve a better understanding of the impact of a low-carbon future on their business and help them with the know-how and innovations that are available to make the green transition.

I would like to call on the Government to help them with four interventions: (a) promote sector-based sustainability road maps, frameworks and uniform standards to level up knowledge and understanding; (b) support our companies with pre-identified sector-based green solutions to fast-track adoption, including supporting them in test-bedding new ideas and experimenting with new technologies; (c) leverage the ecosystem to build scalable green capabilities and collaborations, including knowledge-sharing platforms; and (d) build a framework to help companies comply with reporting requirements and compliance practices that are required by their counter parties.

Sir, making the green transition will incur substantial investments by these companies. I would like to ask the Minister what strategies will the Government adopt to help companies cope with higher business costs arising from investment in low-carbon equipment, using sustainable supplies and adopting green processes? They also need to make provisions for the carbon tax hike.

Sir, the introduction of the new Enterprise Financing Scheme Green (EFS-Green) to support local firms with a range of financing needs is a great initiative. However, companies have pointed out that the financing terms, which are intended to fund green transition, actually do not go far enough to spur adoption.

With the Government sharing up to 70% of the risk with partner financial institutions, I would like to ask the Minister what expectations have been laid down with participating financial institutions to provide preferential loan terms and interest rates under EFS-Green?

Sir, addressing climate change requires both mitigation and adaptation.

A Harvard Business Review report argued that whilst climate change mitigation efforts have been front and centre, more efforts must be dedicated to climate adaptation to help people, animals and plants survive because of the rising climate volatility.

I would like to ask the Minister how much is the Government's effort towards climate adaptation to help companies evolve organisational practices and infrastructure to deal with the inevitable climate risks such as floods, droughts, heat waves?

Equipping the Singaporean workforce to take on jobs in the green economy must be a key priority. As countries compete for green talents to meet Environmental, Social and Governance (ESG) needs in the coming years, Singapore must both attract the best of sustainability as well as develop our own capabilities to nurture our pool of talent to take up green jobs.

I would like to ask how many of such positions does the Government project to become available over the years? How can Singaporeans receive the necessary training and credentials to secure green jobs?

Mr Chairman, oil and gas prices have been on a rollercoaster for more than 10 years. The COVID-19 demand crash, followed by the supply collapse caused by the Ukrainian war, plunged the world into an energy crisis which threatened countries with blackouts and freezing winters.

Given the inherent volatility in energy production, supply and trading today, it is reassuring to hear our long-term plans to accelerate solar deployment, work with regional partners to develop regional power grids, import low-carbon electricity by 2035 and explore new alternative sources of energy.

It is encouraging that our National Hydrogen Strategy anticipates that hydrogen could supply up to half of power needs by 2050.

However, the ordinary Singaporean and company would be equally concerned with the shorter-term affordability of electricity. An update on the status and timelines of the consultation to enhance the regulatory regime for electricity retailers would be helpful.

How will Singapore safeguard our energy security and advance our energy transition despite our physical constraints and at the same time, balance the green transition? How are we preparing to deal with increased volatility in the global energy markets?

Mr Chairman, Singapore is a small country with limited natural resources. Our energy needs are mostly imported, with few options for renewable energy. Most of Singapore's energy is generated by natural gas. Lowering our carbon emissions while ensuring our energy security and reliability is a challenge.

In Budget 2023, Deputy Prime Minister Wong shared that Singapore is working towards the transition to solar energy and cleaner energy sources. He also mentioned working with our neighbours to develop regional power grids.

It is important for our transition to alternative sources of energy to be a gradual one. Our current sources of renewable energy are not sufficient to support all households and businesses. Even in resource-rich countries, the switch to renewable energy is not immediate and takes a few years.

While more research is being conducted for more viable approaches to renewable energy, we will need to educate and prepare households and businesses for this switch to greener energy. For businesses in particular, the adoption of renewable energy options might incur greater operational costs.

How is the Government investing to build Singapore's energy security to enable reliable and affordable sources of energy for businesses in line with our economic goals and environmental needs?

Sir, the protracted energy crisis continues to be a major challenge for the world. Faced with the need to keep prices low, countries are stockpiling energy and going back to coal. If this continues, it will be a vicious cycle, putting the planet's net-zero transition in jeopardy.

The notion that energy security has to be secured at the expense of energy transition is a false one. We need to address both in parallel.

In Singapore, this dilemma is an existential one that could erode our competitive position in the world economy. Businesses are citing energy prices as one of the main drivers of business cost in Singapore. At the same time, other geographies are luring industrial investments with cheap energy price, and luring clean energy investments by providing very attractive tax credits for producing clean energy.

Despite our challenges, Singapore has committed to drive energy efficiency and to decarbonise. But because 40% of our overall emissions comes from the power sector, decarbonising the power sector therefore has to be an even more urgent priority. For example, we have put solar panels all over many of our HDB blocks.

Can I ask the Minister how many of the solar panels are actually in operation today?

Can the Minister also provide an update on Singapore's efforts to enhance our energy security and accelerate our energy transition, including driving energy efficiency, deployment of solar energy, development of emerging low carbon technologies such as hydrogen and carbon capture, utilisation and storage (CCUS) and the import of renewable energy?

Mr Chairman, decarbonisation is a generation defining business opportunities and our Singaporean companies are well-positioned to lead the way.

According to the UOB SME Outlook Study 2022 Report, many SMEs understood the importance of sustainability. We need Enterprise Singapore to provide more assistance to SMEs so that they know how to measure emissions as many MNCs buyers have started to request their SME suppliers to furnish their carbon emission data.

What are the quantifiable aims of the Enterprise Sustainability Programme (ESP)? How does Enterprise Singapore promote this ESP to the 290,000 SMEs in Singapore?

I understood that many business consultants help to promote these Government schemes to the SMEs and assist these SMEs with the application of grants or reimbursements. These consultants' earnings are predicated on the loan amounts approved or amounts of grant received by the SMEs. If a particular scheme's approval process is lengthy or if there is no certainty that the grant can be approved after a huge amount of capital expenditure is incurred, the business consultants will only promote more straight-forward schemes, like Enterprise Financing Scheme, and not the ESP nor the Enterprise Innovation Scheme (EIS). I also hope that Enterprise Singapore can process the reimbursements according to the mini project milestones completed so that these SMEs' cash flow constraints can be alleviated.

Lastly, how can more support be provided to the small accounting and auditing practices which provide sustainability accounting or assurance services to the SMEs?

Sustainability reporting has been gaining traction and more large corporations are publishing their sustainability reports to both meet regulatory needs and also to show commitment to climate goals.

How is the Government planning to help SMEs in this shift towards greater accountability towards their carbon emissions to ensure they are able to meet the carbon accounting requirements of large corporations?

At Budget 2022, the Singapore Government announced a revised carbon tax framework effective from 2024. It also announced a transition framework to give existing emissions-intensive trade-exposed companies (EITE) more time to adjust to our new carbon tax policy, and to help maintain their business competitiveness.

Can the Government elaborate on the efficiency standards and decarbonisation targets that EITE companies would have to meet to receive transitory allowances for part of their emissions?

How long will these allowances be used for, and how will they affect the effectiveness of tourrevised carbon tax for incentivising decarbonisation?

Singapore is building a robust green talent pipeline in Government, industry and academia, as part of the Singapore Green Plan 2030. Green jobs ensure Singapore's long-term economic resilience and provide important social values. However, business costs have been increasing due to persistent inflationary pressures and other economic challenges.

What are the Government's efforts to increase the awareness and accessibility of sustainability-related information, knowledge base and opportunities to support our businesses and workforce in the green transition. How will the Government ensure sufficient green jobs and green growth opportunities for Singaporeans in the coming decades? How will the Government help businesses embark on sustainability initiatives while reducing costs?

Sir, to support our net-zero transition, and to turn the green economy into an engine of growth, we face a significant skills challenge. There is a high demand for talent to field green jobs and greening jobs, but there is a significant gap in supply. There is a need for a more urgent agenda in green skilling that addresses these gaps.

Existing skilling efforts must be sharpened and accelerated. The green skilling agenda must address gaps in green technical skills including deep engineering skills and supply chain skills, and move from awareness building to application orientation. Can the Minister provide an update on how Singapore will develop the skills needed for a green economy in its workforce?

I mentioned during the Budget debate that I am glad that the Government continues to encourage SMEs to look towards the longer term to transform and capture opportunities in the new economy, even as they are focused on overcoming near-term challenges.

A key thrust I raised was about helping our SMEs develop Environmental, Social and Governance (ESG) capabilities.

SMEs must adopt greener practices in their service and products, as well as measure, track and report their own carbon footprint. Such measurement is not easy to do but is essential to stay relevant in tomorrow's green supply chain.

Beyond internal transformation, SMEs should venture out to pursue green prospects. For example, countries in the region are boosting electric vehicle (EV) initiatives. This means opportunities for Singapore SMEs with capital and know-how. to help fellow businesses in the region to accelerate their green transition.

As transformation requires not just a push factor like carbon tax, can MTI further explain the pull factors that will be put in place to encourage and help SMEs in their green transition so that they can stay relevant and capture opportunities in the green economy?

I am glad that existing schemes, such as the Energy Efficiency Grant for the food and retail sectors, are retained. Nonetheless, while these two sectors presumably consume more energy, I hope more SMEs across sectors can be included as all local businesses should be brought onto the green journey. The reality is that SMEs, especially smaller ones, may not know how or where to start.

On this note, can MTI consider expanding the scope of current schemes and grants to spur our SMEs in more sectors?

In a nascent and growing market where standards have yet to achieve global consensus, there are opportunities for Singapore and our businesses to lead in the development of a credible regulatory framework and standards for carbon credits. These efforts will help establish Singapore as a growing and leading green hub, leveraging on and furthering our status as a trusted international centre for professional services.

To this end, can MTI share more on how businesses, including SMEs and the service sector, can play an expanded role, as part of plans to establish Singapore as an international green hub?

Mr Chairman, to achieve our target of net zero emissions by 2050 will require all in Singapore to work together.

Businesses are important stakeholders in our green transition. To make the transition will involve adoption of innovative measures and technology for businesses to be more sustainable and efficient. Often, this means that businesses will have to incur more costs. However, businesses are already facing increasing costs of operations and labour. In 2022, and now in 2023, the unit business cost in manufacturing and service sectors rose by 9.6% and 8.8% respectively. It is projected that these costs will continue to increase in 2023.

As we work towards decarbonisation, what are the Government's key measures to support businesses in the green transition? How will the Government make it viable for businesses to embark on sustainability initiatives to reduce cost? What support can be given to businesses to address current business costs pressures as they make the investments for the transition?

Being able to report their carbon emissions will increasingly become a requirement for doing business in many countries as well as with larger companies. SMEs may struggle to account for and report their carbon emissions if they are unable to deal with such costs. Does the Government have plans to support SMEs in their sustainability reporting?

Chairman, I want to record my appreciation to all my fellow workers in the power and gas industry for their tireless efforts to keep and ensure our lights on and the gas keeps flowing for our homes and businesses at all times, with or without COVID-19.

Our fellow workers regularly face brunt from the public whenever price hike is announced. When we, as workers, do not even have control over the price.

As a General-Secretary of Union of Power and Gas Employees, in short UPAGE, we represent about 6,000 workers in this industry, ranging from technicians, technical officers, engineers, admin assistants, managers, and even chief executive officers (CEOs). Our strong tripartism model also involves having regular discussions with the Energy Market Authority (EMA) led by their CEO.

Chairman, prior to today, my fellow members have been pestering me for any recognition or even monetary awards from the Government, just like our healthcare workers, for their efforts to ensure highly reliable electricity and gas supplies during the COVID-19 period. We all know our hospitals are equipped with many highly sophisticated machines and needs highly reliable electricity and gas supplies for them to operate efficiently. Have we ever imagined how it will turn out if we have power failure that would have failed the machines in hospitals during the COVID-19 pandemic?

Our workers also work round the clock but observed that we are hardly mentioned nor fairly rewarded. Hence, I am humbly appealing to the Minister to consider rewarding our workers for their efforts just as the Ministry of Health did for their healthcare workers earlier in November 2021.

Our power and gas industry workforce is not as large as that in the healthcare industry. Hence, it would not burn a big hole in MTI's pockets to reward us.

Chairman, the workers in this industry have gone through and overcome many changes and challenges together. Our next big thing is getting our fellow workers ready for new skill sets required for the new energy solutions. Calling and rallying workers to attend training is never an easy feat. In 2018, when SP Group embarked on Project Fusion, which meant future skills in everyone, my fellow union leaders and me, were given sarcastic remarks and bombarded by members and workers. We were labelled as pro-management. However, we believed in this project as it was meant to prepare our workforce for the job roles of tomorrow and the future.

The training focuses on technological and technical fronts. With such focus, it will result in higher value-add jobs and meaningful careers leading to better wages, work prospects and welfare. Our leaders led by example and stepped forward earlier to attend the designated courses and progressively brought everyone on board.

I am humble to share that we have succeeded in rallying 3,500 workers in acquiring new skills and achieved over 800,000 training hours. Amongst them, 200 workers have completed upskilling programmes and are applying their newly acquired skills in their new jobs. Importantly, management reciprocated by revising their wages after certain periods into their new job roles. We will not stop here but will continue to press on.

Another example is City Energy, previously known as CityGas, who have decided to expand their business and move into new energy solutions, like green hydrogen and electric vehicles charging. In order to prepare for this transformation, both the union and the management formed company training committees, followed by rallying and re-energising their workers in order to develop a strategically adept and proficient workforce.

UPAGE leaders will press on to advocate for our members' rights and long-term employability, in an efficient and a productive way. So, would the Minister for Trade and Industry who takes care of the energy industry, please do not disappoint us.

Sir, I declare my interest a trade associations and chambers (TAC) president. Strong TACs can act as force multipliers for their respective Industry Transformation Maps (ITMs), helping to communicate their objectives to businesses in their sector and to understand and encourage participation in the various schemes under the ITMs. However, not all TACs are the same. Some TACs are more able to play this role, while others, to be honest, are simply social clubs or talk shops, and yet others are plagued by internal politics and personal agendas and do not have much in terms of services to their members.

Would the Ministry consider introducing independent standards certification for TACs, perhaps based on the Singapore Chinese Chamber of Commerce and Industry (SCCCI)'s Growth and Competency Framework that was launched last year?

This could achieve two objectives: first to encourage TACs to level up in a structured manner and second, to help the other tripartite partners identify TACs that can play a bigger role in industry transformation.

These certified TACs could then be engaged by the Government to carry out such roles as administering industry-specific schemes and grants, and/or taking the lead in certain appropriate initiatives.

My second question, Sir, is a follow-up to a point I made in my Budget debate speech. The key tripartite partner at the national level representing businesses is the Singapore National Employers Federation (SNEF). On the MTI's pro-enterprise panel and other initiatives, the key business representative is the Singapore Business Federation (SBF).

Even if a distinction could be made that SNEF represents labour concerns and SBF represents commercial interests, I would submit this is an entirely artificial distinction, simply because labour and manpower considerations are one of the most important commercial consideration of any business, and often, it is also the largest item of expenditure. Hence, is there a need for two apex TACs?

In this regard, I would like to ask if the Ministry would consider merging SBF and SNEF in order to have a unitary national-level body representing businesses at tripartite and other forums.

Thank you, Chairman, businesses today have to cope with very different challenges compared to those in the past. The demands of the new workforce have seen a pivotal shift. Digital transformation has shaken the business landscape. Geopolitical tensions must now be navigated. Businesses also need to be on the constant lookout for opportunities in overseas markets to diversify. These are consequential and intractable issues. And this particularly affects our SMEs which comprise the vast majority and backbone of our economy in Singapore.

This is where trade associations and chambers of commerce (TACs) have important roles to play. Over the years, especially through our history, TACs, such as SNEF and the Singapore Chinese Chambers of Commerce and Industry (SCCCI) have been instrumental in the development of Singapore's business landscape by catalysing the building of capabilities in companies, especially SMEs. Their efforts in galvanising businesses to gain early mover advantages in then-emerging markets and capitalising from the digital transformation wave is what enabled Singapore to enjoy its status as a key business hub in the region.

In more recent years, TACs have also played their part in supporting a stronger Singapore. For example, the success of the CDC Voucher scheme would not have been possible without the support from TACs. For example, the Federation of Merchants' Association Singapore (FMAS) worked alongside the CDCs in optimising redemption procedures and onboarding hawkers and merchants onto the scheme. There are now over 17,000 participating hawkers and merchants, and this would not have been possible without the help of TACs. On the TAC's efforts in the SME front, over 25,000 SMEs received assistance from SME Centres run by TACs through business counselling, capability development workshops, and upgrading initiatives in 2022.

This clearly illustrates the vital role that TACs play in helping Singapore and its businesses. How can our TACs magnify their roles in rallying industries and guiding businesses to overcome and emerge stronger from challenges? How can we enable our TACs to better serve their members better?

TACs can also work with its partners to provide more overseas work opportunities for Singaporeans. As mentioned in my earlier Budget speech, overseas work experiences are highly valued by our younger people. With the extensive linkages enjoyed by our TACs across the globe, more can be done in terms of partnerships between companies to open up secondment programmes. By establishing such programmes between local and overseas companies or even between local and overseas TACs, benefits, such as skillset transfers and networking opportunities can come about.

However, the TACs face two challenges: talent shortages and funding.

First, what are the resources that TACs can tap on to strengthen their internal leadership development and training? Critical to a TAC's proper functioning is a strong secretariat because TACs' leadership are mostly comprised of business leaders contributing on a voluntary basis. Perhaps, the Ministry could look into expanding the public sector's secondment or attachment schemes to TACs. Such arrangements would be of mutual benefit to both TACs and the public sector with the exchange of skillsets and providing our people with broadened viewpoints.

Another way to ensure a larger talent pool for TACs could be through establishing structured internship opportunities between our institutes of higher learn (IHLs) and TACs. There may also be scope to look into improving training for current employees of TACs to ensure that skillsets remain updated and relevant vis-a-vis the issues to be tackled by TACs.

Next, on funding the TACs. First, the Ministry can consider funding TACs to assist Singaporean businesses to expand overseas. Indeed, the Ministry has done so with SBF via the GlobalConnect@SBF. Can the Ministry provide an update on the progress? While businesses must continue to capture opportunities in big markets, such as China and India, more must be done. For example, businesses must act fast to gain a first-mover advantage in emerging markets, such as Africa or Latin America. Is the Ministry considering expanding on programmes, such as GlobalConnect@SBF to other TACs?

Mr Chairman, I declare my interest as President of the Consumers Association of Singapore (CASE).

In my Budget debate speech, I highlighted the need to strengthen consumer protection, particularly in our current inflationary environment. Today, I would like to propose how we can do so in three areas.

First, we should mandate prepayment protection for sectors which collect large sums of prepayments. Today, mandatory prepayment protection is already practised in some sectors, such as private education and massage establishments.

According to complaints received by CASE, consumers have suffered more than $6 million in prepayment losses since 2018. In 2022 alone, consumers reported more than $645,000 in losses due to sudden business closures. This was a 24% increase from the $520,000 in losses reported by consumers in 2021.

Homeowners are a particular concern. Renovation contractors collect large sums of monies upfront, yet the industry lacks mandatory prepayment protection. This places homeowners at significant risk, should anything adverse happen to the contractor.

Today, CASE accredits renovation contractors under the CaseTrust mark. Accredited contractors protect consumers' deposits against sudden business closure through a deposit performance bond. There are currently 138 accredited contractors, but this is only a fraction of the estimated 6,700 renovation contractors operating in Singapore. I urge the Ministry to expand mandatory prepayment protection to this industry.

Second, we should mandate a cooling-off period for the beauty industry. Today, the laws already provide for a mandatory cooling-off period for certain industries, such as insurance and direct sales.

Complaints on pressure sales tactics and misleading and false claims account for 25% of beauty-related complaints received by CASE in 2022.

A mandatory cooling-off period will address the problem of pressure sales tactics by giving consumers sufficient time to consider or reconsider their purchases. If they do not wish to proceed with their beauty packages, they have the right to cancel and to obtain a refund.

Lastly, we should mandate seller verification on e-marketplaces.

Last November, it was reported that a consumer bought an automated laundry rack on a major e-marketplace, only to receive a piece of cardboard and some clothes hangers. Unfortunately, such scams are only the tip of the iceberg.

According to the Police, more than $21 million were lost by consumers in e-commerce scams last year. Mandating seller verification for e-commerce will ensure accountability of sellers for their product listings, reduce the risks of scams and aid resolution of consumer disputes.

Mr Gan Kim Yong.

Mr Chairman, let me first thank Members for your comments, suggestions and your views. After more than three years of fighting the COVID-19 virus, we have now arrived at DORSCON Green. Economic activities have largely resumed, and life has more or less returned to normal. I must record my thanks and appreciation to our workers who have kept our economy going and our essential services flowing during the pandemic.

But even as we emerged from the COVID-19 pandemic, new challenges surfaced. The outbreak of the Russia-Ukraine war compounded the supply chain disruptions triggered by COVID-19, driving up prices of energy, food and almost everything else. Global inflation soared, which led many countries to tighten their monetary policies, causing the global economy to slow down. As a small and open economy, Singapore felt the effects of these global developments keenly.

Mr Liang Eng Hwa asked how the Singapore economy performed in 2022. Let me give a quick recap. Our economy grew 3.6% in 2022.

Outward-oriented industries, such as electronics, chemicals, and finance and insurance, were affected by weaker external demand. However, as countries emerged reopened their borders, the strong recovery in air travel and international arrivals have given a boost to our aviation- and tourism-related sectors, as well as consumer-facing sectors, such as retail trade and food and beverages (F&B) services. The professional services sector also benefitted from the lifting of travel restrictions, as businesses could better service and engage their customers overseas.

Singapore's position as a global business hub remained strong, as companies anchored their corporate and manufacturing activities here to strengthen the resilience of their supply chains and operations. We secured record commitments of $22.5 billion in Fixed Asset Investments, in areas, such as semiconductors, aerospace and agri-food, as well as generated $6.2 billion in Total Business Expenditure. When the committed investments are fully implemented, we expect them to create over 17,000 jobs, and more than $20 billion in value-added per year for Singapore.

Our employment situation also improved, with the annual average resident unemployment rate falling to a four-year low of 2.9% in 2022. Nominal median gross monthly income for resident full-time workers grew by 8.3% in the same period. After taking into account inflation, real median income grew by 2.0%. While higher wages add to the costs for businesses, the key is to ensure that productivity increases to support higher wages. In this way, both businesses and workers will benefit.

Mr Liang Eng Hwa also asked about the outlook for 2023 and the challenges that businesses need to prepare for. We expect the Singapore economy to grow by 0.5% to 2.5% in 2023.

Growth in the major advanced economies, such as the US and Europe, will slow amidst tightening financial conditions, which will crimp consumption and investment spending. The possibility of recessions in these economies cannot be ruled out. On the upside, Asian economies are expected to continue growing. Southeast Asian economies will benefit from the ongoing recovery in domestic and tourism demand, while China's reopening is likely to provide some lift to global demand.

Global supply chains have recovered from the worst effects of the pandemic, but they continue to be affected by the Russia-Ukraine war and reshaped by efforts to re-shore or "friend-shore" operations and production. As a result, transport and logistics costs are likely to remain elevated.

Several Members highlighted that businesses are having difficulties managing rising costs. Mr Derrick Goh and Mr Shawn Huang asked how the Government will assist businesses in overcoming these challenges.

The current inflationary environment is a global phenomenon. The Singapore Government has adopted a range of measures to mitigate the impact of inflation. We have undertaken several rounds of monetary policy tightening and rolled out three support packages last year, totalling more than $3.5 billion, to address cost-of-living concerns. In addition, Deputy Prime Minister Lawrence Wong has also announced several measures this year to support our businesses, including an extension of the enhancements to the Enterprise Financing Scheme to help enterprises access credit, as well as an extension of the Energy Efficiency Grant to encourage businesses to invest in raising their energy efficiency. Minister of State Low Yen Ling will share more details in her speech.

Given that we are a small and open economy, we cannot be totally insulated from these global inflationary pressures. For us to remain competitive, we must continue to improve efficiency and raise productivity.

If we look beyond the near term, there are major structural shifts in our operating environment that will create both challenges and opportunities for Singapore.

The multilateral open trading system is under pressure and geopolitical tensions are increasingly shaping countries' economic strategies. These developments will undoubtedly have implications on the global economy as well as Singapore's economy.

New technologies are disrupting industries and business models, such as Artificial Intelligence (AI) for example. As AI technology improves and becomes integrated in more applications, such as ChatGPT, which many of us are familiar with and I hope none of us are using it to prepare our speeches. [Laughter.] These applications could take over tasks in areas such as marketing and sales, IT and engineering, and change the way we do business.

I agree with Mr Don Wee, that climate change is the defining challenge of our time. The transition to net-zero emissions will be one of the deepest and broadest transformations to our economy. It will affect almost every industry, every company, from energy to manufacturing, transport to financial services.

Several Members have spoken about manpower constraints. Indeed, manpower has always been a constraint. Our local workforce is ageing and we are faced with the stark reality of a slowing local workforce growth. If we are to keep our economy vibrant, we must continue to deepen our skills and accommodate new arrivals to complement our local workforce, so that we can allow our companies to grow. This will require difficult trade-offs to be made carefully, not just at the company-level, but also as an economy and as a society.

While these shifts may seem daunting, we are moving forward from a strong position, given our robust fundamentals. These include our efficient infrastructure, extensive physical and trade connectivity, a highly-skilled workforce which we continuously invest in, and our nimble and enabling policy environment. These were the same fundamentals that saw us through the COVID-19 pandemic and which demonstrated to our businesses and investors that Singapore is a reliable partner, even in a crisis. We can, therefore, take heart that if we are willing to work hard and work together, we can turn challenges into opportunities.

Last year, I spoke about the Singapore Economy 2030 vision, in particular about our Manufacturing 2030 and Trade 2030 strategies. Today, I will introduce our Services 2030 vision, and elaborate on what we are doing as part of our Enterprise 2030 strategy.

On Services 2030, our Services cluster encompasses very diverse sectors. It includes outward-oriented sectors such as Information and Communications, and Professional Services, as well as domestic-facing ones, such as the Retail Trade and F&B services. It is also a very large cluster, accounting for around 70% of our Gross Domestic Product (GDP).

Our Services 2030 vision seeks to harness the growth opportunities in digitalisation and sustainability, and anchor Singapore as a leading, vibrant hub for businesses, lifestyle and tourism. In particular, the Modern Services cluster comprises some of the fastest-growing sectors in our economy. Within this decade, we aim to grow the Value-Added (VA), from the Modern Services cluster by at least 50% and create more than 100,000 additional jobs.

A good example is the Professional Services sector within these Modern Services. It is a diverse group too, including company headquarters, professional services firms providing consulting, legal and accounting services. Together, they contribute to Singapore's vibrant business and innovative ecosystem.

Today, I am pleased to announce the launch of the Professional Services Industry Transformation Map 2025, or ITM 2025, which will play an important role in strengthening Singapore's role as a leading business hub. Our Professional Services sector is well-positioned to seize opportunities for business growth driven by digitalisation, sustainability, emerging markets and new customer segments in Southeast Asia. The Government will work with stakeholders to help Singaporeans upskill and reskill, so that they, too, can tap on opportunities and realise their career aspirations in this sector. Minister of State Alvin Tan will elaborate on our strategies in this regard, including the Professional Services ITM 2025.

The Professional Services ITM is one of the 23 ITMs that the Government introduced in partnership with the Future Economy Council Clusters, to support industry transformation. Several members, including Mr Pritam Singh during the Budget debate, asked about our ITMs. The 23 ITM sectors have led the way in terms of economic growth and industry transformation. However, the COVID-19 pandemic had inevitably affected the progress of some of them.

Across the 23 ITMs, from 2016 when they were introduced to 2021, their VA, in real terms, grew by 2.9% per annum. This was marginally above the performance of the economy as a whole, which was at 2.8% per annum. However, if we only look at the period just prior to COVID-19, from 2016 to 2019, the VA in real terms for the 23 ITMs sector, grew by 3.5% per annum, which was a fair bit higher than the performance of the economy as a whole, averaging 3.1% per annum.

The ITM sectors, as a whole, also did better for productivity, which grew by 4% per annum for the period 2016 to 2021, compared to the overall economy at 3.5% per annum. On jobs, despite the impact of COVID-19, there was a net creation of about 134,000 resident jobs from 2016 to 2021. Some ITM sectors performed better than others. The Financial Services sector achieved real VA growth of 6.8% per annum from 2016 to 2021, exceeding the real VA growth target of 4.3% set for the period from 2016 and 2020. Close to 26,000 PMET jobs were created during this period, far exceeding the target of 12,000 jobs.

On the other hand, under the Precision Engineering ITM, we had set a nominal VA growth target of 8% and a job creation target of 3,000 PMET jobs by 2020. Over the period 2016 to 2021, the sector exceeded its VA target and achieved growth of 11.2% per annum. But it did not do as well in job creation, creating over 2,000 PMET jobs, partly because of the COVID-19 pandemic.

While COVID-19 has disrupted the progress of our ITMs, we have since embarked on a refresh of the ITM strategies – the ITM 2025 refresh. To take into account our experience during the pandemic and address emerging priorities, such as sustainability and the need for greater economic resilience. We should allow some time for these strategies to take root, and then assess again the progress of the ITM 2025 strategies.

In essence, ITMs reflect the story of our economic development and constant transformation to respond to challenges and stay ahead of the curve. Ms Jessica Tan and Mr Saktiandi Supaat rightly pointed out that these same challenges can also create opportunities that businesses can capture. Two aspects stand out: digitalisation and sustainability.

COVID-19 gave a decisive push for many businesses to adopt digital tools, such as digital shopfronts and e-payments. Going forward, digitalisation will remain critical in helping companies raise productivity and optimise their operations, and to alleviate higher costs and manpower challenges. As supply chains increase in complexity and unpredictability, digital capabilities will also allow companies to have greater visibility of their operations and pre-empt bottlenecks. More importantly, digital technology can unlock companies' ability to innovate and develop new services and products. Examples of such transformation are everywhere.

Let me just take, for instance, telehealth. We saw the sector take off during COVID-19, as people turned to seeing their doctors online instead of visiting the clinics physically. Today, Singapore has a growing telehealth ecosystem, with several companies that have started to expand their operations overseas. One example is Doctor Anywhere, which was founded in 2017. The homegrown company grew its user base in Singapore by three-fold and expanded to Malaysia and the Philippines in the midst of COVID-19. Today, it is present in six key Southeast Asian markets, and in time to come, I am sure Doctor Anywhere will be everywhere.

In the area of sustainability, investors and customers are raising their expectations. This may be a challenge, but many Members also rightfully highlighted the opportunities this presents for our companies. Having a clear sustainability strategy and statement will increasingly be an advantage when serving global markets, and companies need to urgently re-think how to transform their business models and operations to thrive in a low-carbon world. There are ready solutions, such as more energy-efficient equipment, for which Government funding support is available.

Koda, a leading Original Design Manufacturer of furniture, is a good example of a company that is transforming itself to compete in a low-carbon world. The company has implemented a comprehensive environmental tracking and management system for its furniture manufacturing operations. It is also developing a comprehensive sustainability strategy. Minister of State Alvin Tan will elaborate on how we are supporting our companies to seize opportunities in digitalisation and sustainability in his speech.

Even as we press on with the transformation of industries, we must continue to strengthen Singapore's position as a global hub for businesses, innovation, investors and talents. This has allowed us to attract global companies and investors to invest in Singapore, creating opportunities and jobs, even in the depths of the COVID-19 pandemic. We must work even harder to secure Singapore's competitiveness as an investment location. This is crucial, as the international tax landscape is also going through a significant and fundamental change with the introduction of Base Erosion and Profit Shifting 2.0, or BEPS 2.0 in short. Several Members rightly pointed out that Singapore will, indeed, be affected.

We need to carefully assess the impact of BEPS 2.0 on affected Multinational Enterprises, or MNEs, here, and on our overall competitiveness as a global business hub. Deputy Prime Minister Wong has announced our intention to implement Pillar 2 from 2025 and introduce a Domestic Top-up Tax at the same time, to top-up the effective tax rate of MNE groups in Singapore to 15%. Giving companies notice now will allow affected MNEs time to assess the impact on their operations, and for our economic agencies to work with them to address their concerns and support their continued growth in Singapore. As Deputy Prime Minister Wong has said, we will also continue to monitor international developments and adjust our implementation timeline as needed.

Mr Sharael Taha asked about the use of non-tax incentives to enhance our competitiveness. Ministry of Trade and Industry (MTI) has continuously sharpened our toolkit to ensure that Singapore remains competitive in attracting and retaining investments. In this regard, the Government has topped up the National Productivity Fund, or NPF in short, and will expand its scope to include investment promotion as a supportable activity. This is in addition to its existing focus on productivity improvements, and continuing education and training.

I agree with Mr Sharael Taha on the importance of ensuring that projects supported by the NPF lead to real productivity improvements. We currently fund a diverse portfolio of programmes and schemes under NPF, ranging from sector-specific ones like the Construction Productivity and Capability Fund (CPCF) under the Building and Construction Authority (BCA), to horizontal programmes, like the SkillsFuture Enterprise Credit scheme. These schemes have, thus far, achieved positive results.

One example is the Increase SME Productivity with Infocomm Adoption and Transformation, it is a long name, but in short, it is iSPRINT programme. iSPRINT programme helped about 10,000 SMEs leverage infocomm technology solutions to improve their business operations and increase productivity. A 2016 study showed that the median firm saw an increase in revenue of 3.1% after adopting solutions under the scheme, compared to firms that had not adopted the solutions. iSPRINT has ceased in 2018, but SMEs can continue to tap on the SMEs Go Digital programme, which provides a range of support to meet businesses' digitalisation needs.

Apart from productivity indicators, each NPF project also has specific KPIs that they must meet, in areas like upskilling of individuals and development of industry platforms, such as centres of excellence – all of which contribute to productivity growth. We will continue to ensure that funds are used judiciously to support investment promotion, enhance our productivity and deliver tangible benefits to our businesses and workers.

Apart from providing support through the NPF, I want to emphasise that investment promotion incentives which are aligned with international rules will remain relevant and important to companies not subject to the global minimum effective tax rate under the BEPS Pillar.

Therefore, we have extended our Pioneer Certificate, Development and Expansion Incentive and Investment Allowance tax incentives for an additional five years until 31 December 2028. This will allow us to attract investments which are expected to generate significant economic contributions to Singapore over time.

Besides companies, we also want to attract high calibre investors who can strengthen our ecosystem. Such investors bring with them capital that support the growth of our local businesses and create good jobs for more Singaporeans. They also provide valuable networks to connect us to the region and beyond as well as contribute their entrepreneurial skills to our business ecosystem.

The Global Investor Programme (GIP) is one way through which we attract and anchor these investors in Singapore. The programme has delivered tangible outcomes for Singapore. Over the past 11 years, GIP investors have brought in around $5.5 billion in total business expenditure, generating over 24,000 jobs in Singapore.

To ensure that Singapore captures even more value from the capital, businesses and networks that the investors bring, the Economic Development Board will enhance the GIP by raising the investment quantum to ensure greater contributions from these investors and to direct more funds and resources into our local ecosystem. In addition, the scope of the GIP-select funds will be adjusted to capture more value from a wider pool of investors. EDB will share more details in due course.

To build a strong Singapore Economy 2030, we cannot just rely on foreign investments. Nurturing a deep bench of local enterprises that are innovative, future-oriented and which can find success beyond Singapore shores is a key priority.

Ms Janet Ang asked how MTI is assisting local companies to seize new opportunities and compete successfully in international markets. One way we do so is through our strong trade connectivity, leveraging on the network of 27 Free Trade Agreements (FTAs) that we have. Such agreements help reduce uncertainties, risks and friction that businesses face when venturing into overseas markets.

For example, Prima Food's ready-to-cook products are now sold in over 40 markets, facilitated by preferential access through our FTAs. Prima also exports products like wheat flour and premixes to Japan under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which provides tariff savings of about 20%.

We are also making inroads in pioneering new agreements in emerging areas to create opportunities for our businesses.

To date, we have signed four Digital Economy Agreements and concluded the first Green Economy Agreement with Australia last year.

Enterprise Singapore also has a range of schemes to help Singapore companies address common pain points and support them through the different stages of their internationalisation journey.

In 2022, we supported 2,000 enterprises to embark on internationalisation activities, which was 25% more than the year before. To help companies break into new markets, we will make further enhancements to our existing programmes.

For the Market Readiness Assistance scheme (MRA), we had in 2020 introduced a time-limited higher grant cap of $100,000 until 31 March 2023, which is next month. I am heartened to hear from Ms Janet Ang of the value that the industry sees in the MRA. As many companies' internationalisation plans have been disrupted by the pandemic, we will extend the enhanced grant cap by another two years until 31 March 2025.

Ms He Ting Ru suggested having an Exim Bank for our local companies. We have indeed provided financing support to enterprises through various financing schemes to help them venture into overseas markets. These include the Enterprise Financing Scheme or EFS-Trade Loan and EFS-Project Loan. Ten years ago, we also set up Clifford to provide financing for local companies doing infrastructural projects abroad.

To improve access to financing for local enterprises expanding to emerging markets, we will pilot the expansion of the pool of participating financial institutions for the EFS to include selected foreign-based financial institutions and multilateral development banks with strong expertise and appetite in emerging markets such as the International Finance Corporation and the Asian Development Bank.

Specific to green financing, we recently launched EFS-Green, in addition to MAS' green financing initiatives.

To support enterprises' use of e-commerce platforms, we will enhance the Double Tax Deduction for Internationalisation by expanding the scope of qualifying costs to include costs incurred to support growth via e-commerce. These may include costs arising from business advisory, product listing and marketing content development.

Beyond schemes and trade agreements, we have also facilitated partnerships between global companies and local enterprises to help local enterprises internationalise.

One example is Singapore garment manufacturer Teo Garments and 3D apparel design solution provider Browzwear's partnership with Lidl & Kaufland Asia, the sourcing arm for Schwarz Group, a food and retail industry leader in Europe. This has allowed our companies to scale and gain access to the European market, leveraging on Lidl & Kaufland's extensive consumer base.

Companies that are further along in their growth and internationalisation journeys often require bespoke support to fully unlock their potential and develop into truly global companies.

One such example is Sing Fuels, a home-grown marine bunker and lubricant trader that supplies to more than 350 ports globally. Through its partnership in Scale-Up, our flagship programme to support high-growth enterprises, Sing Fuels has sharpened its business growth plans, developed a market entry strategy into Africa for the lubricant business and also set up a clean energy arm, which trades and undertakes research and development into more sustainable fuels.

Sing Fuels is also leveraging on EDB's Corporate Venture Launchpad to develop a technology platform that addresses operational and capital challenges in the marine fuel industry.

We hope to support more local companies like Sing Fuels, which fly Singapore's flag high internationally while contributing significantly to our economy and creating good jobs for Singaporeans.

We introduced the Singapore Global Enterprises (SGE) initiative at the COS last year to build a strong slate of locally-grown high-growth companies that can compete against the best in the world.

The needs of these companies will differ vastly and they often require dedicated and customised support to meet their specific challenges. Building upon the flagship Scale-Up programme, Enterprise Singapore will partner these companies on their growth journeys in the following ways.

First, we will continue to strengthen and deepen the companies' capabilities in developing new products, penetrating new markets and improving their work processes.

To help them build sustained innovation as a core competitive strategy, we will support them in undertaking R&D and innovation activities. We will also support companies in expanding their global footprint and diversifying their supply chains.

To facilitate this, companies may receive customised financial support from Enterprise Singapore, such as through the co-funding of the establishment of their in-house R&D and innovation centres and efforts to build supply chain resilience.

Second, we will develop and deepen our talent pool. Existing schemes like the Singapore Global Executive Programme help local high-growth companies enhance their human capital capabilities and attractiveness as employers.

We will also expand the coverage of the Skills Future Enterprise Credit to include Scale-Up and the Singapore Global Executive Programme. This will allow eligible employers to use their credit to offset qualifying expenses under these programmes.

Third, Enterprise Singapore will introduce Scale-Up X, which are new specialised capability building programmes in areas such as nurturing leadership, enhancing readiness for investments and initial public offering listings and sharpening internationalisation strategies and execution plans.

The bench of promising Singapore enterprises has grown in recent years. We aim to work with a pool of about 100 to 200 of such enterprises. For the more ambitious companies, we will give them an additional boost through the SGE initiative so that they may become global leaders in their respective fields.

I look forward to the rise of a new generation of SGEs as more Singapore companies make their mark globally. We will be with you every step of the way.

Our efforts under the Singapore Economy 2030 vision can only be achieved if we have a high-quality workforce with industry-relevant skill sets and capabilities.

As the structural shifts that I had earlier described take root in our economy, we can expect existing jobs to be transformed at a faster pace even as new jobs are being created.

Ms Mariam Jaafar and Prof Koh Lian Pin asked specifically how the Government is equipping the Singapore workforce to take on jobs in the green economy. To prepare companies and workers for the transition to a greener future, the Government has worked with tripartite partners to roll out training programmes at various levels, including broader-based courses such as Enterprise Singapore's Enterprise Sustainability Programmes for business executives and sector-specific programmes such as Workforce Singapore's Career Conversion Programme for sustainability professionals.

Given the fast-evolving landscape of the green economy, there is a need to ensure that our training programmes remain relevant.

Therefore, MTI, in partnership with SkillsFuture Singapore will set up a Green Skills Committee to bring together industry players and training providers to develop green skills in the local workforce that are relevant to industry needs.

For a start, we will focus on immediate needs such as training workers to conduct sustainability reporting and equipping them with the skills to operate in new growth areas in the energy sector such as renewable energy and energy storage systems.

We will continue to work closely with the industry to identify new demand areas for green skills as this platform grows.

Second Minister Tan See Leng and Minister of State Alvin Tan will share more on our efforts to ensure our workforce is well equipped to take on the opportunities under our Singapore Economy 2030 vision.

Sir, let me conclude: 2023 will likely not be an easy year for businesses and the Government will not hesitate to provide targeted support where needed. However, we must not lose sight of the longer-term future. Achieving our Singapore Economy 2030 vision will require hard work and in some cases, sacrifices. Companies and workers alike must be prepared and ready for transformation. In the face of rising costs, biting resource constraints and a more challenging international environment, this is the only viable path to long-term growth and success.

If there is one thing the COVID-19 pandemic has taught us, it is that when the situation calls for it, Singapore as a country and Singaporeans can be agile and resilient, prepared to make difficult decisions for the greater good and help one another along the way.

All of us – employers, workers, unions, trade associations and the Government – can all do our part to ensure that Singapore continues to punch above our weight on the global stage and build a strong and vibrant economy for our future generations. [Applause.]

Second Minister Tan See Leng.

Mr Chairman, Sir, last year, I announced the Enterprise 2030 strategy to build and sustain a vibrant ecosystem of Singapore enterprises that are future-ready and able to compete globally.

Minister Gan shared our plans to groom the most promising local enterprises into Singapore Global Enterprises. I will elaborate on how we are helping these and other local enterprises to thrive.

We will do so by supporting firms to maximise their human capital and develop innovation capabilities.

First, maximising human capital. Singapore has consistently invested in our human capital through upskilling our workforce and remaining open to world-class talent.

This strategy has paid off well. It has allowed us to grow a vibrant business and trading hub, with competitive Singaporean enterprises and good jobs for Singaporeans.

Look at the data over the last decade. From 2012 to 2022, the real resident median income grew by 2.6% per annum. This translates into a cumulative growth of almost 30% over 10 years. This is real income growth with the effect of inflation already accounted for. Real resident household incomes have also risen across the same period.

Benchmarked against Organisation for Economic Co-operation and Development (OECD) countries, our resident employment rate is among the highest while our resident unemployment rate has remained among the lowest. These are results which we celebrate.

These have arisen because of the policies which we have put in place over the years. By investing in ourselves and in our people, while remaining open to global talent and global businesses, we have grown the pie and created good outcomes for Singaporeans.

Ms Jessica Tan and Mr Shawn Huang asked about the tight labour market and what businesses can do to adjust to manpower challenges. I would like to reassure them that we have a suite of policies in place to support businesses.

Let me give an update on four of these policies today. These are targeted at various levels of talent within our enterprises, all the way from the intern to the CEO.

First, the Enterprise Leadership for Transformation programme (ELT). ELT is targeted at the senior leadership of our promising SMEs – the owners, the founders or successors and key members of their management. ELT supports these business leaders to achieve the next bound of growth by helping them develop their business strategies and leadership capabilities.

ELT was first announced at Committee of Supply 2020 as a three-year pilot. Since its launch in October 2020, more than 400 business leaders from 300 companies have been onboarded.

One such example is 1-Group, a homegrown lifestyle, F&B and hospitality group with over 30 brands under its portfolio. Through the ELT programme, the company sharpened its Southeast Asia internationalisation strategy. Leveraging new contacts made from an ELT market immersion trip to Vietnam, 1-Group has successfully partnered an in-market hospitality solutions company to expand into Vietnam.

To support more firms like 1-Group, I am happy to announce that the ELT programme will be extended till FY2025. This will allow more SME business leaders to benefit from the programme.

Second, the Tech@SG pilot. Launched in 2020, the Tech@SG pilot is targeted to support high-growth tech startups as part of their expansion in or foray into Singapore. Under Tech@SG, they can secure up to 10 new Employment Passes (EP) for their core team members.

The Tech@SG scheme has served Singapore well. In the past three years since its launch, over 100 companies have come onboard. These companies span across 13 different countries and across domains such as fintech, e-commerce and cybersecurity. Together, these Tech@SG companies have created more than 1,500 local jobs. This is in spite of the COVID-19 pandemic. This is a testament to Singapore's continued attractiveness to global talent.

SpeQtral is a local startup founded in 2018 that has benefited from Tech@SG. It is a spin-off from the Centre for Quantum Technologies at NUS, SpeQtral specialises in quantum key distribution. This is a nascent technology that enables users to establish secure communications networks with an additional quantum-secured encryption layer. SpeQtral came onboard as a Tech@SG firm in December 2021 and has since tapped on the programme to bring in external experts in this nascent field. At the same time, it has also hired locally to expand its footprint here in Singapore.

With the positive results from Tech@SG, I am happy to announce the mainstreaming of the Tech@SG pilot. There will be no change to the qualifying criteria to ensure selectivity. Schemes like Tech@SG must be complemented by training of local talent, which we will continue to support through schemes like the TechSkills Accelerator (TeSA) programme operated by IMDA. In time, locals will be able to take on these technology jobs.

Third, the Singapore Global Executive Programme (SGEP). This scheme is targeted at fresh and recent local graduates. This programme will support such young local talent to pursue structured career progression pathways in high-growth companies, including rotations to core functions and global attachments. I had announced this at the COS last year. I am glad to share that the programme was launched last December.

Fourth, the Global Ready Talent Programme (GRT). Launched in 2019, this programme aims to build a talent pipeline to support Singapore enterprises with their overseas expansion. It does so by co-funding local, young talent to take on both local and overseas internships.

To date, the programme has supported over 19,000 internships in over 2,500 local companies despite the disruptions brought about by COVID-19. Now that the countries across the world have reopened their borders, EnterpriseSG (ESG) is further curating the GRT to ensure it remains relevant and nimble in the post-COVID-19 new normal.

So, in summary, the four schemes I have described – the ELT, the Tech@SG, the SGEP and GRT – all these schemes will allow our enterprises to maximise their human capital at all levels – from the intern to the CEO. These enterprise-specific schemes complement the broader manpower schemes which we have in place, for example, the ONE Pass and COMPASS, and which I will give an update on in my Ministry of Manpower (MOM) COS speech tomorrow.

My hope is that this suite of policies which MTI and MOM have worked closely together will help us to unlock the human capital that Singapore requires for our next phase of growth.

To realise our Singapore Economy 2030 vision, we need to continue to invest in our collective human capital. We must be willing to learn, to imbibe, from the best by remaining open to global talent. And we need to push the boundaries and we should not be afraid to take risks.

And this brings me to my second point, which is on innovation. Ms Janet Ang and Mr Shawn Huang have asked about MTI’s efforts in developing innovation capabilities in our enterprises. In Research, Innovation and Enterprise (RIE) 2025, we are striving towards expanding the base of innovative enterprises and enabling the creation of globally competitive products and services out of Singapore.

This involves three pivotal moves. First, we are working with enterprises to strengthen their capability and capacity for market-oriented innovation. Second, we are scaling up and strengthening the Innovation and Enterprise (I&E) platforms to enable enterprises to better tap on our public research institutions and other innovation ecosystem players. Third, we are forging strong connections to major innovation hubs and key demand markets.

We have been making steady progress. As Members have heard from Deputy Prime Minister Wong in his Budget speech, under the Enterprise Innovation Scheme (EIS), tax deductions will be enhanced to support businesses to engage in R&D and innovation-related activities.

In particular, innovation conducted through our polytechnics and the Institutes of Technical Education (ITEs) will now benefit from tax deductions. The same will also apply for innovation conducted through our existing Centres of Innovation (COIs) set up in partnership with selected polytechnics and A*STAR’s SIMTech.

Previously, some of these innovation activities may not have qualified for tax deductions for R&D. This new provision will encourage our businesses, especially SMEs, to kickstart their innovation journey by tapping on the technical know-how and capabilities within these partner institutions. Hence, I look forward to more translational outcomes from such private-public collaborations.

Beyond financial support, many companies are also looking for advice and strategic direction to guide their investments in innovation. While big companies can set up distinguished Boards comprising leading industrialists and luminaries to provide such direction, many SMEs do not have such a luxury.

And that is why we launched the Innovation Advisors Programme (IAP) four years ago in 2019 and we have been refining it consistently. This programme supports companies in partnering industry veterans to develop and to bring to market differentiated product offerings.

The programme is run by IPI, which is a subsidiary of EnterpriseSG. I am happy to report that to date, IPI has onboarded 31 advisors and facilitated 88 projects under this programme.

ProfilePrint is a local agrifood tech enterprise that has benefited. ProfilePrint engaged the assistance of Innovation Advisor, Mr Phey Teck Moh, a seasoned mentor and angel investor, to help review their business model and go-to-market plans. With Mr Phey’s help, the company closed its Series A1 funding round in August last year and it added Cargill, which is one of the world’s leading global food suppliers, to its panel of strategic shareholders.

Beyond these enterprise-centric programmes, we also have broader programmes to develop the innovation and enterprise ecosystem. Last October, I was happy to launch the Technology for Enterprise Capability Upgrading, or T-Up Eagles Award.

This recognises students’ achievements and contributions to our SMEs during their work attachments under the T-Up Integrated Work Study Programme (IWSP). Now under this programme, seconded A*STAR researchers get to work closely with students from the Singapore Institute of Technology (SIT) attached to the same SME.

And since the programme’s launch about two years ago, 24 SIT students have benefitted from this mentorship. I hope this will address Prof Hoon Hian Teck’s questions on how we are developing young talent.

For mid-career professionals, we have the Innovation and Enterprise Fellowship Programme (IFP). Launched in 2020, the IFP is a 12- to 18-month training programme administered by SGInnovate and is aimed at developing local talent or Fellows.

Mid-career professionals, including Researchers, Scientists and Engineers (RSEs), who are selected as Fellows will be trained to become “ambidextrous”, familiar with both technology and business aspects in areas such as cybersecurity, robotics and biomedical sciences.

IFP has achieved positive results in the past three years. More than 90 Fellows from academia and industry have been onboarded to the IFP, with many of them joining deep-tech startups and taking up technology commercialisation roles upon graduation from the IFP.

Dr Yvonne Koh, who holds a PhD in Microbiology, is one of the Fellows who have benefited from this programme. Under the IFP, Dr Koh joined Lightstone Singapore, which is a venture capital firm that invests in life sciences technologies and companies. The experience provided her with exposure to a global venture investment team.

After Dr Koh graduated from the IFP in November 2021, Lightstone Singapore offered her a position as an investment professional, where she continues to source and assess global investment opportunities, and also support new company creation in Singapore.

Following this successful pilot, and to support more Fellows like Dr Koh, I am happy to announce enhancements to the IFP.

We are expanding the programme to include three public sector partners, namely, the National Additive Manufacturing Innovation Cluster (NAMIC), the Experimental Drug Development Centre (EDDC) and the Diagnostics Development Hub (DxD Hub). This means an increased capacity to take on and benefit more local talent. These are significant moves that underscore our commitment to support firms in innovation.

Let me now turn to energy. Last year, I explained the various emergency measures we took to manage the energy crisis. These measures have stabilised the electricity markets for now, but this is unlikely to be the last energy crunch that we will see, as the world embarks on its energy transition.

Mr Saktiandi Supaat, Ms Mariam Jaafar and Ms Jessica Tan asked how Singapore would safeguard our energy security with increased volatility in global energy markets and advance our energy transition at the same time. MTI is adopting three key strategies to support the critical transformation needed.

First, developing new energy supply sources to diversify and decarbonise our energy supply. Second, strengthening our energy market structure so as to ensure that the market continues to function well under volatile conditions. And third, building strong international collaborations to secure our energy supply and our energy technologies.

Currently, Singapore relies on natural gas for about 95% of our power generation. We will improve the energy efficiency of new and repowered natural gas power generation units through new emission standards. This will be introduced later this year.

However, further abatement and diversification of our energy supply will need to be achieved through tapping on renewable energy both within Singapore and beyond our shores, and through the use of new low-carbon alternatives.

First, Singapore is tapping on regional power grids to access cleaner energy sources abroad. Singapore plans to import up to four gigawatt (GW) of low-carbon electricity by 2035. This will constitute around 30% of Singapore's electricity supply then.

To date, EMA has received more than 20 proposals under its Request for Proposal, or RFP, to import electricity to Singapore. EMA remains on track to meet our imports target.

Over the last two weeks, several companies have submitted their final proposals for large scale electricity imports from various countries. Projects which received support from the source countries and meet our requirements will receive EMA's conditional approval. We expect to grant the first conditional approval soon.

To prepare for the large-scale imports, EMA is also conducting smaller-scale trials. Such projects will help us learn, build confidence and pave the way for our larger scale electricity import projects.

These include the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, which commenced on 23 June 2022. In addition, YTL Power Seraya and Tenaga Nasional Berhad Pasir Gudang Energy intend to export 100 megawatt of electricity from Malaysia to Singapore.

Last month, I witnessed their exchange of agreement ceremony with Malaysia's Minister of International Trade and Industry. We hope to see this project commence this year.

Second, MTI launched Singapore's National Hydrogen Strategy which sets out plans to develop hydrogen as a major decarbonisation pathway for our power and industry sectors, to support Singapore's commitment to achieve net-zero by 2050.

Like LNG, hydrogen can be imported from various sources around the world, which enhances our energy security and our resilience. It is also a potential alternative to fossil fuels in the maritime and aviation sectors.

A key prong of our strategy is to experiment with the use of advanced hydrogen technologies on the cusp of commercial readiness. EMA and MPA have launched an expression of interest for utilising ammonia for power generation and to support maritime bunkering needs. Since then, we have received strong interest from industry players as well as international partners.

Third, we are accelerating solar deployment as we speak, and we are deploying energy storage systems to store and dispense intermittent solar power at different times to maintain grid reliability. As of end 2022, we have deployed around 800 megawatt-peak (MWp) of solar power, compared to around 500 MWp in mid-2021. As of the first half of last year, Singapore is already one of the most solar dense cities int he world and we are on track to achieving our solar panel deployment target of at least 2 gigawatt-peak (GWp) by 2030.

Earlier this month, I also officially launched a 285-megawatt hour (MWh) energy storage system on Jurong Island, which can meet the electricity needs of around 24,000 4-room HDB households for one day, in a single discharge.

Lastly, we are exploring if other forms of low-carbon energy supply, such as nuclear and geothermal are suitable for Singapore.

Mr Abdul Samad asked what job opportunities will arise from new energy solutions and what we are doing to prepare our workforce for these jobs. New energy solutions, such as solar, energy storage systems and smart grids, will create more skilled jobs for our workforce, including Power System Integration engineers and Energy Storage System software developers.

As Ms Poh Li San has rightfully pointed out, Singapore should invest more in talent development for our energy transition.

EMA is working closely with Government agencies, institutes of higher learning (IHLs), training providers and the Union of Power and Gas Employees (UPAGE) to develop and deepen core skills required by workers for the more imminent energy transition areas, like solar energy and energy storage systems.

The new Green Skills Committee that Minister Gan mentioned will identify and develop more programmes for newer forms of energy technology, like hydrogen and carbon capture as they become ready.

Speaking in both my capacities as Second Minister for Trade and Industry and the Minister for Manpower, we are aligned. And I urge all of our workers to join these programmes to reskill and upskill in clean energy areas.

I would also like to join and echo Mr Abdul Samad in extending our acknowledgement and appreciation to our workers in the power and gas industries, who worked hard to ensure that we had uninterrupted gas and electricity supply during the COVID-19 pandemic.

Mr Abdul Samad suggested a one-time reward for power and gas workers. During the pandemic, many of our essential workers stepped forward to play their part. Our healthcare workers, in particular, served at the frontline against COVID-19.

The COVID-19 Healthcare Award announced in November 2021 was in recognition of our healthcare workers' contributions and dedication. I would encourage employers in the power and gas industries to consider the contributions of their workers and to fairly recognise and reward their workers.

The global energy market continue be turbulent in the coming years because of geopolitics and climate action. But based on what we have learnt from the recent energy crisis, we will update our regulatory approach to strengthen the foundations of our energy market.

First, to ensure that there is sufficient power generation and capacity to serve demand, the Government will call for competitive tenders for new generation capacity and we will build new capacity if there is insufficient interest from private generation companies.

Second, EMA had put in place the Standby Fuel Facility during the recent energy crisis. We will institutionalise this as a permanent feature. I hope that this will address Ms Poh Li San and Dr Lim Wee Kiak's query if Singapore has a fallback plan should there be disruptions to our energy supplies. We are also exploring ways to centrally aggregate gas procurement and obtain more secure and longer-term contracts.

Lastly, EMA intends to enhance the regulatory requirements on electricity retailers to strengthen consumer protection and the retailers' ability to withstand market volatility. EMA is seeking feedback on the proposed enhancements and plans to announce the final changes later in the year.

The energy transition is challenging, given the increased volatility in global energy markets. No one country can do it alone, and we need to work together to advance our collective interests.

Singapore has partnered with like-minded countries to support one another in our decarbonisation efforts.

Last year, we signed Memoranda of Understanding (MOUs) on energy cooperation with Indonesia, Brunei, Cambodia, Lao PDR and Vietnam. We have also signed Memoranda of Cooperation with Japan and a Green Economy Agreement with Australia.

These G2G partnerships have helped to facilitate commercial collaborations, which demonstrate the interest and viability of renewable energy co-development projects for cross-border electricity trade. Such projects are beneficial for our region. Not only will they help to unlock the region's renewable energy potential, which can serve the domestic demand of source countries, they can also catalyse economic growth, by stimulating clean energy investment flows and generating new green jobs in source countries.

To boost the viability of clean energy trade projects, Singapore is also partnering with the US on a Feasibility Study on Regional Energy Connectivity. This is part of the US' Net Zero World Initiative. The US will collaborate with Singapore and Southeast Asian partners to explain the benefits of greater connectivity, as well as assess the technical, legal, and commercial steps that we need to take to realise ASEAN's vision of a regional power grid network.

We should not forget the role that international organisations also play. They shape our understanding of the dynamism in global energy markets and they help us to seize opportunities in the energy transition.

Last year, we announced that Singapore and the IEA, or the International Energy Agency, are exploring the possibility of establishing a regional cooperation centre here in Singapore. This will help broaden IEA's outreach to the Asia-Pacific and accelerate the region's low-carbon energy transitions.

Singapore also has strong partnerships with the International Renewable Energy Agency, or IRENA. We will continue strengthen and broaden our relationship with them.

The global energy transition is a challenging but critical undertaking that the world will need to manage this existential climate crisis. MTI will work closely with our industry stakeholders and our international partners to enhance our energy resilience in a low-carbon world.

Ms Janet Ang asked how we can help businesses through this transition. I have shared at length at how we are transforming the way in which we produce electricity and energy. But managing demand is also key to achieving a more sustainable future.

There are multiple schemes such as the Energy Efficiency Fund and Energy Efficiency Grant which help our businesses to become more energy efficient. Business and individuals will have to play their part to use more energy-efficient equipment and conserve energy in their daily lives.

Sir, let me conclude with a few words in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] As the Chinese saying goes, "When you are constrained, be flexible and be willing to make changes. If you change, you can find a solution, and its effects can last a long time."

Singapore lacks natural resources. Our prosperity today cannot be achieved without our proclivity to transform constraints into opportunities.

We need to address the immediate challenges of the day, but also constantly keep an eye on the future, to ensure that Singapore continues to stay relevant in this fast-changing world.

(In English) We must constantly keep an eye on the future and think and reinvent for the long term about how we can grow sustainably. Together, with all of your support, we will continue to build a better, a more resilient and an even more vibrant Singapore. [Applause.]

Minister of State Alvin Tan.

Mr Chairman, Minister Tan reminded us to keep an eye on the future. What will our economic future be like?

Earlier, both Ministers offered a glimpse by outlining our trade and enterprise strategies under our Singapore Economy 2030 vision. I will share about the other two pillars under this vision, which Mr Saktiandi Supaat and Ms Jessica Tan asked about.

Let us start with manufacturing.

Manufacturing remains the bedrock of our economy, forming its largest component. In 2022, it accounted for about 22% of GDP and 220,000 local jobs. Our established strength in manufacturing has allowed our economy to remain resilient in spite of the pandemic.

In 2021, we launched our Manufacturing 2030 vision to grow our value-added (VA) by 50% from 2020 to 2030. We have made significant progress since.

In 2022, our manufacturing VA increased by more than 15% from 2020. The sector also received a record S$17 billion in total fixed asset investment, driven primarily by investments in the semiconductor industry. We expect these projects to create more than 4,600 jobs over the next five years.

To have enough workers to fill these newly created jobs, we will partner industry to develop a strong talent pipeline. We are working with trade associations and chambers like the Singapore Precision Engineering and Technology Association (SPETA) and the Singapore Semiconductor Industry Association to offer quality internship opportunities for Institute of Technical Education (ITE) students to raise job awareness of and enhance these students' experience in the sector.

As of September last year, we have created 806 internship opportunities across 71 companies, exceeding our target of securing 200 internships across 50 companies by end 2022.

Last year, Deputy Prime Minister Heng and I, together with SPETA and the Institute for Human Resource Professionals, launched our Manufacturing Employers' Handbook, which provides companies with human capital best practices and tools to help them structure career progression pathways for their employees.

Despite a more challenging global environment, we plan to continue growing our manufacturing sector. How?

First, we will do even more to attract frontier investments here.

We remain an attractive manufacturing location for many best-in-class firms like BioNTech, which chose to locate here because of our strong fundamentals, like our pro-business environment and a strong rule of law. We will continue to strengthen our manufacturing ecosystem and toolkits to maintain our competitiveness.

Minister Gan announced earlier we will extend our Pioneer Certificate Incentive, Development and Expansion Incentive and the Investment Allowance tax incentives to end 2028. This further reinforces our commitment to strengthen incentives to attract leading edge investments here.

Prof Hoon Hian Teck also asked how we are creating the manpower required for Manufacturing 2030.

The short answer is we will attract more Singaporeans to the sector. How?

First, we piloted the Accelerated Pathways for Technicians and Assistant Engineers (Manufacturing) Grant to help selected manufacturing companies hire, train and offer career progression for ITE graduates to become proficient technicians in the sector. We will extend this pilot by another two years to March 2025 to allow even more companies to be onboarded.

Mr Liang Eng Hwa, Mr Saktiandi Supaat and Ms Jessica Tan asked about emerging sectors in Singapore and opportunities for businesses in those areas. Mr Shawn Huang is right also to highlight the potential of robotics and space.

We aim to be a frontrunner for tech-enabled manufacturing in areas like biotech and robotics while also exploring the space industry.

On biotech, our biotech sector may be nascent but we expect it to grow by 8% annually.

Ms He Ting Ru asked about the opportunities and support to further develop this sector. We are doing so in several ways.

First, nurturing our talent pipeline. A*STAR's Singapore Therapeutics Development Review (STDR) initiative and Technology for Enterprise Capability Upgrading (T-Up) programme is one such thing. Since 2003, more than 950 A*STAR research scientists and engineers have been seconded to support over 850 local SMEs in product development under T-Up. Of this pool, close to 70 of them have been seconded to 45 biotech-related companies and 16 have joined the companies full-time at the end of their T-Up projects.

One example is A*STAR scientist Dr Lionel Low, who was seconded in 2019 to Tessa Therapeutics. Dr Low has now since joined Tessa Therapeutics full-time as Director of Research and Development.

Minister Tan also announced that we are expanding our Innovation and Enterprise Fellowship Programme (IFP) to include public sector partners like the Experimental Drug Development Centre.

The second thing that we are doing is to grow our biotech venture ecosystem financing and funding. We are working with venture capitalists (VCs) to channel more investments into Singapore-based biotech startups.

In 2021 and 2022, Enterprise Singapore's SEEDS Capital invested $70 million and catalysed another $300 million from 40 private equity and VC funds into 70 deep-tech startups while Startup SG Tech extended $10 million in funding to 30 projects.

Just as our biotech sector is showing promise, we are also making strides in robotics.

Singapore has the second most robot-intensive manufacturing sector in the world, just after South Korea. Our manufacturing, construction and healthcare sectors here use robots to improve productivity, safety and quality.

In manufacturing and construction, robots can ease on-site manpower constraints. For example, construction company Gammon uses Spot, a four-legged robot built by Boston Dynamics to scan sections of mud and gravel at construction sites to check work progress.

We will strengthen our national robotics ecosystem through the National Robotics Programme (NRP). In fact, last month, Minister Tan and I celebrated NRP's sixth anniversary at Singapore University of Technology & Design (SUTD) with startups and industry players. There is great energy and promise in our robotics sector.

Our biotech and robotics solutions have applications for the silver industry too – a sector Ms Sylvia Lim asked about.

For example, Alexandra Hospital successfully trialed Florence, a robotic nursing assistant co-created with NCS to perform tasks, including taking vital signs of patients at their bedside and delivering medication and items. This frees up time for nurses to perform other value-added tasks for their patients.

Another example is MiRXES, a homegrown A*STAR spin off firm that focuses on early detection of cancer using its proprietary microRNA platform. MiRXES launched GASTROClear in 2019, the world's first approved molecular blood test for stomach cancer, which has been used by over 30,000 patients to help detect early-stage cancer before an endoscopy is prescribed. Enterprise Singapore's Scale-up SG programme helped MiRXES internationalise and expand to North and Southeast Asia in 2022.

These firms are doing good work to help address challenges in ageing societies like ours and in many parts of the world. We will continue to help them thrive in this emerging global silver industry.

We have seen how tech-enabled manufacturing solutions improve the lives in the silver industry. This also inspires us to explore new frontiers like space. We thank Mr Shawn Huang for acknowledging the space industry's growth potential. We have been gradually growing our space industry since the early 2000s.

Today, the global space industry is valued at over US$400 billion, set to increase to over US$1 trillion by 2030. In 2013, we established our national space office – the Office for Space Technology and Industry (OSTIn). OSTIn brings together players from different disciplines to build our nascent space ecosystem and develop emerging and disruptive technologies. We have good local capabilities in satellite engineering, remote sensing and satellite communications (satcom) and have launched over 15 satellites thus far.

DSO National Laboratories collaborated with OSTIn, local space research partners and international industry partners to launch our first locally developed Synthetic Aperture Radar microsatellite into space last year.

We can also apply space-based technologies to other sectors such as aviation and maritime.

Our space industry has also created attractive jobs and anchored foreign companies here. Today, we have approximately 2,000 professionals and researchers in our space sector and more than 60 local and international space companies based here.

At the Global Space and Technology Convention organised by Singapore Space and Technology Limited two weeks ago, Minister Iswaran announced that Mangata Networks, a satcom company, is establishing its maritime global headquarters here and will create at least 160 new and exciting jobs.

Our space industry is fuelled with potential. As I see our students strolling in, please come and join our space sector and join our rocket ship.

We have made good progress for Manufacturing 2030, including in biotech, robotics and space. As we programme our satnav back to Earth, let us land on Services 2030 – our plan to grow our services sector.

Mr Derrick Goh asked how we have been helping our SMEs digitalise.

Our Services 2030 vision is to grow our services sectors by making them more digital and sustainable and to anchor Singapore as a leading hub for business, lifestyle and tourism.

By 2030, we aim to entrench Singapore as a hub of firms, a hub of flows and a hub of talents.

A hub of firms – where we continue to attract multinational enterprises and large local enterprises to use Singapore as a base for their Global-Asia operations.

A hub of flows – where we strengthen our position as a global trading, financial and lifestyle hub, build on our networks of international trade agreements to connect Singapore and Southeast Asia to the world and further our digital and green economy agreements.

Finally, a hub of talents – where we build a strong Singaporean workforce and continue attracting global talent.

Let me elaborate using three sub-sectors.

First, professional services.

Minister Gan spoke of how our refreshed Professional Services Industry Transformation Map (ITM) will help our professional services firms transform so Singapore remains a hub for firms. From 2020 to 2025, we expect our professional services sector to achieve VA growth of 3% to 4% per annum, to $27 billion and create 3,800 additional PMET jobs annually for locals. To achieve this, our Professional Services ITM 2025 will focus on three areas.

First, we will strengthen Singapore's appeal as a business hub for companies to build their headquarters here.

Headquarters create meaningful jobs for Singaporeans in various areas, including corporate functions such as marketing, legal and finance and accounting. We have a pool of ready talent to provide these services.

We are already attracting leading global firms because of the strong fundamentals I mentioned earlier, but to help existing headquarters in Singapore improve their in-house corporate functions, EDB has designed two online assessment tools for marketing and also for finance and accounting. These resources help companies assess their corporate functions and recommend ways to transform job roles.

EDB's Corporate Venture Launchpad also help Singapore-based companies nurture new venture concepts here. SembCorp Industries Ltd has benefited from this programme and spun off new ventures.

Last year, we injected an additional $20 million into this scheme to onboard more firms to start new ventures.

Second, we will help our professional services SMEs become more digital. If you are a professional services SME, please continue to use our Productivity Solutions Grant and Enterprise Development Grant and platforms like IMDA's Chief Technology Officer-as-a-Service.

Third, we will help our companies create jobs and upskill our workforce to meet rising demands in sustainability.

EDB is partnering consulting and engineering services firms to set up regional sustainability Centres of Excellence. These centres will groom talent, develop sustainability expertise and drive R&D capabilities and activities for Southeast Asia.

Our Design Singapore Council has also developed the Good Design Research Initiative as well, to help designers and firms like Ginlee Studio and bioSEA design for environmental impact.

We will also help Singaporeans take on new jobs in the professional services sector by reskilling and redeploying workers through initiatives like our Career Conversion Programmes. For example, if you are looking to upskill and explore new roles in the accountancy sector, you can approach the Accountancy Careers Hub to pick up new skills and receive career guidance to advance your career within the industry.

With these ITM 2025 building blocks in place, our professional services sector is looking professional and bright!

Just as our Professional Services sector is distinguishing itself globally, a vibrant tourism scene will also differentiate us from other business hubs. In the next decade, we will build our tourism sector in three ways.