Budget surplus, help for workers, firms among issues MPs raise

Singapore needs to be prepared for tougher competition and do what it can to stay in the game despite the changing global system, Prime Minister Lawrence Wong said, in wrapping up the Budget debate on Feb 28.

- Tay Hong Yi

He noted that countries are turning towards zero-sum competition rather than win-win cooperation, disadvantaging small, open economies like Singapore.

Acknowledging that several MPs had raised concerns over the high cost of doing business, PM Wong said the Government will keep an eye on cost competitiveness.

He also urged retailers in particular to adapt and rethink their business models, giving the example of baking supplies firm Phoon Huat, which grew its manufacturing and distribution capabilities, and adopted e-commerce, which lets it sell to customers internationally.

But Singapore cannot compete on cost alone to attract multinational firms, which have options, to set up shop here, PM Wong said in a subsequent exchange with Nominated MP Neil Parekh.

"We have to improve our capabilities, offer a value proposition to them, and that's why we are investing in R&D (research and development)," he said.

The Government is also building up the capability of Singaporean workers and local businesses, in order to supply multinationals with the talent and products they need to keep long-term investments here.

In response to MPs who had raised concerns about livelihoods being disrupted by technological advances, PM Wong said these investments in local capabilities are part of the solution.

He assured Singaporeans that they will get support to adapt to economic changes, with more money to be devoted to training and workforce policies in the coming years, including under the Skills Future umbrella.

In another exchange, Non-Constituency MP Hazel Poa of the Progress Singapore Party (PSP) asked if more investment options could be made available for workers' Central Provident Fund (CPF) savings, with differentiated rules based on age, so older workers can make only lower-risk investments.