Budget 2025

Ms Denise Phua Lay Peng (Jalan Besar): Mr Speaker, this Budget debate marks the final one before the end of this term of Parliament. It also coincides with SG60, the commemoration of 60 years of Singapore’s Independence. Over the decades, we have weathered storms that could have broken lesser countries. From Severe Acute Respiratory Syndrome (SARS) in 2003 to the unprecedented challenges of COVID-19, key Government systems in our country from healthcare, manpower, industry to education – and our social cohesion – were tested. Yet, time and again, we have emerged stronger. This resilience is a testament to our collective spirit and the leadership of this Government.

Our journey has been marked by bold, creative measures to safeguard businesses, livelihoods and the interests of our next generations. COVID initiatives, probably forgotten by some by now, like the Jobs Support Scheme, Wage Credit Scheme, the SGUnited Traineeship, CDC Vouchers, first started to help the hawkers, to name a few, have provided much-needed relief to Singaporeans. These efforts, together with many post-COVID measures, rolled out consistently, reflect our Government’s commitment to supporting our people.

But as we approach SG60, our work is far from over. Our core existential struggles remain. Persistent challenges – like our declining fertility rate, the rising needs of a rapidly ageing population and the disruptive impact of AI on jobs and the economy – still demand urgent attention. 

Singaporeans look to the Government to lead in navigating these challenges. So, this Budget is crucial as it addresses how we allocate our national resources, limited resources for the immediate and for the longer term; it is about resourcing a strategic plan to secure our future and it cannot be seen merely as an annual “goodie bag” giveaway but as a support plan to address our persistent challenges.

To this end, Mr Speaker, Sir, I propose three focus areas where resources can be further directed to ensure Singapore remains resilient and inclusive in an increasingly complex world. 

Key focus area one: on jobs and skills in this age of AI. AI is transforming industries at an unprecedented pace. We heard from many speeches before me. While it brings opportunities, it also threatens to displace workers and widen inequality. In Singapore, sectors like finance, healthcare, logistics and customer service are already experiencing AI-driven changes. For instance, the DBS Group recently announced plans to cut 4,000 jobs over the next three years while, of course, adding 1,000 new positions. It is a stark reminder of the urgent need to reskill and repurpose our workforce.

The latest World Economic Forum report cautioned that, and I quote: "Without appropriate decision-making frameworks, economic incentive structures and possibly Government regulations, there remains a risk that technological development will be focused on replacing human work. The trajectory of AI adoption could either help us collaborate with machines for outsized gains – or lead to greater inequality and job displacement, depending on how businesses and policymakers respond."

In Singapore, Budget 2025 is going in the right direction. The SkillsFuture movement was started 10 years ago. I remember when I first brought up at a Budget debate like this that MOE should look into adult training as well. The response in this House was muted. But I am glad that SkillsFuture Singapore has been established, put under the MOE and the Institutes of Higher Learning and other adult training providers are now part of the SkillsFuture adult training ecosystem.

Budget 2025 initiatives like enhancing the SkillsFuture Level-Up Programme for mid-career Singaporeans, adding part-time courses and enhancing employer incentives are commendable. Few other countries have come close to the kind of systematic intervention for citizens that we see in Singapore.

However, we must go further. Here are three suggestions.

First, accelerate Industry Transformation Map (ITM) 2025. ITM 2025 is our Government’s initiative to refresh and strengthen the Industry Transformation Road Maps over the next five years, focusing on seizing post-COVID opportunities and new strategies for jobs, skills, research and innovation. Five years is way too long. The short shelf life of technology and we can see AI’s impact on jobs and skills is tremendous. The recent DBS announcements of job cut this week due to AI applications and the decision therefore to send 13,000 staff to be upskilled or reskilled in AI and data, is another clarion call for us for urgent action.

So, I urge the Government to accelerate the review of the ITM 2025 and to treat the ITMs as living documents to be updated regularly, certainly not once in five years.

Let us also go beyond the usual methods of Job Fairs and invest in channels to clearly communicate the required competencies to both current and potential industry entrants and stressing skills development over academic qualifications. Let us prioritise working on the jobs that might be most at risk of obsolescence and develop action steps for these job families before they are axed. One job retrenched is one too many. District offices like the Community Development Councils are ground partners who can support these efforts, since the Community Development Councils are already running hundreds of SkillsFuture Advice Workshops supporting MOE, SSG every year. 

Second, let us define literacy for all age groups. For such a time as this, the current definitions and the skills inventory of English, numeracy or Math and Digital Literacy should be updated and widely shared. Everyone, regardless of age, should understand the specific skills they need to acquire beyond our traditional focus on English, Math and Digital Literacy. One of my young volunteers, sitting over there in the Gallery now, even suggested adding empathy and community spirit literacy in our fast-paced, polarised world. So, is it possible for us to create a Literacy #101 Skills Inventory List, complete with suggested key learning solutions for all Singaporeans of all ages?

Next, to be more aggressive in driving upskilling campaigns. Let us allocate resources and develop campaigns to compel Singaporeans to take lifelong learning seriously and to proactively self-drive our own developments. The acquisition of new skills and literacies is no longer optional. And, in fact, it is not just a pathway to promotions or career advancement. In this era of AI and job displacement, upskilling has become a critical necessity – essential not only for retaining our jobs but also for navigating our social environments, daily lives and the rapidly evolving world around us.

Next, key focus area two: on vulnerable groups and businesses. The rapid use of technology presents significant challenges for vulnerable groups, especially the elderly, PwDs and low-skilled and lowly-educated workers. These groups, already at risk of marginalisation, face further exclusion due to the growing digital divide. For instance, some residents that I see in their 60s and 70s, they still want to work, they do not want to be at karaoke or bingo sessions whole day long. They struggle and they want to work, they struggle to secure employment in the new economy, whether they want to work out of necessity or out of choice.

 For instance, I filed several PQs and Meet-the-People-Session appeals to different agencies before for seniors who are not proficient in English or matters that are digital and who struggle in accessing essential Government services. Some cannot even read the English language responses that are mailed to them in response to my appeals for them. Some of them actually spend hundreds of dollars or share their Singpass information with parties or sometimes like agents outside the Immigration and Checkpoints Authority office, people whom they think can help them gain digital access to the services they need. These are folks who genuinely need support.

SMEs as well – traditional brick-and-mortar stores and low-margin industries are particularly vulnerable. While many of these businesses should be more proactive in taking up the Government grants and schemes to automate, there is a segment of businesses that may not be easily automated or have a reason for sticking to its current business model. One example, for example, is Wardah Books, a beloved traditional bookshop in Kampong Glam, which sells Muslim and Malay books. It faces challenges in its current business model. It grapples with the high cost of operating a heritage business in a popular historical district.

But I am encouraged that Minister Desmond Lee of MND has established a new inter-Ministry task force to support the growth and sustainability of heritage businesses like Wardah Books in Singapore’s historic precincts. This initiative was announced recently during the official opening of the Kampong Glam Ramadan Bazaar, which was organised by the local business community.

So, we should establish task forces, focus groups, focused task forces for deeper dive, to assist these identified vulnerable groups and businesses. While the Government has implemented measures to assist these groups and individuals, the outcomes still remain to be seen. To address these challenges effectively, we should really establish focused task forces to conduct deep-dive exercises to investigate the root causes of their challenges, their profiles and develop creative and practical solutions and seek Government policy exceptions if needed. Do this starting with the elderly, the disabled and businesses not so suitable for automation. 

Key focus area three: on community solutions. I agree with the principle that not all solutions are best originated or implemented by Government. However, the Government can play a crucial role in facilitating worthy community-driven initiatives or, at the very least, avoid creating adding obstacles to their initiatives.

We need to better encourage and support organic, ground-up initiatives. I can think of several out of many needs I see on the ground that could do with better coordination and support. For example, school bus logistics and cost were mentioned throughout last year. Could carpooling or escort services at the community level help families, for instance, affected by the manpower and cost constraints faced by school bus industry?

Elderly with dementia: for elderly residents with dementia who do not require nursing home care yet, but they lack caregivers who might be working, like people to escort them, to accompany them to day activity centres, could community-level solutions be better encouraged and developed and even scaled?

Families with special needs children: for caregivers of children with special needs who are emotionally drained and especially those with middle or lower income, could community-based support systems be established instead of just relying on ad hoc, acts of kindness? In my constituency, Purple Hearts, and I know in Ang Wei Neng's constituency as well, a grassroots initiative has been formed, this is in Kampong Glam, to support families of children with special needs – children who maybe young or may already be adults in their 50s. For three years, this group of volunteers have provided home visits, organised activities, invited them to grassroots activities, community activities, organised legal talks to help them, pushed out legal services to support them and fostered a sense of community, reminding these families that they are not alone. However, this initiative was only possible due to a team of passionate grassroots volunteers and a generous sponsor that I found who co-funded the central coordination person, headcount. And this is also done, I think, by Ang Wei Neng. Could these be scaled and looked at even more? Could Government play a part in facilitating these community-driven solutions?

In his SG60 messages, Prime Minister Lawrence Wong has called upon Singaporeans to actively become a part of community solutioning – to care and share, to look beyond themselves.

Sir, to better organise and scale community efforts so that more lives can be impacted, positively impacted, I think Government could lend support to establishing a more systematic approach to identify ground concerns and opportunities to serve, to allocate some resources and providing inputs, therefore providing inputs also to policymakers and potential funders.

By empowering community-driven solutions and providing some essential support, we can address pressing issues more effectively and inclusively – and not have everything done by Government which sometimes may be good or not so good.

In summary, Sir, I have brought up three areas for Government to further deep dive into: one, accelerating upskilling and job transformation in the age of AI; two, better safeguard the vulnerable groups and businesses; and three, empowering and facilitating more community-driven solutions for skill and for more lives to be impacted.

Let us draw inspiration from the proverbial giraffe. The giraffe, with its long neck, stands tall, not just to see farther but to reach higher, to nourish its herd and protect those around it. The giraffe reminds us that progress is not just about individual success but also about lifting others as we climb. We, in Singapore, are only as strong as our weakest member. So, let us be giraffes of our time – stick our necks for the common good. I support, Speaker, Sir, Budget 2025.

Source: https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2563

Community, MP, ParliamentDenise PhuaBudget 2025, Speech