Parliamentary Questions I filed for January 2026: The Answers
15 questions this sitting - 9 oral, 6 written. Here are the full answers from Ministers, plus my supplementary interventions during Question Time.
Health (MOH) - 5 Questions
1. Dual-Regulation Framework for IP Insurers ⭐ ORAL
Question: Given that the Monetary Authority of Singapore primarily regulates solvency, whether the Ministry intends to establish a dual-regulation framework to oversee the (i) healthcare outcomes (ii) panel selection criteria and (iii) loss-ratio efficiency of private insurers to ensure they align with national health goals.
Minister Ong Ye Kung’s Answer:
On Mr Kenneth Tiong’s question relating to the regulation of IP insurers, the Ministry of Health (MOH) and the Monetary Authority of Singapore (MAS) work closely together in exercising regulatory oversight of IP insurers, to ensure that policyholders’ interests are protected and the products are sustainable.
MOH’s key role is to oversee the development and operation of the public healthcare system and ensure universal access to healthcare. For individuals who prefer private healthcare and purchase private insurance, we try not to micro-manage or prescribe market practices. Instead, we set requirements pertaining to the key parameters of IPs and riders, such as co-payment and deductible requirements, to ensure that the schemes are sustainable. We only step in when we see a serious market failure emerging, which is why we have intervened in this case, to tighten the design of IP riders.
Doctor panels are an example of cost-management measures put in place by insurers in response to rising private healthcare bills and claims. MOH has been and will continue working with key stakeholders including insurers, healthcare providers, medical professionals and consumer representatives through the Multilateral Healthcare Insurance Committee (MHIC) on these matters, to strike a balance between the interests of all stakeholders.
My Supplementary Question:
MOH itself notes a trend of escalating cost and premiums alongside tightening claims in practices. MAS can act on unfair claims handling, but MAS is primarily a financial regulator. MOH’s direct levers seem strongest when policies are MediSave-linked.
So, my question is, what enforceable levers does MOH have to ensure that insurer conduct advances healthcare affordability and access? And where does MOH remain dependent on MAS?
Also, it appears to me that no one is cleanly accountable for insurer behaviour as a health system actor. Does the Minister believe that this is a gap that requires filling?
Minister’s Response to Supplementary:
The IP rider has become a problem and we are taking action. And I think that is an action that shows our accountability that when something is not sustainable, not working in the best interest of the patients and people, we will take action.
Between MAS and MOH, I think we have plenty of levers and we will work together to make sure that insurers are operating in a way that is ethical, that is viable but at the same time in the interest of patients and the people we serve. And I think we have more than enough levers to do so.
But we should not be tempted to become micromanaging, because it is the worst thing to do to say that we leave it to the market, but we micromanage all their actions and behaviour. I think that is the worst thing, the worst of both worlds. Then, you might as well nationalise it. But we already have a huge nationalised system in public healthcare. So, for private healthcare, control the important levers, control the key parameters, but let the market operate.
2. Shingles Vaccination & Dementia Prevention ⭐ ORAL
Question: Given findings that shingles vaccination reduces dementia, including the May 2025 Nature study showing Zostavax causally reduces diagnoses by 20% and the July 2024 Nature Medicine study showing Shingrix is associated with 164 added dementia-free days, whether the Ministry will (i) include dementia prevention savings into cost-benefit analyses for shingles vaccines and (ii) consider extending shingles vaccine subsidies to persons aged 50-59.
Minister Ong Ye Kung’s Answer:
The two cited studies are based on observational data that suggest a potential association between shingles vaccination and reduced risk of dementia. Additional research is required to establish causality and the underlying biological mechanisms, to determine the vaccine’s effect on dementia risk. The Ministry of Health (MOH) will continue to monitor the emergence of such scientific evidence. In the meantime, we will maintain the age criterion for Shingles vaccination subsidies, on the basis that the incidence of shingles rises steeply after age 60, approximately three to four times that of individuals aged 50 to 59 years.
3. Private Equity-Backed Nursing Home Market Share (Written)
Question: Following the Competition and Consumer Commission of Singapore’s clearance of the recent merger between Singapore’s two largest private nursing home operators (a) what is the combined market share of private equity-backed nursing home operators; (b) what percentage of the Ministry’s Build-Own-Lease operating subventions currently flow to such operators versus Voluntary Welfare Organisations; and (c) what safeguards exist against future price increases in an increasingly consolidated market.
Minister Ong Ye Kung’s Answer:
The two merging private nursing home operators will account for around 10% of the total nursing home market. The Competition and Consumer Commission of Singapore has assessed that the merger does not result in a substantial loss of competition in the provision of nursing home services. One of the key reasons is that under the Build-Own-Lease model, Government fully funds the capital costs of development and appoints both private and non-private operators for the facility through competitive tenders, which lowers the barrier to entry for nursing home operators and supports the diversity of options. The distribution of Government operating subvention to private operators is generally proportionate to their subsidised market share.
4. Japan/Korea as HSA Reference Agencies (Written)
Question: (a) What specific technical or regulatory barriers prevent the inclusion of Japan’s Pharmaceuticals and Medical Devices Agency and South Korea’s Ministry of Food and Drug Safety as reference agencies for therapeutic product registration; (b) to what extent does such exclusion delay the registration of medicines optimised for regional populations; and (c) whether the Ministry will conduct a feasibility study on recognising such World Health Organisation Listed Authorities as HSA’s reference agencies, to accelerate drug access.
Minister Ong Ye Kung’s Answer:
The Health Sciences Authority (HSA) currently recognises six reference agencies - US Food and Drug Administration (US FDA), European Medicines Agency (EMA), Health Canada, Therapeutic Goods Administration (TGA) of Australia, Swissmedic, and Medicines and Health Products Regulatory Agency (MHRA) of the United Kingdom.
This current six reference jurisdictions comprise major markets which typically receive first-wave filings from pharmaceutical companies, of which HSA has established collaborative evaluation process and joint review with. This includes aligned scientific standards for quality, safety and efficacy, as well as access to comprehensive scientific assessment and evaluation reports in English that HSA can rely upon for its verification process. Through these arrangements, we could offer an expedited 60 working day turning around time for therapeutic product registration, which is fast by international standards.
HSA continuously reviews its regulatory framework to ensure patients in Singapore have optimal access to safe and effective therapeutic products. Hence, HSA is in talks with other WHO-Listed Authorities, including Japan and South Korea, to explore closer regulatory cooperation initiatives.
5. Healthier SG Capitation vs CHAS Co-payments (Written)
Question: (a) Whether the shift in model from the Community Health Assist Scheme’s means-tested co-payments to Healthier SG’s capitation model signals a departure from the Ministry’s philosophy of shared responsibility in healthcare financing; and (b) without market-based price signals to moderate demand under the capitation model, what specific mechanisms will prevent buffet syndrome and ensure Healthier SG’s long-term fiscal sustainability.
Minister Ong Ye Kung’s Answer:
What the Member might be asking is why many preventive care services under Healthier SG are fully subsidised, while other healthcare services, including those under the Community Health Assist Scheme (CHAS), require co-payment by patients.
The key reason is that we want to encourage cost effective preventive care. Hence for preventive care services where we hope that as many people take it up as possible under Healthier SG, we have given full subsidies to the target population segment. Subsidies for all other healthcare services, including acute hospital care or chronic care, continue to be means-tested and require co-payment, to instill some discipline in healthcare provision and consumption, because unnecessary consumption of healthcare and over-servicing can lead to rapid cost escalation, a financially unsustainable healthcare system and poorer health outcomes in the long term.
Finance (MOF) & Trade/Industry (MTI) - 4 Questions
6. Temasek’s Risk-Return Framework & Ecosystem Building ⭐ ORAL
Question: (a) Whether the Government will review Temasek’s risk-return framework to explicitly value strategic ecosystem building alongside commercial returns; (b) whether the Government has assessed the impact of Temasek’s recent deprioritisation of direct early-stage local investments on Singapore’s ability to nurture nascent high-potential industries; and (c) if so, whether alternative capital support mechanisms will be introduced to fill this gap.
Senior Minister of State Jeffrey Siow’s Answer:
This question was addressed in the reply to Parliamentary Questions 12 to 14 on the Order Paper for 12 January 2026.
The Government’s mandate for Temasek is that it should deliver good, sustainable long-term returns. The Government ensures that Temasek has a competent board to oversee its management but does not otherwise influence or direct Temasek’s individual investment decisions. […]
The Government expects Temasek to ensure that its overall portfolio of investments, including its Singapore-based Temasek Portfolio Companies (TPCs), achieves good commercial outcomes. Temasek actively and constructively engages its TPCs. From time to time, Temasek will work with the TPCs on strategic reviews and initiatives to strengthen their foundations for future growth. Temasek’s Singapore portfolio has been able to contribute steady returns to Temasek’s overall portfolio and to Singapore’s economic growth over the long term.
Beyond exercising the appropriate oversight over its investments, there is no requirement for Temasek to pursue specific strategic or economic development strategies. Efforts to develop industry ecosystems or to enhance the financing for early-stage startups are led by the Government, rather than by Temasek. For example, Enterprise Singapore has a Startup SG Equity scheme, through which the Government co-invests with third-party investors in Singapore-based deep tech startups to catalyse the deep tech ecosystem.
And from time to time, Temasek may participate in the Government’s initiatives, but it does so on commercial terms, strictly consistent with its mandate.
7. CapitaLand-Mapletree Merger & SME Tenant Safeguards (Written)
Question: (a) Whether the Competition and Consumer Commission of Singapore is evaluating the reported potential CapitaLand-Mapletree merger and will mandate a formal Phase 1 or Phase 2 review; (b) if so, how will the relevant market be defined to ensure accurate assessment; and (c) whether additional safeguards to protect SME tenants from possible abuse of dominant position in lease renewals will be considered.
Deputy Prime Minister Gan Kim Yong’s Answer:
(Grouped with Q38 and Q40 from Mr David Hoe)
Tenancy mix and turnover in commercial developments are the result of commercial decisions made by both property owners and tenants. These decisions are influenced by market factors, such as consumer demand preferences and prevailing economic conditions.
With regard to competition concerns arising from mergers and acquisitions, Singapore adopts a voluntary merger notification regime. Under this regime, merger parties are not required to notify the Competition and Consumer Commission of Singapore (CCS) of their merger transactions under the Competition Act to balance between effective regulatory oversight and keeping compliance costs low. Instead, merger parties are expected to self-assess whether their transaction may give rise to potential competition concerns. Nevertheless, CCS is empowered to step in if it obtains information suggesting that a merger may result in potential competition issues. Merger parties may approach CCS for pre-notification discussions or seek guidance on whether their merger may be anti-competitive.
In the cases of the acquisition of The Clementi Mall and the reported potential CapitaLand-Mapletree merger, the parties concerned have not formally notified CCS for a merger assessment. CCS will continue to monitor both developments.
Separately, apart from competition oversight under the Competition Act, the Government has put in place measures to support fair and balanced lease negotiations between property owners and tenants. The Government worked with the Fair Tenancy Industry Committee (FTIC) to publish a Code of Conduct for Leasing of Retail Premises in Singapore. Since February 2024, all qualifying retail lease agreements must comply with the Code of Conduct under the Lease Agreements for Retail Premises Act. The Code sets out leasing principles to prevent the inclusion of unreasonable clauses in lease agreements, such as prohibiting landlords from charging a markup on electricity costs. In the event of disagreements over the lease negotiations or terms, the parties may bring their cases to the Singapore Mediation Centre for mediation or adjudication.
8. Tax Resident Transitions Among Singapore Citizens (Written)
Question: For each year over the past decade (a) how many Singapore citizens have transitioned from being tax residents to non-residents and vice versa; (b) what is the breakdown (i) by gender and (ii) by five-year age groups; and (c) what proportion of Singapore citizen tax residents in 2014 have remained so in 2024, as broken down by gender and age.
Senior Minister of State Jeffrey Siow’s Answer:
Singapore Citizens who reside in Singapore except for temporary absences are assessed as tax residents. We do not have data on Singapore Citizens who have transitioned from being tax residents to non-residents and vice versa.
There were about 1.6 million Singapore Citizens with tax filing records in the Year of Assessment (YA) 2020. Of these, about 1.4 million had tax filing records in YA 2024. Those who dropped out could have done so due to a variety of reasons, such as death, retirement, unemployment, or relocation overseas. Of the 1.4 million, about 55% were male and 45% were female. The breakdown by age group is as follows:
Age Group % of 1.4M who remained <25 <1% 25-29 5% 30-34 13% 35-39 13% 40-44 13% 45-49 12% 50-54 13% 55-59 11% 60-64 9% 65-69 6% >69 4%
Notes: (1) Figures rounded to nearest percentage point. (2) Age based on tax resident’s age in YA 2024.
Key observation: 200,000 Singapore citizens dropped out of the tax filing system between YA 2020 and YA 2024 (from 1.6M to 1.4M). The Ministry does not track whether this is due to death, retirement, unemployment, or relocation overseas.
9. Digital Warehouse Receipts & Metal Warrant Financing (Written)
Question: (a) Why digital Singapore-based warehouse receipts remain underutilised for financing critical minerals despite the 2021 Electronic Transactions Act (ETA) amendments; (b) whether the Ministry will operationalise section 16Q of the ETA to accredit trusted issuers; and (c) how does Singapore’s framework for metal warrant financing compare to systems already operational in Dubai and the UK.
Deputy Prime Minister Gan Kim Yong’s Answer:
Most critical minerals traded by Singapore-based companies are stored and financed through the London Metal Exchange (LME) ecosystem, including LME-approved warehouses in Singapore and overseas. Banks which are LME members recognise and accept LME’s digital warehouse receipts as collateral in trade financing.
We understand that some companies may store metals in non-LME warehouses in Singapore, due to lower storage costs or to hold the metals for end-use rather than trading. These warehouses typically issue physical receipts, as they and the banks do not have the economies of scale and hence, the commercial incentive to adopt separate local digital receipt platforms.
Metal warrant financing in Dubai and the UK similarly relies on internationally recognised exchange-based systems such as the LME. EnterpriseSG engages the industry regularly and will review the need to accredit trusted issuers if and when there is sufficient market interest.
Defence (MINDEF) - 1 Question
10. Paya Lebar Air Base Relocation Review ⭐ ORAL
Question: (a) Whether the Ministry has conducted a strategic review of the decision to relocate Paya Lebar Air Base in light of recent global conflicts demonstrating the vulnerability of concentrated air assets to mass drone attacks and long-range munitions; and (b) whether such consolidation of the RSAF’s assets into fewer air bases significantly increases operational risks during a first-strike scenario.
Coordinating Minister Chan Chun Sing’s Answer:
As a small island with no strategic depth and hinterland to absorb an attack, the Singapore Armed Forces (SAF) needs to develop operational concepts and solutions that are uniquely suited to our security needs, while taking into consideration the competing needs for Singapore’s limited land and finite human resources.
Broadly speaking, our circumstances require us to have a robust intelligence and effective threat detection and early warning systems at range, so that the SAF can mount timely and decisive responses with a suite of diversified capabilities across multiple layers and distances where necessary.
Even then, we may not be able to prevent all threats from reaching our shores. For this reason, our critical infrastructures and facilities are hardened against potential attacks, and our key assets can be dispersed in peace time and especially during contingencies. We have also factored in reserve capacities to ensure resilience for scenarios where some of our assets may be destroyed or damaged.
The decision to relocate Paya Lebar Air Base to free up land for national development purposes was a carefully considered one, taking into account the factors I have just mentioned, as well as then-emerging and now-evolving threats.
There are certainly trade-offs involved. We have undertaken a series of additional measures to manage the risks and challenges. For example, in terms of available airbases and runways, we have invested significant resources in expanding Tengah Air Base and Changi Air Base, and lengthening the contingency runway at Pulau Sudong. Tengah Air Base and Changi Air Base are also being upgraded with better detection, response and resilience capabilities, including against the emerging threats posed by drones.
The SAF will continually assess our operational, infrastructure and capability requirements, taking into consideration the threats on the horizon and available technologies, while carefully weighing the costs and risks to Singapore. For good reason which Members will appreciate, many of our efforts are conducted out of the public eye and not disclosed.
My Supplementary Question:
Eleven days ago, the United States conducted “Operation Absolute Resolve” in Venezuela. In two-and-a-half hours, US forces struck four air bases with Kamikaze drones, destroyed Venezuela’s Russian-supplied Buk-M2E air defences and eliminated aircraft on the ground.
By 2030, I believe these sorts of capabilities will become more widely distributed. So, what is the Ministry’s assessment of our post-2030 postures, survivability against this type of strike? And does the Ministry believe that there are concentration risks to be mitigated?
Minister’s Response:
I will make two points in response to the Member’s comment.
First, I have said that based on our geography, the risk of any strike on Singapore is always very high because we lack hinterland or depth – which is why our operational concepts are quite unique for our own operational needs. And I think I will not need to go into details on how we execute our operational concepts.
My second comment is in response to, not just Mr Kenneth Tiong’s, but I sense many other Members’ interest in the latest evolving technologies on the battlefield. Much has been said about drones warfare. It is not something new. It is something that we have been looking at for many years, even since I was an active member of the SAF.
Maybe to illustrate this point, I will just share a little vignette which Members may be aware of. In 2017’s National Day Parade (NDP) – I wonder whether Members will remember the 2017 NDP – many people were impressed by the SAF’s dynamic display. The most memorable scene from the 2017 NDP was the final act towards the end of the parade and ceremony, where we had our fireworks. Members may recall there was a display put up where we had 300 drones in the sky performing and forming a heart shape.
To many, this was a wonderful conclusion to a very nice NDP. To the informed observers who are in this line of business, we already knew what that meant for the nature of warfare.
Education (MOE) - 1 Question
11. Transfer of Non-Pedagogical Tasks from Teachers ⭐ ORAL
Question: Whether the Ministry will consider mandating the transfer of non-pedagogical administrative tasks, such as the management of parental consent forms, monetary collections, and event logistics, from teachers to school administrative and operations personnel to align with the Ministry’s objective of reducing teacher workload.
Minister Desmond Lee’s Answer:
All schools have dedicated administrative teams that help with administrative tasks like collection of money and logistical aspects of organising events. Schools also use technology for tasks like management of consent forms from parents. Schools are expected to tap on such support to reduce administrative workload for teachers. Given differing school operating contexts, the Ministry of Education does not mandate which specific administrative duties in a school needs to be transferred. This is to allow individual school leaders, who best understand the needs of the school and the capabilities of his colleagues, to have the flexibility in balancing workload across different colleagues.
National Development (MND) - 2 Questions
12. Fire-Rated PMD Charging Cabinets Pilot (Written)
Question: Given the rising incidence of Personal Mobility Device battery fires in residential settings, whether the Government will consider piloting fire-rated outdoor charging cabinets in HDB void decks or multi-storey carparks, similar to facilities deployed in New York City and Taiwan, with subsidised electricity rates to incentivise residents to charge devices in these safer communal facilities.
Minister Chee Hong Tat’s Answer:
Agencies such as the Land Transport Authority (LTA), Singapore Civil Defence Force (SCDF) and Housing and Development Board (HDB) work closely to monitor Active Mobility Device (AMD) ownership, charging and usage patterns in Singapore. We also study new operating models and regulatory developments on AMD charging and parking in other jurisdictions.
As different jurisdictions have different contexts and circumstances, we should carefully assess if the overseas practices are applicable here in Singapore. Taking the example of AMD charging facilities in public areas, there will be trade-offs for residents such as having less space for other uses in HDB multi-storey car parks and void decks.
The key factor to improving safety is to prevent AMD-related fires in the first place, instead of where the device is charged. It is more effective to ensure AMDs in Singapore meet prescribed technical and safety requirements. If the devices are non-compliant, shifting the charging and parking to public areas would still lead to fire incidents that pose safety risks to residents.
AMD users should only purchase compliant devices, refrain from modifying their devices, and adopt safe charging practices. This is the main safeguard against fire risks from AMDs. The Ministry of Transport (MOT) and LTA thus take a strict enforcement approach towards the import, sale and use of non-compliant AMDs, and are looking to strengthen regulations on the online sale of AMDs later this year.
13. Animal Management Contractor Protocols (Written)
Question: In light of the death of a dog captured at Seletar West Farmway 8 (a) whether the Ministry will review the “acceptable parameters” of force, as outlined in the AVS statement of 16 November 2025, and training standards for animal management contractors; and (b) whether the Ministry will formalise collaboration with animal welfare groups to ensure humane handling while maintaining public safety.
Minister Chee Hong Tat’s Answer:
This question was addressed in the Ministry of National Development’s reply to the question asked by Ms Lee Hui Ying on 12 January 2026.
Minister of State Alvin Tan’s Answer (12 Jan, responding to Ms Lee Hui Ying):
Since 2018, the Animal and Veterinary Service (AVS) has worked with its partners on the Trap-Neuter-Rehome/Release-Manage (TNRM) programme to manage the free-roaming dog population in Singapore.
Our TNRM partners play key roles, including conducting trapping and sterilisation operations. Upon identification of an unsterilised free-roaming dog, AVS will work with the TNRM partner responsible for the designated area to commence trapping operations.
In situations that present risk to public safety, AVS will intervene swiftly. For instance, in the case of the recent trapping operation at Seletar West Farmway 8 on 14 November 2025, AVS’ animal management contractor was activated to trap and remove three free-roaming dogs, which were confirmed by several victims to have been involved in multiple chasing and biting incidents. The operation was carried out safely under the supervision of AVS staff and is in line with existing protocols under TNRM. This includes complying with the World Organisation for Animal Health (WOAH) standards on Stray Dog Population Control to ensure that uncovered wire loops or ropes were not used during the trapping process and giving due consideration to personnel and animal safety in determining the restraint procedures.
AVS will continue to work closely with TNRM partners in the management of free-roaming dogs to safeguard both public safety and the well-being of the dogs. AVS colleagues and I visited our partners last week to discuss ways we can better collaborate moving forward. For instance, we intend to review joint protocols and further improve communication and coordination. These build on existing collaboration channels such as TNRM rehoming efforts, outreach and AVS-led adoption drives.
Foreign Affairs (MFA) - 1 Question
14. Consular SOPs for Overseas Crises ⭐ ORAL
Question: (a) What are the Ministry’s standard operating procedures, if any, for providing emergency consular aid and ensuring the safety of Singaporeans during overseas crises such as the (i) Brown University shooting on 13 December 2025, (ii) Bondi Beach shooting on 14 December 2025 and (iii) Taipei knife attack on 19 December 2025; and (b) what assistance, if any, was rendered by our overseas missions following the Brown University shooting.
Minister Vivian Balakrishnan’s Answer:
(Grouped with Q83 from Mr Lee Hong Chuang)
When a crisis or major incident occurs overseas, the Ministry of Foreign Affairs (MFA) mounts an appropriate consular response. First, we determine the nature and severity of the incident. Second, we disseminate relevant information and updates to Singaporeans who may potentially be involved. Third, we provide consular assistance to Singaporeans in distress. This includes contacting eRegistered Singaporeans to check on their well-being, liaising with local authorities, issuing Document of Identity for lost passports, and facilitating the return of Singaporeans back home if necessary. We may also issue Travel Notices and Advisories for Singaporeans to avoid travel to that region. That said, every incident is unique and circumstances in the foreign country vary widely – so our responses must be customised accordingly.
Let me cite some examples from recent incidents. During the floods in Hat Yai, our Crisis Response Team was deployed overseas to reach Singaporeans and help bring them home. MFA also helped facilitate the departure of 11 Singaporeans from Iran during the Israel-Iran conflict in June 2025.
When the attacks at Brown University, Bondi Beach, and Taipei occurred, our Missions took immediate action, including contacting Singaporeans that eRegistered, posting updates and advice, and liaising with local authorities to ensure the well-being of our citizens.
We encourage Singaporeans to eRegister when they travel, as this allows MFA to reach out and render prompt consular assistance where needed. We also urge Singaporeans to stay vigilant and take precautions for their personal safety while abroad, purchase comprehensive travel insurance, and refer to MFA’s Travel Advisories and Notices.
Prime Minister’s Office (PMO) - 1 Question
15. Prevention of Corruption Act Amendment ⭐ ORAL
Question: Whether, following Public Prosecutor v China Railway Tunnel Group, the Government will amend the Prevention of Corruption Act to (i) broaden the legal test for corporate attribution beyond the “directing mind and will” doctrine in common law or (ii) introduce a “failure to prevent” offence similar to the UK Bribery Act, ensuring large corporations cannot evade liability for corruption by senior management.
Coordinating Minister Chan Chun Sing’s Answer:
The Prevention of Corruption Act is a key instrument in our fight against corruption. CPIB regularly and proactively reviews the Act. This is to ensure that our laws remain robust and effective against the ever-evolving corruption threat.
CPIB is looking into potential legislative gaps associated to the case cited by the Member in his query. If there is a need to come back to parliament, we will do so.
Other Interventions During Question Time
13 Jan: Local Food Sourcing Requirements (Supplementary to “30 by 30” Question)
Context: Senior Minister of State Zaqy Mohamad was answering questions about the revised food security targets (from “30 by 30” to specific fibre and protein targets by 2035).
My Question:
The Senior Minister of State spoke about enhancing demand offtake. Given that our local farms face structural disadvantages against cheaper imports, has the Ministry considered any form of minimum local sourcing requirements for major retailers and food service operators, even a modest starting quota, so as to create guaranteed demand and help farms achieve commercial viability?
This could be a 1% quota for major food importers and supermarkets like NTUC Fairprice and Sheng Siong. You can call it “1 by 30”, if you would like.
SMS Zaqy Mohamad’s Response:
As a principle, we go with free market principles. Ultimately, I do not think it is in the interest of consumers or the Government to fund or subsidise food products, just as we do not do it for energy costs nor petrol. What we really want is to help our local farmers connect them through organisations such as through Singapore Agro-Food Enterprises Federation Limited (SAFEF). We are working very hard to connect them with many of our retailers, hoteliers, restaurant caterers – and many today are already supporting our local farms.
As an example, while Greenphyto was just launched last month, a year ago, they have already started to reach out and they are already selling to about 75 retailers here in Singapore.
I spoke about Kok Fah Technology Farm, I spoke about Green Harvest, traditional farms, new farms. I think what is key is really to be competitive with the market to provide an offering that Singaporeans would consider. I know supermarkets such as Fairprice, for example, tell me they have got a whole section dedicated just for local produce.
We can encourage Singaporeans to support. I think ultimately it is also encouraging and building awareness with our consumers that local farm produce is fresher. Today, most of them are pesticide free. So, we give you slightly different offerings for a slightly different premium. But I think for things like vegetables, even bean sprouts, the reason why they have a pretty good hold on the market is because consumers also want freshness and there is a segment of market that wish for that.
We hope that with helping our businesses build new capabilities, improve yields, lower their cost of production, we hope that in the long term that helps them be more competitive in the market. I hope that our consumers will also be able to discern the advantages of supporting local and buying local.
Certainly on our part, whether it is through procurement, whether it is through encouraging retailers, hoteliers, I think we will continue to do our part to encourage them to buy local produce, so that we can support local farmers. It is in our interest, on the record, to ensure that our local farms, our local producers thrive, progress and play a big part in our Singapore Food Story 2.
Note: The “1 by 30” local sourcing quota proposal was rejected on free market principles.