Singapore does not condone businesses who use local ties to bypass US export controls on AI chips

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NOT IN SINGAPORE’S NATIONAL INTEREST TO Get “MADE USE OF”: BALAKRISHNAN&nbsp,

Assoc Prof Lim stated in response to Dr. Tan’s response that he had initially contacted the Ministry of Foreign Affairs ( MFA ) and asked if an MFA minister could respond to inquiries that” call for… &nbsp, a foreign policy approach.”

Assoc Prof Lim questioned whether the government was aware of such “imbalances” and whether they are “positive or bad for the national attention from a foreign policy perspective” because a little larger portion of Nvidia’s profit was billed to Singapore in comparison to &nbsp, physical deliveries to the nation.

Foreign Affairs Minister Vivian Balakrishnan reacted to this by stating that Singapore is the world headquarters for dozens of foreign businesses, and that its deal size is three days the GDP.

” These distinctive traits are standard for the distinctive part Singapore plays in the world economy,” said Dr. Balakrishnan.

” There’s nothing strange or unstable about that. The key to the puzzle is really whether these businesses and organizations are using Singapore to escape punitive export controls.

He continued, stating that it is not in the government’s federal interest to be “made use of,” but that Singapore is not officially obliged to impose punitive trade measures on other nations.

We won’t permit them to use our association to carry out deceptive or evasive trade practices to avoid unilateral export laws that apply to them. The point is, the onus is on that company and we will not countenance evasion, deception, false declarations or even misaccounting”, he said.

Dr. Balakrishnan added that Singapore will facilitate investigations and determine whether there is any cause for concern if a trading partner visits Singapore with concerns.

” We do that in order to protect our own national interests”, he said, adding that Singapore also has a need for AI chips.

The Biden administration’s final year of office and the release of the AI diffusion rule are now open for comment, so the situation is still evolving, he said.

Needless to say, we will continue to work with the main exporter to make sure we have enough of these advanced chips,” he said.

It is all the more important for us to play it straight in a world that is divided, fracturing, polarizing, and divided, he added, and to be fair, he said in Beijing and Washington. Everything that Minister Tan has said applies to all of our trading partners, in part because of this.

Then, nominated MP Mark Lee posed a query about the economic ramifications of Singapore’s inclusion in the new US AI export controls.

Dr. Tan noted that the new US administration has not made any comments on their policy or position regarding the new rule, and that it did not share specific requirements regarding the tiering requirements or what would be necessary for a nation to be upgraded to a higher tier.

” We are in consultation with industry players in Singapore to get feedback on the potential effects of the draft rules on their business activities,” he said. This will help us decide whether or not to take appropriate steps to support our companies. We are also working with the US to address their questions and understand how they approach the AI diffusion rule.

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Budget 2025: S0 in Climate Vouchers for families in private properties; additional S0 for HDB households

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We will need to create life changes and embrace sustainable practices in our everyday lives to fully realize our natural potential. Every individual actions counts”, said Mr Wong.

If you haven’t already, I urge all families to move to more resource-efficient items.

The Climate Friendly Households Programme, which was expanded to all HDB cottages last month, includes the tickets. &nbsp,

They come in a mix of faiths– S$ 2, S$ 5, S$ 10 and S$ 50 and can be used to purchase 10 types of energy- and water-efficient home items. &nbsp,

Culture RISKS AND TACKLING Pollution

In his speech, Mr Wong even shared how officials did “accelerate” efforts to decarbonise the travel industry, which accounts for about 15 per cent of Singapore’s overall emissions today.

He noted that in 2024, almost half of all new cars registered were electric vehicles and that almost half of those were hybrid cars, and that Singapore is “making good progress” in its effort to have” good progress” toward the previously-stated goal of having 100 percent cleaner energy cars by 2040.

But, adoption of clear power varieties of large vehicles has been slower, said Mr Wong.

The state will also offer an energy large car charger grant and a fresh Heavy Vehicle Zero Emissions Scheme. He claimed that these initiatives will support co-funding of the charging system and the order of clear, heavy vehicles.

During the Committee of Supply discussion, the Ministry of Transport will provide more information about the plans.

Additionally, Mr. Wong made the announcement that the authorities would start levying road tax on electric vehicles and cars with the Additional Flat Component ( AFC) of AFC.

The AFC will be set at S$ 250 per year for electric heavy goods vehicles, and$ 190 and$ 550 per year for electric minibuses and large buses, respectively. Starting in January of next year, it will be phased in over three decades until it is entirely implemented by January 2028.

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Budget 2025: Parents having their third child or more to get up to S,000 in extra support

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Singaporean parents will receive up to S$ 16, 000 ( US$ 11, 900 ) more in financial support for each third child born on February 18 as part of a new program for large families, according to Prime Minister Lawrence Wong’s announcement on Tuesday ( Feb 18 ).

Speaking during his Budget 2025 speech in parliament, Mr Wong, who is also Finance Minister, said:” People with more babies usually worry about extra fees, because the requires grow with each extra baby”.

He added that the new Significant Families Scheme may assist married couples who have three or more children aspiration.

According to the National Population and Talent Division ( NPTD), which is under the control of the Prime Minister’s Office, this applies to parents who have remarried and are raising three or more children from previous marriages or current marriages. &nbsp,

According to NPTD, the government anticipates spending about S$ 80 million annually on the program. &nbsp,

Parents will be given a S$ 5, 000 Large Family MediSave award for each second and subsequent Singaporean born on Tuesday, according to Mr. Wong.

The offer will be credited into the family’s MediSave bill, and can be used to offset either her pregnancy and delivery costs, or family members ‘ medical bills.

LIFESG CREDITS

Parents will also be awarded S$ 1, 000 in LifeSG credits for each third and subsequent child between the ages of one and six, or a total of S$ 6, 000 over the course of six years, according to Mr. Wong.

The child’s Child Development Account trustee can access these credits through the LifeSG mobile app, as well as those provided by national servicemen, and they can also be used at any online or physical retailer that accepts payments via PayNow UEN QR or NETS QR.

Families that already have three or more children between Jan. 1, 2019 and Feb. 17, 2019, will also receive S$ 1, 000 annually for each eligible child until they reach the age of six, according to NPTD in a press release on Tuesday.

The LifeSG credits will be disbursed in September. A child’s eligibility will be determined on March 1 for the following years, and the funds will be distributed in April.

Finally, under the First Step grant, all third- and subsequent Singaporean children born on Tuesday will receive S$ 10, 000 in their Child Development Accounts. This is twice the original budget.

According to Mr. Wong, this can be used to pay for the child’s tuition and other medical expenses.

The government also wants to collaborate with business partners to offer” a broad range” of benefits and deals for large families, according to NPTD. Thirty businesses from various industries, including food and beverage, retail, and transportation, have signed on so far.

FEWER COUPLES HAVING BIG FAMILIES

The Singapore government has released a number of marriage and parenthood measures in recent years, including a suite of announcements for large families on Tuesday. &nbsp,

They include 10 additional weeks of paid time off for new parents starting on April 1 and six additional weeks starting the year after that.

The Baby Bonus was also increased in 2023 to encourage more children.

More than a third of married couples want three or more children, but fewer couples actually do so, according to NPTD surveys.

According to figures from the Department of Statistics, the proportion of married, female Singaporeans between the ages of 40 and 49 who have three or more children dropped from 24 percent in 2014 to 18 % in 2024.

In 2023, Singapore’s resident total fertility rate also dropped below 1.0 for the first time.

On Tuesday, Mr Wong also announced other one-off support measures in this space.

For each child under the age of 12 this year, families will receive S$ 500 in Child LifeSG credits. The credits will be distributed in July for those who were born this year between the ages of one and twelve, and in April 2026 for those who were born this year.

Singaporean children aged 13 to 16 will get S$ 500 in top-ups to their Edusave accounts, while those aged 17 to 20 will get an additional S$ 500 in their Post-Secondary Education accounts.

The families of about 455, 000 children are expected to&nbsp, benefit from the Child LifeSG credits and about 300, 000 students will benefit from the top-ups to their Edusave and Post-Secondary Education accounts.

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Budget 2025: Preschool fee caps to be lowered, more support for lower-income families to buy a home

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As Prime Minister Lawrence Wong announced measures to support families in his Budget speech on Tuesday ( Feb. 18 ), Singaporeans will receive more help with preschool fees. &nbsp,

The regular care costs at lover technician preschools will never exceed S$ 650, while those at buoy operator preschools may be capped at S$ 620.

The figures are lower than the S$ 640 and S$ 640 caps, both, for the second time in a row that Mr. Wong has reduced the school price cap in his Budget statement.

After grants, a dual-income family will spend about S$ 300 per infant, with lower- and middle-income people paying less after more incentives, said the prime minister. &nbsp,

According to him,” This reduction will keep full-day preschool costs at the same as those for the combined costs of primary school and after-school care,” he continued. &nbsp,

Mr Wong, who is also the finance minister, said the government will do more to support lower-income and vulnerable families so they can achieve stability, self-reliance and mobility. &nbsp,

Second-timer families with children who reside in public rental apartments will receive S$ 75, 000 in grants to purchase a new standard two-room Flexi or standard three-room flat on a shorter lease under the improved Fresh Start Housing Scheme, he announced on Tuesday. &nbsp,

Currently, eligible families under the scheme, which was launched in 2016, can get up to S$ 50, 000 in grants.

Second-generation families refer to households that have previously received one housing subsidy. &nbsp,

First-timer families with children living in public rental flats, or those who have not benefited from housing subsidies, will be allowed to buy shorter-lease subsidised flats through the same scheme, said Mr Wong.
 
They typically face more difficult circumstances in life, such as having to deal with family medical issues or raising their children alone, he continued. &nbsp,

Even with the housing subsidies available to first-time home owners, these families may have trouble purchasing a flat with a full 99-year lease, according to Mr. Wong. &nbsp,

Desmond Lee, the Minister for National Development, said he will provide more information at the upcoming Committee of Supply debates.

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Budget 2025: S0 monthly allowance for mid-career workers taking up part-time courses

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SUPPORT FOR HIGHER LEARNING Schools

Mr. Wong praised the significance of higher education institutions in lifelong learning, and proposed that the Singapore Universities Trust be extended by ten years to support fundraising efforts by younger autonomous universities like the Singapore University of Social Sciences ( SUSS) and the Singapore Institute of Technology.

The trust was established in 2010 to support automatic universities in raising their endowment funds by offering related grants for donations over the course of 20 years.
 
Additionally, the government will help SUSS build a new town college. The government and the country’s sixth school, which is now run out of rented space, were previously reported to be in talks for a strategically located campus it could call its own.

On Tuesday, Mr. Wong stated,” This will help SUSS to promote lifelong learning and offer programs with a strong cultural emphasis at an visible location in the city for trainees of all ages.”

HELPING ENTERPRISES TO TRANSFORM THEIR Labor

To help companies train their labor, new and improved techniques will be introduced.

The SkillsFuture Workforce Development Grant does add to the present initiatives being managed by Workforce Singapore and SkillsFuture Singapore. The new grant will support work makeover actions by providing up to 70 % funding in addition to easing the application process for businesses.
 
The SkillsFuture Enterprise Credit program, which helps employers pay out-of-pocket costs for business and workplace conversion, may be revamped. Now, companies had paid upfront for personnel training and get insurance. According to Mr. Wong, some businesses are unaware of the scheme’s use and are also unaware of its use.

Companies can check their credit balance and instantly offset eligible workforce transition costs by repurchasing the scheme’s design, which will make it” an online wallet.”

Companies with at least three residing employees may receive an additional S$ 10, 000 in certificates, which are renewable for three years, starting in the second quarter of 2026. Existing funds, initially set to expire this June, will become extended until the fresh funds are made accessible.

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Budget 2025: CPF contribution rates of those aged above 55 to 65 to increase 1.5 percentage points in 2026

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In his Budget statement on Tuesday ( Feb 18 ), Prime Minister Lawrence Wong announced that the Central Provident Fund ( CPF ) contribution rates for those over 55 to 65 will increase by 1.5 percentage points in 2026. &nbsp,

This will begin on Jan 1, 2026, bringing the Pension input costs for employees aged above 55 to 60 to 34 per share.

The CPF input costs for employees over the age of 60 to 65 will increase by 25 %.

The CPF pension account will receive the full benefit of the particular CPF factor increases. &nbsp,

Mr. Wong, who is also the finance minister, stated in his budget speech in parliament that the Tripartite Workgroup on Older Staff ‘ comments were followed by the increase in CPF factor levels. &nbsp,

The authorities announced in 2019 that CPF commitment rates may be eventually raised over the next ten years for Singaporean and permanent residents aged above 55 to 70 in accordance with the workgroup’s tips. &nbsp,

When the increases are completely implemented, those aged above 55 to 60 will have the same Pension input costs as younger employees. &nbsp,

According to Mr. Wong, companies will continue to receive the CPF Transition Offset for another year to cover half the increase in company efforts for 2026. &nbsp,

Companies can use for the offset immediately because it is already available. &nbsp,

Older employees can increase their retirement savings with this decision, and businesses will continue to receive federal funding to reduce business costs, according to Mr. Wong. &nbsp,

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Budget 2025: Authorities to study potential deployment of nuclear power in Singapore

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Last month, Second Minister for Trade and Industry Tan&nbsp, See Leng said in parliament that Singapore has plans to build a pool of about 100 nuclear power experts in the medium-&nbsp, to long-run. &nbsp,

He continued, nevertheless, that Singapore&nbsp is unable to agree to a time frame for taking a place regarding the implementation of nuclear power and that no decision has been made regarding it.

NEED FOR “MAJOR INVESTMENTS”

To match its growing energy needs and reduce carbon emissions, Singapore needs more clean energy, said Mr Wong.

One option is to buy low-carbon energy from the area and Singapore is “making improvement” on such exports, he added.

Beyond that, regional clean power is required to increase energy endurance.

While Singapore has” carefully” evaluated the use of low-carbon gas, there are “inherent difficulties” in the production, storage and transportation of gas, which make it difficult to level up in a economically sustainable manner, Mr Wong said.

Authorities had considered using nuclear power in 2010 but determined that Singapore’s current atomic systems were insufficient.

But, there have been” significant advancements” in nuclear technology since, with the development of Biomarkers which have better security features than standard units, added Mr Wong.

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Budget 2025: S billion top-up to Changi Airport Development Fund among measures to grow Singapore economy

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SUPPORT FOR LOCAL

Mr. Wong also noted that comments on the Singapore Stock Exchange was unfavorable, yet for businesses that were primarily focused on Singapore or Southeast Asia. &nbsp,

The first set of procedures that Mr. Wong has accepted was created by an Equities Market Review Group, which was set up to work on this.

The suggestions include tax breaks for Singapore-based businesses and fund managers who decide to list and expand their economic activities there. &nbsp,

Additionally, a tax incentive may be implemented for fund managers who make significant investments in Singapore-listed securities. This is to encourage more investment in Singapore’s money markets. &nbsp,

Enterprises may even receive more help scaling up and competing on a global level. &nbsp,

To help organizations choose artificial intelligence options, up to S$ 150 million will be set off for a new Organization Compute Initiative. In accordance with this scheme, ready businesses will work with major cloud service providers to gain access to AI tools, computing power, as well as expert consulting services. &nbsp,

A plan will be extended to December 31, 2030 in order to encourage mergers and acquisitions, allowing Singapore companies to make a qualifying merger of the common stocks of another company to receive tax advantages. It was originally scheduled to expire on December 31 of this year.

Later this month, Singapore’s Economic Development Board will launch a Worldwide Founder Programme to encourage foreign entrepreneurs to establish and expand their businesses.

Mr. Wong also made note of the worldwide emergence of a secret credit market that provides creative financing options to businesses. But few of these secret record funds focus on Asia or Singapore-based companies. &nbsp,

In order to provide more funding options for high-growth local businesses, a fresh S$ 1 billion Personal Credit Growth Fund will be established. &nbsp,

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Police aiming for 2 election rally sites for each GRC, 1 for each SMC

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In the upcoming General Election, the police intend to designate two physical rally locations for each group representation constituency ( GRC ) and one for each single member constituency ( SMC).

According to Minister of State for Home Affairs Sun Xueling in parliament on Tuesday ( Feb 18 ), one location will also be designated for lunchtime rallies.

She was responding to a problem from Pritam Singh, the leader of the opposition, regarding the number of real rally locations that may exist.

The EBRC’s ( EBRC ) report to parliament could be made public, but the Workers ‘ Party secretary-general also inquired.

The EBRC, which is currently reviewing district lines, will be convened on January 22 according to the Elections Department.

At the conclusion of election morning, according to Ms. Sun, the list of rally locations will be made public.

She described the arrangements as” common with the way that the political general elections were conducted with actual rallies in 2011 and 2015.”

She continued, noting that the police were looking at a variety of protest locations, including stadiums, schools, and empty fields.

In the General Election, which Singapore may hold by November 23 this year, natural rallies were anticipated to return.

CNA earlier reported that 22 of the 46 protest sites in the 2015 General Election no longer exist, with 12 websites lost to cover tasks.

According to pandemic health precautions, the 2020 General Election did not hold any real gatherings. Walkabouts and home visits were the only natural campaigning options for small groups.

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Budget 2025: Singapore to introduce 50% corporate income tax rebate amid higher rent, labour costs

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Singaporean businesses will be able to pay a 50 % corporate income tax exemption in the 2025 fiscal year, according to Prime Minister and Finance Minister Lawrence Wong on Tuesday ( Feb 18 ).

” Higher costs… affect our companies, many of whom are grappling with the higher cost of rent and labour”, said Mr Wong in his Budget 2025 conversation.

Eligible firms will also receive a cash grant of S$ 2, 000 ( US$ 1, 500 ), even if they are not profitable. They may be active and have at least one local contractor employed by 2024.

The overall benefit that a business can get – including&nbsp, both income grant and discount – will become capped at S$ 40, 000.

According to the Ministry of Finance, ready businesses will start receiving the funding in 2025’s second quarter.

INCREASE IN GOVERNMENT CO-FUNDING

Additionally, Mr. Wong made the announcement that the government would give companies more assistance in raising the earnings of lower-wage workers.

” Despite facing higher cost pressure, I’m glad that some companies remain committed to uplifting the income of lower-wage staff”, he said. The government will continue to bear this burden on businesses.

The state pays a portion of the pay raise that an company gives to employees under the Progressive Wage Credit program, which was introduced in 2022.

This time, the government will raise its co-funding levels to 40 per cent, up from 30 per cent. Next time, this will be 20 per share, away from 15 per cent.

In 2024, the president’s co-funded level was 50 per cent.

The co-funding applies to staff whose ordinary gross monthly salary were S$ 3, 000 and under before the salary raise, and upward to S$ 4, 000 after the raise.

At least S$ 100 in annual increases are required.

The Ministry of Finance stated that the government would co-fund the pay raise for both times if it continued in one.

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