Govt urged to exercise prudence amid increased spending

As the Government ramps up spending to support the growing number of senior citizens, it should remain prudent and avoid wastefulness in its initiatives, said a Parliament committee.

The Estimates Committee, which examines government spending, also suggested that the authorities review initiatives under the Age Well SG programme when there is sufficient data to do so, to reduce any duplication.

An estimated $3.5 billion has been set aside for Age Well SG to support seniors in their homes and communities.

Noting that the Government had said it would review the cost-effectiveness of Age Well SG programmes, the committee called for the outcomes of these reviews to be shared when ready.

The nine-member committee had made these recommendations in a 42-page report presented to Parliament on Nov 4.

It is chaired by Mr Ang Wei Neng (West Coast GRC), and consists of seven other People’s Action Party MPs, as well as Workers’ Party MP Jamus Lim (Sengkang GRC). They had three meetings in April, August and October and looked into various matters from Budget 2024 - the Age Well SG initiative, the National Artificial Intelligence Strategy 2.0 and the financing of statutory boards.

Noting that an estimated 100,000 seniors might face at least mild disability by 2030, the committee urged the Government to do more through Age Well SG to go upstream and support seniors to live longer in good health.

It also urged the Government to continue ensuring that seniors and their caregivers in private estates have access to elderly-friendly facilities and services.

The committee also recommended that the Government publish its action plans for ageing every five years or less, given the greater relevance of ageing issues in the years ahead.

The Action Plans for Successful Ageing report, which sets out a whole-of-nation blueprint for ageing gracefully and confidently, was published in 2015 and 2023.

The committee also reviewed the governance, funding models and financial management of statutory boards in Singapore. It last did so in 2017.

In Budget 2024, the Government had assessed that spending would increase to about 20 per cent of the country’s gross domestic product by 2030, the committee noted.

It asked which statutory boards had the largest budgets and reserves, and for their contributions to the Consolidated Fund in years when accounting surpluses are recorded. This was with the view of ensuring the financing of statutory boards would remain sustainable in the future, the committee said.

The committee also asked about the measures in place for ministries to review their statutory boards’ surpluses and reserves.

Responding, the Ministry of Finance (MOF) told the committee that 20 out of 49 statutory boards listed in the Schedule of the Statutory Corporations (Contributions to Consolidated Fund) Act 1989 had sufficient income to finance itself.

MOF also told the committee that its last review of all statutory board surpluses was conducted in 2022.

The three statutory boards with the largest accumulated surpluses in the latest available audited financial statements from the 2022 financial year were JTC Corporation with $26.6 billion, the Tote Board with $4.2 billion and Central Provident Fund Board with $3.2 billion.

As Fifth Schedule statutory boards, the reserves of JTC and the CPF board are protected.

MOF told the committee that the Tote Board’s reserves enable it to offer longer-duration funding commitments with grant awards of up to five years.

While expressing appreciation for the detailed updates from MOF, the committee urged the Government to continue conducting periodic internal reviews of statutory boards surpluses.

Turning to the nation’s second artificial intelligence strategy, the committee noted that of the 10,000 additional AI practitioners the Government plans to develop, 70 per cent are expected to be Singaporeans and permanent residents.

Of these, the plan is for a roughly equal split between fresh graduates from information and digital technologies programmes and mid-career switchers.

However, the committee noted that the career conversion programme had so far helped 190 people transit to their new roles, significantly below the target of 5,000 mid-career switchers.

Mr Ang said the committee is heartened by “the Government’s commitment to preparing Singapore for the future of artificial intelligence”.

With plans to add new AI practitioners, Singapore is better positioned to embrace the rapid advancements in generative AI technology, he added.