Introduction
Mr Speaker, Budget 2026 sets an ambitious AI trajectory, but we must ensure our green transition isn't sidelined by its energy demands. Resilience requires addressing the inherent trade-offs of such growth. Building on my previous Budget speeches, I will also be speaking on other pertinent aspects of green transition and healthcare issues.
AI push
The Prime Minister’s announcements of the formation of a National AI Council and the launch of sector-specific AI Missions signal a clear intent to move towards government-supported application of AI in sectors that are key to Singapore’s economy and society. However, as we double down on this AI push with tax deductions and the new one-north AI park, we must not lose sight of the "unseen" cost. During the Committee of Supply (COS) debate for the Prime Minister’s Office last year, I raised a cut specifically on the staggering increase in energy and carbon use that comes with generative AI1. I cautioned then that an indiscriminate rush to integrate large-scale models for every minor task is a luxury our carbon-constrained nation cannot afford.
While the Government has introduced the Green Data Centre Roadmap, the current pace of AI adoption may risk outstripping our efficiency gains2 . We are seeing a "rebound effect" where more efficient hardware is being used as a rationale for
1 Official Reports of Parliamentary Debates (Hansard), Committee of Supply – Prime Minister’s Office, Dennis Tan, March 2025.
2 rreen DC Roadmap: Infocomm Media Development Authority (IMDA), Green Data Centre Roadmap, launched 30 May 2024; updated 2025 to include compute-level efficiency.
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allowing exponentially higher usage3. It is not enough to have "green" data centres if the AI models running within them are fundamentally wasteful. Alongside infrastructure efficiency standards like the PUE target of 1.25 in IMDA’s latest ‘Data Centre – Call for Application’ (DC-CFA2) 4 , we should also require software-level accountability, ensuring that the AI solutions receiving government funding—including those under the enhanced Enterprise Innovation Scheme—prioritize "Small AI" and task-specific models that require a fraction of the energy of general-purpose LLMs5.
We must not be the target for the migration of inefficient workloads to regions with fewer software-level environmental regulations; we must also mandate transparency for the ‘software’ that consumes energy6.
Just as importantly, I am deeply concerned that recent moves to allow more data centre construction will enable data centres to outcompete households and smaller businesses in Singapore in electricity purchases. With the majority of our low-carbon electricity import projects still in early development7, green electrons continue to be in short supply in Singapore over the next few years.
On one hand, households and small businesses may not benefit from the greening of the grid, remaining exposed to the volatility of the global gas market at a time of geopolitical unrest. On the other hand, Singapore’s latest data centre requirements are relatively lax compared to other advanced states. While Ireland requires data centres to be active partners in grid reliability through 100% onsite backup capacity
3 Rebound Effect (Jevons Paradox): TechPolicy Press, Jevons Paradox Makes Regulating AI Sustainability Imperative, 11 March 2025. This describes how efficiency gains (like DeepSeek or pruned models) often lead to higher total energy consumption due to increased demand.
4 PUE Standards: IMDA/EDB, Data Centre – Call for Application 2 (DC-CFA2), 2025. Mandates a Power Usage Effectiveness (PUE) of 1.25 for new DC capacity.
5 Small AI & Software Efficiency: Singapore Standard SS 715:2025, Energy Efficiency of Data Centre IT Equipment, launched August 2025. It targets a 30% reduction in IT energy use through hardware-software optimization.
6 Strategic risk identified in TechPolicy Press, Jevons Paradox and the Globalization of AI Compute, March 2025
7 PQ reply on renewable import licences: https://www.mti.gov.sg/newsroom/written-reply-to-pq-on update-on-projects-involving-regional-importers-given-conditional-approvals-or-licenses-by-ema-/.
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and 80% renewable matching8 , our current DC-CFA2 framework only targets 50% green energy9, leaving a significant gap that our national grid—and by extension, the ordinary taxpayer—must bridge.
If data centre developers want to benefit from Singapore’s strategic location, they should also play their part in supporting grid reliability and the development of further renewable electricity capacity. And while I do accept that the government has taken steps to accelerate the expansion of renewable electricity availability in Singapore, setting up the Future Energy Fund and Singapore Energy Interconnections, the roadmap still needs to be clearer.
True leadership in AI is not about the number of "AI Champions" we can produce, but about how sustainably we can grow this sector10. If we are to achieve our Net Zero 2050 commitments, the National AI Council must bridge the gap between digital ambition and environmental reality. We need more than just incentives; we need a clear regulatory framework that mandates energy disclosures for large-scale AI developers, like the EU, which will begin mandating energy disclosures for large-scale AI developers by August this year11.
As I stated in my PMO cut last year, by being an early adopter of carbon-conscious AI regulations, Singapore can turn our resource constraints into a competitive advantage, exporting sustainable AI expertise to a world that is increasingly waking up to the ecological costs of the global AI race.
8 Irish regulator’s decision on data centre energy rules: https://www.pinsentmasons.com/out law/news/irish-data-centres-power-national-grid-regulator; Ireland require data centres to source 80% of electricity from renewables and support grid reliability by having dispatchable generators or batteries
9Infocomm Media Development Authority (IMDA) and Economic Development Board (EDB), Factsheet: Data Centre Call for Application (DC-CFA) 2 Results and Framework, 2025/2026. (Note: Specifies the requirement for >50% renewable energy and PUE of 1.25)
10 Champions of AI: A new Budget 2026 program providing tailored support for enterprise-wide AI transformation and workforce training.
11 European Parliament, Regulation (EU) 2024/1689 (Artificial Intelligence Act), Transparency obligations for providers of general-purpose AI models, fully applicable August 2026
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The Green Transition and a Just Transition
Mr Speaker, like in my Budget debate speeches over the last few years, I next touch on green transition. I have consistently argued that Singapore’s green transition must be more than a collection of ambitious targets; it must be a transparent, inclusive, and socially just process.
I. From Adaptation Planning to Action: Lessons from Belém
Mr Speaker, I welcome the Prime Minister’s focus on charting a sustainable future and his candid assessment of the climate challenges Singapore faces. I am particularly heartened by his firm commitment that, despite global trends, retreating from climate action is not an option for our nation.
Last month, I asked the Minister for Sustainability and the Environment about our plans to submit a National Adaptation Plan (NAP) to the United Nations Framework Convention on Climate Change. I thank the Minister for her reply, noting that the inaugural NAP will be published in 2027 and will incorporate the Belém Adaptation Indicators adopted at COP3012.
The Belém outcome was a pivotal moment highlighting that adaptation is not just about engineering—it is about people. While our current strategy addresses Coastal and Heat Resilience, I urge the Government to more explicitly integrate the Belém pillars of Biodiversity and Poverty & Livelihoods into our national climate framework. Our current focus on infrastructure must be matched by a commitment to the social and ecological dimensions of the climate crisis. In Belém, the "Mutirão Decision" emphasized that climate action must be "people-centred"13.
We need a plan that tracks not just the height of our sea walls, but the resilience of our homes against the Urban Heat Island effect including but not limited to challenges of rising cooling costs. This leads me to the urgent need to protect our Biodiversity.
As I argued in my Adjournment Motion last month, we must fundamentally rethink how we justify the trade-offs between development and the preservation of our existing
12 Oral Answer to PQ, MSE (January 2026) regarding COP30 outcomes
13 COP30 "Mutirão Decision" on the rlobal roal on Adaptation (rrA).
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green spaces14. We must plan for the resilience of our homes against the Urban Heat Island effect including rising cooling costs. This requires us to value existing green forested sites as Strategic Green Belts, even if they are not original primary forests and have been subject to previous development. This requires a more transparent approach to land use that recognizes the inherent climate value of our natural ecosystems. It is strategically superior to preserve existing green belts for heat mitigation such as the Serangoon River Forest than to rely on artificial parks. I call on MND to institutionalize Mandatory Functional Assessments for all forested sites before any developments to protect these vital assets and will elaborate on this at COS.
II. A Just Transition for Singapore’s Petrochemical Industry
A "balanced" transition must also be "just." Mr Speaker, the sale of Shell’s assets— now known as the Aster Energy and Chemicals Park (AECP)—raises serious long term questions regarding our transition plans. We need clarity on whether the current owners’ lease includes mandatory decarbonization milestones to prevent Bukom from becoming a "carbon haven" where emissions are simply offloaded to new entities rather than reduced.
Beyond infrastructure, we must address the human cost. In October 2025, ExxonMobil announced it would retrench up to 500 workers in Singapore by 202715. What specific retraining support is being provided to these hundreds of workers affected by such structural shifts? If we can find $500m to finance regional green infrastructure via the FAST-P fund16, I am sure we can also find the resources to ensure no Singaporean worker is left behind.
I call for the establishment of a dedicated "Just Transition Fund" to assist not just the 500 workers laid off, but to help all workers in the petrochemical industry who may be affected as we transition away from fossil fuels, including providing specific guidance in transiting to different industry or different jobs.
III. Electrification of Land Transport Next, we must apply this same rigor to Land Transport.
14 Adjournment Motion on "Rethinking Redevelopment, rreen Preservation", dated 7 January 2026 15 https://www.straitstimes.com/business/companies-markets/exxon-expects-to-cut-singapore-staff-by 10-to-15-by-end-2027 ( dated 1 October 2025)
16 MFA/MOF Announcement on FAST-P Regional Funding (2025)
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The Prime Minister announced in his Budget speech that PARF rebates have now been lowered by 45% across the board and the maximum rebate has been reduced from $60,000 to $30,000. Industry observers have said that this is likely to dampen industry demand for non-EVs as this will increase the depreciation of non-EV cars,17 while EVs are unlikely to be affected18.
Mr Speaker, while the change in PARF rebates may help to nudge car sales for EVs, the EY 2025 Mobility Consumer Index found that 42% of Singaporean buyers cite battery replacement costs as a primary reason they are shifting back to petrol or hybrid vehicles19.
Prior to the recent PARF announcements, the "Resale Cliff" has been a growing risk. As of 1 January 2026, the EEAI rebate cap has dropped to $7,500 and used EVs are taking longer to sell than ICE cars20, resulting in the decline of EVs’ resale value.
I urge the government to study consumer concerns about EV battery longevity and replacement costs and consider how to strengthen consumer confidence in this area.
Mr Speaker, our 2040 goal for 100% cleaner-energy vehicles is at risk of becoming a two-speed transition. While electric cars have increased, despite having their issues, motorcycle adoption remains stuck at a mere 0.2%21. Will the Ministry consider upfront purchase incentives for motorcycles to bridge this gap?
Furthermore, the $40,000 incentive under the Heavy Vehicle Zero Emissions Scheme (HVZES) launched on 1 January 2026 22 may remain underutilized unless we can
17 Business Times, ‘Parf Rebate changes could boost EV adoption, COE renewals but dampen luxury car sales’, 13 February 2026
18 as they enjoy a lower price as a result of about $30,000 of rebates which are calculated as discounts for ARF
19 EY Mobility Consumer Index (January 2026) – Singapore Report;
https://www.ey.com/en_sg/newsroom/2026/01/consumers-driven-back-to-ice-vehicles-as-ev enthusiasm-cools
20 LTA EEAI rebate cap reduction (January 2026)
21 Cf LTA Statistics on Electric Motorcycle population (2026).
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https://onemotoring.lta.gov.sg/content/dam/onemotoring/Buying/PDF/HVZES/T%26C_HVZES_Incentives. pdf; https://www.lta.gov.sg/content/ltagov/en/newsroom/2025/3/news
releases/Strengthening_Singapore_EV_ecosystem.html
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move faster on shortlisted hydrogen pilots and permanent battery swap licenses to support our delivery community and logistics sector.
Mr Speaker, we cannot hit 2040 targets with a "slow-charge" mindset. A transition is only "green" if it doesn't leave our workers or our residents in the "red." Our people need a transition that is fair, funded, and fundamentally just.
Healthcare
Include oral health in Healthier SG
Mr Speaker, I next speak on healthcare. I spoke about the overlooked role of dental health in our healthcare system in my budget debate speech last year23 , and I welcome the announcements during the MOH COS debate for higher dental subsidies and Flexi MediSave use for patients aged 60 and above for root canal treatments and permanent crowns at Chas clinics and public healthcare institutions24. But I still hope more can be done.
A recent longitudinal study by the Centre for Ageing Research and Education at Duke NUS Medical School revealed that nearly one-third of seniors have not seen a dentist in over five years.25 As Associate Professor Rahul Malhotra noted, many visit only when they have a problem, but missing the window for prevention26.
Poor oral health such as untreated tooth decay, gum disease, ill-fitting dentures or tooth loss has important consequences. Dr Eugene Tang, President of Singapore Dental Association opined in a recent letter to the Straits Times that it can affect chewing ability and nutrition, leading to unintended weight loss, reduced muscle strength and increased frailty27.
23 Hansard, 26 February 2025, https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2563 24 https://www.straitstimes.com/singapore/politics/higher-dental-subsidies-more-people-to-be-covered under-chas-for-better-oral-health?ref=inline-article (7 March 2025)
25 https://www.straitstimes.com/singapore/health/seniors-in-singapore-visit-the-dentist-less-often-are at-risk-of-growing-more-frail-study (12 January 2026)
26 Ibid
27 https://www.straitstimes.com/opinion/forum/forum-oral-health-is-a-cornerstone-of-healthy ageing?ref=inline-article (22 January 2026)
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According to NHG Health, the proportion at risk of malnutrition among hospital patients aged 65 and above, rose from three in 10 in 2022 to four in 10 in 202428.
Preventive care is the heart of healthy ageing, yet dental health remains excluded from our national preventive scheme, Healthier SG. For the third time in this House29, I call for dental care to be integrated into Healthier SG. We must treat oral health as a basic pillar of well-being, not an optional extra.
Healthier SG connects us to a family doctor clinic that will help manage our chronic diseases and monitors our health habits and carries out preventive care that can help us stay healthy and active. The same is needed for preventive care for good oral health. And to better care for our seniors, we must also prioritise improving affordability and accessibility of preventive care for oral health.
Apply the same subsidies for dental care at polyclinics or CHAS clinics to tertiary care
Next, affordability of dental care remains an issue for many Singaporeans, notwithstanding the higher subsidies and Medisave use for tooth-saving treatments. We must address the "subsidy gap" for complex cases. Currently, patients referred to tertiary institutions like the National Dental Centre for complicated procedures—often due to pre-existing frailty—find themselves ineligible for the same PG or CHAS subsidies they would receive at a polyclinic.
My honourable friend, Aljunied GRC MP Kenneth Tiong’s recent PQ asked about extending subsidies for complex dentures cases that had to be referred to a tertiary institution30. A letter to the ST Forum page by Mr Stephen Tan31 described a similar situation where his 83 year old mother’s teeth extractions had to be done at National Dental Centre’s satellite clinic at Changi General Hospital due to fear of complications, but she was denied Pioneer Generation or CHAS subsidies for the procedure.
28 https://www.straitstimes.com/singapore/community/malnutrition-rates-rising-among-older singaporeans (19 October 2025)
29 I have asked for dental health to be included in Healthier Sr in my speech during the 2022 Motion debate on Building a Healthier Singapore, and also in last year’s budget.
30 https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=written-answer-na-21196## 31 https://www.straitstimes.com/opinion/forum/forum-review-how-dental-subsidies-are-applied
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I urge the Ministry to harmonize these subsidies so that our seniors are not financially penalized because their dental related medical needs require a hospital setting.
Allow Medisave funds above Basic Healthcare Sums for insurance premiums
Finally, we must address the rising anxiety over Integrated Shield Plan (IP) premiums. From April 2026, new IP riders will no longer cover deductibles, and co-payment caps will rise to $6,000. While intended to curb over-consumption, this shift—combined with rising premiums—may drive many to abandon private healthcare, potentially overwhelming our public "surge capacity."
For many seniors with pre-existing conditions, retaining an IP is not a luxury; it is a necessity for timely treatment. Yet, many find it frustrating that their hard-earned MediSave savings are "locked" once they hit the Basic Healthcare Sum (BHS). At age 65, any excess is moved by default to the Retirement Account (RA). While this boosts monthly payouts, it does not help with the lump-sum nature of annual insurance premiums, which can reach several thousand dollars.
Therefore, will the CPF Board consider allowing CPF members who have met their BHS to retain a portion of excess funds in their Ordinary Account (OA) or a dedicated insurance sub-account. This would allow them to withdraw funds specifically for IP premiums. By helping Singaporeans maintain their private insurance, we moderate the demand on our public system, ensuring national healthcare delivery remains sustainable for all.
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Mr Speaker in Mandarin.
议长先生，预算案提出要加快发展人工智能，设立国家人工智能 理事会，并推出多个 行业 AI 计划。
我支持这方面的科技发展方向, 但我在 2025 年总理公署委员会 辩论时已经提出，生成 式 AI 的能源消耗和 碳排放 增长得 非常快，我们不能一边谈绿色转型，另一端却又低 估了这个问题的紧迫性？
虽然政府推出绿色数据中 路线图，也设下节能目标，但如果整体用量不断扩大，所谓 效率提升，很可能被反弹效应抵消。
所以在企业创新资助方面，应该鼓励发展 耗能更低的“小型 AI”和特定用途模型，而不 是一律统一用大型通用模型。
我们不能成为高耗能工作负载的转移地点。我们应要求 大型 AI 企业公开能源数据， 保护国家电网和纳税人的利益。
在推动数码转型的同时，也必须照顾数码能力较低的乐龄人士，确保他们不会在这波 AI 发展中被留在后头。
议长先生，我支持这项预算案。
Conclusion
Let me round up my speech. Mr Speaker, we cannot achieve our 2040 and 2050 targets with a 'slow-charge' mindset that ignores the practical realities of our people. Whether we are discussing the carbon footprint of AI, the hurdles of EV adoption, or the fundamental right to affordable dental care, the common thread is clear: a transition is only truly 'green' if it is also 'just.' Notwithstanding my concerns and clarifications, I support the Budget.
