SINGAPORE — The debate over the Budget statement opened yesterday with Members of Parliament voicing concern over whether businesses will be able to cope with rising costs — driven in part by hikes in the price of water and diesel taxes — and asking if enough is being done to support enterprises.

Speaking in Mandarin, Nominated MP Thomas Chua, who is also President of the Singapore Chinese Chamber of Commerce & Industry (SCCCI), said: “(Businesses) are more concerned about short-term measures, after the Government announced increases in the water price and diesel taxes. Some industries immediately felt the impact. Water costs affect millions of users and would have an impact on every industry.”

In his Budget speech last week, Finance Minister Heng Swee Keat announced water prices would go up by 30 per cent by July next year. The hike will be carried out in two phases, the first beginning this July.

While the Government has said this is necessary to reflect the costs of building NEWater and desalination plants, Mr Chua said “businesses feel that infrastructure is part of our public service, and the Government should not compute this on a commercial basis”.

Non-Constituency MP Dennis Tan said the food and beverage industry, which requires a lot of water, will be among the worst hit. Also speaking in Mandarin, he said: “I’m afraid that this large increase in prices will have a very adverse chain effect. How can (the Government) ensure that this rise in water tariffs will not cause prices to rise in hawker centres, coffeeshops and for other products as well?”

Meanwhile, the hike in diesel taxes will raise the costs for taxis, buses and school buses, as well as delivery costs, he added.

Mr Lim Biow Chuan (MP for Mountbatten SMC) urged the Government to consider a stay on water price increases this year amid the economic uncertainty. He also suggested measures to ensure that businesses do not profiteer from the price increase, such as setting up a committee against profiteering.

Several MPs wanted more support for small and medium enterprises as these businesses continue to face pressures from high rental costs. They suggested leasing unused land or office spaces to SMEs at cheaper rates.

Ms Foo Mee Har (West Coast GRC) said: “The high cost of rentals is often quoted as prohibiting the setting up of new businesses, or survival of businesses.

“Is there a way for entrepreneurs to be offered affordable premises to kick-start their businesses, in the same way that the Government actively intervenes to keep housing affordable with HDB flats, and food prices affordable using hawker centres?”

She noted that there are as many as 1,000 government properties lying vacant for a variety of reasons, and suggested making them available at nominal rent for a limited period of time.

Mr Liang Eng Hwa (Holland-Bukit Timah GRC) suggested setting aside unused spaces for start-ups in locations near Institutes of Higher Learning to foster closer networking.

Mr Liang, also chairman of the Government Parliamentary Committee for Finance, Trade and Industry, also urged the Government to do more to help SMEs build digital capabilities, calling it an “utmost priority”.

He said that the Government should also see building nationwide digital capabilities and infrastructure as a public good and go beyond the role of an enabler, adding that the private sector might not be “commercially aligned” with national objectives. ADDITIONAL REPORTING BY KELLY NG