SINGAPORE: Singapore could be over-reliant on mega transport projects such as Tuas Port and Changi Airport Terminal 5 (T5), Workers' Party (WP) Members of Parliament said during a six-hour debate in parliament on Tuesday (Jul 7) on the future of transport.
MP Gerald Giam (WP-Aljunied) said relying heavily on physical infrastructure exposes Singapore to long-term risks as global trade patterns evolve.
The six WP MPs who spoke also questioned why Singapore sold the majority stake in national shipping carrier Neptune Orient Lines (NOL) a decade ago, and asked whether Singapore should build up digital transport infrastructure alongside physical assets.
Mr Giam said he supported reinforcing Singapore's long-term competitiveness as a globally connected aviation, maritime and logistics hub, with mega projects such as T5 and Tuas Port. However, he cautioned that focusing too heavily on physical infrastructure carries structural risks in a changing global economy.
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"A neutral hub port holds traffic only by staying competitive, and a port cannot pick its carriers because carriers pick their ports," he said.
He said the global trading system is under threat from protectionism and geopolitical rivalries, and possible new shipping routes, such as the Northern Sea Route through the Arctic or a land bridge or canal through southern Thailand, could divert maritime traffic away from Singapore.
Mr Giam gave the example of shipping company Maersk, which in 2000 shifted its transshipment hub to the Port of Tanjung Pelepas, rerouting traffic away from Singapore.
"The massive fixed cost of our expanded port may become a fiscal drag if shipping volumes fall short of the government's projections," said Mr Giam.
He added that the long-term justification for T5's massive capacity relies on the traditional hub-and-spoke model, where long-distance travel requires consolidated transit nodes. But next-generation, hyper-efficient aircraft capable of travelling longer distances could completely disrupt this model.
"As a result, Changi Airport may face the risk of capital expansions outpacing the growth of traditional transit passengers," said Mr Giam.
Associate Professor Jamus Lim (WP-Sengkang) echoed these concerns, saying that "placing our bets" on T5 and Tuas Port could backfire if globalisation is reined in in the future. These mega projects should not be abandoned, but should proceed with "greater caution", he said.
"Perhaps by planning the build-out in tranches and making parts of the full blueprint contingent on whether future economic conditions justify the massive capacity expected," he added.
Responding to Mr Giam, Acting Minister for Transport Jeffrey Siow said that while Maersk moved its transshipment operations to Tanjung Pelepas, its Asian headquarters remains in Singapore.
"Even when its cargo does not physically pass through our waters, the decisions about that cargo may still be made here, and we are able to capture value from it," he said.
An artist's impression of Changi Airport Terminal 5. (Image: Changi Airport Group)
More investment should be poured into digital infrastructure, WP MPs argued.
MP Dennis Tan (WP-Hougang) said competition in logistics, aviation and maritime operations is moving away from "purely physical throughput towards ownership of the software data systems and digital platforms that orchestrate these global movements".
He warned that if Singapore remains content with being an exceptional adopter of foreign technology, it risks becoming a "low-margin highway", with intellectual property and high-value decision-making sitting elsewhere, such as Silicon Valley, Oslo or Shanghai.
Mr Giam said Singapore should become the "sovereign digital architect" of global trade by owning the software, data platforms and operational systems that underpin international shipping and logistics.
He suggested channelling capital earmarked for mega infrastructure projects into digital solutions such as supply chain software, automated customs-clearing platforms and predictive route-management networks.
"This allows us to successfully reduce our reliance on absolute volatile physical cargo throughput, ensuring our national revenue is buffered, even if global trade patterns shift away from our shores," he said.
Artist impressions of autonomous buses for an autonomous bus pilot programme in Singapore that will start in the second half of 2026. (Image: Land Transport Authority)
Suggestions on how autonomous vehicles (AVs) could be used – such as for night riders and school transport – were raised by MP Fadli Fawzi (WP-Aljunied).
With the AV trials in Punggol underway and the upcoming self-driving public bus pilots in Marina Bay and One-North to be rolled out later this year, Mr Fawzi suggested that the Land Transport Authority could next consider building a network of night bus services with AVs.
"A proper network of self-driving late-night buses, bus services running along existing MRT lines, would be truly revolutionary for Singapore," he said. "It would not just benefit Singaporeans enjoying the nightlife, but also people who finish or start work after the MRT shuts down."
He also noted that school bus operators have found it challenging to sustain operations with the shortage of drivers and rising cost pressures.
"Eventually, we can even consider expanding AVs to support school bus services," said Mr Fadli.
Senior Minister of State for Transport Sun Xueling said that further deployment of AVs must be realistic.
The technology for AV buses is not as mature compared to that of AV cars, and current autonomous bus models have a smaller passenger-carrying capacity than public buses, among other challenges.
"That said, we agree that there are good use cases for autonomous buses, such as night bus services, and we will consider it when the technology is more mature," she said.
Mr Fadli also reiterated the party's call for public transport to be made free for seniors and people with disabilities during off-peak periods.
"The Workers' Party has consistently argued that public transport should be viewed primarily as a public service, rather than a profit centre, especially for our seniors," he said.
He added that public transport helps to fulfil important non-material needs, such as companionship, community, and belonging.
"These are sometimes overlooked when we consider the matter only in terms of dollars and cents," he added.
WP MPs also questioned why Singapore sold its majority stake in NOL a decade ago. MP Kenneth Tiong (WP-Aljunied) called the 2016 sale of the national shipping carrier to French shipping company CMA CGM "a very poor decision".
He contrasted it with the S$15 billion (US$11.6 billion) raised to secure the survival of Singapore Airlines (SIA) during the COVID-19 pandemic.
"We treat the airline, SIA, as strategic and rescue it, but we treat the sea carrier, NOL, as a commodity and sell it," he said.
He said having a national shipping line has advantages for Singapore: it can help train Singaporean seafarers, and also ensure Singapore's port is less dependent on demand from foreign carriers.
Deputy chair of the Transport Government Parliamentary Committee Edward Chia (PAP-Holland-Bukit Timah) said Singapore has succeeded as a maritime hub because it is a "trusted channel through which global trade flows, not because we favour one shipping line over another, but because all major players see Singapore as an open, efficient and reliable hub".
He said Singapore is not without locally anchored maritime players. For instance, shipping companies like Pacific International Lines give Singapore "an important base for shipping capability".
"But our broader strategy should remain ecosystem-based, to be the platform where global shipping lines, ship owners, bunkers, suppliers, financiers, insurers, ship managers, and MRO (maintenance, repair and overhaul) players and maritime technology companies choose to operate," he added.
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MP Gerald Giam (WP-Aljunied) said relying heavily on physical infrastructure exposes Singapore to long-term risks as global trade patterns evolve.
The six WP MPs who spoke also questioned why Singapore sold the majority stake in national shipping carrier Neptune Orient Lines (NOL) a decade ago, and asked whether Singapore should build up digital transport infrastructure alongside physical assets.
Mr Giam said he supported reinforcing Singapore's long-term competitiveness as a globally connected aviation, maritime and logistics hub, with mega projects such as T5 and Tuas Port. However, he cautioned that focusing too heavily on physical infrastructure carries structural risks in a changing global economy.
CNA Games
Show More Show Less
"A neutral hub port holds traffic only by staying competitive, and a port cannot pick its carriers because carriers pick their ports," he said.
He said the global trading system is under threat from protectionism and geopolitical rivalries, and possible new shipping routes, such as the Northern Sea Route through the Arctic or a land bridge or canal through southern Thailand, could divert maritime traffic away from Singapore.
Mr Giam gave the example of shipping company Maersk, which in 2000 shifted its transshipment hub to the Port of Tanjung Pelepas, rerouting traffic away from Singapore.
"The massive fixed cost of our expanded port may become a fiscal drag if shipping volumes fall short of the government's projections," said Mr Giam.
He added that the long-term justification for T5's massive capacity relies on the traditional hub-and-spoke model, where long-distance travel requires consolidated transit nodes. But next-generation, hyper-efficient aircraft capable of travelling longer distances could completely disrupt this model.
"As a result, Changi Airport may face the risk of capital expansions outpacing the growth of traditional transit passengers," said Mr Giam.
Associate Professor Jamus Lim (WP-Sengkang) echoed these concerns, saying that "placing our bets" on T5 and Tuas Port could backfire if globalisation is reined in in the future. These mega projects should not be abandoned, but should proceed with "greater caution", he said.
"Perhaps by planning the build-out in tranches and making parts of the full blueprint contingent on whether future economic conditions justify the massive capacity expected," he added.
Responding to Mr Giam, Acting Minister for Transport Jeffrey Siow said that while Maersk moved its transshipment operations to Tanjung Pelepas, its Asian headquarters remains in Singapore.
"Even when its cargo does not physically pass through our waters, the decisions about that cargo may still be made here, and we are able to capture value from it," he said.
An artist's impression of Changi Airport Terminal 5. (Image: Changi Airport Group)
MORE INVESTMENT INTO DIGITAL INFRASTRUCTURE
More investment should be poured into digital infrastructure, WP MPs argued.
MP Dennis Tan (WP-Hougang) said competition in logistics, aviation and maritime operations is moving away from "purely physical throughput towards ownership of the software data systems and digital platforms that orchestrate these global movements".
He warned that if Singapore remains content with being an exceptional adopter of foreign technology, it risks becoming a "low-margin highway", with intellectual property and high-value decision-making sitting elsewhere, such as Silicon Valley, Oslo or Shanghai.
Mr Giam said Singapore should become the "sovereign digital architect" of global trade by owning the software, data platforms and operational systems that underpin international shipping and logistics.
He suggested channelling capital earmarked for mega infrastructure projects into digital solutions such as supply chain software, automated customs-clearing platforms and predictive route-management networks.
"This allows us to successfully reduce our reliance on absolute volatile physical cargo throughput, ensuring our national revenue is buffered, even if global trade patterns shift away from our shores," he said.
Artist impressions of autonomous buses for an autonomous bus pilot programme in Singapore that will start in the second half of 2026. (Image: Land Transport Authority)
AUTONOMOUS NIGHT BUSES
Suggestions on how autonomous vehicles (AVs) could be used – such as for night riders and school transport – were raised by MP Fadli Fawzi (WP-Aljunied).
With the AV trials in Punggol underway and the upcoming self-driving public bus pilots in Marina Bay and One-North to be rolled out later this year, Mr Fawzi suggested that the Land Transport Authority could next consider building a network of night bus services with AVs.
"A proper network of self-driving late-night buses, bus services running along existing MRT lines, would be truly revolutionary for Singapore," he said. "It would not just benefit Singaporeans enjoying the nightlife, but also people who finish or start work after the MRT shuts down."
He also noted that school bus operators have found it challenging to sustain operations with the shortage of drivers and rising cost pressures.
"Eventually, we can even consider expanding AVs to support school bus services," said Mr Fadli.
Senior Minister of State for Transport Sun Xueling said that further deployment of AVs must be realistic.
The technology for AV buses is not as mature compared to that of AV cars, and current autonomous bus models have a smaller passenger-carrying capacity than public buses, among other challenges.
"That said, we agree that there are good use cases for autonomous buses, such as night bus services, and we will consider it when the technology is more mature," she said.
Mr Fadli also reiterated the party's call for public transport to be made free for seniors and people with disabilities during off-peak periods.
"The Workers' Party has consistently argued that public transport should be viewed primarily as a public service, rather than a profit centre, especially for our seniors," he said.
He added that public transport helps to fulfil important non-material needs, such as companionship, community, and belonging.
"These are sometimes overlooked when we consider the matter only in terms of dollars and cents," he added.
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QUESTIONS ON WHY NATIONAL SHIPPING CARRIER WAS SOLD
WP MPs also questioned why Singapore sold its majority stake in NOL a decade ago. MP Kenneth Tiong (WP-Aljunied) called the 2016 sale of the national shipping carrier to French shipping company CMA CGM "a very poor decision".
He contrasted it with the S$15 billion (US$11.6 billion) raised to secure the survival of Singapore Airlines (SIA) during the COVID-19 pandemic.
"We treat the airline, SIA, as strategic and rescue it, but we treat the sea carrier, NOL, as a commodity and sell it," he said.
He said having a national shipping line has advantages for Singapore: it can help train Singaporean seafarers, and also ensure Singapore's port is less dependent on demand from foreign carriers.
Deputy chair of the Transport Government Parliamentary Committee Edward Chia (PAP-Holland-Bukit Timah) said Singapore has succeeded as a maritime hub because it is a "trusted channel through which global trade flows, not because we favour one shipping line over another, but because all major players see Singapore as an open, efficient and reliable hub".
He said Singapore is not without locally anchored maritime players. For instance, shipping companies like Pacific International Lines give Singapore "an important base for shipping capability".
"But our broader strategy should remain ecosystem-based, to be the platform where global shipping lines, ship owners, bunkers, suppliers, financiers, insurers, ship managers, and MRO (maintenance, repair and overhaul) players and maritime technology companies choose to operate," he added.
Continue reading...