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SINGAPORE: In the lead-up to this year’s national Budget speech, delivered by Prime Minister Lawrence Wong on Tuesday (Feb 18), much of the public conversation was focused on a familiar theme: The “goodies”.
After all, this was Mr Wong’s first Budget as both Prime Minister and Finance Minister, it comes in the year of Singapore’s 60th anniversary since independence, and it is, quite likely, the final Budget before the next general election, widely expected in the first half of this year.
A challenging global economic environment has also seen many Singaporeans concerned about rising costs of living and inflation, with many hoping for more support from the government.
In that regard, Budget 2025, titled Onward Together for a Better Tomorrow, did not disappoint.
It was generous in expanding previous Budget perks, such as Community Development Council (CDC) vouchers and rebates on utilities, and Mr Wong announced a special SG60 Package with yet more cash vouchers, a personal income tax rebate and a baby gift for newborns this year.
Lower-income families will receive bigger housing grants and enhanced ComCare assistance. Large families will get up to S$16,000 in additional support for each third and subsequent child. Seniors, businesses, hawkers and workers were also not left out.
These and other measures made up a “budget for all Singaporeans”, said Mr Wong, adding that every Singaporean would be supported from birth to old age, with more support given to those with less, and no one left behind. It was also notable that this Budget comprised largely carrots, with few notable “sticks”, in the form of raised taxes for example, leading many to speculate that it truly was an “election budget”.
In the days ahead, during the budget and Committee of Supply debates in parliament, there will surely be public discourse on whether the measures are sufficient to address current concerns over cost of living, with a definitive answer unlikely to be forthcoming, at least in the near term.
Mr Wong acknowledged the that world is facing an unpredictable, complex and complicated outlook that is likely to be marked by increasing contestation between major powers such as the US and China, rising threat of military conflict in different regions, and an unconventional second Trump administration that is already upending global norms in trade and defence cooperation.
As such, there will be a need for Singapore’s 4G leaders under the stewardship of Mr Wong to remain agile and adaptable to confront the evolving threat landscape facing the country.
That being said, it is worthwhile to then look beyond the broad fixation with budget “goodies” and consider some of the more strategic aspects of the Budget.
A key fundamental aspect of Singapore’s Budget planning process is that each annual Budget should never be viewed entirely in isolation, but rather one that builds on past Budgets to ensure continuity and a sustained effect of different measures and schemes over time. This has been enabled by the stable political and security environment that has been a hallmark of the country over the last 60 years.
At the same time, when looking at this year’s Budget, much has been dedicated to addressing future challenges and threats even as support is provided to help Singaporeans deal with current bread-and-butter issues.
In his speech, Mr Wong noted that while Singapore’s economy expanded by 4.4 per cent in 2024, maintaining that pace will be difficult. A more realistic target would be 2 to 3 per cent over the next decade.
Taken together with the increasingly complex and unpredictable global geopolitical environment with more countries looking inward and adopting protectionist trade policies, it is understandable that the government is seeking to deploy measures to ensure Singapore retains a leading position as a global trade and business hub.
A key pillar to ensure Singapore’s competitiveness as a global business destination and attractive hub for multi-national enterprises has been its future-ready workforce, and the enhancements to the SkillsFuture programme signals to a broader range of workers the importance of enhancing their skills and capabilities to tackle new industries and sectors which will be the staple of the future economy.
The government also rolled out schemes to make green technologies, service and products such as electric vehicles economically viable for businesses operating in Singapore, while also signalling an openness to explore new sustainable sources of energy such as nuclear power.
The moves to boost the attractiveness of the Singapore Exchange to create more pathways to liquidity for businesses while also building a more inclusive economy that values the elderly and disabled represent a holistic whole-of-government approach to building a socially and economically viable national value proposition.
Perhaps the question we should be asking is not so much whether this year’s Budget is an election or SG60 Budget, but whether it forms part of the government’s long-term plan to ensure Singapore’s survivability in the next 60 years and beyond.
Crystal ball-gazing is an imperfect science at best, and it will be hard to predict how the next six decades will pan out. But a good indicator of whether Budget 2025 will be a major step forward in future-proofing the country will be how Singapore responds to the turbulence in the next few months as the second Trump administration continues to reshape the US’ position in the world, US-China competition hots up, and the threat of continued conflict in the Middle East, Ukraine and elsewhere persist.
Critically, it will be important to see if Singaporeans are reassured that they will be supported in their efforts to survive and thrive in an increasingly turbulent world.
If so, then we can truly look forward to the “better tomorrow” highlighted in the theme of Mr Wong’s latest Budget speech.
Nicholas Fang is a former journalist and Nominated Member of Parliament. He is the director of security and global affairs at the Singapore Institute of International Affairs, and managing director of strategic consultancy Black Dot.
Source: CNA/ml
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FAST
SINGAPORE: In the lead-up to this year’s national Budget speech, delivered by Prime Minister Lawrence Wong on Tuesday (Feb 18), much of the public conversation was focused on a familiar theme: The “goodies”.
After all, this was Mr Wong’s first Budget as both Prime Minister and Finance Minister, it comes in the year of Singapore’s 60th anniversary since independence, and it is, quite likely, the final Budget before the next general election, widely expected in the first half of this year.
A challenging global economic environment has also seen many Singaporeans concerned about rising costs of living and inflation, with many hoping for more support from the government.
In that regard, Budget 2025, titled Onward Together for a Better Tomorrow, did not disappoint.
It was generous in expanding previous Budget perks, such as Community Development Council (CDC) vouchers and rebates on utilities, and Mr Wong announced a special SG60 Package with yet more cash vouchers, a personal income tax rebate and a baby gift for newborns this year.
Lower-income families will receive bigger housing grants and enhanced ComCare assistance. Large families will get up to S$16,000 in additional support for each third and subsequent child. Seniors, businesses, hawkers and workers were also not left out.
These and other measures made up a “budget for all Singaporeans”, said Mr Wong, adding that every Singaporean would be supported from birth to old age, with more support given to those with less, and no one left behind. It was also notable that this Budget comprised largely carrots, with few notable “sticks”, in the form of raised taxes for example, leading many to speculate that it truly was an “election budget”.
Related:
THE FIXATION ON BUDGET GOODIES
In the days ahead, during the budget and Committee of Supply debates in parliament, there will surely be public discourse on whether the measures are sufficient to address current concerns over cost of living, with a definitive answer unlikely to be forthcoming, at least in the near term.
Mr Wong acknowledged the that world is facing an unpredictable, complex and complicated outlook that is likely to be marked by increasing contestation between major powers such as the US and China, rising threat of military conflict in different regions, and an unconventional second Trump administration that is already upending global norms in trade and defence cooperation.
As such, there will be a need for Singapore’s 4G leaders under the stewardship of Mr Wong to remain agile and adaptable to confront the evolving threat landscape facing the country.
That being said, it is worthwhile to then look beyond the broad fixation with budget “goodies” and consider some of the more strategic aspects of the Budget.
A key fundamental aspect of Singapore’s Budget planning process is that each annual Budget should never be viewed entirely in isolation, but rather one that builds on past Budgets to ensure continuity and a sustained effect of different measures and schemes over time. This has been enabled by the stable political and security environment that has been a hallmark of the country over the last 60 years.
Related:
A BUDGET TO WITHSTAND FUTURE CHALLENGES
At the same time, when looking at this year’s Budget, much has been dedicated to addressing future challenges and threats even as support is provided to help Singaporeans deal with current bread-and-butter issues.
In his speech, Mr Wong noted that while Singapore’s economy expanded by 4.4 per cent in 2024, maintaining that pace will be difficult. A more realistic target would be 2 to 3 per cent over the next decade.
Taken together with the increasingly complex and unpredictable global geopolitical environment with more countries looking inward and adopting protectionist trade policies, it is understandable that the government is seeking to deploy measures to ensure Singapore retains a leading position as a global trade and business hub.
A key pillar to ensure Singapore’s competitiveness as a global business destination and attractive hub for multi-national enterprises has been its future-ready workforce, and the enhancements to the SkillsFuture programme signals to a broader range of workers the importance of enhancing their skills and capabilities to tackle new industries and sectors which will be the staple of the future economy.
The government also rolled out schemes to make green technologies, service and products such as electric vehicles economically viable for businesses operating in Singapore, while also signalling an openness to explore new sustainable sources of energy such as nuclear power.
The moves to boost the attractiveness of the Singapore Exchange to create more pathways to liquidity for businesses while also building a more inclusive economy that values the elderly and disabled represent a holistic whole-of-government approach to building a socially and economically viable national value proposition.
Perhaps the question we should be asking is not so much whether this year’s Budget is an election or SG60 Budget, but whether it forms part of the government’s long-term plan to ensure Singapore’s survivability in the next 60 years and beyond.
Crystal ball-gazing is an imperfect science at best, and it will be hard to predict how the next six decades will pan out. But a good indicator of whether Budget 2025 will be a major step forward in future-proofing the country will be how Singapore responds to the turbulence in the next few months as the second Trump administration continues to reshape the US’ position in the world, US-China competition hots up, and the threat of continued conflict in the Middle East, Ukraine and elsewhere persist.
Critically, it will be important to see if Singaporeans are reassured that they will be supported in their efforts to survive and thrive in an increasingly turbulent world.
If so, then we can truly look forward to the “better tomorrow” highlighted in the theme of Mr Wong’s latest Budget speech.
Nicholas Fang is a former journalist and Nominated Member of Parliament. He is the director of security and global affairs at the Singapore Institute of International Affairs, and managing director of strategic consultancy Black Dot.
Source: CNA/ml
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