SINGAPORE: Singapore’s national budget this year is significant.
It comes at a time rife with major geopolitical and macroeconomic uncertainties. A most worrying concern is the volatile trading setting of tariffs induced by the new United States administration together with retaliations by major entities, particularly China and the European Union.
Domestically, rising living costs and business costs as well as the changing skillsets required of workers weigh heavily on policymakers.
Against this backdrop, Prime Minister and Finance Minister Lawrence Wong on Tuesday (Feb 18) unveiled a range of initiatives aimed at helping individuals and businesses face these twin challenges.
Let’s look at the specific area of direct transfers to individuals for defraying living costs and upgrading job skills.
A most noteworthy goodie this Budget is probably the SG60 cash vouchers. All Singaporeans over 21 years of age will receive S$600 in these vouchers, while those over 60 will receive S$800.
The SG60 vouchers work the same way as the earlier Community Development Council (CDC) vouchers, which can be used at participating supermarkets as well as merchants and hawkers. For Budget 2025 itself, every Singaporean household will receive S$800 in CDC vouchers.
In addition, eligible HDB households will receive up to S$760 in U-Save rebates for utility expenses. The amount now is double that of such rebates regularly provided.
Each Singaporean child aged 12 and below will also receive S$500 in LifeSG credits, which can be used by their parents for expenses such as groceries, utilities and pharmacy items.
For skills upgrading, the SkillsFuture Level-Up Programme already supports mid-career Singaporeans where those aged 40 and above receive S$4,000 in credits. Those applying for selected full-time courses may get a training allowance of up to S$3,000 per month, and receive up to 24 months of allowances or up to S$72,000.
For this Budget, the training provision is extended to part-time courses. Workers will get a fixed allowance of S$300 a month to help defray their learning expenses.
In any national budget, the immediate instinct for individuals is often the question – “what’s in it for me or my business?”
Take the SkillsFuture funding programme as a case in point.
Most workers see it as an almost free way to acquire new skills. With additional insights and applications, some might assume that jobs will be guaranteed, with employers beating a path to their doors.
Yet, it’s really the actual employment that matters. Jobseekers must still put in the effort to market themselves and secure opportunities.
At the same time, employers too must realise that perfect job matches are rare in a rapidly changing world where the landscape shifts more in tandem with global trends than the narrower job-specific local environment.
So even with all the governmental incentives, it’s not a skills-for-free soup truck. The softer behavioural aspect for both workers and employers is often more crucial for the hard matching of jobs with skills.
Similarly, let’s look at the range of personal vouchers and rebates.
These are one-off benefits that should be seen as the exception rather than the rule. Individuals cannot expect them to be a permanent fixture. Likewise, businesses that benefit from such schemes cannot assume that increased sales will last forever.
Budget assistance measures are designed to be temporary support to build self-reliance and resilience in the long run. More importantly, we must guard against a culture of entitlement from creeping in.
In looking at the Budget, we must look beyond the immediate perks and giveaways. What truly matters is the rationale behind the measures; recipients have to understand the purposes beyond the gifts.
Take SkillsFuture – it is really more about future-proofing careers than acquiring new skills per se. Likewise, the CDC Voucher Scheme is to vouch for a self-reliant future.
Budget 2025 is not about a bumper crop of goodies and freebies. The budget is never just distributive; its purpose has to be generative. Simply put, it creates opportunities that are long-lasting for all.
The peril of the Budget is to succumb to a famous line from Charles Dickens' novel Oliver Twist: “Please, sir, I want some more.”
In an era of global tension and turbulence, the “twist” of Budget 2025 is not about asking for more, but about rooting for a secure future for Singapore and Singaporeans.
Lawrence Loh is Director, Centre for Governance and Sustainability of NUS Business School at the National University of Singapore, where he is also Professor in Practice of Strategy and Policy.
Continue reading...
It comes at a time rife with major geopolitical and macroeconomic uncertainties. A most worrying concern is the volatile trading setting of tariffs induced by the new United States administration together with retaliations by major entities, particularly China and the European Union.
Domestically, rising living costs and business costs as well as the changing skillsets required of workers weigh heavily on policymakers.
Against this backdrop, Prime Minister and Finance Minister Lawrence Wong on Tuesday (Feb 18) unveiled a range of initiatives aimed at helping individuals and businesses face these twin challenges.
BUDGET SPREAD
Let’s look at the specific area of direct transfers to individuals for defraying living costs and upgrading job skills.
A most noteworthy goodie this Budget is probably the SG60 cash vouchers. All Singaporeans over 21 years of age will receive S$600 in these vouchers, while those over 60 will receive S$800.
The SG60 vouchers work the same way as the earlier Community Development Council (CDC) vouchers, which can be used at participating supermarkets as well as merchants and hawkers. For Budget 2025 itself, every Singaporean household will receive S$800 in CDC vouchers.
In addition, eligible HDB households will receive up to S$760 in U-Save rebates for utility expenses. The amount now is double that of such rebates regularly provided.
Each Singaporean child aged 12 and below will also receive S$500 in LifeSG credits, which can be used by their parents for expenses such as groceries, utilities and pharmacy items.
For skills upgrading, the SkillsFuture Level-Up Programme already supports mid-career Singaporeans where those aged 40 and above receive S$4,000 in credits. Those applying for selected full-time courses may get a training allowance of up to S$3,000 per month, and receive up to 24 months of allowances or up to S$72,000.
For this Budget, the training provision is extended to part-time courses. Workers will get a fixed allowance of S$300 a month to help defray their learning expenses.
Related:
WHAT’S IN IT FOR ME?
In any national budget, the immediate instinct for individuals is often the question – “what’s in it for me or my business?”
Take the SkillsFuture funding programme as a case in point.
Most workers see it as an almost free way to acquire new skills. With additional insights and applications, some might assume that jobs will be guaranteed, with employers beating a path to their doors.
Yet, it’s really the actual employment that matters. Jobseekers must still put in the effort to market themselves and secure opportunities.
At the same time, employers too must realise that perfect job matches are rare in a rapidly changing world where the landscape shifts more in tandem with global trends than the narrower job-specific local environment.
So even with all the governmental incentives, it’s not a skills-for-free soup truck. The softer behavioural aspect for both workers and employers is often more crucial for the hard matching of jobs with skills.
Similarly, let’s look at the range of personal vouchers and rebates.
These are one-off benefits that should be seen as the exception rather than the rule. Individuals cannot expect them to be a permanent fixture. Likewise, businesses that benefit from such schemes cannot assume that increased sales will last forever.
Related:
ENTITLEMENT PERIL
Budget assistance measures are designed to be temporary support to build self-reliance and resilience in the long run. More importantly, we must guard against a culture of entitlement from creeping in.
In looking at the Budget, we must look beyond the immediate perks and giveaways. What truly matters is the rationale behind the measures; recipients have to understand the purposes beyond the gifts.
Take SkillsFuture – it is really more about future-proofing careers than acquiring new skills per se. Likewise, the CDC Voucher Scheme is to vouch for a self-reliant future.
Budget 2025 is not about a bumper crop of goodies and freebies. The budget is never just distributive; its purpose has to be generative. Simply put, it creates opportunities that are long-lasting for all.
The peril of the Budget is to succumb to a famous line from Charles Dickens' novel Oliver Twist: “Please, sir, I want some more.”
In an era of global tension and turbulence, the “twist” of Budget 2025 is not about asking for more, but about rooting for a secure future for Singapore and Singaporeans.
Lawrence Loh is Director, Centre for Governance and Sustainability of NUS Business School at the National University of Singapore, where he is also Professor in Practice of Strategy and Policy.
Continue reading...