Budget 2025 leaves no Singaporean behind in 60th year of independence

This is the first of a series of eight primers on current affairs and issues in the news, and what they mean for Singapore.

- Sue-Ann Tan

The Government's spending plan for Singapore's 60th year of independence was a "Budget for all Singaporeans" that sought to tackle current concerns while building a strong future for the country.

In his Budget speech on Feb 18, Prime Minister and Finance Minister Lawrence Wong unveiled a slew of short-term support such as vouchers, income tax rebates and top-ups to alleviate cost-of-living pressures, alongside longer-term measures for the future, such as helping workers retrain for new jobs and securing Singapore's climate security.

PM Wong said the world today is very different from 60 years ago, when it was the height of the Cold War and Singapore was a fledgling nation fighting for its survival.

"Today, we face a new global contest. The stark divides of the Cold War have given way to a fragmented and troubled world. New walls are being erected — not of concrete, but in the form of economic and trade barriers," he said.

The contest between the US and China for global supremacy portends continued uncertainty, and as a small and open economy, Singapore will feel the impact.

But the country is far stronger than it was in 1965, with a highly skilled workforce, a strong and diversified economy, solid ties with other nations, and a common Singaporean identity.

Nonetheless, people continue to feel the pinch, as prices rose sharply in 2022, following the outbreak of the war in Ukraine. The goods and services tax (GST) was also raised from 7 per cent to 8 per cent in 2023, and to 9 per cent in 2024.

"While inflation is expected to ease further this year, prices remain high. Singaporeans are still adjusting to these new price realities," said the Prime Minister.

SHORT-TERM SUPPORT MEASURES

To defray the cost of living, PM Wong announced a number of initiatives, including: