The Straits Times' "The Usual Place" hosted a discussion on Singapore's Budget 2025, featuring perspectives from government officials, business leaders, and economists. Hosted by Natasha and Claire Huang, the panel included Ms. Indranee Rajah (Minister in the Prime Minister's Office), Mr. Musa Fazal (Singapore Business Federation), and Professor Walter Theseira (Singapore University of Social Sciences).
Budget 2025, as Prime Minister Lawrence Wong said, is for all Singaporeans. Claire Huang saw it as a "bonanza budget," laden with cash transfers through vouchers and rebates like G60 vouchers, CDC vouchers, and U-Save rebates. However, she noted that young adults and retirees who aren't classified as low-income or vulnerable might feel left out.
Musa Fazal expressed the business community's appreciation for the budget, especially the corporate income tax (CIT) rebate, which helps alleviate short-term cost pressures. He emphasized that the budget is forward-looking, with over $14 billion allocated to support R&D, infrastructure, and future energy sources. One area he wished had more emphasis was foreign worker policy, particularly regarding S-pass levies and qualifying salaries, and potential liberalizations of foreign manpower rules to aid businesses undergoing transformation.
Professor Theseira emphasized that the budget effectively builds on previous ones, supporting families and workers during a period of high inflation. He highlighted the continued emphasis on mitigating the cost of living through CDC vouchers and GST vouchers for low-income households. For workers, he lauded the support for upskilling and upgrading, especially the recognition of the need for training allowances for part-time students. He questioned whether the SG60 vouchers could have been better used by redirecting the funds toward a permanent CVC voucher scheme for vulnerable Singaporeans. He also posed the idea of treating preschool like public compulsory education, ensuring that all Singaporeans have access to a basic tier without worrying about the cost.
Minister Indranee Rajah contextualized the budget as a strategic allocation of financial resources, focusing on tackling cost of living pressures, boosting the economy, and supporting families. She explained that CDC vouchers target immediate grocery and utility expenses, while U-Save is specific to utilities. The economy is boosted through innovation and technology, enterprise ecosystem support, and infrastructure and future energy investments. Family support builds on previous budgets, with enhancements to the baby bonus, CDA amounts, and parental leave.
The conversation delved into specific themes, including tackling cost pressures. Professor Theseira stressed the importance of ensuring that families have jobs with sustainable wage growth. He acknowledged the effectiveness of targeted assistance like CDC vouchers in mitigating inflation's impact on household consumption. Minister Indranee Rajah addressed concerns about CDC vouchers potentially driving up prices. She explained that the vouchers were implemented post-COVID and during the Ukraine war to assist with rising food and utility costs, targeting daily expenses. To this, Mr. Musa suggested the role of the CDC vouchers in helping small businesses in our heartland enterprises, that do need additional support and help.
The discussion touched on upskilling, with Minister Rajah prioritizing workers age 40 and above, citing their potential need to pivot or adapt to changing job landscapes due to technology and AI. She emphasized the SkillsFuture program and its various components, including courses, diplomas, and company training centers.
Lastly, the panel discussed the long-term fiscal sustainability, with Prime Minister highlighting the importance of economic growth, and emphasizing labor and productivity to address land and labor constraints, as well as energy and climate concerns.