Singapore's latest Budget aims to tackle immediate economic challenges while laying the groundwork for future growth, Prime Minister Lawrence Wong said in his Budget 2025 round-up speech on 28 February.
Addressing Parliament, Mr Wong outlined the Government’s approach, describing it as both progressive and prudent. He also responded to key concerns raised by NTUC Labour Members of Parliament (LMPs) during the Budget Debate.
The Prime Minister acknowledged concerns from small- and medium-sized enterprises (SMEs) over rising operational costs, an issue raised by NTUC Deputy Secretary-General (DSG) Desmond Tan.
While factors such as land prices and energy costs are largely dictated by global economic conditions, Mr Wong stressed the importance of improving business productivity.
“Our labour productivity has been growing at around 2 per cent per annum over the past decade. Most of this is driven by the outward-oriented sectors of our economy, so we still do better to improve productivity for our domestic-oriented sectors,” he added.
The Government will continue supporting initiatives such as the Progressive Wage Model (PWM) to ensure wages rise in line with productivity.
Mr Wong also urged companies to innovate and transform, highlighting schemes such as the SkillsFuture Workforce Development Grant, the refreshed SkillsFuture Enterprise Credit, and the Enterprise Compute initiative as avenues for businesses to enhance competitiveness.
“These new initiatives arose out of our engagements with the Trade Associations and Chambers [TAC] and the Singapore Business Federation [SBF],” he said, adding that the Government remains open to further industry feedback.
NTUC leaders, including NTUC DSG Heng Chee How, NTUC Assistant Secretary-General (ASG) Patrick Tay, and NTUC Operations and Mobilisation Division Director Fahmi Aliman, also raised the employment of older workers as a key issue.
In response, Mr Wong reaffirmed the Government's commitment to helping older workers remain employable. In his Budget speech on 18 February 2025, he announced the formation of a Tripartite Workgroup on Senior Employment to explore further support measures.
He also underscored the role of lifelong learning, noting that Singapore is already a leader in adult education but must continue to enhance initiatives such as SkillsFuture.
“We cannot save every job, but we will support every worker in Singapore,” said Mr Wong.
Mr Wong also addressed calls from other NTUC representatives, such as Food, Drinks and Allied Workers Union (FDAWU) Executive Secretary Jean See and NTUC ASG Yeo Wan Ling, for greater support for freelancers and working mothers.
“We will keep an open mind, and we will study all your suggestions carefully,” he said.
NTUC ASG Melvin Yong urged businesses to play a greater role in managing cost pressures, a sentiment echoed by the Prime Minister.
Mr Wong reiterated that the Government remains committed to supporting Singaporeans at every stage of life but added that social spending now exceeds expenditure on the economy and security combined.
“Ultimately, a strong social support system should not be reliant on the Government alone … We will do more, but our actions must also be complemented by individual and community responsibility,” he said.
Additionally, Mr Wong acknowledged the shifting geopolitical, technological, and economic landscape, noting the challenges these pose to Singapore’s long-term stability.
Despite the uncertainties, he expressed confidence in Singapore’s resilience, crediting years of prudent governance and financial discipline.
“We have a clear plan for the road ahead anchored on our forward Singapore agenda. We are grounded in our shared values of solidarity and unity,” he said.
Emphasising the collaborative nature of the Budget, he described it as one shaped by Singaporeans, for Singaporeans.
“Let us write the next chapter of our Singapore story and move onward together for a better tomorrow,” he concluded.
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