Addendum to the President’s Address

MR LAWRENCE WONG

PRIME MINISTER AND MINISTER FOR FINANCE

1        Our fiscal policies aim to ensure a dynamic economy and a strong social compact. This provides assurance and opportunities, and enables a higher quality of life for all Singaporeans.

2        We face a more dangerous and uncertain world. The rules-based global order is weakening, with growing barriers to trade and cooperation. New technologies like Artificial Intelligence (AI) are reshaping industries, bringing disruption but also significant opportunities. We must adapt quickly, and harness these technologies to secure good jobs and higher incomes for Singaporeans. With the faster pace of change, we must also strengthen social support, and ensure that every citizen shares in our nation’s progress.

Sustaining our Fiscal Strength

3        Fiscal discipline and strength are Singapore’s strategic advantages. The Ministry of Finance (MOF) will allocate resources judiciously and evaluate programmes rigorously, to maintain sound and sustainable finances. Our system of taxes and transfers will remain fair and progressive: everyone contributes, and the better off contribute more, and everyone benefits, and those with greater needs receive more.

4        With rising needs, government spending in this term will increase as a share of GDP. This is why we made earlier tax changes to strengthen our revenue base and structure. The Government will continue to spend within its means, and maintain a balanced budget over the medium term.

5        We will continue to steward our reserves responsibly. Our framework enables GIC and Temasek to pursue long-term investment strategies that generate sustainable returns. This provides a continued stream of revenue for the Budget, while maintaining our reserves as a strategic buffer against future shocks.

Securing our Place in the World 

6        In this uncertain world, we will continue to invest in our defence and security to safeguard our way of life. We will also deepen our cooperation with key partners, especially in ASEAN, and broaden our relations with other countries. All of these efforts will require more resources. But they are essential to advancing national interests, and protecting Singapore’s ability to chart our own course.

7        MOF will play an active and constructive role in regional and international economic and financial fora, to support a rules-based multilateral system that promotes shared prosperity and protects the global commons.

Transforming our Economy 

8        Growing a vibrant economy that provides good jobs for Singaporeans remains our foremost priority. Through the Singapore Economic Resilience Taskforce and the Economic Strategy Review, we will work with agencies and stakeholders to navigate global uncertainties and keep Singapore competitive.

9        We will continue to invest in our productive capacity – helping businesses, especially small and medium-sized enterprises, to innovate and harness AI and other technologies, and supporting Singaporeans to reskill and upskill through SkillsFuture.

10       By ensuring a stable and efficient tax, customs and regulatory environment, we will keep Singapore among the best places in the world to do business. This will promote enterprise dynamism and growth, and in turn contribute to job creation.

11       We will make longer-term investments in our infrastructure to enhance our connectivity, support the green energy transition, and build up our climate resilience. We have begun setting aside funds for these critical needs, and will continue to do so to prepare for the future.

Building a Strong and Cohesive Society 

12       We will continue to strengthen our social compact and provide assurance to Singaporeans. Under Forward Singapore, we introduced major moves – the Majulah Package to strengthen retirement adequacy, a new public housing framework to improve affordability, new SkillsFuture programmes to uplift workers, and initiatives to encourage a family-friendly Singapore. 

13       In this term, we will build on these efforts. We will invest across all life stages, so that more opportunities are open to all Singaporeans regardless of starting points. We will keep public housing and healthcare affordable and accessible, enable our seniors to age well with peace of mind, and strengthen support for caregiving.

14       We will also enhance support for vulnerable groups, including persons with disabilities and those with special needs. By encouraging volunteering and charitable giving, we will nurture our culture of mutual care. We will continue to support initiatives in the arts, sports, and community that strengthen the bonds which hold us together as one people.

Ensuring Good Governance 

15       We will work with agencies to strengthen governance across finance, audit, procurement, grants management, and risk management. We will continue to adopt best practices, strengthen central systems and processes, and build capabilities across the Public Service. This will ensure that government spending remains effective and delivers value for money.

16       MOF will steward fiscal resources prudently and effectively to enable Singapore and Singaporeans to overcome challenges and seize new opportunities in a changing world.