A. Introduction
- 1. I beg to move that Parliament approve the financial policy of the Government for the financial year 1 April 2024 to 31 March 2025.
- 2. Sir, the past year has not been easy.
- a. The international environment was troubled.
- b. The global economy was subdued.
- c. Our own economy grew by a modest 1.1%, avoiding a recession.
- 3. I know that many households are feeling the pressure of higher living costs.
- a. Fortunately, we had some unexpected revenue upside from our strong economic rebound in the preceding two years.
- b. And this is why the Government was able to enhance its assistance measures to relieve the burden on households.
- 4. For 2024, the outlook is mixed.
- a. Growth in the major economies on the whole is expected to remain resilient.
- b. But geopolitical risks continue to loom large.
- c. Wars are raging in Europe and the Middle East.
- d. These conflicts can escalate dangerously, leading to disruptions in global energy markets and supply chains.
- 5. Fortunately, there are some upsides.
- a. Global inflationary pressures are expected to recede further. This may provide room for the major central banks to adopt more accommodative stances, which can help to ease financial conditions and support demand.
- b. The global electronics industry is expected to recover. This will bolster the growth of many regional economies, including our key trading partners.
- c. Meanwhile, Asia continues to be a key driver of global growth, with a wider spread of opportunities across the region – not just in China, but also in India and many parts of Southeast Asia.
- 6. Overall, we are cautiously optimistic that 2024 will be a better year. Besides lower inflation, we expect higher GDP growth at 1.0% to 3.0%.
- 7. But there is considerable uncertainty in the outlook and the risks are tilted to the downside.
- a. The international environment has darkened dramatically.
- b. The post-Cold War era that began in the early 90s and fostered three decades of peace and stability is over.
- c. We are now in a new era of conflict and confrontation, and there is no turning back.
- d. What can we expect in this new world?
- e. It will be more violent. We already see a growing zone of impunity involving armed conflict and terrorism that cannot be easily resolved by the global community.
- f. It will be more fragmented. Because the major powers are prioritising national security over economic interdependence, and the traditional modes of cooperation are breaking down.
- g. It will be messier and more unpredictable. Because there will be diminished willingness and capacity to tackle global issues, be it responding to future pandemics or tackling climate change.
- 8. These are the stark realities before us. For some time to come, Singapore will have to operate in an external environment that will be less stable and favourable to our security and prosperity than the preceding three decades.
- 9. That is why we embarked on the Forward Singapore exercise – to refresh our social compact to keep our society strong and united, and to set out a roadmap for our way forward in this very troubled world.
- a. Through Forward Singapore, we aim to give more assurance to help Singaporeans navigate the uncertainties in today’s world; strengthen our sense of cohesion and solidarity; and keep our society together.
- b. For as one united people, we can overcome all odds.
- c. We can turn every challenge into opportunity, and every vulnerability into strength.
- d. We can build a nation that is vibrant and inclusive, fair and thriving, resilient and united.
- 10. We have an ambitious agenda to achieve these shared goals.
- a. We have major plans to unfold over the coming years.
- b. Some are ready to be implemented now.
- c. Others will require more time to study or to work out the implementation details.
- d. In this Budget, we will roll out the first instalment of our Forward Singapore programmes.
- 11. Budget 2024 is therefore about taking concrete steps to build our shared future together. We will:
- a. Tackle immediate challenges for households and businesses;
- b. Pursue better jobs, better growth, and equip our workers for life;
- c. Create more paths for equality and mobility;
- d. Provide more assurance for families and seniors;
- e. And ultimately forge a stronger and more united nation.
- 12. And I will touch on each of these in turn in the rest of my speech.
Mr Speaker, Sir