During his roundup speech, Deputy Prime Minister and Minister for Finance Lawrence Wong said that many Members of Parliament (MPs) "laid claims" to the policy shifts announced in the 2024 Budget.

"Now, I'm glad everyone wants to be associated with the budget. As the saying goes, failure is an orphan but success has many fathers and mothers too."

Wong added that he welcomed those who wish to associate themselves with these "forward-thinking initiatives".

Helping cope with inflation and cost pressures

Wong also addressed three issues in parliament that numerous MPs during the budget debate.

The questions raised by MPs largely revolved around whether the government is doing enough to help Singaporeans cope with the higher prices, whether the social support system is sufficient to support Singaporeans, and how the government will achieve better growth and help Singaporeans secure a better future.

Addressing the issue of helping Singaporeans cope with inflation, DPM Wong pointed out that while Singapore felt the impact of inflation, it did not reach the peaks seen in several parts of the world.

He attributed it to the effective monetary policy where the Monetary Authority Singapore (MAS) tightened the monetary policy five consecutive times starting in October 2021.

Singapore's headline inflation has moderated since 2023 and is expected to moderate further this year.

In response to MPs who brought up the cost of items, mainly housing and transport, DPM Wong said that the affordability of Build To Order (BTO) flats has improved.

Wong noted that the challenge came from the higher prices of BTO flats in certain locations, leading to the introduction of the new standard, plus and prime framework.

"Because we have this framework, we can keep the BTO flats in these better locations affordable through more upfront subsidies. But it will be a fair system because the additional subsidies will be clawed back when the first owners sell the flat."

Speaking on transport, Wong said that the government has already provided "generous" subsidies, and despite the increase in public transport fares, household incomes have risen faster.

Wong added that he enhanced the assurance package in the 2024 Budget as the government recognised that prices are still relatively high and there are continued pressures from families and individuals.

"We have designed and sized the support of the enhancements carefully. There's something for everyone, regardless of age, property type or income."

He added that the enhanced assurance package would help fully cover the increase in spending due to inflation for lower-income households, while middle-income households will be substantially covered.

Helping businesses cope with higher costs

Wong noted that one of the reasons for rising business costs is the higher wages for Singaporeans. The government is raising the wages for lower-wage workers, but that will result in higher costs initially for businesses, especially SMEs.

The budget also highlights how the government is raising CPF contributions for older workers so that they have sufficient savings for their retirement, which would lead to higher costs for businesses as well.

However, Wong said that the government is doing more in the 2024 budget to co-fund the increase, and they will offset half the rise in employer contributions to CPF for 2025.

"We are going through a rough patch of higher prices due to forces well beyond our control. We are not the only country facing these difficulties, " he said.

"The government will do everything we can to help households and businesses get through this rough patch."

Sustaining growth and securing better future

DPM Wong said the only way to help Singapore maintain or even increase its share of global exports is through productivity improvements, which DPM Heng Swee Keat mentioned in his speech yesterday.

The aim is for two to three per cent economic growth per annum over the next decade, which Wong noted is a "very ambitious goal".

He added that one key strategy is to attract more high-quality investments into Singapore, and another is to maintain consistent and steady investments in research and development.

In addition, Wong mentioned that support schemes are geared towards supporting business owners who are prepared to "embrace change and to adopt new and more solutions".

System of social support sufficient

Wong said that in the 2024 Budget, the government is taking further steps to strengthen the system of "risk pooling and social support".

For education, the government invested heavily in a first-class school system, increased investments in preschool education, and expanded tertiary education options.

For housing, Wong noted that there is no other institution like the Housing Development Board (HDB) in the world which has "provided comprehensively for the housing needs of its people".

"Indeed, it may even be misleading to call it public housing. Because when you look around the world, public housing elsewhere often develops into slums or even ghettos."

For healthcare, Wong stated that Singaporeans have government subsidies and Medisave, Medishield and MediFund.

For work, the government strives to create good jobs for all Singaporeans, not only to provide a good living, to "give dignity and purpose in life," and to uplift the lower-wage workers.

Speaking on SkillsFuture, Wong noted that significant enhancements were made to SkillsFuture, and the government is working on a new support scheme for those involuntarily unemployed.

The scheme would provide temporary financial support and encourage those individuals who are involuntarily unemployed to go for training or match with new jobs.

Wong said that in the 2024 Budget, half of the total ministries' expenditure is committed to social spending.

"So overall, we are currently in a sound fiscal position. And we are putting our resources to good use to address immediate concerns and upcoming needs."

Wong concluded his speech by assuring that the government will do more to provide opportunities and assurances at every stage of life, and everyone in society should contribute towards the shared goals and aspirations in their own ways.

The new Singaporean Dream

Singaporeans want to avoid getting "trapped" in an "endless rat race of hyper-competition", said Wong.

"They want to find meaning and fulfilment in what they do beyond material success. I think these are noble aspirations."

He chalked this mindset up to "generational shifts", noting that these aspirations are perhaps more commonly expressed amongst those born after Singapore's independence than before.

He assured the government is doing more to help Singaporeans realise these shared aspirations via "more opportunities and diverse pathways".

This would help them excel and develop to their fullest potential and to be the best possible version of themselves, he said.

2024 Budget

DPM Wong announced the 2024 Budget on Feb. 16, 2024.

He announced more Community Development Council (CDC) vouchers and one-off special payments.

In addition, there will be more support for up-skilling and education.

There will also be more financial support for retrenched workers and changes to CPF to help members save more for retirement.

DPM Wong ended his speech by emphasising the importance of staying united as a nation in an increasingly unstable and unpredictable world.

MPs debated over three days

From Feb. 26 to 28, 61 MPs rose in support for the 2024 Budget.

On day one, 29 MPs spoke on the budget.

Day two saw 28 MPs speaking on the budget, including DPM Heng.

Day three had DPM Wong's roundup speech and four more MPs.

In total, 61 MPs spoke in parliament on the budget.

Top image via MCI/Youtube