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President Tharman approves Budget 2026, warns of 'long storm of global political instability'
"We are looking at a more fragile world."
March 19, 2026, 10:55 AM
"We have to brace ourselves for a long storm of global instability," warned President Tharman Shanmugaratnam on Mar. 18, as he gave his approval for the government’s spending plans for the coming financial year.
"More fragile world"
He cautioned that for every week the war on Iran by the U.S. and Israel drags on, and the Strait of Hormuz remains closed, it compounds the risk of a severe economic downturn, alongside rising inflation and cost-of-living pressures worldwide.
"Yet these economic problems are not the gravest challenge we face," Tharman said. "We are looking at a long storm of global political instability."
He pointed to the "open disregard" for the UN Charter and international humanitarian law, which are frameworks designed to protect civilians in conflict, as signs of a deepening crisis in the international order.
"We are looking at a more fragile world," he added.
Strategic buffers in Singapore
Despite this, Tharman noted that Singapore is not without its defences.
As a small nation navigating turbulent times, the country has built up substantial reserves to weather major crises, and its budgets are structured to invest boldly in skills and capabilities while setting aside resources for future needs.
Tharman also highlighted that Singapore is held in high-regard around the world, opening doors to new opportunities, and allows the country to diversify its trade and energy sources.
"That must remain the Singapore way," he said.
"Always prepared for a world where things may not go as we hope.
Investing in the future for every Singaporean. Contributing our part to the global good.
And standing up for what we believe in – a fair, open and humane world order."
Budget 2026 is the largest annual budget to date
Leader of the House Indranee Rajah declared Budget 2026 the largest annual budget ever passed by the government on Mar. 6, describing it as arriving "against the backdrop of a profoundly changed and uncertain world."
Bringing the nine days of Budget and Committee of Supply debates to a close, she noted that Parliament had passed over S$200 billion in estimates — comprising S$158.9 billion in main estimates and S$49 billion in development estimates.
She also noted out that Singapore's historically large S$15.1 billion surplus puts it in a position of strength, despite repeated questions during the debates on whether the government has been too conservative in its fiscal estimates, and whether its "fiscal marksmanship" led to revenue-raising measures that could have been delayed.
In light of the recent developments in the world, she said, Singapore's surplus is "less about marksmanship and a whole lot more about assurance and quiet confidence".
Top photo from Tharman Shanmugaratnam/Facebook
