ECONOMIC strategies and jobs are among key focus areas for Budget 2025, while Singapore continues to promote trade and multilateralism in a “more dangerous” world, Prime Minister Lawrence Wong said on Friday (Nov 8).
At a press conference on both foreign and domestic affairs, he gave a preview of Budget themes – with government consultations to start in December – while tackling questions on geopolitical challenges.
Asked about the implications of rising tariffs on the region, for instance, he said: “We are concerned in a world where there are more and more frictions to trade.”
Incoming US president Donald Trump had, in campaigning, promised tariffs of 10 to 20 per cent on all imports, and up to 60 per cent on those from China.
While there may be a limited role for tariffs, they “ought to be ideally applied within a proper framework”, said PM Wong, adding that a better way to resolve trade disputes is to strengthen the World Trade Organization (WTO).
As for whether Trump’s presidency raises fears that multilateralism may weaken further, PM Wong said Singapore will “wait and see” what happens when the new team is in place.
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The Republic, with like-minded countries, will advocate for stronger multilateral institutions such as the United Nations, International Monetary Fund, World Bank, World Health Organization and WTO, he added.
As for the US-China relationship, it “is in a more challenging place” regardless of who is in power.
The US remains a pre-eminent power but must decide whether to treat China’s rise as a threat or to accept it as a major power. China must in turn consider its responsibilities to uphold the international order.
“We hope leaders on both sides will make the wise choices to engage one another, to find a way to co-exist with one another, where they can have a framework, where they compete but at the same time, cooperate on issues of shared concerns,” he said.
“And where possible, Singapore will do our part to facilitate such a relationship.”
PM Wong had begun the press conference noting that “it is going to be a far, far more dangerous world”, with wars in Europe and the Middle East, and the fraught US-China relationship.
Established norms are failing and multilateral institutions are weakened, he said. “That’s why we see growing zones of impunity, where state and non-state actors are able to push for what they want with little or no consequences.”
This “less hospitable” environment – especially for small countries – is why Singapore must “work even harder” to strengthen its network of friends and partners, said PM Wong, who has made various overseas visits in recent months.
Budget 2025
Turning to domestic issues, PM Wong said: “I know that cost of living remains a key concern for many.”
Even as relief measures in Budget 2024 are still being rolled out, the government has started preparations for Budget 2025, he added.
Cost-of-living issues also came up in his engagements with residents, alongside worries about job security, particularly for those who are older.
That is why one theme of Budget 2025 is training, skills and jobs for workers, while another is Singapore’s economic strategies for its next bound. “A strong economy remains critical in improving living standards for all Singaporeans.”
The government’s pre-Budget consultations will also cover support for Singaporeans across different life stages – from those starting families, to those sandwiched between their children and elderly parents – and ways to strengthen solidarity as Singapore marks 60 years of independence next year.
Asked if Budget 2025 would be an “election Budget”, PM Wong said: “Potentially, it could be the last Budget in our term of government – potentially, because elections could still be done before the Budget.”
Regardless of whether the Budget is at the start or end of a term, he said, the focus is both on immediate concerns and longer-term investments needed to put Singapore in a stronger position.
As for whether the Electoral Boundaries Review Committee has been formed – a move which heralds an upcoming election – PM Wong said it has not, adding that the government will announce its formation.
He added that he has not decided when to hold the next General Election, which must take place by November 2025.
“As each day passes, I am more ready because we are continuing to prepare, and as we get better and better, as we get to the point when we are ready, then I will call the General Election,” he said.
