Acknowledgement to the Chair, Budget 2025 — Speech by Leader of the House, Minister Indranee Rajah

Budgets of the 14th Parliament

Mr Speaker, it is customary, at the end of every Committee of Supply, for the Leader of the House to deliver a speech in acknowledgement to the Chair.

Sir, as everyone knows, a General Election must be called sometime this year by November. Budget 2025 is thus the last Budget of this term of government, at least if all goes according to plan. Whilst every term of government has its fair share of ups and downs, this term was, in comparison, more like a roller coaster. We had to battle the crisis of a generation, then adjust to a changed post-pandemic world. We barely had time to catch our breath before we had to grapple with the impact of wars in Europe and the Middle East, and while all this was going on, we simultaneously had to work on sharpening our competitive edge, refreshing our social compact and positioning ourselves for the future.

So much has happened that I thought it would be appropriate to do a look back and consider what this House has – by approving the unprecedented number of Budgets brought before it – enabled us to achieve in this 14th Parliament.

To help Members remember as we travel back through time, MOF has prepared a handout featuring the Budgets that we have passed over these past few years. With your permission, Mr Speaker, may I ask the Clerks to distribute the handout to Members. Members can also get it on the MP@SGPARL App.

Into Darkness (2020-2021)

Sir, the story can be told in three chapters. The title of Chapter One is “Into Darkness”, covering the years 2020 to 2021. It begins, as all good stories do, with the people involved being confronted with danger and overwhelming odds, and where the outcome is by no means clear. And if the title sounds familiar, that’s because it is – it is respectfully borrowed from one of the movies in the rebooted Star Trek series as it was so apt!

We started the 14th Parliament in August 2020, six months into the thick of the pandemic. Things were dark and bleak at that time. We were still not fully out of lockdown. We did not yet have vaccines. The economy shrank. The outlook was uncertain.

We hit the ground running and deployed the necessary fiscal resources to combat this crisis. We passed four Budgets in this time, building on the four at the end of the previous term – the Unity, Resilience, Solidarity and Fortitude Budgets.

The Budgets of 2020 to 2021 enabled us to mount a strong public health response, secure early access to vaccines, and protect both lives and livelihoods. Because of the interventions resourced by these Budgets:

a. We achieved one of the lowest overall case fatality rates and one of the highest vaccination rates in the world, without overwhelming our healthcare system.

b. We saved 165,000 jobs through the Jobs Support Scheme (JSS) and supported self-employed persons through the Self-Employed Persons Income Relief Scheme (SIRS).

c. We provided household support measures to help families, with additional support for lower-income groups, through the Care and Support Package.

d. We were able to keep our air and sea ports open and ensure an uninterrupted flow of critical supplies.

The Budgets of this period also gave us the fiscal firepower to be agile and adaptive throughout that unpredictable and volatile period, including:

a. Quick responses when new and more virulent strains of the virus appeared;

b. The SGUnited Jobs and Skills Package for fresh graduates and mid-career workers;

c. Financing schemes to help firms (especially SMEs) with cash flow;

d. Sector-specific schemes to boost hard-hit sectors like aviation, tourism, and our taxi and Private Hire Car drivers;

e. And pivoting from the JSS to the Jobs Growth Incentive (JGI) scheme when the worst of the pandemic was over, to encourage hiring in key growth sectors.

The financial assurance provided by the Budgets of 2020 to 2021 gave us the confidence to think beyond the immediate problems at hand and to plan ahead, leading to the setting up of the Emerging Stronger Taskforce to identify key shifts arising from COVID-19 and make recommendations for Singapore’s economic strategies.

Through these Budgets, we were able to fulfill the promise to protect Our Lives, Our Jobs and Our Future.

Scylla and Charybdis (2022-2023)

The next chapter begins in 2022. We had emerged from darkness, a bit bruised and battered, but generally safe and ready to embark on our plans for re-opening and recovery, when we ran straight into global troubles.

Six days after this House passed Budget 2022, Russia invaded Ukraine. The shock effects were immediate and widespread, rippling through the international order and the world economy. Global inflation spiked, energy and food prices went up, central banks ratcheted up interest rates – all leading to higher costs for businesses and investments.

We were confronted with the twin challenges of having to take care of Singaporeans’ immediate concerns in the new inflationary environment not seen since the Global Financial Crisis in 2008, while at the same time having to chart a new way forward for the longer term.

So Chapter Two is the story of Budgets 2022 to 2023 where we had to make tough choices and tread a path between two equally difficult challenges, much like Odysseus navigating the sea passage between Scylla and Charybdis in The Odyssey. This is a movie too, but it is not out yet; it is coming out next year, directed by Christopher Nolan and starring Matt Damon. These Budgets also saw intense debate in which the fundamental principles underpinning our fiscal policy were challenged, debated, and ultimately upheld by the majority.

Under the Budgets of 2022 and 2023:

a. We made the difficult decision to raise GST, to ensure sufficient revenue to meet projected rising healthcare costs in light of a rapidly ageing population over the long term.

b. However, we also introduced the Assurance Package to cushion Singaporeans, especially the lower- and middle- income, against the GST increase and later enhanced it several times, from the initial $6 billion to over $10 billion eventually, to buffer against inflation. Support was given in the form of cash, CDC vouchers, U-Save and S&CC rebates, and more.

c. We expanded the Progressive Wage scheme and introduced the Progressive Wage Credit Scheme;

d. We launched Healthier SG to empower people to take charge of their health early with a view to better health over their lifetimes;

e. We introduced the Enterprise Innovation Scheme to encourage firms to innovate and transform; and

f. We committed to achieve Net Zero emissions by 2050 and backed this up with policy measures, including raising Carbon Taxes.

Support for these Budgets was not unanimous. The Workers’ Party and the Progress Singapore Party did not support Budget 2022 as it included the GST increase. In 2023, PSP put forward an Alternative Budget.

The Opposition acknowledged the need for increased expenditure going forward but contended we could raise revenue in other ways. However, their alternative proposals were not agreed to as they would have involved a draw on Past Reserves or would not have raised sufficient revenues to close the gap.

Budgets 2022 and 2023 enabled us to chart a steady course despite competing pressures in a challenging macroeconomic environment. However, it was also clear that we were on the cusp of a new era and there was a need to make major changes to suit changing times and a changing population – to redefine the Singapore Dream and refresh our social compact.

Hence, in June 2022, we embarked on the Forward Singapore exercise. We engaged over 200,000 Singaporeans and distilled the findings in a Report published in October 2023.

Onward Together (2024-2025)

This brings us to Chapter Three, or “Onward Together”. For this there is no movie. It is a production directed and written by Singaporeans themselves, and much of the action took place in this Chamber. The Budgets of 2024 and 2025 are about breathing life into the ideas co-created with Singaporeans under Forward SG and putting into motion our plans for a better and brighter tomorrow.

With the resources afforded under Budgets 2024 and 2025, we will be able to:

a. Help Singaporeans with cost-of-living pressures,

b. Transform our economy and our enterprise ecosystem,

c. Push ahead with the National Artificial Intelligence Strategy 2.0,

d. Press on with our green transition and secure clean energy,

e. Make public housing more affordable, accessible and inclusive with more options for singles and seniors,

f. Deepen our human capital through all stages of life,

g. Help Singaporeans bounce back from setbacks and strengthen support for mental health,

h. Provide more support for seniors, lower-income groups and persons with disabilities,

i. Build a Singapore Made for Families,

j. Boost our sports and arts sectors,

k. And rejuvenate our city.

Budgets 2024 and 2025 are enabling us to make important changes that will reshape Singapore in profound ways, while simultaneously providing ballast and stability in the current turbulent times.

This year is our 60th year of independence, or SG60, and we are fortunate that we have surplus to share with all Singaporeans. As we commemorate this occasion, we can take quiet pride in how far we have come through the efforts of past and present generations of Singaporeans.

a. We were recently named the world’s most innovative country out of over 70 countries on the Global Innovation Scorecard.

b. Our Gini co-efficient after accounting for government taxes and transfers is at its lowest in two decades.

c. We continue to retain top spots globally in home ownership, PISA scores, healthy life expectancies and other important metrics.

d. The Singapore passport is consistently ranked among the most powerful, with our little red book having access to the highest number of other countries in the world.

When we first set out on our journey as a nation in 1965, no one would have thought we would achieve such outcomes. We did not get to this point by accident or luck, but through careful long-term planning, building on the trust and cooperation between Singaporeans and the Government.

These are also the result of Budgets past and present, which have resourced and funded the policies that have enabled us to achieve these outcomes. When we look back through the lens of each Budget, what we see is that this House has, by its approval of the successive Budgets in this term, steadfastly steered Singapore through uncharted and choppy waters with decisiveness, agility and forward planning.

We spent about $80 billion on the pandemic response, of which about half or $40 billion was drawn from Past Reserves. We were able to decisively deploy these resources and come through without burdening future generations with debt, in contrast to many other countries that are still trying to find ways to lower their debt-to-GDP ratios, having accumulated significant debt in the COVID-19 years that exceeded the peaks after the Second World War.

We are not in that position, thanks to the Reserves, and to a prudent fiscal policy endorsed by the majority of this House. This has enabled us to meet our spending needs which have been growing year by year. Minutes ago, we just passed a $143 billion Budget, the largest of this term.

Conclusion

On this note, I would like to thank all Members for their active participation and contributions to our Budget debate and Committee of Supply.

Over the past five years, the Committee of Supply has worked extra hard. This term, we had an average of over 600 cuts filed for each COS, with an average of 7 hours and 45 minutes of debates per sitting day across each Budget and COS season. This is the highest volume and the longest duration compared to any previous term.

Mr Speaker, you have had to spend long hours in the Chair, listening to many speeches. On behalf of this House, I would like to thank you for presiding over the proceedings with fairness, professionalism, and patience.

We are also very grateful to the Clerk of Parliament, Deputy Clerk and the other Clerks of Parliament, the Parliament Secretariat and staff, interpreters, and translators, all of whom have been working tirelessly over the past fortnight to ensure that the proceedings went smoothly.

Thank you very much.

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