Acknowledgement to the Chair, Budget 2026 — Speech by Leader of the House, Minister Indranee Rajah

A Budget to Secure Our Future in a Changed World

Mr Speaker, the passing of the Supply Bill and the Supplementary Bill a few moments ago marks the end of the formal Budget process for Budget 2026. This being the first Budget in this new term of Parliament, I should explain for the benefit of first time Members that it is customary, at the end of the annual Budget process, for the Leader of the House to deliver a speech in acknowledgement of the Chair of the proceedings, namely Mr Speaker.

Mr Speaker, as Chair of the proceedings, you have presided over two weeks of intensive debate on the Budget Statement and in the Committee of Supply in which we have passed a budget with more than $200 billion of Estimates:

a.    $158,962,520,000 (One hundred fifty-eight billion, nine hundred sixty-two million, five hundred and twenty thousand dollars) for the Main Estimates; and

b.    $49,014,559,600 (Forty-nine billion, fourteen million, five hundred fifty-nine thousand and six hundred dollars) for the Development Estimates.

This is our largest annual budget to date, passed against the backdrop of a profoundly changed and uncertain world.

The international order that underpinned stability and prosperity for over nearly eight decades is breaking down;

a.    Geopolitical tensions have increased.

b.    The multilateral system that had served us well has weakened. More countries are resorting to unilateral action.

c.     The rule of law is under strain with the resurgence of a might is right approach.

In short, the world has become more contested, more fragmented, and ultimately more dangerous.

Budget 2026 is our action plan to enable Singaporeans to navigate this new reality with confidence and secure our future together.

Harnessing AI

A key feature of Budget 2026 was AI. Budget 2026 aims to harness AI as a strategic advantage and drive national adoption so that Singaporeans can take full advantage of the opportunities afforded by technology.

Budget 2026 also allows us to:  

a.    implement our refreshed economic strategy;

b.    continue investing in our workers and drive growth to create jobs;

c.     strengthen support for families and advance our social compact; and

d.    enhance our security and sustainability.

Total Fertility Rate

Budget 2026 also puts a spotlight on our Total Fertility Rate (TFR) which has dropped to a historic low of 0.87, and signals the start of the Marriage & Parenthood Re-set as a whole of nation effort. As we begin this important work, we will take into account the many helpful ideas and suggestions from Members on both sides of the House on what we can do to provide more support for families and couples who aspire to become parents.

Singapore is in a position of strength

Mr Speaker, in a world rocked by turbulence and change, Singapore stands out as a beacon of safety, security and stability.

This is not by accident. It is the result of successive budgets anchored on fiscal prudence, forward planning and catalysing new ways to catch the winds of change even as we provide for current needs. This approach has stood us in good stead.

We have projected a healthy surplus of $15.1 billion for FY2025. It is in contrast to many other major economies, where public debt is rising, straining their financial stability and weighing on growth prospects.

When the surplus was first made known in the Budget Statement, some questioned why the surplus was so large, and whether the Government had been too conservative. The Budget Statement was delivered on 12 February, against a backdrop of 5% GDP growth, when the world had more or less adjusted to the US tariffs and things seemed to be getting back on an even keel.

However, within the span of just three weeks since the Budget Statement was delivered, the world changed again.

a.    On 20 February, eight days after the Budget Statement, the US Supreme Court struck down President Trump's Liberation Day tariffs. President Trump responded by doubling down on tariffs the next day, triggering another round of economic uncertainty.

b.    On 26 February, hostilities between Pakistan and Afghanistan erupted.

c.     On 28 February, the US and Israel launched strikes against Iran. Iran is retaliating, not just against the US and Israel but also against other countries in the region, plunging the Middle East into another round of instability. No one knows how long the conflict will last.

These developments have added to the overall climate of uncertainty.  The business outlook for trade and investment may have to be adjusted. Energy prices may be affected. If so, there will be implications for business costs and daily costs of living. As a small and open economy, Singapore will feel the knock-on impact keenly.

Viewed in light of these changed circumstances, our surplus is less about marksmanship and a whole lot more about assurance and quiet confidence. We have the ability to do more for Singaporeans with ballast and buffer against potential turbulence.

Our approach of fiscal prudence has been validated time and time again.

a.    Budget 2020 was delivered on 18 February. The global economy was calm, the outlook rosy even. But within a month, we were plunged into the thick of a pandemic, the crisis of a generation, and the global economy shut down. We ended up delivering another four Budgets and drew down about $40 billion of Past Reserves.

b.    In 2022, the Budget Statement was delivered on 18 February. At that time, we were just getting out of Covid-19 and things were looking up. Within six days, the Russia-Ukraine war started, changing the global geopolitical dynamic once again, and adding to energy and supply chain issues, accompanied by inflation at levels unseen since the 1970s.

In all our Budgets, we prepare for the best but we also plan in case of the worst. History is a hard taskmaster and we must not ignore its lessons. Our reserves, and our surpluses are things to be grateful for.

Singapore’s unique system

Our fiscal approach is enabled by our unique system of parliamentary democracy, which has served us well and continues to deliver good results for Singaporeans.

During the Committee of Supply debate, I spoke about then-DPM Goh Chok Tong’s 1988 speech on the infamous Hendrickson affair, where he outlined three different political models. That speech is well worth re-reading. Not all members may have been present in the Chamber when I spoke about it. So, it is worth recapping what he said.

First, the American system is one of checks and balances. Its underlying premise is fundamentally one of distrust, with each branch of government constantly checking the others.

Then you have the British system where the Prime Minister and the Cabinet are given a wider range of discretionary powers. There is a greater premise of trust, which rests on the mandate given to the party with the majority in Parliament. The unspoken and unwritten expectation is that those in power are individuals who can be relied upon to always act honourably.

And then there is the Singapore system. It resembles the British system, except as Mr Goh noted, Singaporeans have gone further and superimposed on our Constitutional framework the ideal of a political leader who is upright, morally beyond reproach, someone people can trust. We believe that our leaders must be men (and women) of ability and integrity, committed to the public good.

The world has changed greatly since Mr Goh spoke in this House in 1988. So have the way both the US and the British political systems operate. But Mr Goh’s observations remain, if anything, just as relevant today. Rules and processes are important. But even more important are the people who are elected to represent and serve the people, and whether they possess the competence, commitment and conscience to fulfil their duties. If they do, then you do not need as many rules because they can be trusted to do the right thing. If they don’t, we can impose and improve as many laws and rules as we like, but democracy and politics will still go wrong. This applies to governments as much as it does to oppositions and governments-in-waiting.

Mr Speaker, in a changed world, Singapore’s model of democracy remains our anchor. It is by no means perfect, and we must and will continue to find ways to improve our system. But we do have something rare and precious. To safeguard it we must have the right laws, the right principles, and the right people.

It is important to appreciate that not only is our model unique, but that it is this uniqueness that has enabled the Government to continue delivering Budgets that strengthen our economy, improve the lives of Singaporeans, and bring Singapore forward.

Appreciation

I thank Members on both sides of the House, as well as our Nominated Members of Parliament, for supporting Budget 2026 and for their contributions to the Budget process. Even when there were disagreements, we share a common commitment to building a better Singapore.

For this year, we had robust debate spanning nine days:

a.    68 members spoke for two and a half days in the debate on the Budget Statement, the highest number in recent Budgets, with about 21 hours of debate;

b.    425 cuts were covered over six days of Committee of Supply, with almost 55 hours of debate.

c.     And for the first time in my recollection there was no formal break in the Budget process.

Mr Speaker, you have had to spend long hours in the Chair, presiding over these proceedings with fairness and professionalism. This year, you added a new item to your toolkit to keep us on time and in line – the bell and the mute button! I am glad that you only had to use them a few times, and as the exception and not the norm. On behalf of this House, I thank you once again for your able chairmanship.

We are also deeply grateful to the Clerk of Parliament, Deputy Clerk and the other Clerks of Parliament, the Parliament Secretariat and staff, the interpreters, and the translators. Their dedicated efforts and support behind the scenes ensured that our proceedings went smoothly. I hope that we can express our appreciation for them too.