Analysts predict a “feel-good” Budget 2025

SINGAPORE: The stakes appear to be quite high for Lawrence Wong’s statement on the national Budget, scheduled for Tuesday (Feb 18) at 3:30 pm.

First, this is Mr Wong’s first Budget roll-out as Prime Minister. Perhaps more importantly, the statement comes during an election year, with the GE yet to be announced, but it must be held no later than Nov 23.

Prior to the roll-out, some observers have weighed in on what the Budget is likely to include, while other sectors have published wish lists of funding they would like to see included among the items PM Wong will mention.

Earlier this week, the Prime Minister posted a teaser of sorts on his social media accounts. Mr Wong, who is also Singapore’s Finance Minister, said that he’s been involved with the national Budget for many years now, since his days as a “young MOF officer” in the 1990s

He noted that the Budget goes beyond the “goodies and ang pows” many Singaporeans hope to see but is “really about our shared agenda and our shared plans for the future.”

PM Wong did promise, however, that the Budget would tackle the “immediate concerns about cost pressures” people have raised during engagement sessions, as well as address more long-term issues that would keep the city-state moving forward and “stay ahead in this more troubled world.”

An election-year Budget

With the GE just around the corner, however, the expectations are high that many measures will be announced to provide support to households and businesses in the form of vouchers, rebates, and even upskilling courses.

Analysts from Bank of America were quoted in a Feb 13 CNBC piece as saying they expect this year’s budget to be a “feel-good” one, with measures to mitigate high living costs at its heart. They added that based on the Prime Minister’s New Year’s Day Message, there may be a new package to further help middle-aged and middle-income Singaporeans

In November, Mr Wong identified economic strategies and jobs as among the items this year’s Budget would focus on, as he noted the effect of global tensions on trade while speaking at a press conference. He also noted how older Singaporeans have expressed concerns about job security, saying that one of the themes in this year’s Budget will be training, skills, and jobs for workers, along with the city-state’s overall economic strategies, The Business Times reported.

“A strong economy remains critical in improving living standards for all Singaporeans,” PM Wong said. /TISG

Read also: PM Wong to deliver Budget 2025 statement on Feb 18