Budget 2025 likely to be generous, offer support to boost social safety nets: Analysts

SINGAPORE: Next year’s Budget promises to be generous and offer more support to enhance the country’s social safety nets, analysts told CNA.
While Singaporeans can possibly look forward to receiving vouchers to address cost-of-living concerns, the government may also focus on longer-term policies like ensuring workers continue to seize opportunities, they added.
The Ministry of Finance on Monday (Dec 2) invited Singaporeans to share their views over the next six weeks on what they would like to see in Budget 2025.
These include specific areas like strengthening collective identity, skills upgrading, and reflecting on shared values.
The annual Budget, which is scheduled to be presented in parliament next February, is likely to be the last one for the current term of government. The General Election must be held before November.
Singapore’s good economic performance this year will “give a very good boost” to the country’s financial health, which will in turn lead to “more options on the table” for Budget 2025, said Professor Lawrence Loh of the National University of Singapore (NUS) Business School.
He said he expects the Budget to cater to a wide range of companies, households and individuals.
“I expect a very heavily people-oriented Budget that is focused on, first of all, their individual lives, and more importantly their work life so that they will have enough job opportunities to progress,” added Prof Loh.
In terms of skills upgrading, he suggested going beyond the current age-based assistance by targeting certain sectors, especially those where workers’ needs are “more dynamic and evolving”.
Prof Loh also noted that some workers may still find it difficult to get matched to a job despite learning new skills.
“So I think perhaps a more systematic, structured way to promote career services will be necessary, and I think this is definitely the ultimate thing that will benefit the workers,” he added.
Veteran economist Song Seng Wun said Singapore wants to ensure it still benefits from investment growth and job creation in the region, given that other countries are getting new investment opportunities due to geopolitics and disruptions in global supply chains.
As Singapore marks its 60th birthday next year, Mr Song also said the presentation of Budget 2025 will be “a bit more special”.
“This year, the economy has done better than expected so it allows revenue collection to (go) above expectation, which is why we have seen the government say they will be giving back more,” added Mr Song.
The economic advisor at CGSI Singapore cited an example of a one-off property tax rebate that was announced last Friday.
The government will provide a rebate of up to 20 per cent next year for owner-occupied residential properties, which it said will help Singaporeans mitigate cost-of-living concerns.
Mr Song said this remains a key concern for Singaporeans, even though core inflation eased to 2.1 per cent in October – the lowest level in nearly three years.
“I think that will still be front and centre of measures that will be announced,” he noted.
When the General Election is called next year, the government also has to ensure it leaves behind a balanced budget, said Mr Song.
He added: “I suppose this is where the current government can say: ‘We still have enough surpluses; we can spend up some of the surpluses for this year, and the balance (will) go into (Singapore’s reserves) to help future governments.”
The Finance Ministry is also seeking feedback on how to support Singaporeans across different life stages.
This includes helping young families through their parenthood journey, to seniors ageing well in their homes and community.
Dr Mathew Mathews, principal research fellow at NUS’ Institute of Policy Studies (IPS), said more measures in next year’s Budget need to be directed at the workplace so that employers can adopt more family-friendly measures.
He brought up a new pilot by the Early Childhood Development Agency that was launched last weekend, allowing childminders to offer infant care services at their homes.
Dr Mathews added: “There might be more and more types of arrangements which might be needed so that parents can, with confidence, be able to say: ‘Hey, I’ll have children, and I do recognise that there is a system to be able to take care of them even if I have to commit to my work needs’.”
The ministry is also looking at how to empower those with disabilities and their caregivers.
Dr Mathews said this is a concern, particularly as many of these caregivers are older and have to deal with issues of ageing themselves.
“We do have to see how to pool resources (so that the) community can come in to be able to support these caregivers,” he added.
“Perhaps there’ll be more attempts to top up, or increasingly increase the funds they have for their retirement needs.”