Singapore's Pre-Election Budget: Cash Handouts Amid Global Tensions
Singapore's Prime Minister Lawrence Wong has unveiled a budget featuring direct cash assistance to citizens, aiming to address rising living costs ahead of the upcoming general election. ft.com+1reuters.com+1
Driving the news:
Economic Outlook: The government forecasts a GDP growth of 1-3% for 2025, down from 4.4% in 2024, with inflation expected to average between 1.5% and 2.5%. ft.com+1reuters.com+1
Global Concerns: Wong highlighted escalating U.S.-China tensions, noting that as a small, open economy, Singapore will inevitably feel the impact of these global pressures. ft.com+1reuters.com+1
Budget highlights:
Household Support: Each household will receive S$800 (approximately US$596) in vouchers, with additional assistance for utility bills, especially for those in social housing. ft.com
Individual Handouts: Special payments of S$600 for citizens over 21 and S$800 for those over 60, commemorating the country's 60th anniversary. ft.com
Family Incentives: Enhanced benefits for families with multiple children to address the aging population. ft.com
Business Support: Corporate tax rebates and initiatives to boost worker skills, aiming to increase productivity and economic growth. reuters.com
The big picture:
With the general election mandated by November, the ruling People's Action Party (PAP) seeks to maintain its longstanding dominance. The previous election saw the PAP's share of the popular vote decline to 61%, nearing a historic low. reuters.com+3reuters.com+3ft.com+3ft.com
What's next:
As global economic challenges loom, the effectiveness of these budgetary measures in alleviating domestic concerns will be pivotal in shaping voter sentiment in the forthcoming election.