Singapore’s budget a litmus test for next leaders, with focus on cost of living, jobs amid ‘uncertain era’, analysts say

Economists expect fewer handouts this year, after last year’s budget focused on social policies and cushioning inflation and a higher GST

Recommendations from the nationwide feedback exercise Forward Singapore are also likely to be pivotal in this year’s budget

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Singapore’s budget this year will be politically significant given an expected leadership transition to the so-called fourth-generation, analysts pointed out. Photo: AFP

Published: 9:00am, 15 Feb 2024Updated: 2:53pm, 15 Feb 2024

Singapore’s budget address on Friday is expected to address the rising costs of living and employment, issues seen as a litmus test for its fourth-generation leaders to prove they can take the city state through an “uncertain era” of geopolitical instability, analysts said.

This year’s budget will also have added political significance given an expected leadership transition to the so-called fourth-generation, analysts pointed out, with the blueprint set to give citizens a glimpse of how the new administration would execute policies according to a road map set out in a Forward Singapore vision it announced recently.

“Budget 2024 will be a conscious effort to demonstrate that the 4G leadership is equal to the task of leading Singapore in an uncertain era,” said Eugene Tan, a law professor from Singapore Management University (SMU).

“With 18 months left to the current parliament’s term, Budget 2024 can be expected to demonstrate renewed urgency and resolve to tackle cost-of-living concerns and the medium- to long-term concerns of ensuring Singapore remains economically relevant,” he said.

Customers have lunch at Chinatown Complex Food Centre in Singapore. Headline inflation has fallen from a peak of 5.5 per cent a year ago, but it remained higher than pre-pandemic levels, at 3.3 per cent in December. Photo: Bloomberg

The budget speech will be Deputy Prime Minister Lawrence Wong’s third, and possibly last, before Prime Minister Lee Hsien Loong hands over power and the country heads into its next general election.