Quote by DPM Lawrence Wong at Budget 2023

We currently live in a world characterised by big power rivalry, geopolitical uncertainty, and economic disruptions. The protracted Russia-Ukraine and the ongoing Israel-Hamas wars further loom over the global economy and political system.

As this year draws to a close, what can Singapore do to ensure that it remains relevant to the world, and at the same time secure our future success? This question was what DPM Lawrence Wong sought to address earlier this year, during his Budget 2023 speech on 14 Feb.

"An era of zero-sum thinking has begun. It will be a world that will be less hospitable to small economies such as Singapore, which has long thrived on an open, rules-based multilateral system. We therefore cannot assume that we can continue to be successful by doing the same things as we have in the past. We will need to adjust to this new era, reposition our economy, and refresh our social compact for the future."

To chart our new way forward together, DPM Wong listed several ways that Singapore could prepare for in such an uncertain future:

1. ATTRACTING INVESTMENTS. The National Productivity Fund currently supports a range of measures for productivity enhancement, and continued education and training. The government will top up S$4 billion to the National Productivity Fund to “include investment promotion as a supportable activity”. A new Enterprise Innovation Scheme will also allow businesses to qualify for greater tax deductions for spending on activities related to innovation.

2. EQUIPPING WORKERS. Singapore will continue investing heavily in our people. Job-Skills Integrators will be appointed to understand gaps in industries, update existing training programmes, and ensure that training translates into better employment and earnings prospects.

3. STRENGTHENING THE SOCIAL COMPACT. Families form the “bedrock” of Singapore’s society, and the government will do more to support parents with the costs of raising children. This includes increases in the Baby Bonus Cash Gifts, higher government contributions to Child Development Accounts, and doubling government-paid paternity leave from two weeks to four weeks for children born from 2024 onwards.

4. FORTIFYING OUR RESERVES. Singapore needs to remain economically resilient in a world characterised by uncertainty and volatility, and that the best safeguard in crises is still Singapore’s accumulated past reserves. There will be changes to the tax system for residential properties, additional registration fees for vehicles, and increase in tobacco duties. Singapore will continue drawing on the reserves prudently and judiciously, “only when there are compelling reasons to do so”. As we head into the new year, let us resolve to remain resilient and agile in this volatile and uncertain world, adapting quickly to whatever changes and crises come our way as we have done in the past and in recent times.

Indeed, this is truly the #singaporeway.

#singapore #Budget2023 #LawrenceWong #singaporeway

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