Singapore's Budget 2025 will help economy overcome global challenges: PM

Singaporean Prime Minister Lawrence Wong has affirmed that the island nation can navigate global challenges even as the entire global system is changing while rounding up a debate on Budget 2025.

Speaking in Parliament last Friday, he said that the Singaporean government will continue to create good jobs and opportunities for Singaporeans while pressing on with industry transformation and keeping an eye on its cost competitiveness.

The PM noted that countries are focusing more on defence and security interests with zero-sum competition rather than win-win cooperation. These developments disadvantage small, open economies like Singapore.

He said that major powers do not want conflict, but are preparing for conflict. Therefore, Singapore must prepare for tougher competition and do what they can to stay in the game.

The National Productivity Fund will be topped up to give Singapore extra firepower to stay competitive and attract investments. These moves will translate eventually and ultimately into better jobs and better opportunities for all Singaporeans, he added.

Singapore also welcomes and harnesses technology from different countries, but the key sources of technology are now concerned about technology leakage, and they want to keep their proprietary technologies controlled tightly within a safe ecosystem, Wong said.

Singapore will take measures to address these concerns so that it remains a reliable and trusted partner in global trade, especially in today’s fragmented world, he said.

As the nation navigates external challenges, it must continue to press on with productivity improvements in its own economy, Wong said, elaborating that Singapore’s labor productivity has been growing at around 2% a year over the past decade, from 2014 to 2024.