Over the last two years, Deputy Prime Minister (DPM) Lawrence Wong has ignited our imagination with a vision for the future through the Forward SG exercise. It is an ambitious roadmap that seeks to enable our seniors to age well, support families at all stages and encourage learning beyond grades. The question is, what will it take to turn these ideas into reality?
For now, Budget 2024 is a buoyant start. Delivering the Budget statement in Parliament today (16 Feb), DPM Wong who is also Finance Minister provided Singaporeans with a sincere assurance of how the PAP intends to help each of us build that shared future mapped out in Forward SG.
“Budget 2024 is about taking concrete steps to…tackle immediate challenges for households and businesses, create more paths for equality and mobility, provide more assurances for families and seniors, and ultimately forge a stronger and more united nation,” said Mr Wong.
Here is how Budget 2024 intends to address some of our most pressing issues.
Helping Singaporeans with their cost of living
In short, the government is listening and providing the necessary help.
“In this budget, I will do more to support households and further enhance that Assurance Package. We have designed this package so that lower-income families get more support. We have also ensured that larger households, particularly those with seniors and children, get more support,” said Mr Wong.
Besides an extra $600 of CDC vouchers, eligible households will receive additional U-Save and S&CC rebates to offset their utility bills. As for individuals, means-tested cash payments, top-ups to Medisave accounts, and personal income tax rebates are part of a comprehensive package to tackle immediate cost of living concerns.
But alongside short-term relief measures are longer-term solutions to help lower-wage workers keep up with inflationary pressures. Starting in July, the Local Qualifying Salary (for firms hiring foreigners) will increase to $1,600. In addition, workers earning less than S$3,000 a month will now be eligible for the Workfare Income Supplement scheme from January 2025, which provides payouts to a maximum of $4,900 per year.
In the end, the best way to deal with inflation is to ensure that real incomes continue to rise sustainably and that our workers become more productive, added Mr Wong. And this brings us to the next item on the agenda – mid-career upskilling.
Upskilling and training support for mid-career workers
Now, navigating the labour market and finding a fulfilling job is difficult in the best of times. Throw in rapid technological advances and a global climate fraught with uncertainties, and it is safe to say that continuous learning has to be a way of life to stay relevant and productive.
To help Singaporeans traverse this changing landscape, the government will invest even more in our human capital and help workers update their skills to harness new technologies more effectively, said Mr Wong.
In light of this, all Singaporeans aged 40 and above will receive $4,000 in SkillsFuture Credit to pursue selected industry-oriented courses and subsidies for a second diploma at public institutions. Meanwhile, those taking time off work to attend full-time programs can receive a training allowance for up to 24 months, capped at $3,000 per month.
As the axiom goes, teach a man to fish, and you feed him for a lifetime. This belief is what underlies the new grants and subsidies to help Singaporeans develop the capabilities to seize new opportunities.
“Ours must always be an economy that provides opportunities for all, and an economy that benefits the many rather than the few. This is why we are making significant enhancements to SkillsFuture and supporting job seekers… We believe that every worker matters, and every citizen counts.”
Support for families young and old
Moving on, how do we build a society where every citizen counts? For a start, we must take care of the needs of a broad base of Singaporeans from cradle to grave. In this aspect, Budget 2024 did not disappoint in enhancing current policies.
To help young families secure affordable housing as they wait for their BTO flats, eligible couples will receive financial support to help them rent an HDB flat in the open market under the Parental Provisional Housing Scheme. In addition, plans are in motion to increase the affordability of preschools.
“I will reduce monthly childcare fee caps in the government-supported preschools…and enhance existing preschool subsidies for lower-income families,” said Mr Wong. With that announcement, non-working mothers will enjoy up to $767 of childcare subsidies (the same amount that is given to working mothers).
It is a move that is no doubt welcomed by mothers unable to work due to caregiving commitments or health issues. It is also part of our Forward SG vision of building a fairer society where nobody is left behind.
And that brings us to the Majulah Package for Singaporeans born between 1973 and earlier. The introduction of the term “young seniors” during the National Day Rally last year might have drawn a few giggles over a new category of classifying the over-50s. However, the oxy-moronic term is also reflective of the struggles unique to this group.
As such, Budget 2024 aims to alleviate their stress by providing a one-off Medisave and Retirement Savings bonus and an Earn and Save Bonus to help working seniors accumulate more retirement savings. This is on top of an increase to the CPF contribution rates by 1.5% (for those aged 55 to 65) and the Matched Retirement Savings Scheme to $2,000 per year (up from $600). The scheme extends to the Merdeka and Pioneer Generations as well.
After all, as DPM Wong said reassuringly, “We will always have your backs.”
Tackling inequality and building a more inclusive society
Lastly, confronting inequality remains one of the biggest challenges of our time. Unfortunately, the issue is rarely solved with handouts and tax cuts. For that reason, the way Budget 2024 goes about tackling the problem is more nuanced.
For a start, we want to encourage more diverse pathways and accord greater value to those who are skilled in technical hands-on abilities, as well as those with the social and empathetic traits to excel in service jobs, said Mr Wong.
After all, there is no reason why ITE graduates should find themselves languishing behind in wages and career prospects as compared to their diploma/ degree counterparts.
Therefore, to support their upskilling efforts, the government will provide ITE graduates pursuing diploma qualification with a $5,000 top-up to their Post-Secondary Education Accounts. Upon completion, they will be given a further $10,000 to their CPF Ordinary Accounts, giving them a head-start in purchasing a home.
In a way, here is the typical Singapore efficiency of killing two (or more) birds with one stone. Encouraging lifelong learning to bridge the wage gap, drive innovation and build up a societal culture that embraces a wider definition of success. Only then can we reduce inequality, not only in wealth but in our outlooks on life.
A Budget for everyone
Finally, as far as Budget 2024 goes, its strength lies in its ability to address immediate concerns while planning for the future. It is both liberal in spending but keeping to the fundamentals of fiscal conservatism. More importantly, it articulates a clear vision of what we want to see in Singapore.
“In this Budget, we are taking further steps to ensure that all Singaporeans have opportunities to take on work they find meaningful and fulfilling, build on their talents, give their best, and be rewarded fairly for it. This is how we keep the Singapore Dream alive and well for all our people,” said DPM Wong.
For now, Budget 2024 is merely one part of a bigger plan to turn the ideas from Forward SG into reality. And like all the Swifties out there, we are ready for it.
Photo Source: MCI/ HDB/ Chan Chun Sing/ Tan See Leng via Facebook
