Over three days (24 – 26 Feb), parliament debated the merits of Budget 2026, with PAP MPs offering suggestions on how we can grow the economy and support families.
In his round-up speech, Prime Minister Lawrence Wong assured Singaporeans that the government will invest “more deliberately” to ensure that growth translates into good jobs and higher wages.
Sustaining good jobs and economic growth
In an era in which power and strength increasingly shape outcomes, small countries such as Singapore risk becoming irrelevant.
To address this, PM Wong delivered a clear message: Singapore must stay competitive in a more uncertain world.
“We are investing heavily in R&D and building up our enterprise ecosystem… so that we create distinctive value that others cannot easily replicate,” said PM Wong.
In addition, the Government will increase support for SMEs to help them innovate and raise productivity.
That is because businesses that redesign jobs and modernise operations can pay higher wages and offer better careers, said PM Wong.
Given that SMEs employ nearly 70 per cent of Singapore’s local workforce, they are central to our economy.
By strengthening these firms and investing in frontier industries such as finance and AI, Budget 2026 ushers in growth that is inclusive. And that is how we create new and better opportunities for all Singaporeans.
Adapting well to Artificial Intelligence (AI)
These days, AI has become a source of anxiety for many workers and fresh graduates. Will machines replace us? Will entry-level roles disappear?
PM Wong has acknowledged that these concerns are real and will be taken seriously. “We will act early to prevent such outcomes from taking hold in Singapore,” he said.
To prepare Singaporeans for the future of work, the government will focus on helping workers move up the value chain through the National AI Council.
PM Wong has also backed calls by Ng Chee Meng, Secretary-General of the National Trades Union Congress (NTUC), to safeguard workers and empower them to be AI-ready.
Moving ahead, we can “exploit AI to grow the economy” and prevent “jobless growth in Singapore”, said PM Wong.
“This is how we give every Singaporean confidence to progress in the future.”
Supporting Singaporeans with the cost-of-living
Totalling $155bn, Budget 2026 is the largest in Singapore’s history. It is also broad in scope, ranging from enhanced childcare subsidies to CPF top-ups for seniors.
“Total social spending has increased this year (and) we are providing more help for Singaporeans,” said PM Wong.
Rebuking the Opposition’s claims that the government relies on one-off and ad hoc handouts to address the cost-of-living pressure, PM Wong stated that an “overwhelming share” or 95% of the Budget is in fact used for longer-term and structural schemes.
One area is sustainable wage growth, where workers earn higher wages by upgrading their skills and improving their productivity, said PM Wong. In doing so, Singapore was able to forge its own way and avoid the trap of sky-high taxes funding an ever-expanding welfare state, which many developed countries around the world are now facing.
Addressing wealth inequality
Wealth inequality is another concern the government is “paying close attention to”, said PM Wong.
Besides progressive taxation, PM Wong said that the government would continue to help Singaporeans build up their assets. These include grants and subsidies to boost homeownership, as well as a new lifecycle investment option with CPF.
Ultimately, this is our promise to Singaporeans. Not only must upward mobility remain central to our social compact, but one’s starting point should never determine one’s finishing position in life.
A fiscal strategy fit for the future
Today, Singapore is in an enviable position. While the opposition keeps levelling accusations of “fiscal marksmanship”, the undisputed fact is that our country is stepping forward from a position of great fiscal strength. We are in the happy position of having to make choices on how to spend a surplus, rather than what to cut in a deficit.
Many other countries face constant political bickering regarding their expenditure. Tough decisions are kicked down the can, interim budgets are passed by the barest of parliamentary majorities, while a sclerotic political process makes it difficult to implement any long-term plans on retirement adequacy or economic development.
Unlike these countries, which are facing large deficits and cuts to spending, Singapore is able to invest in its people and face the future with confidence. We are able to use our strong financial position to make long term decisions, such as securing the affordability of healthcare, not just for our ageing population, but for our younger generation as well.
“Our healthy fiscal position is a source of strength…(a) result of decades of hard calls made by generations of Singaporeans,” said PM Wong.
Budget 2026 builds on this strong foundation, building a better future for all Singaporeans.
