Singapore’s government will boost payments and rebates to households to defray living costs that remain top of mind for voters, Prime Minister Lawrence Wong said in his first budget presentation since taking office last year.
Acknowledging that rising prices have pinched consumer budgets, Wong said households will receive S$800 ($596) in vouchers to help cover costs at supermarkets and restaurants, with the first S$500 coming as soon as May, Wong said Tuesday. That marks an increase from a total of S$600 announced the previous year.
“Singaporeans are still adjusting to these new price realities,” Wong, who is also the finance minister, said in his speech. “Some have had to tighten their belts, rethink their spending habits or make difficult trade-offs to manage their expenses.”
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Wong has credited the cash handouts for helping bring income inequality to its lowest level since 2000. The budget is set to help the government lay the groundwork for elections that have to take place by November.
Elevated costs from food to housing remain a major concern for voters despite cooling inflation. Persistent geopolitical risks — including the threat of a new tariff war — could add to price pressures in the trade-dependent nation.
“We cannot afford to stand still — global economic competition has intensified, and many other countries and cities are pressing ahead,” Wong said. “If we fail to stay competitive, we will be left behind.”
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Wong, 52, took over as Singapore’s fourth prime minister in May 2024. He has been focusing on providing a greater social safety net for the working class and relying less on foreigners for higher-paying jobs.
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More than one hour into his speech, Wong had not given a top line figure for the total budget, but his remarks signaled a clear expansion in spending.
The government will also double the amount of rebates to help households with their utilities expenses, as well as offer additional S$500 in credits for families for every Singaporean child aged 12 and below, Wong said. Other measures were also unveiled to help with educational costs, increase pensions, and extend more assistance for low-income households.
An expansionary budget would help shore up Singapore’s economy as it braces for the impact of US President Donald Trump’s tariffs and the splintering of global trade. The city-state expects growth to come in at 1 percent - 3 percent this year, down from 4.4 percent in 2024.
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Singapore will offer a 50 percent rebate on corporate taxes for companies, capped at S$40,000. Tax incentives will also be offered for companies and fund managers that choose to list in the Singapore stock exchange, amid feedback that it’s no longer as attractive, Wong said.
The government will also top up the National Productivity Fund by S$3 billion, and develop a new semiconductor R&D fabrication facility.
“We want Singapore to be a place where exciting ventures develop and grow into the leading enterprises of the future,” Wong said.
