Lawrence Wong wraps up Budget 2024 debate

Are we doing enough to help Singaporeans cope with higher prices? How will we achieve better growth and help Singaporeans secure a better future? Is our system of social support sufficient to support Singaporeans? These are three key issues highlighted by MPs, said Deputy Prime Minister and Finance Minister Lawrence Wong as he wrapped up the debate on the Budget in Parliament on Wednesday (Feb 28). Addressing the first issue of helping Singaporeans cope with inflation, Mr Wong said headline inflation was already moderating since last year and is expected to moderate further this year. The Government recognises that prices are still relatively high and there are continued pressures for families and individuals. This is why it has enhanced the Assurance Package but it does not want to inadvertently stimulate demand too much and push up prices. The support is targeted and tilted towards those with less - to fully cover the increase in spending for lower-income households and substantially cover the increase in spending for the middle-income group. Mr Wong said the Government is not only helping families but is also helping businesses cope with higher costs, especially small- and medium-sized enterprises (SMEs). He said the Government will do everything it can to help households and businesses get through the rough patch. He pointed out that the situation is improving and should get better this year. The best way to deal with inflation is for businesses and wages to grow in real terms and to achieve economic growth, said Mr Wong as he addressed the second issue of securing a better future with economic growth. Mr Wong said Singapore has been able to hold its own, maintain competitiveness, add value and enable workers to make a living. The only way to maintain or even increase its share of global exports is through productivity improvements. One key strategy is to attract more high-quality investments as they help to push the productivity frontier. Another strategy is to maintain consistent and steady investments in R&D. Addressing concerns of Singapore becoming a two-track economy - one for multinational corporations and another for SMEs - Mr Wong said a better way is to look at them as two broad segments of the economy - one that is outward-oriented and another that is domestic-oriented. Turning to the third issue of social support, Mr Wong assured Singaporeans that the Government is taking further steps to strengthen its system of risk pooling and social support. He stressed that it is not just about giving handouts, but is also about giving people a “leg-up”. Mr Wong noted that during the debate, many Members “laid claim” to the policy shifts announced in the Budget. “I am glad everyone wants to be associated with the Budget. As the saying goes, failure is an orphan, but success has many fathers, and mothers too, I should add. Basically, we welcome all who wish to associate themselves with these forward-thinking initiatives because in truth, no one has a monopoly on ideas,” he said. He added that the Government will continue to provide more information to facilitate informed discussions of policy. In the end, the real work is about translating ideas into effective policies that work for Singapore, said Mr Wong. “This year’s Budget is the first step in advancing our Forward Singapore agenda. We want to refresh our social compact to keep our society strong and united in this troubled world. We want to build a better Singapore, not just for a few, but for all Singaporeans. We want to refresh the Singapore Dream and build a Singapore that is vibrant and inclusive, fair and thriving, resilient and united. The road ahead to this better Singapore will not be easy. But we are all in this together,” he said.