A. Introduction

A. Introduction

Mr Speaker, Sir

1. 1. I move that Parliament approve the financial policy of the Government for the financial year 1 April 2025 to 31 March 2026.
2. 2. 2025 marks our 60^th year of independence. It has been a remarkable journey, reflecting the grit and resilience of generations of Singaporeans in building our nation.
3. 3. 60 years ago, the world was very different:
   1. a. It was the height of the Cold War, with the Berlin Wall standing as a stark symbol of division between the United States and the Soviet Union.
   2. b. In Asia, the Cold War spilled over into proxy fights, with devastating wars in Vietnam, Laos, and Cambodia.
4. 4. As a fledgling nation, Singapore faced monumental challenges.
   1. a. Racial tensions were high. Unemployment was rampant.
   2. b. The withdrawal of British forces shortly after independence dealt a heavy blow to our defence and our economy.
   3. c. In a world divided by blocs, we had no hinterland and no natural allies. Survival seemed improbable.
5. 5. Yet in that crucible of fire, our pioneers forged a nation.
   1. a. We refused to be pawns in someone else’s game. We turned our vulnerabilities into strength.
   2. b. We plugged into the world as an open and neutral hub for commerce and diplomacy.
   3. c. Together, we defined our relevance to the world and built this nation.
6. 6. Today, we face a new global contest. The stark divides of the Cold War have given way to a fragmented and troubled world. New walls are being erected – not of concrete, but in the form of economic and trade barriers.
7. 7. And once again, we will have to find ways to navigate a turbulent external environment.
8. 8. We have done well so far. We bounced back strongly from the Covid-19 pandemic, and ended last year on a strong footing.
   1. a. Our economy grew by 4.4%.
   2. b. Inflation continued to ease.
   3. c. Singaporeans saw wage increases that outpaced inflation. The median income of resident workers rose by 3.4% above inflation.
   4. d. Income inequality, after government taxes and transfers, is at its lowest since 2000.
9. 9. All this has given us good momentum for our next phase.
10. 10. But we expect greater global uncertainty and downside risks.
    1. a. The US and China are locked in a fierce contest for global supremacy.
    2. b. Neither side wants to come to blows. But both know that economic heft and technological prowess are key to winning this global race.
    3. c. And both are prepared to take more assertive actions to advance their own interests, even at the expense of established international norms.
    4. d. So we can expect escalating attempts at containment and counter-containment, with ripple effects that will inevitably draw in other countries, including Singapore.
11. 11. All these pressures will reshape the global economy and dampen prospects for global growth. As a small and open economy, we will feel the impact.
12. 12. For 2025, we expect a more moderate outlook. Growth is projected at 1% to 3%, while inflation is expected to average 1.5% to 2.5%.
13. 13. But despite the uncertainties, we can look ahead with a degree of confidence. Singapore today is far stronger than we were 60 years ago.
    1. a. We have developed a strong and well-diversified economy, supported by a highly skilled workforce.
    2. b. We have built up a robust SAF and a strong diplomatic network, to uphold our sovereignty and security.
    3. c. We have forged a common Singaporean identity, grounded in our shared values and experiences, and our commitment to one another and our nation.
14. 14. This is the legacy of generations of Singaporeans, with each one running a good race. The baton has now been passed, and it is our turn to take Singapore forward. This Budget builds on previous Budgets, not only to address today’s challenges, but to plan ahead and secure Singapore’s future.
15. 15. Budget 2025 is a Budget for all Singaporeans.
16. 16. It’s also a Budget shaped together with all Singaporeans. It further advances our Forward Singapore agenda, which incorporates your aspirations and views, and seeks to keep our society strong and united.
17. 17. In this Budget, we will work with you to:
    1. a. Tackle cost pressures;
    2. b. Advance our growth frontier;
    3. c. Equip workers throughout life;
    4. d. Build a sustainable city;
    5. e. Nurture a caring and inclusive society; and
    6. f. Rally as one united people.
18. 18. And I will go through each of these in turn.