GE2025 results: PAP gets 65.57 per cent of votes in landslide win

Commanding swing from 61.24% share in last general election gives Prime Minister Lawrence Wong the clear mandate he sought

By Lim Yan Liang, The Straits Times, 4 May 2025

Singaporeans have returned the PAP to power with 65.57 per cent of the popular vote, a commanding swing from its 61.24 per cent share in the last general election.

Voters overwhelmingly endorsed the ruling party, which secured 87 of 97 seats in an election that took place against a backdrop of global uncertainty and trade wars.

They gave Prime Minister Lawrence Wong the clear mandate that he had sought, in his first electoral contest as head of government and leader of the PAP.

Constituencies tipped to be fierce battlegrounds – Punggol GRC, Tampines GRC and Jalan Kayu SMC – were in the PAP’s grip by 11pm, when all sample count results were in.

Contests in East Coast GRC and West Coast-Jurong West GRC that were expected to be close also ended in decisive wins for the PAP.

At a press conference at 3am, PM Wong said the clear and strong mandate that Singaporeans have given the PAP was deeply humbling, and called the results “a clear signal of trust, stability and confidence” by Singaporeans in their government.

The immediate next task is to form the Cabinet, and PM Wong said he was grateful that all his key MPs had been voted in, and he could put together the best team to serve Singapore. “I will announce the Cabinet line-up when ready.”

While voters largely heeded PM Wong’s call for a strong PAP team to steer Singapore through coming storms, they also helped the WP retain its 10 seats and strengthen its grip on Sengkang GRC and Hougang SMC.

However, the WP’s call for a more balanced Parliament – and that more opposition MPs would lead to better policies – did not seem to have resonated with voters, as the party failed to make inroads elsewhere.

In Tampines, the only four-cornered fight in this election, the PAP secured 52.02 per cent of the vote against a WP team that garnered 47.37 per cent.

In Punggol, which was a focal point of the hustings after Deputy Prime Minister Gan Kim Yong was deployed there, the PAP polled 55.17 per cent to clinch the new GRC against a WP team led by senior counsel Harpreet Singh.

The other opposition parties failed to win any constituencies or send any candidates to Parliament as Non-Constituency MPs.

The PSP failed to convert or retain its two NCMP seats.

Its West Coast-Jurong West team, led by party chairman Tan Cheng Bock and NCMPs Leong Mun Wai and Hazel Poa, polled 39.99 per cent. This was a near-10 percentage point drop in votes from 2020, when the PSP came close to winning then West Coast GRC.

Instead, the “best loser” of this election was the WP’s candidate in Jalan Kayu SMC Andre Low, who took 48.53 per cent of the votes against labour chief Ng Chee Meng. Mr Ng made a successful comeback after losing in Sengkang GRC in the 2020 election.

The second NCMP came from the WP’s Tampines team, which comprises WP vice-chair Faisal Manap, Institute of Mental Health senior principal clinical psychologist Ong Lue Ping, former diplomat Eileen Chong, start-up co-founder Michael Thng and industrial equipment supply firm co-founder Jimmy Tan.

PM Wong said an issue that came up in the election was the desire for more alternative voices in Parliament, and that he respected Singaporeans with these views.

While he understood the sentiments, he urged those who held them to consider the merits of having a strong team in the Government to work effectively for the country.

The WP fielded a strong and young slate that gave the PAP a tough fight in several constituencies, and now have 10 elected seats as well as two NCMP seats, if they choose to accept them, he added.

“That’s an increase from what they have today, so they will have an increased and continued strong presence in Parliament, as well as the opportunity to refresh some of the members in their slate,” he said.

The WP did not hold its customary post-election press conference right away, but party chief Pritam Singh told supporters at Serangoon stadium at about 1am that it was always going to be a difficult election.

“The slate is wiped clean. We start work again tomorrow, and we go again,” he said to cheers.

The PSP’s Mr Leong, who is the party’s chief, said the results were “shocking” and that the party needed to regroup to fight another day.

SDP chairman Paul Tambyah expressed disappointment at his party’s showing, and attributed voters’ flight to safety to “the constant drumbeat of crisis”.

He said the silver lining was Dr Chee Soon Juan’s showing. The SDP chief took 46.81 per cent of votes in Sembawang West against the PAP’s Poh Li San in his best electoral performance to date. This, however, was not enough for the SDP to secure a parliamentary presence.

At the PAP press conference, PM Wong said he heard feedback from Singaporeans on key issues like cost of living and housing, and gave his assurance that the Government will redouble its efforts in the coming term to tackle these concerns.

“We have already started work on many of these issues and progress has been made, but we will work even harder with this mandate now to ensure concrete progress, and to see how we can achieve even better outcomes across all of these issues and on the economic challenges that are coming,” he said.

He also highlighted the mixing of race and religion with politics as an issue that surfaced at the election.

This was not just a matter of foreign interference, as there were also many negative comments by Singaporeans encouraging people to vote along racial lines, he added.

PM Wong said: “I am heartened that all political parties made clear their stance in this campaign to reject identity politics and reaffirm their commitment to multiculturalism, and the election results show that Singaporeans, by and large, reject identity politics and continue to support a multiracial and multi-religious society.”

The PAP had asked Singaporeans to vote for the name on the ballot that could best represent them in Parliament, and that it was not time for political experimentation given external turbulence.

In the end, the people chose stability and continuity over the opposition’s call for greater checks and balances, and gave PM Wong and his 4G team an unequivocal mandate to tackle the coming storms.

At the close of polls at 8pm, there were 2,429,281 votes cast in Singapore, including 42,829 rejected votes. This made up 92.47 per cent of the 2,627,026 registered voters in all contested electoral divisions.

PM Wong said Singapore has always been and continues to be the underdog despite what it has achieved, and must now close ranks to face the challenges ahead together.

“Now that the election is over, we must put aside our differences and stand together as one Team Singapore to confront the storms ahead, and to secure a brighter future for ourselves, our families and Singapore.”

Senior Minister Lee Hsien Loong said changes happening to the world are worrying, but that Singapore can come through with cooperation between the PAP and the people.

“With your trust and your full support and cooperation, we will do the best for our families, for our country and for our future,” SM Lee said.

3 takeaways from Singapore leaders’ blockbuster foreign policy speeches

Major speeches by PM Lawrence Wong and SM Lee Hsien Loong offer a clear-eyed view on global transition and commitment to multilateralism, and link political stability to diplomatic strength.

By Bhavan Jaipragas, The Straits Times, 19 Apr 2025

If this were a routine April – not the tense run-up to what could be a bruising general election – the back-to-back heavyweight foreign policy speeches from Singapore’s top two political leaders would still have those who watch the Republic closely sitting up and taking notice.

Singapore’s friends and partners near and far are surely watching for clues about how the long-time stewards of this city-state – resource-poor and smaller than New York City – intend to navigate the accelerating decline of the world order under which it has risen to become one of the world’s wealthiest, most stable societies with the ability to underwrite its own defence.

For that purpose, the speeches – first by Senior Minister Lee Hsien Loong in a dialogue with union leaders on April 14, and then by Prime Minister Lawrence Wong at the S. Rajaratnam Lecture on April 16 – offer, between them, as complete a picture as practicable to a public audience on the ruling PAP’s view of geopolitics and its foreign policy approach.

Both addresses, along with Mr Wong’s speech at the April 17 PAP manifesto launch – which also touched on the state of the world – are meaty enough to be studied from various angles.

For me, three important observations stand out.

Govt’s clear-eyed perspective

First, it is quite clear that Singapore’s leadership rejects a simplistic reading of the global landscape. Despite Washington’s current erraticity under President Donald Trump – with sweeping tariffs announced then suspended, threats of sectoral tariffs, and adamance that America will no longer be the world’s policeman – the Singapore Government does not view this as a neat pendulum swing of power.

My interpretation of Mr Wong and Mr Lee’s remarks is unambiguous: the establishment firmly rejects the notion that the crumbling of the US-led global rules-based order automatically crowns China as the new leader, or that we can expect a comfortable multipolar balance, with China and other powers harmoniously filling the vacuum.

This stands in contrast to certain domestic voices that have begun flirting with a more optimistic view – that Singapore and other Asian nations might actually benefit from this geopolitical disarray, that there is some inherently benign quality to what they claim is an organised multipolar order taking shape.

The perspective championed by countries like India, particularly through its erudite Foreign Minister S. Jaishankar, who has voiced considerable optimism about a new multipolar world order – arguing that “the virtues of the old world order are exaggerated” – has gained notable traction here in Singapore.

Yet what works for a middle power like India cannot be transplanted to Singapore’s context. For a small trade-reliant nation thoroughly integrated into the world economy – and critically dependent on both China and the US – adopting such a view borders on the foolhardy.

Mr Lee’s speech crystallises this reality.

Even as America retreats from its global policeman role, there remains firm bipartisan consensus among its political elite that China represents a “pacing challenge”.

Consequently, American policymakers “are trying very hard to stay ahead of China and to prevent China from overtaking them”. This intensifying great-power competition will inevitably inflict collateral damage on trade-reliant countries like Singapore.

The speeches offer no comforting illusions that whatever emerges from this messy transition will necessarily benefit us.

The Prime Minister’s assessment is sobering in its clarity: Mr Wong noted that “nobody can tell” what world order we are transitioning towards, even though we know that transition is under way.

Indeed, even as we witness daily evidence of transformation through market turbulence and policy pronouncements from Washington – met with counter-responses from other capitals – there remains simply too much uncertainty. We cannot predict global conditions one month from now, let alone a year ahead or by the end of Mr Trump’s term in January 2029.

Mr Wong put it like this: “America is stepping back from its traditional role as the guarantor of order and the world’s policeman. But neither China nor any other country is willing – or able to – fill the vacuum.”

He added: “So nations are turning inward, prioritising their own narrow interests. The once-rising tide of global cooperation that defined the past decades is giving way to one of growing competition and distrust. And as a result, the world is becoming more fragmented and disorderly.”

Maintaining the global commons

Much ink has been spilt on why this changing world order is detrimental to a small city-state like Singapore. In essence, when the rule of law gives way to the law of the jungle – where big powers dominate and equal treatment becomes a thing of the past – the voices of smaller nations are inevitably silenced.

Our interests become perilously easy to trample. After all, why would global heavyweights concern themselves with Singapore’s welfare when no binding framework compels them to?

Mr Lee illustrated this reality while discussing the Trump administration’s abandonment of the decades-old Most Favoured Nation trading principle – which requires non-discrimination among World Trade Organisation members – in favour of reciprocal tariffs.

This shift, he suggested, reflects a fundamentally transactional world view that prizes “win-lose” outcomes where raw power determines results.

“Why not we treat this one-on-one, like arm wrestling. Let’s see who has got more biceps, who has got a stronger arm, and we will see who is stronger. We will get more that way,” Mr Lee said, capturing the essence of this Trumpian approach to international relations.

Yet Singapore’s response to this troubling landscape constitutes the second major takeaway from these speeches – particularly from Mr Wong’s lecture.

Rather than merely lamenting the erosion of the stable, rules-based global system from which it has benefited profoundly, Singapore’s foreign policy establishment recognises the challenge and is responding to it.

The contrast is striking: while America is reportedly slashing the State Department’s budget by nearly 50 per cent, shuttering numerous diplomatic missions, decimating its diplomatic corps, and withdrawing funding from virtually all international organisations, including the United Nations, Singapore is moving deliberately in the opposite direction, strengthening its international engagement.

Crucially, Singapore does not stand alone in this endeavour. It has cultivated a network of like-minded partners, equally committed to preserving multilateral frameworks and international law – laying essential groundwork for whatever more stable global order might eventually emerge.

These efforts may appear technical or esoteric to casual observers, but they represent the painstaking work of nations committed to enhancing global cooperation rather than undermining it.

Mr Wong highlighted several concrete initiatives: Singapore’s leadership role, through Ambassador Rena Lee, in guiding UN negotiations on the High Seas Treaty on biodiversity; the creation of the Financing Asia’s Transition Partnership, a blended finance platform designed to channel private capital towards Asia’s decarbonisation efforts; and the establishment of a specialised Development Partnership Unit within the Ministry of Foreign Affairs to coordinate assistance to developing nations and deepen international collaborations.

Mr Wong also noted how Singapore is simultaneously reinforcing Asean integration, working to forge closer cooperation with the grouping and other multilateral blocs such as the European Union, while expanding its global footprint bilaterally as well – with plans to establish new diplomatic missions in Africa and Latin America in the coming years.

Collectively, these initiatives send a powerful message: even as the world’s pre-eminent power retreats from the very international architecture it once championed, Singapore remains steadfastly committed to building consensus and pursuing mutual benefit through cooperation.

Goldilocks problem

Third on my list of takeaways from the speeches – more for Singaporean voters to ponder than for outside observers parsing the Republic’s geopolitical worldview – is what Mr Lee articulated in the last part of his address.

For close observers of the Senior Minister’s major political speeches, his argument here will have a familiar ring: in essence, that Singapore’s global influence and ability to navigate complex geopolitical waters requires a strong government.

Put more directly, that the PAP’s dominance in politics over the past six decades isn’t merely fortuitous, or good to have, but is in fact a strategic necessity.

In previous addresses, Mr Lee has likened this to a Garden of Eden situation – once single-party dominance erodes, the positive outcomes so prized by Singaporeans that flow from it cannot be regained.

In his April 14 speech, he put it plainly regarding the implications for the conduct of foreign policy: “You need to have a good government, an effective government, a strong government, in order to take care of Singapore. And it has to be strong domestically, in order to be strong internationally.”

Importantly, Mr Lee did not argue against the existence of opposition – quite the contrary. He acknowledged that the opposition has a legitimate role in Singapore’s democratic system and that opposition MPs will always have a place in Parliament. However, he drew a clear line: “But if voters keep on electing more opposition MPs, even when the Government is doing a good job, then beyond a point, it must weaken the Government’s ability to govern, to form the best possible team for Singapore and to run this country the way Singaporeans have come to expect.”

Mr Lee raised the spectre that a weakened government could see foreign counter-parties question the staying power of the incumbent administration and the sitting prime minister, and temper their expectations – and commitments to Singapore – accordingly.

Here, then, lies one of the main areas of contestation likely to emerge during the coming election campaign: this view, one could say the orthodox PAP perspective, that a larger opposition presence could undermine Singapore’s foreign policy effectiveness, versus the perspective of serious, electable opposition parties – particularly the Workers’ Party – that greater political diversity serves the long-term national interest and need not compromise Singapore’s unified international stance.

Much as the messages from Mr Lee and Mr Wong this week have been sobering yet confidence-inspiring regarding foreign policy stewardship, this final point raises a profound question for voters on May 3: whether they will opt for a thinner or thicker opposition bench.

A Goldilocks problem with high stakes now rests in the hands of Singapore’s electorate.

Healthcare financing in Singapore: Healthcare spending could hit $30 billion a year by 2030 says Health Minister Ong Ye Kung

The Price of Good Health

Healthcare that is affordable, accessible and high quality comes at a price. Salma Khalik finds out how Singapore is striking the right balance.

The Straits Times, 10 Apr 2025

Spending on healthcare in Singapore could soon become the single biggest item in the Government’s coffers, said Health Minister Ong Ye Kung, as he assured Singaporeans that their basic healthcare needs will continue to be affordable.

In 2025, the Government has set aside $20.9 billion for health, second only to spending on defence, which has a budget of $23.4 billion.

Citing the trajectory of government healthcare expenditure, which had gone up from $9 billion in 2015, the year he joined politics, to $18 billion in 2024, Mr Ong predicted that by 2030, it would likely be close to $30 billion a year.

A lot of the money will go towards building more facilities, including new hospitals, nursing homes and community care centres, and for manpower costs.

But a substantial portion will be spent on subsidies to keep costs down for patients.

“We can make it affordable to the patient, but there’s no doubt that with an older population, healthcare expenditure, whether by the Government or nationally, is going to go up,” he told The Straits Times in an exclusive interview.

Older people not only tend to get sick more frequently, but they are also more sick and stay longer in hospitals as many have more than one medical condition.

Mr Ong said: “You’re seeing a lot more older patients coming in, not because of very severe diseases, but due to infections. Because they are old, there is underlying illness after Covid-19. They are more frail and one infection is all it takes for them to be in the ICU (intensive care unit).”

As a result, the average length of stay in public hospitals has gone up, from 6.1 days in 2019 to seven days by 2022. This represents a 15 per cent increase in patient load, he added. While this trend worries him, Mr Ong is confident that the quality of healthcare for patients in the future will not suffer as a result of the higher demand.

Even as the quality of healthcare here has been getting better over the years, with advances in medical science and technology, he said the Government will continue to enhance the definition of basic healthcare, which it has always promised will remain affordable. As an example, he pointed to the announcement that from October, MediShield Life will start covering treatments using cell, tissue and gene therapy products.

These are individualised treatments tailored to a person’s specific medical problem, some of which were previously untreatable. As each treatment is designed and produced for a specific patient, the cost is high.

The move marks an “inflection point” for basic healthcare here, said Mr Ong. In spite of the high cost, he said “we decided that this is the way to go” because today, if there is an available treatment, people expect to have access to it.

“At some point, that becomes people’s expectation. So we have to start embracing this,” he said.

This is one reason why a large part of government expenditure will go towards subsidising healthcare costs. People will also have to share in the cost of better care, largely with insurance and their MediSave funds, Mr Ong said.

The good news is that the Government is unlikely to need to raise taxes to pay for the higher healthcare expenditure, he added.

Said Mr Ong: “We expect our GDP (gross domestic product) to grow. So long as the Singapore economy grows, tax receipts will go up. And a big part of it, a significant part of it in future, will be for healthcare.”

GE2025 electoral boundaries announced: 15 SMCs and 18 GRCs

Extensive changes to electoral boundaries due to population shifts; number of MPs raised from 93 to 97

By Linette Lai, The Straits Times, 12 Mar 2025

Major changes ahead of Singapore’s next general election will see the creation of one more group representation constituency and an additional single-seat ward, bringing the total to 18 GRCs and 15 single-member constituencies.

The number of elected MPs will increase to 97, up from 93 now.

The revisions will see electoral boundaries change in 22 out of the current 31 constituencies.

The release of the Electoral Boundaries Review Committee (EBRC) report on March 11 marks a major step on the road to the next general election, which is expected to be held in the first half of 2025.

Explaining its recommendations, the EBRC said in its report that voter numbers have grown significantly in Pasir Ris-Punggol, Sembawang and Tampines GRCs, as well as the single seats of Hong Kah North and Potong Pasir.

This is largely due to population shifts and new housing developments in these areas, it said. Voter numbers in each of these constituencies have increased by more than 10,000 since GE2020.

Revisions to electoral boundaries in these areas had knock-on effects on boundaries in some surrounding constituencies, the EBRC said.

With the latest changes, the number of four-member GRCs will grow from six to eight, while the number of five-member GRCs will go down from 11 to 10.

One key change is the creation of a new four-member Punggol GRC. It will take in Punggol West SMC and parts of Pasir Ris-Punggol GRC, which will shrink into a new four-member Pasir Ris-Changi GRC.

Five SMCs have been taken off the map, while six new ones have been added. The single seats removed are: Bukit Batok, Hong Kah North, MacPherson, Punggol West and Yuhua.

The new SMCs have mostly been carved out of existing GRCs. They are: Bukit Gombak, Jalan Kayu, Jurong Central, Queenstown, Sembawang West and Tampines Changkat.

Three polling districts in Tampines West, east of Bedok Reservoir, have been moved from the opposition-held Aljunied GRC to Tampines GRC.

Sengkang GRC, which is also held by the Workers’ Party, is among nine constituencies to see no changes to electoral boundaries. The other eight are Bishan-Toa Payoh, Jalan Besar, Marsiling-Yew Tee and Nee Soon GRCs; as well as Bukit Panjang, Hougang, Marymount and Pioneer SMCs.

An estimated 2,753,226 voters will head to the polls in 2025, an increase of 101,791 from GE2020.

The EBRC submitted its report to Prime Minister Lawrence Wong on March 7. Its recommendations have been accepted by the Government, the Elections Department (ELD) said on March 11.

Significant changes have been made in the east and west of Singapore, where the fiercest electoral battles are expected to be fought.

In the east, the new Pasir Ris-Changi GRC will be formed by merging parts of Pasir Ris-Punggol and East Coast GRCs.

East Coast remains a five-member GRC. However, it will take in 15 polling districts from Marine Parade GRC – mostly flats in Chai Chee and private estates in Siglap. The constituency was hotly contested by the People’s Action Party and WP in 2020, with the ruling party eventually winning 53.39 per cent of the vote.

A new five-member Marine Parade-Braddell Heights GRC will absorb the single seat of MacPherson. It will take in two polling districts from Potong Pasir, where many new flats have been built in the Bidadari area, and parts of the existing Marine Parade GRC and Mountbatten SMC.

In the west, the new five-member West Coast-Jurong West GRC will take in estates from neighbouring Jurong West and Taman Jurong, which are in Jurong GRC.

Estates in Dover and Telok Blangah, which are part of the existing West Coast GRC, will be absorbed into Tanjong Pagar GRC. West Coast GRC saw the closest fight in 2020, when the PAP won with 51.69 per cent of the vote against the Progress Singapore Party.

Meanwhile, a new five-member Jurong East-Bukit Batok GRC will take in polling districts from the existing Jurong GRC, as well as parts of three SMCs which have been taken off the map – Bukit Batok, Hong Kah North and Yuhua.

The EBRC, made up of five senior civil servants, was formed seven weeks ago on Jan 22. It was directed to keep the average size of GRCs, the proportion of MPs elected from SMCs, and the average ratio of electors to elected MPs, about the same.

The average number of MPs in each GRC will be 4.56, down from 4.65. In the coming general election, there will be approximately 28,384 voters per MP, compared with 28,510 now.

And about 15.5 per cent of MPs will be elected from single-seat wards, compared with 15.1 per cent at the last election.

The next big step will be when Parliament is dissolved and the Writ of Election issued. The writ sets out a date for Nomination Day, when candidates confirm the constituencies in which they will stand.

Nomination Day will likely be followed by the minimum nine-day campaign period and Cooling-off Day – when campaigning is banned – before Polling Day.

In the past four general elections, the time between the release of the EBRC report and Polling Day has ranged from two to four months.

In a Facebook post, PM Wong acknowledged that the report had been submitted.

“The next milestone will be to update and certify the Registers of Electors, before the elections are called later,” he said.

Political observers noted that it is the first time in several decades that the EBRC has laid out reasons for its decisions. Past reports since the 1990s have typically set out boundary changes with little explanation.

The committee may have done so in response to calls for greater transparency on how it works, they suggested.

In a statement, the PAP said its branches and activists will make the “necessary adjustments” to prepare for the general election.

“Meanwhile, residents can continue to seek assistance from their existing PAP branches,” it added.

Party branches will continue to listen to residents’ feedback, understand their needs, and act on their behalf to improve their communities, it said.

GST hike did not ‘turbocharge’ inflation, says PM Lawrence Wong as he acknowledges cost-of-living concerns

Budget 2025 Debate Round Up Speech

This Government will always uphold fiscal responsibility, says PM Lawrence Wong

By Wong Pei Ting, The Straits Times, 1 Mar 2025

The PAP Government will never take risks with Singaporeans’ lives and their future – this means ensuring that it keeps public finances healthy year after year and spending within its means, said Prime Minister Lawrence Wong.

PM Wong also cautioned against attempts to portray a healthy surplus as somehow detrimental to Singaporeans as he addressed criticism from opposition MPs about poor budget marksmanship.

“Let’s try not to put a wedge between the Government and the people... A strong fiscal position for Singapore is not at the expense of Singaporeans,” he said. “In fact, it benefits Singaporeans in so many ways, because we are able to invest more in Singaporeans.”

In an hour-long speech wrapping up the Budget debate on Feb 28, he also responded to the opposition’s suggestion that the Government had raised the goods and services tax earlier than it needed to, given an expected surplus of $6.4 billion for financial year 2024, compared with the $778 million that had earlier been projected.

Singapore is in a strong fiscal position today precisely because it took the necessary steps early in this term of government to raise revenues ahead of expected structural spending needs as the population ages, said PM Wong.

While the Republic was fighting the Covid-19 pandemic, it could already foresee spending needs going up on the horizon.

“This was 2020, 2021 – we had no way of knowing when the pandemic would end, how the virus would mutate, how many more new waves of infection would we face, how many more restrictions we have to impose, and how much deeper a fiscal hole we would end up with,” PM Wong said.

The authorities made the decision to proceed with the GST increase in Budget 2022, accompanied by enhancements to a package to delay the increase for most Singaporean households, when there were signs that the economy had stabilised.

“We must ask ourselves, do we want short-term populism or long-term stability?” PM Wong asked. “Do we want to kick the can down the road or take the hard but necessary decisions?”

With the GST increase in place, the Government has the additional revenues – mostly from those who are better off, foreigners and tourists – that it needs to improve healthcare infrastructure and take better care of seniors, he said.

Were it not for the GST hike, and unexpected upsides in corporate income tax collections, FY2024 would have ended in deficit, as would projections for FY2025, he added.

“That would have meant less funding for essential services, less support for our seniors and fewer resources to invest in our future,” he said.

“Basically, Singapore and Singaporeans would have ended up in a much weaker position.”

PM Wong refuted Leader of the Opposition and Workers’ Party (WP) chief Pritam Singh’s proposition that the GST hike had “turbocharged” inflation.

As Singapore is a small and open economy, inflation was driven primarily by global factors, such as war and supply chain disruptions, said the Prime Minister.

In the two years when GST was raised, price increases actually moderated, from 6.1 per cent in 2022 to 4.8 per cent in 2023 and 2.4 per cent in 2024, he pointed out.

He noted that in most countries, poor budget marksmanship refers to when governments severely overestimate revenue collections and underestimate expenditures.

This results in unfunded promises that a country cannot keep, because there is not enough money. Alternatively, it borrows to meet these commitments, thereby leaving a growing burden for the next generation.

This is not the case in Singapore, as the Republic practises responsible and prudent budgeting, PM Wong said.

Earlier in the debate, Mr Singh had called the Government’s fiscal projections “so unpredictable, but somehow always so healthy when elections have to be called”.

This point was echoed by Progress Singapore Party (PSP) Non-Constituency MP Leong Mun Wai, who said that “so much pain” had been inflicted on Singaporeans by the decision to raise GST in 2023 and 2024.

PM Wong said that, ultimately, it was not a matter of marksmanship, but a question of right or wrong fiscal principles.

“The WP and the PSP may think that we are being overly cautious in our projections, but this Government will never take risks with Singaporeans’ lives and future,” he said.

This includes raising revenues should new spending needs arise, he added.

On the charge by opposition MPs that the Government had been relying on temporary measures such as vouchers to deal with cost pressures instead of making structural reforms, PM Wong said that cost-of-living support and the SG60 package accounted for just 5 per cent of the Budget.

A far larger part of government spending is in structural programmes such as SkillsFuture to empower Singaporeans through skills and job training, he said.

“This will ensure Singaporeans do not just receive help, but are able to stand on their own feet and seize better opportunities for themselves and thrive in a rapidly changing world,” he said.

Objectively speaking, this has helped Singaporean households across different income levels achieve higher real income growth in the past decade than countries like the United States and Japan, he added.

For instance, the bottom 20 per cent of households here saw their wages rise 3.6 per cent per annum between 2013 and 2023, compared with 2.1 per cent in the US and minus 1.6 per cent in Japan.

Singapore’s fiscal approach has also stood it in good stead – while many countries use their tax revenues to service interest payments, the Republic instead receives an annual boost from its investment returns.

“Countries that have this luxury of investment returns are the ones that are endowed with oil and gas or some other natural resources – they have been blessed by the heavens with these endowments,” PM Wong said.

‘We have nothing, and yet we are in this position. It is truly unique, and it is a Singapore miracle.”

Singapore’s fiscal strength is a vital source of competitive advantage in these turbulent times, which look likely to get worse, said PM Wong.

He flagged the ongoing wars in Europe and the Middle East, and the possibility of conflict in Asia.

Today’s environment means global responses to these threats will sadly not be as well coordinated or effective as before, he added.

“But in Singapore, we know that if such shocks were to arise, we have the ability to respond swiftly to them, like we did during Covid-19,” he said.

“Our reserves and our fiscal strength will enable us to protect Singaporeans when it matters, and to turn adversity into opportunity.”

In a Facebook post in the evening, Senior Minister Lee Hsien Loong said Singapore must continue to spend prudently, so that it can tackle and recover from future challenges swiftly, as it did with Covid-19.

Reflecting on SG60 – the country’s 60th year of independence – SM Lee said the country’s strong fiscal footing has been built through the careful stewardship of the earlier generations. He said: “It gives us confidence to move forward sustainably, so that future generations can enjoy the fruits of Singapore’s progress.”

PM Wong said the Government’s approach has also achieved outcomes that reflect Singapore’s values as a society – one that is fair, prudent and progressive, where the better off contribute more to lift up those with less.

For instance, the bottom quintile of households receives $4 in benefits for every dollar of tax paid, while the top quintile of income earners receives 30 cents.

“There is no fiscal system in the world that can deliver perfect precision and equity. But I think we have found an approach in Singapore that works for us,” he said. “It’s not perfect, but we continue to make it better.”

At the end of the day, PM Wong said, Singaporeans will decide whether they prefer a government that underestimates needs and spends more from the reserves, leaving the country weaker, or one that steadfastly upholds fiscal responsibility and discipline so that current and future generations have the resources to handle unexpected challenges.

“We will continue to do our best to convince Singaporeans that ours is the right approach. It has served us well these last 60 years, and it will continue to keep Singapore on the right track in the years ahead,” he said.

Singapore Budget 2025: Onward Together for a Better Tomorrow

PM Lawrence Wong unveils bumper SG60 Budget for all Singaporeans

By Goh Yan Han, The Straits Times, 19 Feb 2025

Every Singaporean will receive something from Budget 2025, from vouchers for all adults to personal income tax rebates, as part of an SG60 package.

Prime Minister Lawrence Wong on Feb 18 unveiled what he termed “a Budget for all Singaporeans”, which includes expanding existing schemes to benefit more citizens and greater support for seniors as well as the vulnerable.

He also set out measures to grow Singapore’s economy, help workers upskill and meet its green targets.

The broad suite of measures announced tally up to a record $143.1 billion, an increase from the $134.2 billion spent in the 2024 financial year.

This is about 18.7 per cent of Singapore’s gross domestic product, and is in line with projected trends for government spending that is expected to reach about 20 per cent of GDP by 2030.

The moves are financed by changes to the tax system made earlier in this parliamentary term that put Singapore “on a stronger fiscal footing”, and larger-than-expected revenue collections.

Corporate income tax collections were more than expected in the 2024 financial year. This is now the single largest contributor to total government revenue, higher than the Net Investment Returns Contribution (NIRC), said PM Wong as he set out the Government’s fiscal position. The NIRC refers to the returns on investments of Singapore’s reserves.

He expects a surplus of $6.8 billion, or 0.9 per cent of GDP, for the 2025 financial year.

“When Singapore thrives, every citizen benefits,” said PM Wong, who is also Finance Minister.

“Every Singaporean is supported from birth to old age, with more support given to those with less. No one is left behind.”

PM Wong said the Budget was “shaped together with all Singaporeans”. It lays out the second instalment of plans on the Forward Singapore agenda, which seeks to keep society strong and united.

He noted that Singapore has to navigate a turbulent external environment, with the US and China locked in a fierce contest for global supremacy. Despite the global uncertainties, the Republic can look ahead with a degree of confidence as it is far stronger than it was 60 years ago, he added.

Noting that 2025 marks the country’s 60th year of independence, PM Wong said: “It has been a remarkable journey, reflecting the grit and resilience of generations of Singaporeans in building our nation.”

Something for all Singaporeans

He announced a new SG60 package to recognise the contributions of all Singaporeans and share the benefits of the nation’s progress.

In July, all Singaporeans aged 21 to 59 will receive $600 in SG60 vouchers, while those aged 60 and above will get $800. These vouchers, amounting to about $2 billion, will function like the CDC ones.

Under the package, individuals will also get a 60 per cent personal income tax rebate, capped at $200, for the 2025 year of assessment.

All Singaporean babies born this year will get an SG60 Baby Gift, PM Wong added, among other measures in the package.

The hotly anticipated Budget, which comes ahead of an upcoming general election widely expected by mid-year, also tackles top-of-mind issues for Singaporeans such as cost-of-living pressures and job insecurity.

To alleviate rising costs, PM Wong announced another $800 of CDC vouchers for all Singaporean households, totalling about $1 billion. The first $500 will be given out in May 2025, while the remaining $300 will be issued in January 2026.

He also announced more utility rebates and credits for families with children to defray household expenses.

While inflation is expected to ease further in 2025, PM Wong acknowledged that Singaporeans are still adjusting to new price realities. “We will continue to provide support for as long as needed, within our means,” he said.

To help parents who have or plan to have three or more children, PM Wong detailed a new Large Families Scheme.

The scheme will disburse $16,000 to such families for each third and subsequent child born from Feb 18, and help to cover pre-school and healthcare expenses, as well as household spending.

PM Wong also announced that several schemes will be extended to private property owners, including the climate vouchers programme that all Housing Board households can currently tap to buy energy- and water-efficient household appliances.

HDB households will get an additional $100, on top of the $300 they received last year, while households in private properties will get $400 in climate vouchers.

The Enhancement for Active Seniors (EASE) scheme that provides subsidised senior-friendly fittings and installations in HDB households will be extended to private property households up to 2028, said PM Wong.

Supporting workers, securing the future

While the Government has taken measures to mitigate the impact of rising costs, the best way in the longer term to adjust to higher prices is to grow the economy and increase productivity, he said.

Dedicating a significant portion of his Budget speech to new moves to grow the economy, he announced more funding for research and development and a new $1 billion fund to provide more financing options for high-growth local enterprises.

At the same time, workers must be equipped with the skills needed to stay competitive and relevant, said PM Wong.

He said that the SkillsFuture Level-Up Programme, announced in 2024 to support mid-career Singaporeans who are upskilling full-time, will also be extended to part-time training.

The Workfare Skills Support scheme, which currently covers short courses for lower-wage workers, will have an enhanced tier of support that covers longer-form courses, he added.

The Prime Minister also outlined measures to support more vulnerable groups of workers, including older workers, former offenders looking to reintegrate into society, and people with disabilities.

PM Wong said the Budget also lays the groundwork for the country to become stronger and more resilient.

It includes measures to tackle climate change, like a $5 billion top-up to the Coastal and Flood Protection Fund. The fund covers long-term plans such as land reclamation for Long Island and structures like sea walls and tidal gates.

Singapore will need to have its own domestic sources of clean power to ensure greater energy resilience, PM Wong said, adding that the country will study the potential deployment of nuclear power and take further steps to systematically build up capabilities in this area.

Apart from plans to access more sources of clean energy, the Government will accelerate efforts to decarbonise the transport sector, he said.

It will roll out a new emissions scheme and electric charging grant to incentivise the purchase of clean energy variants of heavy vehicles. Adoption of such vehicles has been slower compared with that of electric and hybrid cars.

Singapore will continue to improve its public transport system, said PM Wong, noting that $60 billion will be invested in this decade to grow and renew the rail network.

“We are continuing to study how our rail network can be expanded,” he added.

Concluding his speech, PM Wong said Singaporeans have to brace themselves for new challenges in the next phase of nation building.

The country has confronted tough external circumstances repeatedly over the past six decades, and “we can draw confidence from what we have been through together”, he added.

At every turn, Singaporeans have chosen determination over despair, innovation over stagnation, and solidarity over division, said PM Wong.

“Budget 2025 sets out clear plans for us to continue this journey with confidence.”