National Day Rally 2025: Beyond SG60 Writing Our Next Chapter

PM Lawrence Wong calls on Singaporeans to unite, write nation’s next chapter together

Government will place citizens at centre of what it does but people must also chip in, look out for one another, he says

By Goh Yan Han, The Straits Times, 18 Aug 2025

Prime Minister Lawrence Wong called on Singaporeans to band together to write the next chapter of the nation’s story, as he set out plans to support them throughout various stages of life.

He gave the assurance that the Government will place Singaporeans at the centre of everything it does, be it navigating economic uncertainty or tackling technological disruption and demographic shifts.

In his first National Day Rally after the general election, PM Wong, who is also Finance Minister, outlined how his Government intends to address the challenges relating to the economy, senior citizens and the younger population.

It will provide job support – in particular, for fresh graduates and mid-career workers – and develop community infrastructure to support the growing population of elderly citizens.

Addressing the audience at ITE College Central in Ang Mo Kio on Aug 17, PM Wong opened his English speech by setting out the immediate challenges that Singapore is facing in a “more troubled and turbulent world”.

These include global tariffs imposed by the United States earlier this year, growing global contestation and rapid advancements in technologies like artificial intelligence (AI).

Singapore is reviewing its economic strategy on various fronts to secure its future in a changed world, he said, noting that harnessing innovation and technology will allow the country to sustainably raise its productivity and improve lives.

“Ultimately, our economic strategy is about jobs, jobs and jobs – that’s our No. 1 priority”, said PM Wong.

Three announcements in his speech centred on jobs: a job-matching scheme at the town level, enhancements to an existing SkillsFuture scheme for mid-career workers, and a government-funded traineeship programme for tertiary education graduates. The details of these schemes will be announced later.

PM Wong said new jobs will be created, as he acknowledged Singaporeans’ worries about jobs evolving or disappearing due to technological change.

“I assure you, even as we embrace AI and technology, we will not lose sight of our key priority,” he said.

“Singaporeans will always be at the centre of everything we do.”

He said the Government is committed to helping every worker progress and succeed, and will not rush headlong into adopting new technology.

There are plans to equip and empower every business, especially small and medium-sized enterprises, to harness AI effectively, he said.

The authorities will also work closely with unions and workers to redesign jobs and help Singaporeans seize new job opportunities, he added.

“The road ahead will not be easy. But we are not going to sit back and resign ourselves to being mere bystanders in a world shaped by others,” said PM Wong.

“We will take charge of our own destiny. We will shape the future we want – through our own actions, and our own choices.”

Turning to the issue of long-term care for seniors, PM Wong announced a new Age Well Neighbourhoods scheme that will adopt features from HDB Community Care Apartments – senior-friendly public housing that provides care services for residents.

The scheme is meant to allow senior citizens to live more independently in their own neighbourhoods, as Singapore’s demographics shift towards more elderly citizens and smaller family sizes.

Identified towns – starting with Toa Payoh and one or two other areas – will have more active ageing centres for seniors to gather, said PM Wong.

Home-based services such as basic health checks and housekeeping will be provided to seniors, with healthcare services brought closer to them as well, he added.

The scheme builds on the existing Age Well SG nationwide initiative for seniors to lead more active lives in their homes and communities.

“That’s how we will grow old – not in isolation, never alone, but always together as one Singapore family,” PM Wong said.

On challenges faced by the younger generation, PM Wong brought up vaping and excessive screen time.

Flagging vaping as a serious concern, he said the Government will take much tougher action and treat it as a drug issue.

It is also studying how other countries manage access to the internet and social media for children, he added.

Setting out the Government’s stance on responding to technological developments – like the use of AI by students – PM Wong said Singapore has to strike the right balance between protecting young people from potential harms and empowering them to fully exploit the benefits of technology.

He also sketched out plans for the northern part of the island, building on the Urban Redevelopment Authority’s Draft Master Plan 2025, which covers Singapore’s development plans for the next 10 to 15 years.

These plans include redeveloping the areas in Woodlands North, Kranji racecourse and Sembawang Shipyard.

As the Government reimagines new uses for existing land, it is also developing plans to protect the country’s coastline against rising sea levels, he added.

“So even as climate shifts and circumstances evolve, one thing is certain: Singapore’s progress will never be left to chance. We are – and have always been – a nation that adapts, reinvents and dares to dream,” said PM Wong.

Good plans and strategies are just the first step for Singapore’s continued progress, said PM Wong as he wrapped up his speech.

“What matters just as much – and even more – is the collective will of our people,” he said, adding it is this Singapore spirit that binds everyone together.

Going forward, Singapore must be a “we first” society with a people that considers others and not just themselves, said PM Wong.

“If each of us does our part for the ‘we’ – care, contribute and look out for one another – then the ‘me’ will thrive and flourish too,” he added.

His team will continue to involve Singaporeans in policy discussions, and will open up more avenues for people to be heard and to get involved.

“We certainly do not want to end up as a society where people rely solely on the government. It’s about all of us – government, businesses, workers and unions, community groups and civil society – doing our part,” he said.

“That’s how my team and I intend to lead. Not just doing things for Singaporeans – but doing things with Singaporeans.”

The nation cannot stand still as it looks beyond SG60, as standing still today is the same as falling behind, said PM Wong.

He urged Singaporeans to dream bigger, be bolder in pushing new frontiers, and be ready to try new things, even if they stumble or fall.

“We take pride in whatever we do, and strive to be the best possible versions of ourselves,” he said.

“We never give up and we never let each other down. That’s how we’ve achieved exceptional performance. That’s how we will continue to stay exceptional – as a people and a country.”

Changi Airport Terminal 5 breaks ground: PM Lawrence Wong hails bold move, says Singapore must stay connected to the world

Prime Minister Lawrence Wong breaks ground on Changi Airport T5 on 14 May 2025; all SIA, Scoot flights to move there when it opens

By Vanessa Paige Chelvan, The Straits Times, 15 May 2025

Prime Minister Lawrence Wong has broken ground on Changi Airport Terminal 5 (T5), an expansion project more than a decade in the making that will position the airport to ride an expected surge in air travel within the Asia-Pacific and beyond.

With the May 14 ground-breaking, work on the mega terminal has begun, following delays owing to the Covid-19 pandemic.

National carrier Singapore Airlines (SIA) and its budget arm Scoot will consolidate their operations under one roof at T5 when the terminal opens in the mid-2030s, said operator Changi Airport Group (CAG).

The airlines now operate across Terminals 1, 2 and 3, and SIA Group said the consolidation at T5 will provide space for its future growth and improve “operational synergies”.

There will be room at T5 and other terminals for other carriers to expand their operations, CAG added.

When asked about the other airlines that could operate from T5, CAG said it was too early to tell, as flight operations are dynamic and can change over the next decade.

Designed to handle about 50 million passengers a year, T5 will effectively double the size of Changi Airport and allow it to handle 140 million passengers yearly – boosting its current capacity of 90 million by more than 55 per cent.

Passenger traffic in the Asia-Pacific – already the world’s largest air travel market, taking about a third of the global share – is projected to double in the 2040s.

CAG said the extra capacity at T5 will enable Singapore to take advantage of this growth.

While prize-winning Changi Airport is a source of pride for many Singaporeans, PM Wong said Singapore can never be complacent about its achievements and “cannot presume that our success can continue just on its own”.

Amid sharpening competition from other airports and an uncertain global economy, the Prime Minister said Singapore must continue to work hard and remain connected to the world.

Hence, it is making a “bold move” with T5’s development to ensure Singapore’s air hub stays competitive.

At present, Changi Airport is linked to more than 170 cities. With T5, the airport will be able to reach its target of more than 200 city links by the mid-2030s, said PM Wong.

Construction on T5 will intensify in the next few years and peak around 2029, said Mr Ong Chee Chiau, CAG’s managing director for Changi East.

Works completed so far include a new runway, the airport’s third; an underpass for vehicular traffic; and tunnels for baggage and automated people-mover systems similar to the Skytrain.

With three runways operational by the time T5 opens, a second control tower will be built to manage air traffic, Mr Ong said.

T5 is located within the 1,080ha Changi East development, which is almost as big as the land area of today’s Changi Airport, he added.

In a first for the airport, T5 will house a ground transport centre, bringing together the Thomson-East Coast and Cross Island MRT lines, buses, taxis and other transport services.

State-of-the-art systems

T5 will have overlapping curved roofs with varying heights, in a nod to “Singapore’s unique blend of nature and city”, said CAG.

It will also have natural light and landscaping, giving the terminal “the familiar cosy yet uplifting feel that Changi is known for”.

Besides its facade and interior, the mega terminal will have state-of-the-art systems, and will leverage technology and automation to improve efficiency and passenger experience.

Plans include baggage robots that can operate in poor weather conditions, as well as video analytics and artificial intelligence tools that can track aircraft turnarounds to predict potential delays. A turnaround refers to the time between the arrival of an aircraft and its next departure.

These technologies are being tested now to prepare for their roll-out when T5 opens, said CAG.

To make it easier for passengers to move around, three automated people-mover systems as well as travelators will reduce walking distances.

There will be two people-mover systems within T5 that can connect departing passengers to their gates and arriving passengers to two arrival immigration halls. A third people-mover system will link T5 to T2, facilitating passenger transfers to other terminals.

“Most passengers arriving in Singapore will still be able to hop onto a taxi or the MRT within 30 minutes after leaving the aircraft,” said CAG chief executive Yam Kum Weng.

Meanwhile, transfer passengers at T5 can expect to connect to another flight in less than an hour. “Faster than Changi today,” Mr Yam added.

Passengers departing from T5 will undergo security checks near their boarding gates at the multiple security screening points for each cluster of gates.

This means more flexibility for the airport operator, as it can choose to open or close a particular cluster of gates according to demand, Mr Ong said.

T5 will be powered by more clean energy to reduce the airport’s carbon footprint. Its rooftop solar system – one of Singapore’s largest – will have the potential to generate enough energy to power up to 20,000 four-room Housing Board flats for a year.

It will also be ready to support viable alternative jet fuels, including sustainable aviation fuels.

From 2025, all new light vehicles, forklifts and tractors on the airside will be electric, and T5 will be able to support a fully electric airside fleet, CAG said. The airside is the part of the airport beyond passport control, where aircraft operate.

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.”

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.”

CPF system geared to meet retirement needs as people live longer: PM Lawrence Wong

In an interview with Lianhe Zaobao, Prime Minister Lawrence Wong discussed how the system has evolved and how the Government will continue supporting the housing, healthcare and retirement needs of Singaporeans throughout different stages in their lives. Here is an edited extract of his interview.

The Straits Times, 8 Feb 2025

Zaobao: What makes the CPF (Central Provident Fund) system unique, and how has it helped our CPF members?

PM Wong: Our CPF system has been improved and enhanced over many years and decades. The system we have today is very different from the one that we started with, or even the one that was in place 20 or 30 years ago. And there are several unique features in our system.

In some countries, they have what you call a defined benefit scheme. So when a person retires, they get a defined payout after retirement, and that funding is supported by taxpayers. It sounds very attractive, but it can be difficult to sustain because with a rapidly ageing population, it means that there will be fewer taxpayers to support a rapidly growing pool of seniors. And then the burden continues to grow, which is why commentators looking at some of these pension systems describe it as a pension time bomb. And there are no very good solutions. People are just kicking the can down the road.

In some other countries, they do not have comprehensive support for individuals, and they ask the individuals to rely more on their own efforts to save and look after their own retirement. But that is also not ideal because then the burden on the individual is considerable. So, our system is unique because it brings together different stakeholders, individuals, employers and the Government. We all do our part, and it reflects our social compact in Singapore.

We want to help one another, and it means, within our CPF system, the individual contributes, saves part of their income every month into their CPF account. Employer pays CPF, but the Government also does its part. We run the entire system for CPF, we provide guaranteed risk-free interest rates on CPF savings. And importantly, we provide additional support for the more disadvantaged and vulnerable groups in different ways, and by all parties coming together, we have a CPF system that can look after individuals’ retirement, housing and healthcare. And that’s also quite unique.

While the system is primarily designed for retirement, it is a system that has also enabled Singaporeans to take care of their own healthcare needs. They can use their MediSave for hospital bills and also for payments of their insurance premiums. As they start work and they want to set up a family, they can use their CPF for housing. Eventually, when they retire, they have CPF Life to take care of their retirement needs. So this is how we have over the years improved and enhanced considerably our CPF system. It is now a critical pillar in our social safety net. But of course, while it is a good system today, we are not resting on our laurels. We will continue to improve and enhance it, and make sure it remains a critical plank in our social security system, and can meet the current and future needs of all Singaporeans.

ZB: PM, you talked about Singaporeans living longer, so this means that they will need more funds for their retirement years. Some are worried that they may not have enough to support their golden years. How is the Government responding to this?

PM Wong: This is an issue that many countries are grappling with, especially those with rapidly ageing populations. And there are no easy answers. Because as the population ages and you have more seniors to look after, then whatever funds you have for retirement must stretch out for a much longer period.

The challenge is how do you look after people who are living longer? And in the end, the answer is that you need more funding. But the big question is who pays for the funding? We have been grappling with this issue for some time because we could see the trends. Even 20, 30 years ago, we could already see the trends. And we have been grappling with this.

When Singapore started out in the 1960s as an independent country, our average life expectancy was about 60-plus. People retired in their 50s, and they just needed to look after about 10 years of retirement. Nowadays, average life expectancy is around 85. And if you drill into the data, you have more and more people who are living beyond 90, even beyond 100. Our number of centenarians is growing rapidly. So when you retire, you have quite a long period of retirement to look after and to ensure that you have enough funds for your retirement years. What is the answer, then? How do we help everyone ensure that they have peace of mind during retirement?

I think there are two parts to it. One is we have to be prepared to stay employed and work longer. And that’s why we have been talking about raising the retirement age and the re-employment age for some time. Today, our retirement age is 63, the re-employment age is 68, which means employers must be prepared to offer the seniors a re-employment contract to work up to 68. And we have shared that we plan to raise this to 65 and 70 by 2030.

But we also know that it’s not easy for people, for older workers, to stay employed. And so we are not leaving Singaporeans to fend for themselves. It’s one major reason why we are investing so much in SkillsFuture, and we want to make sure that we continue to reskill and upskill our older workers, give them a substantial injection of new skills so that they can stay competitive and relevant.

And of course, all of us must start to change our mindsets and attitudes. Because in the past, it was very simple. Study, work – and often the work involves one career, one job – and then they retire. I think with longer lifespans, we have to be prepared for studying, but you are in fact going to continue learning throughout life, and your work will have multiple phases. Even if it’s one industry, you may have different kinds of job responsibilities, and very often it will be different industries, different seasons, different second, third acts in life, before you eventually retire. And SkillsFuture is there to support Singaporeans through these different phases. That’s one important way in which we help.

The second way we help is when someone retires, for example at 65, you want to ensure that their retirement savings can go on throughout their lifetime no matter how long they live. So we have CPF Life, which we implemented some time back, and this provides an annuity payout for the individual’s lifetime. And if you have your Basic Retirement Sum at 55 in 2025, by the time you are 65, you should be able to get a CPF Life payout of around $900 a month on the Standard Plan (in 2035). If you are able to work in a job that pays more, and you accumulate the Full Retirement Sum, the payout will be higher at around $1,700 a month (in 2035).

So it’s a scheme that allows you to design payouts, provide some flexibility. You can decide how much you want to save, and you can design the payouts to suit your own lifestyle and needs. What we want to do is to assure every Singaporean that so long as you make the effort, you work consistently throughout your lifetime – it doesn’t mean that you have to work every single year, but as long as you put in consistent work, and if you start young – by the time you get old and you want to retire, you should have enough protection through the CPF system to provide for your retirement. That’s our assurance to all Singaporeans.