It was a race against time for Indian national Dhandapani Vignesh and his rail welding crew to finish joining new rail segments in about three days to fix a section of damaged tracks between Jurong and Clementi stations.
Originally contracted to work on depot renewal projects under the Land Transport Authority (LTA), the 36-year-old construction manager, together with 20 other foreign workers from his team, were alerted at 7pm on Sept 26 that they were being roped in to repair the damaged tracks.
The team immediately got down to work, putting in nine- to 10-hour shifts from Sept 27 to 30 to finish welding – or connecting – the new rail segments to existing ones along the westbound track so that trains could run smoothly again. The new rails replaced the ones damaged by the faulty train.
Despite the pressure of the task at hand, Mr Vignesh mused that he literally “did not feel the heat much” as rail welding, which involves heating rail segments placed between ceramic moulds to join them, was done in the shade in tents.
The main challenge, he added, was having only a limited working timeframe – from around 2.30pm to midnight daily. Welding was not possible at other times of the day since the rails would expand in the daytime heat and eat into the 30mm gaps required to insert welding materials.
Mr Vignesh and his team were also heartened by the steady stream of cold drinking water almost every hour and fast-food meals provided by LTA, rail operator SMRT and even members of the public.
They were among the more than 800 workers responsible for getting the EWL train services up and running again.
‘Generally, we’ve got things right’: SM Lee addresses issues like race at dialogue with youth
By Elisha Tushara, Correspondent, The Straits Times, 4 Aug 2024
In Singapore, one can expect to be respected as an individual and treated equally regardless of race, language and religion, Senior Minister Lee Hsien Loong said on Aug 3 at a dialogue with youth.
That is the starting point, he said in response to a question about how there remain concerns about incidents of casual racism here, and whether the situation will improve.
“Generally, we have got things right,” he said, adding that at a personal level, people have to treat each other with respect, understand the sensitivities and not cause offence.
During the hour-long session, participants from post-secondary institutions, madrasahs, Special Assistance Plan (SAP) schools, as well as community and religious groups, asked SM Lee questions on topics ranging from casual racism and influence of social media to integration between locals and new migrants.
“We have to express disapproval and if it is done with ill intent, we have to be quite firm to come down and put it down,” he said, referring to conflicts that arise over race or religion. “At the same time, we have to respond in a measured way, and we have to see what the situation is.”
Singaporeans should not become hypersensitive, said SM Lee. “If you look at what is happening in Western countries, there is a mood now where you are so careful about not doing anything which may cause offence to anybody,” he said.
“Sometimes, they even say I am going to say something which you may be unhappy (about). So, if you don’t want to hear me, please leave the room before I say it. And then life becomes very tiring.”
This is not a mature or practical way of getting along with each other, he said, which requires “give and take”, understanding, tolerance and respect. “And I am able to get on together because, fundamentally, we believe that we are Singaporeans. I think we should take that kind of an approach.”
SM Lee also noted that in Singapore, Chinese guests may turn up wearing saris or an Indian costume for Deepavali, while non-Malay guests will wear Malay baju for Hari Raya. The intent is to honour one’s friends by dressing up.
But in America, for example, doing so can be seen as cultural appropriation, he said.
“I do not think we should go in that direction,” he said, adding that young people will have to find their own norms and their own way forward.
“I hope we will find one which is practical, which is robust, and which enables us to get on together and go out into the world. And when we go into another society where people are not so nice and sensitive and used to dealing with you, you will not suddenly faint from shock.”
Singapore is a shining little red dot today, where people live in peace and contentment, and this is due to the effort of its citizens, he added.
As he prepares to step down from leading the country, PM Lee has this message for the people: “We’ve achieved much together... we are proud to be Singaporeans, and I am comforted by that. This is the result of everyone’s hard work, and I thank you for your effort and support.”
In wide-ranging interviews in English and Chinese looking back at his years in office, a relaxed and smiling PM Lee said he was ready to hand over to a new leader to take Singapore forward.
Noting that there have already been two successful leadership transitions, he expressed confidence that the third will be as smooth and peaceful.
PM Lee, a former brigadier-general who entered politics in 1984 and was appointed minister of state soon after, will stay on as senior minister in the new Cabinet after the handover.
Asked if he would deal with tricky issues as founding prime minister Lee Kuan Yew did after stepping down, or travel the world like second prime minister Goh Chok Tong did to cement friendships, PM Lee said: “To the extent that I have people who know me and whom I can talk to, I will certainly make use of that and engage them. Specific, sensitive policy, that is up to the prime minister to decide.”
He added: “If he arrows me to do it, I will take the arrow.”
Whatever his role in the new team, he will only be in a supporting role, PM Lee stressed.
He said he told his successor: “I will be here to do my best to help you to succeed. You have to be your own person. You have to make the decisions.
“You have to lead in your own way, persuade people in your own way.
“I will give you the benefit of my experience and my views. But you have to set the tone, you have to carry the decisions.”
The Singapore that PM Lee and his team inherited in 2004 had just emerged from the Asian financial crisis and the severe acute respiratory syndrome, or Sars, outbreak.
At his inauguration speech on Aug 12, 2004, he had told Singaporeans: “Work with me to make Singapore a home we love, a community we belong to, and a country we are proud to call our own.”
In the years since, the country has stayed open amid the backlash against globalisation, and moved to provide stronger social safety nets. Gross domestic product per capita more than doubled from $46,664 in 2004 to $113,779 in 2023.
At the same time, income gaps widened, and Singapore moved towards redistribution programmes and more collective responsibility.
ComCare was launched in 2005 to bring support schemes together, and Workfare in 2007 to top up the wages of lower-income workers. The Progressive Wage Model followed in 2012 to uplift the wages of those at the bottom. MediShield Life and CareShield Life were then introduced to provide financial assurance for those who need long-term care.
But the Singaporean attitude should remain one of working hard and being prudent, and if things turn out well and Singapore has a good year, everybody can enjoy the upside, he said.
This upside, too, should not be just a distribution – “where you spend the money and it is gone” – but something society feels addresses real needs and deserves support.
A visibly emotional PM Lee said: “They brought us here. If they had not stood and fought at the critical moment, and then slogged and built their whole lives to take Singapore forward, saved and enabled the next generation to move higher and further than they did, we would not be here today.”
Now that the Republic has accumulated some buffer, this is a way to thank and honour those generations, with a gesture that will help them in their golden years, he said.
With 20 more years of nation-building, the Singapore identity has become stronger, said PM Lee. “It is 20 more years of ups and downs, and trials and tribulations, and joys and sorrows.”
This identity was forged through crises, from the global financial crisis which hit in 2008 to the Covid-19 pandemic.
These experiences enabled Singaporeans to understand one another better, accept one another’s differences, and work out practical arrangements, said PM Lee.
“But to say after this, we can fly solo – the Government does not need to watch, can take hands off the steering wheel or the controls, and it will look after itself – I do not think so. Never,” he added.
It is not possible because these issues will forever be sensitive, there have to be limits to discussions, and the Government needs to set the tone, he said.
“It is better for the Government to guide it, allow more discussions, allow freer exchange of views, and you can allow more liberal practices too. But I think we have to handle (sensitive issues) with very great care – always.”
This national identity will also always be subject to influences from the outside world, such as “wokeness”, religious norms, cultural norms, sexual norms and family norms.
Singapore will always be both part of a global humanity, and yet also a nation.
“I want to keep this Singapore nation cohesive, united, open, but not dissolved and just melted away. And that, for Singapore, for the long term, that is one of our key nation-building tasks,” said PM Lee.
While he will hand over his role as prime minister on May 15, there has been no announcement yet of when he will hand over the ruling People’s Action Party (PAP) to his successor.
Observers expect that he will remain PAP’s secretary-general until at least November, when the party celebrates its 70th anniversary and holds internal elections. DPM Wong told The Economist in a May 6 interview that he would take over as secretary-general “in due course”, without stating a timeframe.
Over the years, the party has changed, said PM Lee: generationally with new leaders; in policies and how it pitches them; and also how it engages the people to get buy-in.
“We have changed a lot over the years, and it is for the better,” said PM Lee, who has been MP for Teck Ghee ward, now under Ang Mo Kio GRC, since he was first elected into Parliament in 1984.
What has remained constant is the PAP’s commitment to Singapore, and its determination to maintain high standards of integrity and competence, he said.
Under his watch, the PAP was returned to power in four general elections – in May 2006, May 2011, September 2015 and July 2020.
PM Lee said each generation of leaders has had to govern in the way that worked best for the Singapore of that era.
“Mr Lee Kuan Yew governed in a certain way, it worked for his generation. It wrought miracles practically, but it was his generation, and him. Mr Goh Chok Tong did it his way for a younger generation, different from Mr Lee.
“And I have tried to do it my way, different from both Mr Lee and Mr Goh. If I tried to do it their way, either one, I think I would have failed,” said PM Lee.
Asked to assess his own performance, PM Lee gave his usual response that it would be up to others to judge.
But he became emotional as he thanked Singaporeans for having come on this journey with him. That is what he would cherish most about having served as Singapore’s third prime minister.
“I didn’t try to run faster than everybody else. I tried to bring everybody to run with me,” he said.
As a sign of the lengths Singapore will go to in a bid to up its wow factor and entice more travellers here, consider the dramatic four-storey waterfall display unveiled at the recently refurbishedChangi Airport Terminal 2 in November.
Just about everyone I know has already visited the attraction, now the centrepiece of the T2 departure hall, and told me the four-minute musical extravaganza is not to be missed.
Now, you may be forgiven for confusing this 14m by 17m digital display with the man-made, HSBC-sponsored rain vortex at Changi Airport’s Jewel, which was opened a mere four years ago. That spectacular sight remains the world’s tallest indoor waterfall.
If two waterfalls – one digital, one physical – sound like overkill, that is probably precisely the intent. Singapore is already home to the world’s largest air-conditioned glass greenhouse, Gardens by the Bay, and hosted the first Formula One night race globally.
We must keep filling this carousel of new shiny things so we can remain vibrant and attractive to visitors, investors and corporate leaders.
Singapore thus far seems to be doing this well. Why else would expats keep coming back to Singapore despite it being billed the most expensive city nine times in the last 11 years by The Economist?
Many Singaporeans have suggested that it confirms their longstanding concerns that making ends meet in Singapore is becoming an uphill climb for the man in the street.
Online, netizens cite anecdotal experiences corroborating this jump in prices, from the doubling of the cost of a bowl of fish soup at their local coffee shop to complaints about certificates of entitlement (COEs).
Another pointed to news of thwarted attempts to smuggle 120kg of beef and pork as an unequivocal sign that more Singaporeans are turning to the black market to fill their stomachs. Never mind that meat smuggling is possibly the most creative strategy to beat inflation nobody has ever heard of.
And most discussions eventually reached the same conclusion: that the Singapore Government has slipped, in letting in foreigners who push up prices while leaving Singaporeans behind.
The full index of how cost of living stacks up across 173 countries is available only with a US$1,195 (S$1,602) fee. Its website suggests this full report is useful for human resources, corporates, financial institutions, and legal and insurance firms, as “this purpose-built Internet tool quickly calculates cost-of-living allowances and (aids in) building compensation packages for expatriates and business travellers”.
A closer look at the items used in this benchmark of relative cost of living, which is meant to be a comprehensive dataset of over 400 individual price points across 200 goods and services, throws up things such as international school tuition fees, public golf course fees and three-course dinners.
These may just be a few outliers that stick out. Even so, not only are they hardly stuff the average Singaporean spends on, they are also more accurately the make-up of what the typical expat around the world splurges on.
Important to strike a balance with greater contestation of ideas: Deputy Prime Minister Lawrence Wong
By Goh Yan Han, Political Correspondent, The Straits Times, 14 Aug 2023
It is increasingly difficult to have policies that everyone agrees on, and trade-offs have to be made and balances struck, Deputy Prime Minister Lawrence Wong said on Monday.
In the Singapore environment today, there is a greater contestation of ideas for every new policy and decision that is made, he said.
As leader of the fourth-generation teamof thePeople’s Action Party (PAP), Mr Wong said he has to think about what makes sense, what is right for Singapore in the long term when developing policy, and “explain, persuade, convince people that this is the right thing to do”.
Mr Wong was speaking at a dialogue at the Reinventing Destiny conference, held at the Sands Expo and Convention Centre to mark the 100th birth anniversary of the late Mr Lee Kuan Yew.
It was organised by the Singapore University of Technology and Design’s Lee Kuan Yew Centre for Innovative Cities, the National University of Singapore’s Lee Kuan Yew School of Public Policy, and Institute of Policy Studies.
The dialogue was moderated by Dr Fareed Zakaria, the host of CNN’s weekly show Fareed Zakaria GPS and columnist for The Washington Post.
Mr Wong was answering a question posed by Dr Fareed about whether he is worried about Singapore having to engage in populist policies, like other countries have done.
Mr Wong, who is also Finance Minister, said that the pressure to do so is always there, given that information is widely available in today’s world.
“Do you think that you will be able to clean up the image of the PAP enough that you will, in the next election, see a return to the kind of near-total dominance?” he asked.
Mr Wong replied that PAP does not have near-total dominance.
“Political contestation is increasing. That is to be expected,” he said.
“At the end of the day, for me, looking at what we must do, particularly after the recent incidents and the setbacks we have suffered, it is really for us to reflect, learn, emerge and grow stronger from that experience and do everything we can to win the confidence and trust of Singaporeans.”
He added that there is currently a high base of trust between the people and their elected Government.
His immediate priority is then to see how he can strengthen the reservoir of social capital and trust, and ensure that the party can continue to earn the confidence and mandate when Singapore next goes to the polls.
Mr Wong added that beyond the recent incidents, taking into account the broader experience he has had with government, he has learnt to have a “certain sense of equanimity”.
“In government, when things go right, when things go well for us, when people praise us, and say, ‘We are No. 1, we are gold standard’ – don’t let that go into our heads,” he said.
But at the same time, when there are challenges, setbacks and mistakes, which are bound to happen, the Government will then learn from it.
“It is in the mistakes and the failures where we find greater motivation to learn and to be better. And that is the attitude I take,” he said.
Responding to questions from the audience on building and sustaining trust domestically and internationally, Mr Wong said that people know the way Singapore operates – consistent, principled and credible in its actions.
Within the country, trust is built when the Government can ensure that every citizen, regardless of background, benefits from the nation’s success, and people feel they are part of shaping Singapore’s future, he said.
He added that the Government is now also reviewing its policies to strengthen these assurances for Singaporeans, as part of the nationwide engagement exercise Forward Singapore. The exercise culminates in a report later this year.
Responding to a question from the audience on whether there should be adjustments made to improve the lives of migrant workers here, Mr Wong said the Government is continually improving their living conditions.
Speaking at the opening ceremony, Prime Minister Lee Hsien Loong said this would open up exciting job opportunities for workers here, and develop new products for the global market.
He noted that as a small country, there are limits to what Singapore can do to influence global forces such as intensifying competition for investments, growing geopolitical tensions and the on-shoring of supply chains.
But it can and must adapt to them to stay competitive and to continue growing its economy, he added.
Singapore will also ensure that such growth is inclusive and benefits all segments of society, Mr Lee pledged.
Addressing an audience including Dyson founder Sir James Dyson, PM Lee said Singapore must remain open and connected to the world, not just in its borders and trade links but also in the character of its people.
"This is how we have built Singapore: drawing in the best scientists, designers, and engineers from around the world, embracing the diversity of ideas and cultures that congregate here, and adding our own Singaporean touch to make it work for our context."
This is not easy to sustain in an environment where there is every temptation, especially politically, to raise barriers to the outside world, to non-Singaporeans coming here to work, he noted.
"But if we succumb to the temptation to close our doors, we will surely end up hurting ourselves. Our economy will stagnate, Singaporeans will have fewer rather than more job opportunities, and the country’s long-term prospects will be endangered," he said.
The Republic will also keep at its formula of close collaboration between industry, researchers and government to spur innovation, while it welcomes and develops talent in Science, Technology, Engineering and Mathematics or Stem fields.
While these are all important strategies to build a more vibrant and dynamic economy, PM Lee said Singapore must also get its social policies right to continue to prosper.
“Even as we bring in investments and talents to grow Singapore’s economy, we must ensure that this growth is inclusive and lifts everybody up, that Singaporeans across all segments of our society can benefit from the fruits of growth, that those at risk of being left behind are given an extra helping hand, and those who may be displaced or disrupted by technological change are assisted and trained to stay employable and productive,” he said.
He noted that this year’s Budget aims to build a fairer and more inclusive society.
“Because ultimately, everyone must have a stake in Singapore’s growth so that Singaporeans will support keeping our country open, will continue to welcome others who are keen to fit in and play a part in our society, who are able to contribute to our development, and thereby enable us to maintain the virtuous cycle of growth and prosperity that Singaporeans now enjoy.”
Dyson, famed for its bagless vacuum cleaners and bladeless fans, is committing the $1.5 billion to Singapore over the next four years as part of a $4.9 billion global investment programme.
The Singaporean investment includes plans to hire more than 250 engineers and scientists in fields spanning robotics, machine learning, AI, sensing and vision systems and more.
Dyson currently employs over 1,400 people in Singapore, of which 560 are engineers and scientists.
Singapore must maintain fair and progressive system of taxes and benefits, says Lawrence Wong
By Justin Ong, Political Correspondent, The Straits Times, 2 Mar 2022
Even as it seeks to raise revenues to meet growing spending needs, Singapore must insist on "keeping faith" with both current and future generations through a fiscal structure that is fair, inclusive and progressive, Finance Minister Lawrence Wong said.
This entails a good mix of income, asset and consumption-based taxes - which is why the goods and services tax (GST) cannot be ignored, Mr Wong said in rounding up the debate on Budget 2022 on Wednesday (March 2).
"Those who have greater means bear a higher burden, and they draw less on government support… Those with fewer means carry a lighter share, but they still contribute something and, in return, they receive more benefits from the Government," he said.
"In this way, we all do our part to help ourselves and one another, and we strengthen the trust that binds us together as a society," he added in a 1½-hour speech wrapping up three days of debate during which 64 MPs spoke.
The House on Wednesday endorsed this year's $109 billion Budget, including plans to raise the GST rate in two stages - by 1 percentage point on Jan 1, 2023, and by a further 1 percentage point on Jan 1, 2024.
Opposition members objected to these plans. Leader of the Opposition and Workers' Party (WP) chief Pritam Singh recorded his party's dissent, saying "no offset package lasts forever" in reference to a $6.6 billion raft of measures to help cushion the blow of the GST hike.
In their speeches earlier in the week, WP MPs and the Progress Singapore Party's (PSP) Non-Constituency MPs Hazel Poa and Leong Mun Wai had cited disagreement with the GST increase as their primary reason for objecting to the Budget.
On Wednesday, Mr Wong began his response by noting that the Russian invasion of Ukraine would have an impact on the global economy. The Government is monitoring the risk - in growth and inflation - to Singapore's economy, he said.
"If the situation worsens, we will not hesitate to take further actions to protect jobs and to help households and businesses deal with increased costs," Mr Wong said.
He then acknowledged MPs' earlier questions and suggestions on labour policies and the green economy, among other issues, though much of his speech was focused on taxes.
"In many countries, the tendency is for politicians to focus only on the spending side, because it is inconvenient to talk about taxes," said Mr Wong. "As a result, these governments spend beyond their means, they run up unfunded obligations and debt, and they kick the fiscal can down the road. We are not immune to such pressures."
He reiterated that an increase in healthcare and social spending would be necessary and unavoidable, given Singapore's rapidly ageing population. To fund these pressing revenue needs, the GST increase cannot be pushed back any further.
While addressing alternative revenue options raised by MPs, he slammed the WP and PSP for their "simplistic and divisive" proposals to make other groups - such as the wealthy, large companies, and future generations - pay more tax in lieu of raising the GST.
Singapore cannot sustain a system where the bulk of the tax burden is borne by a small group at the end, Mr Wong stressed.
He also said the opposition MPs' criticisms of the GST offsets being temporary and the tax hike disproportionately affecting the poor were "misguided claims", given the schemes to ensure the effective rate for the lower-income remains unchanged.
Mr Wong also promised that the Government would continually review and update its system of taxes and transfers, to mitigate the pressures of social inequalities.
Mr Singh later rose to point out that since the GST hike was first announced in 2018, global events like the pandemic have since pushed inflation to its highest in years. "Is this a reasonable thing to do in these circumstances?" he asked of the tax hike.
Acknowledging that it was a very difficult decision to make in view of concerns over rising prices, Mr Wong said this was why the GST hike was delayed and staggered over two steps.
"If indeed inflation turns out to be more persistent and higher than expected, which may happen, we will deal with that decisively," he said.
Later, in response to questions from WP MP Leon Perera (Aljunied GRC) on rules and the optimal level for the reserves, Mr Wong said he could not understand why the party was willing to touch the reserves, but reject the option of a GST increase.
"I can only therefore ask whether you are taking things too lightly, or whether you are raising this in opposition because of… political reasons, or other things, as opposed to seriously looking at the facts and doing what's right for Singapore," he said.
A move like a GST increase is not the popular thing for him to do, Mr Wong said in his speech. "Certainly not for my first Budget as Finance Minister. But I have a responsibility to do what's right, and what's in the best interest of all Singaporeans. Not what's politically expedient now," he said.
"I have confidence that Singaporeans can instinctively sense if any Budget is not worthy of them and fails to renew their trust in the Government, in each other, and in the future," Mr Wong concluded.
"They can decipher whether the Budget reflects our shared vision of a fair and just society, whether this Government is one they can trust to manage our resources in a way that is in line with our values, and whether this Government is keeping faith with them and their children."
Finance Minister Lawrence Wong unveils major tax measures to fund spending needs
Singapore to raise GST from 7% to 9% in two stages in 2023 and 2024
Assurance Package increased to $6.6 billion; GST Voucher scheme beefed up to offset GST hike
Higher personal income taxes for top 1.2% of taxpayers in Singapore
Higher taxes on residential properties, luxury cars, as Singapore adjusts wealth taxes
By Justin Ong, Political Correspondent, The Straits Times, 18 Feb 2022
Singapore on Friday (Feb 18) unveiled a slew of progressive tax measures aimed not only at generating revenues to fund major programmes needed over the next few years, but also at addressing social inequalities.
The hike in goods and services tax (GST) to fund the recurring social and healthcare needs of a rapidly ageing population was further delayed to 2023 in response to concerns over rising prices.
The hike will be staggered over two steps - with GST rising from 7 per cent to 8 per cent on Jan 1 next year, and then to 9 per cent from Jan 1, 2024. The impact of the increase will be cushioned, especially for low-income households.
The wealthy will also pay more of other taxes.
"Those who earn more, contribute more," said Finance Minister Lawrence Wong in his first Budget since assuming the portfolio in May last year, as he outlined increases in personal income, property, vehicle and carbon taxes as part of an expansionary $109 billion Budget, including special transfers.
He also announced a $6 billion draw on the reserves as part of Singapore's continuing fight against Covid-19, and over $1 billion in support for businesses, households and individuals hard-hit by the pandemic.
With a view to future challenges and opportunities, Mr Wong said he would commit up to another $1 billion or so to spur companies to invest in new capabilities, while further tightening workforce policies to ensure foreign hires of the "right calibre".
This year's Budget will run up an expected overall deficit of $3 billion, amid a tone of cautious optimism sounded by Mr Wong as Singapore enters a period of transition and recovery after two years of grappling with the pandemic and its fallout.
"The global economy is still vulnerable to pandemic-related risks, and further supply chain disruptions. Geopolitical and security risks loom," he warned at the start of his speech, which was around two hours long. "We may also see a slowdown in external demand as the major economies scale back their pandemic support, and central banks tighten their accommodative monetary policies to deal with the threat of inflation."
But barring fresh disruptions, Mr Wong said he expects the Singapore economy to continue to do well, and grow by 3 per cent to 5 per cent this year.
"That means everyone chips in and contributes to a vibrant economy and strengthened social compact, but those with greater means contribute a larger share," said Mr Wong, who also co-chairs a multi-ministry task force handling the pandemic.
To that end, personal income tax will be increased from 2024. The portion of chargeable income in excess of $500,000 up to $1 million, will be taxed at 23 per cent, up from 22 per cent currently. Chargeable income in excess of $1 million will be taxed at 24 per cent.
Property tax rates will also be increased, with more significant hikes for high-end properties, said Mr Wong.
For non-owner-occupied residential properties, including investment properties, tax rates will go up from the current 10 per cent to 20 per cent range, to 12 per cent to 36 per cent.
For owner-occupied ones, tax rates for the portion of annual value in excess of $30,000 will be increased from the present 4 per cent to 16 per cent, to 6 per cent to 32 per cent.
Luxury cars will be taxed at a higher rate, with an additional Additional Registration Fee tier for cars at a rate of 220 per cent for the portion of Open Market Value in excess of $80,000.
Meanwhile, the projected $6 billion draw on the reserves "to maintain a multi-layered public health defence" against Covid-19 has received in-principle support from President Halimah Yacob.
This will be the third year in a row that the reserves are being tapped, bringing the total expected drawdown for the three financial years of 2020 to 2022 to $42.9 billion - less than the initial sum of $52 billion the Government earmarked in 2020.
This reflects Singapore's prudence in the use of past reserves, he said, explaining that Singapore's pandemic response had averted worse public health outcomes, and that the rebound in economy and businesses had been stronger than expected.
Still, in recognition that some segments of society continue to struggle, Mr Wong announced a $500 million Jobs and Business Support Package, which includes a Small Business Recovery Grant for those most affected by Covid-19 restrictions, such as food and beverage and hospitality enterprises.
They will receive a $1,000 payout per local employee, up to a cap of $10,000 per firm.
A $560 million Household Support Package will also help Singaporeans with utility bills, education and daily essentials. It includes GST Voucher-U-Save rebates for the rest of the year, and additional $100 in Community Development Council Vouchers for all.
To plan ahead for a post-pandemic world and the opportunities it offers, Singapore will also commit an additional $200 million over the next few years to schemes to build digital capabilities in business and workers; and around $600 million to expand the Productivity Solutions Grant for SMEs to implement automation efforts.
New initiatives such as the Singapore Global Enterprises and Singapore Global Executive Programme will help larger firms grow overseas and attract the next generation of leaders.
At the same time, to ensure that incoming employment pass holders are comparable in quality to the top third of the local professionals, managers, executives and technicians (PMET) workforce, from September this year their qualifying salary threshold will be raised from $4,500 to $5,000; and from $5,000 to $5,500 for the financial service sector.
Environmental sustainability was also on the Budget agenda, with Mr Wong revealing that Singapore will now target net zero emissions by or around 2050.
Its previous aim was to halve emissions by then, with a view to achieving net-zero "as soon as viable in the second half of the century".
To match these new ambitions, taxes on carbon emissions will be raised from the current $5 per tonne to $25 in 2024 and 2025, and $45 in 2026 and 2027, with a view to reaching $50 to $80 by 2030.
Another key plank of this year's Budget was renewing and strengthening Singapore's social compact.
For lower-wage workers, a new Progressive Wage Credit Scheme will see the Government helping businesses by co-funding wage increases between 2022 and 2026, for employees earning up to $2,500. For those earning above $2,500 and up to $3,000, co-funding support will be offered until 2024.
From Jan 1, 2023, the qualifying income cap for the Workfare Income Supplement will be raised from $2,300 to $2,500.
Mr Wong also sketched out other efforts in boosting retirement adequacy, investing in children, integrating social service delivery, preparing for future healthcare needs, and better supporting the charities sector; with more details to come when MPs debate the Budget and spending plans of various ministries in the coming weeks.
Prime Minister Lee Hsien Loong said in a Facebook post that this Budget will lay the basis for “sound and sustainable government finances, post-pandemic and beyond”.
“We are building a greener and more sustainable city, transforming our economy to create good jobs for Singaporeans, expanding our healthcare system for an ageing society, and strengthening social programmes so that no one is left behind,” he added.
"Looking back at what we have been through during these Covid-19 years, we have nothing to fear. We will always overcome. We will always prevail," he concluded.
"We will chart a new way forward together. We will see through the pandemic today, and build a better Singapore tomorrow."
