SINGAPORE - In a significant move for the nation's future

President Tharman Shanmugaratnam has approved a landmark budget for 2025, which totals a staggering $143.1 billion. This announcement came via his official Facebook page on March 19, marking a pivotal moment in his administration's financial strategy as it is the final budget of the current government term.

In his post, President Tharman emphasized the importance of forward-thinking in governance: "A habit we must never lose in Singapore: looking far ahead." He reiterated the necessity of addressing current challenges, such as the rising cost of living, while simultaneously preparing for future threats and creating opportunities for Singaporeans to thrive regardless of circumstances.

The President's reflection comes in light of highly volatile global conditions. He astutely noted, "Economic and geopolitical disruptions must now be expected, in a world of growing disorder." His remarks serve as a warning that the next pandemic could arrive sooner than anticipated, with scientists raising alarms about potentially deadlier diseases.

Moreover, Tharman highlighted the urgent threat of climate change, pointing out the looming "tipping points." These points, once crossed, could exacerbate issues like extreme weather events, significant sea-level rise, and rapid biodiversity loss - challenges that demand immediate and sustained action.

Despite these formidable concerns, he maintained an optimistic outlook, suggesting that Singapore's well-prepared financial strategy and robust reserves position the nation favorably to tackle impending uncertainties. "We are basically lucky to be prepared," he stated, reinforcing the idea that prudent financial management can act as a safeguard against future adversities.

Echoing the President's sentiments, Prime Minister Lawrence Wong, during the Budget debate on February 28, addressed parliamentary queries regarding tax increases, particularly the Goods and Services Tax (GST). He asserted, “This government will never take risks with Singaporeans’ lives and future,” affirming the administration's commitment to balanced spending and responsible revenue generation in light of emerging needs.

Wong identified that the global landscape is shifting, marked by a weakening multilateral trading system and heightened protectionism. These trends pose particular challenges for small economies like Singapore, necessitating a robust strategy to adapt and compete effectively in a more difficult environment.

He concluded with a call to action for the nation: “That’s why we have to be prepared for tougher competition and do what we can to stay in the game.”

In summary

President Tharman's approval of this historic budget reflects a critical step towards ensuring Singapore's resilience in an increasingly complex world, with an eye toward both imminent and long-term challenges. The government’s commitment to prudent financial management and preparation sets a strong foundation for a more secure future for all Singaporeans.