Deputy Prime Minister Lawrence Wong unveiled Singapore’s 2024 Budget in Parliament on February 16 to address immediate cost-of-living pressures while paving the way for long-term economic prosperity, better jobs, and a culture of lifelong learning. He presented a proposal of $131.4 billion, which is approximately 18.3% of Singapore’s gross domestic product. DPM Wong was optimistic that 2024 will be better than 2023. He estimated a surplus of $0.8 billion in the next financial year, which means the budget would be primarily balanced.
Many households will be pressured by higher living costs in 2023. While the economic situation is expected to improve in 2024, uncertainties remain. It is why Deputy Prime Minister Wong has further enhanced the Assurance Package. Here is what the package includes:
- The Assurance Package will receive an additional $1.9 billion to mitigate the impact of the goods and services tax (GST) hike.
- All Singaporean households will receive an extra $600 in Community Development Council (CDC) vouchers, with $300 distributed at the end of June and the remainder in January 2025.
- Adult Singaporeans with assessable incomes of up to $100,000 and owning no more than one property will get a Cost-of-Living Special Payment ranging from $200 to $400 in cash.
- About 1.4 million adult Singaporeans aged 21 to 50 will receive a MediSave top-up of up to $300 to assist with expenses.
- Those aged 51 and above will receive up to $1,500 in their MediSave Accounts under the Majulah Package.
- Fee caps for government-supported pre-schools and special education schools will be reduced to aid parents.
- A personal income tax rebate of 50% up to $200 will be given for the 2024 assessment year.
- Businesses benefit from a 50% corporate income tax rebate capped at $40,000 to manage rising costs.
The 2024 Budget reflects Singapore’s commitment to addressing current challenges while laying the groundwork for future prosperity. By investing in its people, supporting businesses, and prioritizing the well-being of seniors, Singapore aims to build a resilient and inclusive society.
Singapore’s Budget 2024 for Supporting Workers and Businesses:
Deputy Prime Minister Lawrence Wong unveiled Singapore’s 2024 Budget in Parliament on February 16. A significant part of the Budget focuses on supporting mid-career workers through a new SkillsFuture Level-Up program and subsidies for diploma pursuits at various institutions. Additionally, fee caps for pre-schools and special education schools will be reduced, and a personal income tax rebate will be introduced. Businesses will receive assistance through a corporate income tax rebate and other measures to manage rising costs. Here are the package details:
- All Singaporeans aged 40 and above will receive a $4,000 top-up in SkillsFuture Credit through the SkillsFuture Level-Up program. Younger Singaporeans will also receive this top-up when they reach the age of 40. The new credit will be allocated to selected training programs with better employment prospects. Subsidies will be provided for all Singaporeans aged 40 and above to pursue additional full-time diplomas at certain educational institutions from the 2025 academic year onwards.
- Fee caps for government-supported pre-schools and the maximum monthly fees for special education schools will be reduced.
- A monthly training allowance for Singaporeans aged 40 and above enrolled in selected full-time courses will be introduced.
- Investments will be made to upgrade the Nationwide Broadband Network, enabling access to broadband speeds of up to 10 gigabits per second.
- The Government will offer increased support for employers raising the wages of lower-wage workers by increasing co-funding the Progressive Wage Credit Scheme levels from 30% to 50%.
- A new ITE Progression Award will be introduced for young ITE graduates aged 30 and below, including a $5,000 top-up to their Post-Secondary Education Accounts upon enrollment in a diploma program and a further $10,000 top-up to their Central Provident Fund (CPF) Ordinary Account upon attainment of their diplomas.
The 2024 budget reflects Singapore’s commitment to addressing current challenges while laying the groundwork for future prosperity. By investing in its people, supporting businesses, and prioritizing the well-being of seniors, Singapore aims to build a resilient and inclusive society.
Singapore’s Budget 2024 for Helping Seniors
Deputy Prime Minister Lawrence Wong unveiled Singapore’s 2024 Budget in Parliament on February 16. One important aspect addressed in the Budget is the provision of support for the retirement needs of senior citizens. The Budget addresses retirement needs by adjusting the CPF system, raising the Enhanced Retirement Sum, and enhancing retirement support schemes such as the Silver Support Scheme. Here are the details of the package:
Adjustments to the CPF System:
- CPF contribution rates for individuals aged 55 to 65 will increase by 1.5 percentage points in 2025.
- Employers will benefit from the CPF Transit Offset for another year to cover half of the increase in their contributions for 2025, helping to reduce business costs.
- The Special Account will be closed for those aged 55 and above starting in 2025. Savings in the Special Account will be transferred to the Retirement Account up to the Full Retirement Sum, with the remainder transferred to the Ordinary Account.
- This adjustment includes improvements to schemes like the Silver Support Scheme and Matched Retirement Savings Scheme to provide more assistance to seniors in need.
Majulah Package Details:
- Prime Minister Lee Hsien Loong announced this package will benefit about 1.6 million Singaporeans.
- It includes an Earn and Save Bonus for seniors earning up to $6,000 monthly to accumulate more retirement savings and a one-time Retirement Savings Bonus of between $1,000 and $1,500 for seniors with retirement savings below the BRS.
Financial Outlook:
- The Forward Singapore policy moves are projected to cost around $5 billion in the 2024 financial year and close to $40 billion by the decade’s end.
- Government spending is estimated to increase to around 20 percent of GDP by 2030, maintaining a balanced budget over the coming years amidst various spending pressures.
The 2024 budget reflects Singapore’s commitment to addressing current challenges while laying the groundwork for future prosperity. By investing in its people, supporting businesses, and prioritizing the well-being of seniors, Singapore aims to build a resilient and inclusive society.
