SINGAPORE will have to operate in an external environment that is “less stable and favourable” for some time, making the Forward Singapore exercise a crucial road map for the country’s way forward, said Finance Minister Lawrence Wong on Friday (Feb 16).
During his Budget 2024 speech in Parliament, he noted that the past year had not been easy, due to a troubled international environment and subdued global economy.
“Our economy grew by a modest 1.1 per cent, avoiding a recession,” said Wong, who is also deputy prime minister.
However, the government was still able to enhance its assistance measures to relieve the pressure of higher living costs felt by many households, as there was “some unexpected revenue upside” from a strong economic rebound in the preceding years, he added.
Wong said the outlook for 2024 is mixed as geopolitical risks – such as wars in Europe and the Middle East – continue to loom large despite resilient growth in major economies.
But there are some upsides, he noted, highlighting that global inflationary pressures are expected to recede and provide room for major central banks to accommodate more stances.
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“Overall, we are cautiously optimistic that 2024 will be a better year,” he said. “Besides lower inflation, we expect higher (gross domestic product) growth at 1 per cent to 3 per cent.”
Even so, there are considerable uncertainties with risks tilted to the downside, he noted, adding that the world is in a “new era of conflict and confrontation” that is more violent, fragmented and unpredictable.
“For some time to come, Singapore will have to operate in an external environment that will be less stable and favourable to our security and prosperity than the preceding three decades,” he said.
The Forward Singapore exercise is therefore designed to refresh the Republic’s social compact and to set a road map for the way forward, he said. It aims to give Singaporeans more assurance to navigate uncertainties, strengthen social cohesion and solidarity, and keep society together.
Wong added that the country has an “ambitious agenda” to achieve these goals, with some major plans ready to be implemented now, while others will be implemented over the coming years.
“In this Budget, we will roll out the first instalment of our Forward Singapore programme,” he said.
For more of BT’s Budget 2024 coverage, go to bt.sg/budget24
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