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Each year, many of us tune in to the Singapore Budget speech in mid-February. During the speech, the Finance Minister typically presents the nation’s economic outlook and provides an overview of our fiscal position and expenditure plans for the year.
While individuals may only focus on schemes that directly impact their finances, careers, or the industries they work in, each Singapore Budget is more than just a resource allocation exercise.
Taken as a whole and building progressively year after year, the Singapore Budget reflects national priorities and commitments to uplift citizens – ensuring greater support for those in need.
As we look forward to the Singapore Budget 2025 on 18 February 2025, let us reflect on some of the initiatives from Budget 2024 that have strengthened support for Singaporeans across generations.
Read Also: Singapore Budget 2024: 24 Things That Will Impact Singaporeans Financially
Strengthening Healthcare & Retirement Adequacy
One of the key measures announced during Budget 2024 was the Majulah Package, aimed at strengthening the healthcare and retirement adequacy of Singaporeans born in 1973 or earlier, especially the young seniors.
The Majulah Package comprises:
#1 Annual Earn and Save Bonus (ESB)
Young seniors earning between $500 to $6,000 a month on average may be eligible to receive up to $1,000 in their CPF Retirement Account (RA) or Special Account (SA).
#2 One-Time Retirement Savings Bonus (RSB)
As for those whose CPF retirement savings are below the 2023 Basic Retirement Sum (BRS) of $99,400 as at 31 December 2022, they may be eligible to receive $1,000 or $1,500 in their RA or SA.
#3 One-Time MediSave Bonus (MSB)
All Singaporeans born in 1973 or earlier will receive $1,250 or $2,000 in their MediSave Account (MA).
Over the years, we’ve seen a recurring theme where Singapore Budgets provided similar benefits to support seniors in their healthcare and retirement adequacy.
At the top of mind for many will be the Pioneer Generation Package, announced during Singapore Budget 2014, and the Merdeka Generation Package, announced during Singapore Budget 2019. The Majulah Package will build on this support for senior Singaporeans.
Another thing worth noting is that $7.5 billion was set aside for the Majulah Package in Budget 2024. This means that future generations of Singaporeans will not be burdened by the generosity of support packages.
Looking at the bigger picture, this is reflective of the Singapore Government’s continuing efforts to boost citizens’ retirement adequacy and provide support for their healthcare needs.
More importantly, this is our way of recognising and honouring our seniors, especially those from the Pioneer and Merdeka Generations, for their contributions in building Singapore.
Read Also: Your Majulah Package: A Young Singaporean Senior’s Roadmap To Their Retirement Benefits
Tackling The Rising Cost-Of-Living
Another theme of recent Singapore Budgets – ever since the pandemic in particular – has been to combat cost of living. Singapore Budget 2024 was no different, with various packages aimed at alleviating cost-of-living concerns.
What comes to mind immediately is the nationwide CDC Vouchers scheme, which was first launched in December 2021 to help Singaporean households with their daily expenses, and support our local heartland merchants and hawkers. From January 2023, the CDC Vouchers scheme was expanded to include participating supermarkets.
At Budget 2024, an additional $600 in CDC Vouchers was announced for all Singaporean households, with $300 disbursed in June 2024 and another $300 disbursed in January this year.
Today, Singaporean households can spend their vouchers at approximately 23,000 heartland merchants and hawkers, as well as at eight supermarket chains with over 400 outlets island wide.
In addition to the CDC Vouchers, the Singapore Budget 2024 provided a one-off Cost-of-Living (COL) Special Payment of between $200 and $400 for all eligible adult Singaporeans in September 2024.
Beyond this, eligible households would have received quarterly U-Save and S&CC rebates as part of the permanent GST Voucher scheme. In Budget 2024, the Government announced additional U-Save and a one-off S&CC Rebate to provide more support for GST and cost-of-living.
Support for Families
Another group sandwiched with cost pressures would be parents with young children.
Budget 2024 responded by reducing the monthly fee cap for full-day childcare in 2025 to $640 for Anchor Operators and $680 for Partner Operators.
This means that childcare centres will not be able to charge fees exceeding these caps, and when coupled with means-tested subsidies, eligible families will enjoy savings for their overall childcare expenses.
Lower-income families are also supported with a new ComLink+ Progress Package, supporting four areas, namely, to encourage preschool education for their children, to stay employed, to buy a home and build financial resilience.
Read Also: How The Singapore Budget Supports Young Families In Singapore
Focusing On Lifelong Learning
To ensure that Singapore’s workforce remains relevant in the future, there has been strong emphasis on lifelong learning and reskilling across many past Singapore Budgets.
Future-proofing Singapore workers will give our country a competitive advantage and ensure no one is left behind in an era of rapid technological transformations in the workplace.
During Budget 2024, the SkillsFuture Level-Up Programme was launched. It encourages lifelong learning by offering a combination of SkillsFuture credits, course subsidies, and training allowances.
This new scheme rides on the existing SkillsFuture scheme – where all Singaporeans get a $500 SkillsFuture top-up at 25 years old.
From 1 May 2024, those 40 and above will receive SkillsFuture Credit (Mid-Career) top-up of $4,000.
Singaporeans 40 and above will also qualify for a Mid-Career Enhanced Subsidy (MCES), to enjoy another subsidised full-time diploma at the Polytechnics, ITE, and Arts Institutions (i.e., Nanyang Academy of Fine Arts and LASALLE College of the Arts). They can use their $4,000 SkillsFuture Credit (Mid-Career) to fully or partially pay for this diploma.
To seed a culture of lifelong learning and reskilling, there is also a SkillsFuture Mid-Career Training Allowance. As those who intend to take a full-time diploma may need to take time off work or even stop working for some time, the training allowance will be equivalent to 50% of the individual’s average income over the latest available 12-month period, capped at $3,000 per month.
This will be made available from early 2025 for eligible individuals who enrol in the following full-time long-form training programmes.
These are some of the initiatives from Budget 2024 that have supported families, helped Singaporeans to tackle cost of living, as well as to upskill or reskill to remain relevant in the workforce.
Want to know what will be in it for Singaporeans for Budget 2025? Stay tuned to the upcoming Budget on 18 February or you can visit singaporebudget.gov.sg for more information.
Read Also: Complete Guide To The SkillsFuture Level-Up Programme
The post From Generation to Generation: How Singapore Supports its People appeared first on DollarsAndSense.sg.
