With a general election looming and cost-of-living concerns dominating public discourse, Singapore’s Lawrence Wong will unveil his first budget as prime minister on Tuesday – one that analysts describe as a defining test of his leadership and a balancing act between providing economic relief and maintaining fiscal discipline.
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The stakes are higher than ever for Wong and his party, the long-ruling People’s Action Party (PAP), with the polls due in November in a year when Singapore celebrates its 60th anniversary of independence.
“The perception that the PAP is seeking to court votes in the lead-up to the 2025 general election cannot be avoided,” said political observer Eugene Tan.
“The key question is whether the PAP government can demonstrate and persuade Singaporeans that the various measures are not about it being profligate and engaging in pork-barrel politics but instead about strong fiscal policies and fiscal management that has enabled the government to provide such support.”
Last year, the government unveiled a budget focused on relieving families and businesses of the pressures of costs of living and changes to its mandatory social securities saving scheme, the Central Provident Fund.
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Wong, who was deputy prime minister and finance chief at the time, also announced measures including S$600 (US$450) in vouchers for each household and rebates to businesses, which would provide “near-term relief” amid inflation and higher operating costs.