President Tharman Shanmugaratnam has approved Singapore’s record S$143 billion (US$107.5 billion) Budget for financial year 2025, reaffirming the country’s commitment to disciplined financial planning.
In a Facebook post on 19 March, he stressed that Singapore’s long-standing approach to budgeting and safeguarding reserves, once seen as overly cautious, has become an essential buffer in an increasingly uncertain world.
Mr Tharman warned that Singapore must never lose its habit of “looking far ahead.”
While addressing immediate concerns such as the cost of living is important, he emphasised the need to prepare for long-term risks.
“So even as we deal with today’s problems like the cost of living, we also protect ourselves against future problems – and build opportunities for Singaporeans to do well, come what may,” he wrote.
“In fact, it’s the only way to stay optimistic: By being prepared for things going wrong. And it frankly matters more than ever before.”
A ‘lifeline’ amid global uncertainty
Singapore’s approach to budgeting and the strict rules protecting its reserves have been debated for years, with some critics arguing they are too conservative.
However, Mr Tharman stressed that these measures now serve as a vital “lifeline” in a world facing increasing economic and geopolitical instability.
His remarks come after weeks of budgetary debates, during which Leader of the Opposition Pritam Singh criticised the government’s revenue forecasting.
He described it as “poor fiscal marksmanship,” noting that the government had collected S$8 billion more in revenue than anticipated for FY2024.
Prime Minister Lawrence Wong defended the projections, pointing out that revenue forecasts have historically been within a reasonable range of deviation.
He acknowledged that recent uncertainties had widened the gap but maintained that overall projections remained sound.
Preparing for future crises
Mr Tharman cautioned that economic and geopolitical disruptions must now be expected, making financial resilience even more crucial. He also highlighted the ongoing risks posed by climate change and potential future pandemics.
“And as much as we want to forget COVID-19, the next pandemic may come sooner than we hope,” he warned, citing concerns from scientists that the next outbreak could be more transmissible and more deadly than what the world recently experienced.
He also stressed that climate change was reaching dangerous tipping points, warning that once certain thresholds are crossed, environmental changes will become more difficult to control.
This could lead to extreme weather, rising sea levels, and biodiversity loss, all of which pose long-term challenges for Singapore and the world.
“We don’t need to overthink this. We are basically lucky to be prepared,” Mr Tharman said, reinforcing the value of Singapore’s financial prudence.
The post President Tharman approves record Budget, calls financial prudence a ‘lifeline’ appeared first on The Online Citizen.
