Days after Deputy Prime Minister Lawrence Wong presented Singapore Budget 2025 on 18 February, Red Dot United (RDU) released its Shadow Budget 2025 on 21 February, offering an alternative economic vision focused on inclusive growth, housing affordability, and universal healthcare.
RDU leaders argued that while Singapore’s official budget prioritises economic expansion and corporate incentives, it fails to address growing inequality, rising costs, and job security concerns.
“If you ask Singaporeans, they will tell you the government’s focus on economic growth benefits large corporations while they struggle with rising costs and fewer job opportunities,” said Ravi Philemon, RDU Secretary-General.
“The government’s policies are turning Singapore into a playground for the rich while ordinary citizens are left behind.”
A shift towards an inclusive economy
RDU’s Shadow Budget calls for a Wellbeing Economy, a model that moves away from GDP-centric growth to ensure economic gains are equitably shared. The party proposed several key policies, including:
- A Citizens First Hiring Policy to protect job opportunities for Singaporeans.
- Support for SMEs by tackling late payments, stabilising rental costs, and expanding access to government contracts.
- A universal unconditional cash transfer (UUCT) to provide financial security amid job market uncertainties.
- A Child Trust Fund (CTF) to provide every Singaporean child with financial stability from birth to retirement.
- A circular economy approach to environmental sustainability, ensuring high-emission corporations bear the burden of carbon reduction.
- Criticism of government’s “voucher culture”
At the budget launch, RDU panelists criticised the government’s reliance on vouchers and handouts, arguing that these measures provide only temporary relief.
“The government is just encouraging a ‘voucher culture,’ where Singaporeans have to keep worrying about when the next handout will come,” said Philemon.
“A strong Singapore is built on fair wages and job security, not on repeated cash giveaways.”
RDU’s alternative approach focuses on structural reforms to provide long-term economic stability, funded by:
- Raising the Net Investment Returns Contribution (NIRC) cap from 50% to 60%, generating S$4.7 billion to S$6 billion annually.
- Implementing a progressive wealth tax on ultra-high-net-worth individuals, expected to bring in S$3 billion to S$5 billion annually.
- Reintroducing estate duties (inheritance tax) to generate S$2 billion to S$3 billion annually.
- Housing policies to ensure long-term stability
Housing affordability was a major focus of RDU’s Shadow Budget. David Foo, RDU Chairman, highlighted the 99-year lease decay issue, warning that Singaporeans face financial insecurity as their homes depreciate over time.
“Our housing policy is not just about keeping home prices down,” said Foo. “We need a system where Singaporeans do not see their biggest asset—an HDB flat—lose value entirely over time.”
To address this, RDU proposed:
- A SERS for All scheme, ensuring all HDB estates are eligible for redevelopment rather than being left to decay.
- A Rent-to-Own scheme to help young and lower-income Singaporeans transition to homeownership.
- Restrictions on new citizens and PRs purchasing resale flats to maintain affordability.
- Reforming healthcare to reduce financial burdens
RDU’s Shadow Budget also addressed healthcare financing, arguing that Singapore’s MediSave, MediShield Life, and Medifund (3M framework) places too much financial responsibility on individuals.
“Healthcare should be a right, not a financial burden,” said Pang Chuan, RDU Central Executive Committee Member. “Singaporeans should not have to drain their savings just to afford basic medical care.”
Key healthcare reforms proposed include:
- Expanding MediShield Life to cover chronic illnesses and mental health conditions.
- Redesigning MediSave to act as a supplementary fund rather than the primary method of payment.
- Strengthening Medifund as a universal safety net for all Singaporeans.
- A call for a new social contract
At the Shadow Budget 2025 launch, RDU panelists made a strong case for a new social contract—one that ensures economic growth benefits all Singaporeans, not just the elite.
“The PAP’s penchant for Budget goodies must come to an end,” said Pang. “Singaporeans need real financial security, not just handouts that help them get by for a few months.”
RDU’s alternative budget sets out a vision for:
- Fair wages and job security through a Wellbeing Economy.
- Affordable housing that remains an asset rather than a depreciating liability.
- A sustainable healthcare system that provides universal coverage.
The party urged the government to move beyond fiscal conservatism and implement bold reforms that prioritise citizens’ long-term well-being.
“A fairer Singapore is one where prosperity is shared, not hoarded at the top,” said Philemon. “It’s time for policies that give Singaporeans a fair hand-up, not just short-term relief.”
The post RDU unveils Shadow Budget 2025, calls for equitable economic growth and policy reforms appeared first on The Online Citizen.
