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📅 On the calendar

We all know that the goods and services tax (GST) was raised to 9 per cent when the clock struck midnight on Jan 1. But did you know that, at the same time, paternity leave was doubled? (Just in time for the Year of the Dragon, too!)

Here are five key events and changes that will – or are likely to – happen this year. 

1. New year, new taxes

The GST was raised to 9 per cent from 8 per cent on Jan 1. Several supermarket chains have launched promotions on hundreds of products to absorb the increase. Furniture brand Ikea went a step further, saying it will absorb the increase with no set end date.

To help Singaporeans cope with the tax hike, the government has begun issuing payouts and other forms of financial aid through the Assurance Package; it will also provide additional support for lower- and middle-income households through the permanent GST Vouchers scheme. 

2. More paternity leave

Fathers of Singaporean children born on or after Jan 1, 2024, can now take two additional weeks of government-paid paternity leave, on top of the two weeks they could take previously. 

That’s provided, though, that their employers allow them to take those two additional weeks. The government has announced its intention to make these additional two weeks mandatory in due course. 

From Jan 1, parents with Singaporean children aged below two will also be able to take 12 days of unpaid infant care leave per year, up from six days. 

3. New HDB estate classifications

Get ready to wave goodbye to the “mature” and “non-mature” labels that the Housing and Development Board (HDB) has been using to classify housing estates, as non-mature estates become more developed and the lines between the two start to blur.

From the second half of 2024, new Build-To-Order flats will be categorised into Prime, Plus and Standard flats, with differing levels of subsidies and restrictions for each tier, depending on how desired their locations are.

More details on this and how it will impact young adults in Thrive’s earlier Instagram post here.

4. PAP leadership handover 

Prime Minister Lee Hsien Loong has said he plans to hand over leadership to Deputy Prime Minister Lawrence Wong by the People’s Action Party’s 70th birthday on Nov 21 this year. 

Still, leadership transitions are always tricky and plans are always subject to change. PM Lee’s initial plan to retire before 70 and DPM Heng Swee Keat’s stepping aside as leader of the PAP’s fourth-generation (4G) team come to mind.

We’ve already gotten a small taste of the 4G’s leanings towards a more consultative leadership style through its Forward Singapore engagement exercise, though it remains to be seen how much of the feedback received will translate into policy changes that will affect our adulting lives.

5. Financial support for retrenched workers 

Last year, the government announced plans for a new scheme that will provide temporary financial support for retrenched workers. 

The government has said that it will be tied to training and career counselling, so it may not be like the “unemployment benefits” of other countries. But such a policy would still be a significant shift for Singapore, which has traditionally been averse to directly handing payouts to unemployed workers. 

Details of this scheme will be announced in Budget 2024.

🔎 What we’re looking out for

This week, we asked the editors and correspondents of various desks at The Business Times  (BT) for the big questions they have on their minds this year.

On stocks 

Senior correspondent Ben Paul: Will the Fed rate cuts keep US equities rallying, or will the slowdown in the economy be more severe than expected?

On inflation

News editor Joan Ng: Has inflation really been tamed, or will recent chaos in the Red Sea (for a TL;DR on this, click here) set the inflationary beast loose again? 

Deputy news editor Janice Heng: Inflation is expected to cool unevenly: analysts expect housing rentals and Certificate of Entitlement (COE) prices to moderate, but food prices tend to be fairly “sticky”. So will ordinary consumers feel any relief?

On the economy and jobs

Deputy news editor Janice Heng:  With external uncertainty, will Singapore – and Asia – live up to expectations of stronger growth? Could intensified tensions or new flare-ups threaten global growth yet again?

And with Singapore’s labour market cooling, will wages manage to outpace inflation in 2024?

On property

Deputy news editor Michelle Low: With markets contracting, will home prices land on the right side of affordability in 2024? Could lower interest rates bring buyers back to the table? And will those who rent finally see some real respite from crazy rich levels?

TL;DR:

• With the turn of the year, the GST was raised to 9 per cent and paternity leave doubled

• On this year’s agenda is a change in the HDB’s classification of new estates and the PAP’s leadership transition

• A new financial support scheme for retrenched workers is set to be announced during this year’s Budget

• What’s on the minds of BT editors and correspondents, on stocks, the economy, jobs, property and inflation