Budget 2025 : The power of shared beliefs
It’s critical that our progress is grounded in a shared understanding of social responsibility
AS WE dissect this week the various provisions announced in Singapore’s Budget 2025, it’s vital to take a step back and reflect on the narratives that shape Singapore’s economic and social trajectory.
I feel this resonates deeply with the insights offered by Yuval Noah Harari in his book Sapiens, where he explores the power of shared beliefs in forging human cooperation.
Harari reminds us that “money is the most universally and most efficient system of mutual trust ever devised”. This concept of trust extends beyond financial transactions. It underpins the very fabric of our society. In the current context, the Budget is like the government’s promise to navigate uncertainties and safeguard the collective well-being. It is almost like a modern manifestation of a social contract.
The budget’s emphasis on supporting small and medium enterprises (SMEs), especially through the 50 per cent corporate income tax rebate and the S$2,000 cash grant, is a vital lifeline. These measures are not merely fiscal adjustments. They are investments in the resilience of the country’s entrepreneurial spirit. For businesses, these savings can potentially translate to reinvestment in growth, innovation, and, crucially, maintaining the trust that underpins their operations.
Similarly, the increased co-funding under the Progressive Wage Credit scheme further illustrates a commitment to equitable growth. In times like these, supporting the salaries of lower-wage workers is not just a social imperative but a strategic necessity. A motivated workforce can be a very productive workforce. This policy is a great showcase of the fact that true prosperity is shared, not concentrated.
Like Harari notes, “large numbers of strangers can cooperate successfully by believing in common myths”. These “myths”, or rather shared values, in today’s context are the ideals of fairness, opportunity and progress.
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The S$800 CDC vouchers and additional U-Save rebates, while primarily aimed at households, also contribute to the broader narrative of social support. For example, there are also positive implications for SMEs. Increased consumer spending will stimulate demand, creating a ripple effect that benefits businesses across the spectrum. Again, these measures reflect a recognition that economic stability is a collective endeavour.
Singapore’s economic outlook, with a projected gross-domestic-product growth of 1 to 3 per cent, reflects a measured optimism. However, optimism must also be tempered with realism. Current geopolitical shifts, technological disruptions, and evolving market dynamics all pose potential challenges. Navigating these complexities requires foresight, adaptability and agility.
It’s critical that our progress is grounded in a shared understanding of social responsibility. We must ensure that our technologies empower rather than exclude, and that they contribute to a more equitable and inclusive economy.
The writer is head of Singapore at Sling & Stone, a PR agency
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