Government to focus on helping seniors, tackling cost of living, with support in Budget 2025: Lawrence Wong
Besides broad-based support, the government is also looking at targeted support for groups such as large families
CARING for seniors and tackling cost-of-living concerns remain key areas of focus for Singapore’s government, with support for the latter to come in Budget 2025, said Prime Minister Lawrence Wong in a press conference, days after announcing measures on parenthood, education and jobseekers at his first National Day Rally (NDR).
Noting that he “couldn’t cover everything” in his rally speech, he highlighted those two additional priorities.
First, looking after seniors would involve addressing their longer-term care and housing needs, PM Wong told Singapore media on Friday (Aug 23).
“It’s a big issue, which will continue to grow because of our increasing number of seniors,” he said.
This group includes not just those in their 70s and 80s, he added. “As we do more to take care of them, we would also be helping their children, who increasingly are not so young anymore.”
The latter are “young seniors” in their 50s, many of whom feel sandwiched because they have to look after both their aged parents and their own children, he said.
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A second priority is the cost of living, with the government looking at how to help specific segments such as larger families with more young children.
PM Wong said that the cost of living is a major concern raised by Singaporeans whom he has met on the ground, with such regular engagements being “a very important aspect” of his work.
But there are also different aspects to the issue, he added.
“There’s the day-to-day cost of living because of groceries, food and the day-to-day essentials,” he said. “But there’re also other sort of big-ticket items, if you will. Housing is not something you have to (buy) every day, but the people who have to purchase a home then sometimes feel that home prices have gone up.”
The government has different measures to support Singaporeans, including broad-based ones such as CDC vouchers, he said.
Asked why next year’s CDC vouchers are of a smaller quantum than this year’s, PM Wong – who is also finance minister – replied: “We haven’t had the 2025 Budget yet – that’s next year.”
“So whether or not there will be more CDC vouchers, I think everyone should just wait and see what is in the Budget announcement.”
He added that the government will continue to review and determine if broad-based or targeted measures are more adequate in supporting people who need help.
Singapore’s inflation is already seeing signs of slowing, he noted. Separately on Friday, latest figures showed core inflation easing more than expected in July, to 2.5 per cent.
This is in contrast to 2023. Said PM Wong: “Last year was a difficult year for us, because inflation remained quite high and growth was very weak – about 1 per cent growth – and many Singaporeans experienced negative real wage increases.”
“Their real wage actually came down, so understandably there was a lot of pressure.”
The government will look at income and inflation indicators for 2024 and 2025, then “think about how we can put together the appropriate help – whether broad-based or targeted – for the different segments, and we will do so in the Budget in 2025”, he said.
Same principles, new approaches
PM Wong said that his first NDR speech aimed to flesh out, in more concrete terms, the aspirations and hopes that Singaporeans had shared in the Forward Singapore exercise.
These aspirations and new ambitions are underpinned by two pillars – a renewed social compact and a refreshed Singapore dream.
Under the renewed social compact, Singaporeans will get support to get through setbacks as well as “a fair shot” in life – but must do their part to work hard and uplift their families. “If they do that, the government will be there to support them every step of the way and help them to get ahead.”
Meanwhile, the refreshed Singapore dream is one where people can find their own paths and be the “best possible version” of themselves. “In other words, we can thrive and flourish on our own terms, and in ways that are less prescribed and more open.”
Asked how he intends to honour the past yet seek new solutions – as mentioned in his NDR speech – PM Wong said that the core principles of multiracialism, meritocracy and incorruptibility cannot be compromised.
How these principles are manifested in policies, however, may be up for debate. The government will always be prepared to review its assumptions to see what can work better, he said. “It’s not so much to change for the sake of change alone, but to always have the perspective that some things can be improved.”
“Yes, there may be trade-offs, but perhaps circumstances have changed. Perhaps our conditions are different. Perhaps Singaporeans’ appreciation of the trade-offs is different today. Perhaps there are new technologies, new solutions.”
Beyond domestic concerns, Singapore cannot neglect its external environment, said PM Wong – particularly amid increasing geopolitical tensions and their impact on trade and global supply chains.
Establishing good rapport with Singapore’s friends, old and new, is a priority in this “dangerous and troubled world”, he said, adding that he has hosted several visitors here and will make more trips in the coming months, particularly in Asean.
He noted that he has met some regional leaders before, but added: “It’s important I meet them in my new capacity and establish good personal relations at the leadership level, because that sets the tone of our overall relationship.”
Noting that he did not say much about foreign policy at the NDR, PM Wong said he will find future occasions to do so.
He said: “It is important for me to engage Singaporeans on these issues, because I think everyone needs to understand what is at stake, especially on critical issues where our collective security and fundamental interests are involved.”
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