MOF to maintain ‘sound finances’ through judicious spending, rigorous reviews
Final batch of ministry addenda focuses on effective governance and social cohesion
[SINGAPORE] The Ministry of Finance (MOF) will “allocate resources judiciously and evaluate programmes rigorously”, said Prime Minister and Minister for Finance Lawrence Wong on Friday (Sep 19), as ministries concluded their release of plans for this term of government.
This is in order to “maintain sound and sustainable finances”, he said, in his ministry’s Addendum to the President’s Address. “Fiscal discipline and strength are Singapore’s strategic advantages.”
The Republic’s system of taxes and transfers will remain fair and progressive, he added. “Everyone contributes, and the better-off contribute more, and everyone benefits, and those with greater needs receive more.”
On Friday, MOF was among several government bodies that laid out their priorities for the new term, wrapping up a week of such releases after the President’s Address on Sep 5.
Parliament resumes on Sep 22, when Members of Parliament will debate the President’s Address.
In this term, government spending will rise as a share of gross domestic product, noted PM Wong. This includes investments in defence spending; in “productive capacity”, such as upskilling workers and getting companies to use artificial intelligence (AI); and in long-term infrastructure supporting the green energy transition and climate resilience.
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Social investments
The government will also “invest across all life stages” to ensure opportunities for all citizens, regardless of their starting points, said PM Wong. “We will keep public housing and healthcare affordable and accessible, enabling our seniors to age well with peace of mind, and strengthen support for caregiving.”
There will also be more support for vulnerable groups, such as persons with disabilities and those with special needs.
To fund the rise in spending, the government made earlier tax changes to “strengthen our revenue base and structure”, noted PM Wong. “The government will continue to spend within its means, and maintain a balanced budget over the medium term.”
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To ensure that government spending “remains effective and delivers value for money”, public agencies will strengthen governance; adopt best practices; strengthen systems and processes; and build capabilities.
Effective government
Effective government and social cohesion were two themes in Friday’s various addenda.
The Ministry of Digital Development and Information (MDDI) outlined plans to accelerate AI adoption by companies and workers.
Small and medium-sized enterprises will get help to deploy AI tools, and companies that are ready to go further will be supported to embed AI into core business processes.
MDDI will also work with the labour movement and business chambers to develop programmes that equip workers with AI skills.
In addition, the ministry will continue to invest in core digital infrastructure and study areas such as 6G, non-terrestrial networks, and frontier technologies like quantum.
Separately, the ministry will keep tackling online scams, including through technical solutions. An Online Safety Commission will be set up to help victims seek relief from perpetrators and platforms.
AI is also a focus for the Ministry of Law (Minlaw), which will help law firms adopt AI through its Legal Innovation and Future-Readiness Transformation Initiative.
But it will also introduce guidelines for using copyrighted works in AI development, to balance innovation with creators’ rights.
This is among other efforts to grow Singapore as a hub for intellectual property.
Population and climate change
The Prime Minister’s Office Strategy Group outlined two focus areas: addressing Singapore’s ageing population and tackling climate change.
To boost fertility rates, the government will redouble efforts to support marriage and parenthood. It will “do more to help parents better manage their work and family commitments”, and partner employers and community groups to build a culture that values families.
Seniors will get support to keep working if they wish and age confidently while remaining connected to communities. The government will also “carefully manage” foreign worker and immigration flows while helping newcomers integrate into society.
On climate change, Singapore will cut emissions through greater solar deployment, cross-border electricity trade, and carbon capture technologies.
To prepare for the physical impact of climate change, the Republic will strengthen heat resilience and partner neighbouring countries to tackle transboundary risks.
Social cohesion
Several ministries outlined plans to strengthen social cohesion through community engagement and security measures.
The Ministry of Culture, Community and Youth will foster intercultural understanding while making arts, heritage and sports more accessible. It will engage youth through the refreshed Scape and Somerset Belt development, and build “communities of care” through volunteering initiatives.
The Ministry of Home Affairs will enhance resilience against terrorism through school outreach on youth self-radicalisation. Separately, it will strengthen laws to protect vulnerable victims and address emerging threats such as foreign interference and cybercrimes.
MinLaw will enhance community dispute resolution frameworks and expand its therapeutic justice approach to support family well-being. It will also strengthen access to justice by expanding legal aid, and study the need for a new agency to support victims of online harms.
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