Singapore’s budget a litmus test for next leaders, with focus on cost of living, jobs amid ‘uncertain era’, analysts say

Singapore’s budget address on Friday is expected to address the rising costs of living and employment, issues seen as a litmus test for its fourth-generation leaders to prove they can take the city state through an “uncertain era” of geopolitical instability, analysts said.

“Budget 2024 will be a conscious effort to demonstrate that the 4G leadership is equal to the task of leading Singapore in an uncertain era,” said Eugene Tan, a law professor from Singapore Management University (SMU).

“With 18 months left to the current parliament’s term, Budget 2024 can be expected to demonstrate renewed urgency and resolve to tackle cost-of-living concerns and the medium- to long-term concerns of ensuring Singapore remains economically relevant,” he said.

While speculation has swirled in recent weeks that the transition could occur soon after the budget debate, which will end in mid-March, and be according to Lee’s plan to hand over power by November this year, Tan said the ruling People’s Action Party (PAP) was unlikely to be “hasty” about the shift.

“The ruling party needs more time to reduce the political sensitivity of some of the top-of-the-mind concerns such as cost of living, housing affordability and accessibility, and job security,” Tan said.

Recommendations in the Forward Singapore report – the result of a nationwide feedback exercise with some 200,000 citizens – are also likely to serve as a pivotal propeller for this year’s budget, according to analysts.

The exercise, which covered challenges and proposals on nearly every aspect of Singapore life, was largely viewed as the first concrete sign of the republic’s third change of premiership since its independence in 1965 and described as a “primer” and “election manifesto”,