Budget 2024 Economist predicts focus on four key areas

14 Feb, 2024

Budget 2024 Economist predicts focus on four key areas

Singapore's upcoming budget, as anticipated by RHB Chief Economist Barnabas Gan, is poised to concentrate on several critical areas aimed at bolstering the nation's global competitiveness, fostering workforce transformation, backing businesses, and fortifying the social compact.

Gan highlights the expectation of initiatives to fortify global competitiveness, including measures facilitating sustainability capabilities among businesses and seizing new growth prospects. The vision is to position Singapore as a trusted hub for innovation, talent, and businesses, leveraging technology and sustainability trends.

Moreover, RHB anticipates enhancements to the Workfare Skills Support (WSS) scheme, fostering inclusivity for low-wage workers and incentivizing training endeavors. Gan underscores the imperative of lifelong learning investment, particularly targeting mid-career workers, to align with evolving business demands.

Given SMEs' significant contribution to Singapore's economy, Gan predicts budget provisions supporting digital and automation solutions adoption, along with tax incentives to attract talent. Additionally, Gan foresees budgetary measures addressing the cost of living challenges faced by lower and middle-income households.

Potential measures include bolstering the Assurance Package, offering utility rebates, and potentially issuing one-off cost-of-living special cash payments to mitigate the impact of recent GST rate hikes and rising utility expenses. The expectation extends to additional support avenues like CDC vouchers or top-ups to PSEA to further aid Singaporean households