SINGAPORE - The world is changing in ways that will have a huge impact on Singapore’s economy, businesses and its people, said Prime Minister Lawrence Wong who stressed the need for the nation to uphold its economic fundamentals and for the partnership between government and businesses to stay strong.
Amid rising geopolitical tensions and economic uncertainties, the external environment, he noted, has become more turbulent, volatile and dangerous. He warned how there is a profound change in the global order, which is becoming “more like a lawless jungle where might is right”.
“We cannot change these global trends. But we can shape our response to these trends,” PM Wong said at the Singapore Business Federation’s (SBF) Singapore Budget Symposium 2025, held at the Marina Bay Sands on March 19.
He outlined several key approaches to how Singapore can respond to these challenges.
These include maintaining the nation’s pro-business environment and openness to trade and investments. It is also important to plan for the long term, including studying the possibility of deploying nuclear energy.
PM Wong also emphasised the need to strengthen national solidarity through robust tripartite partnerships, highlighting the “Singaporean way” of collaboration between the government, unions, workers, and businesses.
“This partnership is going to be more important than before,” said PM Wong.
He highlighted how the United States and China rivalry has intensified, noting how the US sees China as a strategic threat and wants to prevent it from overtaking America.
“China, for its part, says it is ready to respond. In fact, it says it is ready for tariff war, trade war or any type of war, and that it will fight to the very end. These are very aggressive words,” said PM Wong.
Major powers are now more focused on defense and security, and PM Wong said that these nations are increasingly prepared to use force to achieve their goals at the expense of other countries, including smaller ones.
Beyond global headwinds, he underscored the vital role businesses play as the backbone of Singapore’s economy, highlighting the government’s commitment to supporting them.
This focus was reflected in Budget 2025, where special attention was given to businesses, said PM Wong, who is also Finance Minister.
(From left) Singapore Business Federation chief executive and moderator Kok Ping Soon, Prime Minister Lawrence Wong, Transport Minister Chee Hong Tat and Minister of State for Trade and Industry, Culture, Community and Youth Alvin Tan.ST PHOTO: GAVIN FOO
He touched on several key initiatives aimed at strengthening the enterprise ecosystem, many of which were shaped by feedback from trade associations, chambers, and the Alliance for Action (AfA) on Business Competitiveness.
These measures include immediate cost relief through a corporate income tax rebate and cash grant, adjustments to the work permit framework, and a private credit fund to improve access to capital.
Additionally, the government is enhancing support for business transformation, worker training, and access to government schemes to help companies remain competitive, said PM Wong
Addressing the symposium’s attendees which consisted of trade association representatives, business owners and corporate leaders, PM Wong said that while the government may not be able to grant every Budget request, it remains committed to addressing key concerns through alternative means.
“We want to listen to you, we want to engage you, and we take your feedback, ideas, and suggestions seriously,” he said.
The Government cannot grant every Budget request as it is not just a matter of resources or funding but also of policy feasibility, said PM Wong.
He cited the example of businesses calling for relaxed foreign worker parameters. While acknowledging these concerns, he explained that loosening restrictions could lead to an overwhelming influx of workers, straining Singapore’s infrastructure.
Although the Government cannot raise these parameters, PM Wong said it can try to find alternative solutions. These include allowing companies to retain skilled workers for longer periods and expanding access to workers from non-traditional source countries.
“So, there are things we cannot do and if we can’t meet some of the requests, we explain our position. We hope you understand that, and we try to find other ways to address your concerns,” he said.
In his address during the symposium, Chairman of SBF Lim Ming Yan called Budget 2025 a “substantive and forward-looking one”.
He said that the federation was heartened that the Government has incorporated feedback from the business community in Budget 2025.
* Hariz Baharudin is a correspondent at The Straits Times covering politics.
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