SINGAPORE’S economy grew by 4 per cent for the whole of 2024, exceeding the most recent official forecast of an expansion of around 3.5 per cent.
Revealing the full-year growth figure in his first New Year message, Prime Minister Lawrence Wong said on Tuesday (Dec 31) that he expects real incomes to rise further due to the strong economy.
“Unlike in many developed countries, we are not plagued by unemployment and stagnant wages,” he noted. “Most workers have received wage increases that outpace inflation, making them better off in real terms. Over the past decade, median income has risen by 2.2 per cent per annum above inflation.”
In November, the Ministry of Trade and Industry had upgraded its economic growth forecast for 2024 to “around 3.5 per cent”, which was beyond the range of its previous estimate.
In August, the ministry had narrowed the full-year forecast to between 2 and 3 per cent. The forecast for 2025 is for gross domestic product to expand by between 1 and 3 per cent.
PM Wong said that while global inflation has moderated, price levels have still not fallen and are not yet at pre-pandemic levels.
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“Across many countries, cost-of-living pressures continue to weigh heavily on families and communities. People feel a deep sense of angst and anxiety about the future. There is a growing malaise. As a result, political systems falter, trust in institutions erodes and societies become increasingly divided,” he said.
And while Singapore is not immune to these global mood shifts and pressures, he noted that the country has been able to distinguish itself amid the turmoil and uncertainties.
“We remain a beacon of safety, security and stability in a troubled world. Our students continue to excel and learn, our businesses innovate and expand, and our workers adapt and embrace new opportunities in an ever-changing landscape.”
“Tough challenges”
PM Wong added that Singapore has faced “some tough challenges” in recent years, including the fight against the Covid-19 pandemic, dealing with imported inflation and managing a weak economy.
He said: “2024, too, had its share of difficulties. The government did not get everything right in the first instance. But, as always, we were upfront with Singaporeans when we fell short and could have done better…
“We learnt from our setbacks, pursued improvements and continued to give our best to serve all Singaporeans. That is how we have consistently overcome obstacles – with solidarity and unity.”
He pointed to how the tripartite partnership remains at the core of this solidarity, with the government, employers and unions working together to resolve issues and come up with solutions to benefit all Singaporeans.
“We focus on advancing our shared goals, putting the collective good ahead of individual interests. This partnership is the foundation of our resilience and strength,” said PM Wong.
He cited the aviation sector as an example, noting how air travel came to a standstill during the pandemic and caused many jobs to be at risk.
“The government provided financial support to sustain critical capabilities and to upgrade our facilities. Companies like Changi Airport Group, SIA Group, Sats and industry partners used the downtime to reskill and upgrade their workforce. Unions supported the measures, and workers showed great resilience in adapting to the changes,” he said.
He said that Changi Airport is thriving today with “strong growth momentum” driving its recovery, with passenger traffic almost back to pre-pandemic levels and expected to grow further in 2025.
“Our aviation workforce has surpassed pre-Covid numbers. Our air hub is stronger than before, and in a few months’ time, we will break ground for the new Terminal 5.”
There was also a united effort to tackle cost-of-living pressures. The government provided cash support, CDC vouchers and utilities rebates, while companies and community groups did their part too, he added.
More targeted help on the way
The prime minister said that he will set out the next steps of Forward Singapore in Budget 2025. As finance minister, he will deliver the Budget statement in Parliament on the afternoon of Feb 18.
“We will sharpen our economic competitiveness to create exciting opportunities and good jobs for Singaporeans. We will continue to cushion the impact of cost-of-living increases,” said PM Wong.
He added that the government will provide more targeted help to those who find it harder to cope, especially older people and those in the lower-income groups.
“But we will not neglect other segments, including the middle-income and middle-aged, who are caring for both elderly parents and young children. Every citizen has a role and place in our society. No one will be left behind, because we are all in this together.”
Through the Forward Singapore exercise, the government will build a “fairer and more inclusive society” where everyone is assured of opportunities to succeed, no matter their starting points in life.
PM Wong pointed out that several major steps have already been taken towards these goals.
Housing policies have been updated to make Housing and Development Board flats more affordable, while the Majulah Package has enhanced the retirement adequacy of people, especially for those in their 50s and early 60s. New programmes such as Healthier SG and Age Well SG are providing seniors better support, he said.
The government is also reforming the approach towards education, as well as investing heavily in SkillsFuture to help every Singaporean, including mature workers, develop to their full potential, added the prime minister.
He rounded off his message by saying that while Singapore has an occasion to celebrate the 60th anniversary of its independence in 2025, it should also be a year to reflect.
“This milestone is really a time for reflection – on our shared values, who we are, and what we stand for. Importantly, it is an opportunity to envision how we can shape our future together.”
