As Singapore approaches a pivotal year in 2025, significant changes and developments are on the horizon that will shape its economic landscape. The economy is projected to experience a slowdown, with growth estimates ranging from 1% to 3% [1566dd57]. This context sets the stage for Budget 2025, which Prime Minister Lawrence Wong will deliver on February 18, 2025, addressing pressing issues like the cost of living and job security [1566dd57].
In a recent speech at the Singapore Institute of International Affairs Year Opener, Minister for Foreign Affairs Dr. Vivian Balakrishnan emphasized the urgent need for Singapore to 'retool, reskill, reboot' its economy. He highlighted the erosion of foundational elements supporting Singapore's success, including global stability and free trade, and reflected on the nation's 60-year journey since independence, noting GDP growth from USD 1 billion in 1965 to over USD 500 billion in 2024 [ee45054f].
The celebrations for Singapore's 60th anniversary of independence will commence on New Year’s Eve 2025, coinciding with a general election anticipated by November 2025, although there is speculation about the possibility of an earlier election date [1566dd57].
Significant policy changes are also on the agenda, including an increase in parental leave to 30 weeks by April 1, 2026, enhancing support for families [1566dd57]. Furthermore, adjustments to the Central Provident Fund (CPF) system will include the closure of the Special Account for individuals aged 55 and older [1566dd57].
The gig economy will see new protections for workers with the Platform Workers Act coming into effect on January 1, 2025, providing greater rights and benefits for gig workers [1566dd57]. Additionally, the Draft Master Plan 2025 is scheduled to be unveiled in June 2025, outlining development strategies for the next 10 to 15 years [1566dd57].
Balakrishnan also discussed the implications of the end of Pax Americana and the necessity for Singapore to adapt to a changing global order. He stressed the importance of maintaining unity and cohesion within Singapore while engaging constructively with global powers, referencing the historical context of World War II and the establishment of a liberal world order that has benefited Singapore [ee45054f].
In a related development, the ST Education Forum 2025 is set to take place on March 11, 2025, at Singapore Management University (SMU), focusing on South-east Asia's growth and Singapore's role in it. The forum will feature Deputy Prime Minister Heng Swee Keat as the guest of honour, along with a panel that includes prominent figures like Piyush Gupta and Aldi Haryopratomo. Discussions will center on Singapore's competitive edge and the skills necessary for graduates in the evolving economic landscape. ASEAN, comprising 10 nations with a combined GDP of USD 3.6 trillion, is projected to reach USD 4.5 trillion by 2030, underscoring the region's significance [06be0d43].
These developments occur against a backdrop of rising operational costs and workforce challenges highlighted by various stakeholders, including the American Chamber of Commerce and the Singapore National Employers Federation [7a9f2205]. As Singapore navigates these changes, the government is expected to focus on supporting small and medium-sized enterprises (SMEs) to ensure their sustainability and growth amidst economic pressures [7a9f2205].
With these multifaceted challenges and opportunities ahead, 2025 promises to be a pivotal year for Singapore, shaping its economic landscape and societal framework for years to come [1566dd57].