Singapore Budget 2024: Robots & machines will not replace humans at work, but they do change the way expertise is defined and value is created, says DPM Wong

The speech further elaborated on several long-term strategic initiatives aimed at fostering improved 66 economic growth and better jobs. The key areas of focus included lifelong learning, creating more paths for equality and mobility, and enhancement of support for families and senior citizens.

Even amidst a troubled international environment, rising geopolitical tensions and conflicts, several Asian economies including India, China and Asean have become the key drivers of global growth. The past years may have been troubled in a subdued global economy, but Singapore as a nation has been able to bounce back with unexpected revenue gains from its strong post- pandemic economic rebound, as highlighted by Singapore’s Finance Minister Lawrence Wong in his 2024 Budget speech. While the nation’s economic growth plunged from 3.8% in 2022 to 1.1% in 2023, also leading to a fall in real incomes, it is expected to be higher at 1 percent to 3 percent this year.

The speech further elaborated on several long-term strategic initiatives aimed at fostering improved economic growth and better jobs. The key areas of focus included lifelong learning, creating more paths for equality and mobility, and enhancement of support for families and senior citizens. The Minister further highlighted the significance of investing more in human capital. Robots and machines will not completely replace humans at work, but they do change the way expertise is defined and how value is created, he shared.

Here are the key budget highlights:

Investment in human capital

The Singapore workforce ranks highly in terms of skill and technical proficiency, but technological advances mean expertise is in constant flux, said DPM Lawrence Wong. This means that Singapore has to invest even more in human capital and help its workers refresh and update their skills, he added.

New SkillsFuture programme, $4,000 credit top-up for mid-career workers

A new Skills Future Level-Up programme will be introduced to better support mid-career workers this includes a $4,000 Skills Future credit top-up in May 2024 for all Singaporeans aged 40 and above.

SkillsFuture Enterprise Credit extended by a year to June 30, 2025

To encourage firms to make Von YOD 4Gill (66 LTE 2 continuous efforts to restructure and transform amid a challenging operating environment, eligible employers will be provided with additional credit to cover out-of- pocket expenses in the areas of workforce and business transformation.

The National Productivity Fund

Govt to roll out new investment tax credit with refundable cash feature for companies to support research and development, setting up of manufacturing facilities and green transition activities. The new tax credit will help the nation stay competitive in attracting investments from global companies. The National Productivity Fund will receive a $2 Billion top-up to support investment promotion.

Govt to invest more than $1b over next five years to further catalyse AI activities in talent and industry development

Singapore is aiming to go further in the field through National AI Strategy 2.0, with an additional $1 billion invested over the next five years. Singapore will also work with leading companies to set up AI centres of excellence in Singapore to spur innovation.

Unemployed workers to receive more support under SkillsFuture

Workers who have become involuntarily unemployed will receive more support under the Skills Future programme. A new temporary financial support scheme will support them while they undergo training or look for better- fitting jobs.

Workfare Income Supplement Scheme

From 2025, the Workfare Income Supplement Scheme, which tops up the salaries of lower-income workers to help them save for retirement, will be enhanced. First, the qualifying income cap will be raised from $2,500 to $3,000. DPM Wong said that this will ensure that Singapore continues to cover lower-wage workers even as their wages grow.

Increase in qualifying salaries for locals employed by firms hiring foreign workers

To ensure that the nation keeps pace with wage growth, the local qualifying salary for full-time local workers at companies that hire foreign ones will be raised from $1,400 to $1,600 in 2024. The minimum hourly rate will be increased from $9 to $10.50 per hour.

Enhanced Retirement Sum to be raised

To allow more members aged 55 and above to fully commit their accumulated Central Provident Fund savings to receive higher CPF payouts, the Government will raise the maximum amount that members can put into their CPF Retirement Accounts to receive CPF payouts from 2025.

Increase in payments to lower- income seniors

The Government will raise the qualifying per capita household income threshold for the scheme from $1,800 to $2,300, and increase the payments by 20 per cent, to keep pace with inflation.

Young seniors to receive bonuses through Majulah Package

Those currently in their 50s and early 60s will get an additional boost for their retirement through the Majulah Package announced by Prime Minister Lee Hsien Loong at 2023’s National Day Rally. They will receive a yearly bonus of up to $1,000 for as long as they work, with more going to those who earn lower incomes. Second, a one-time retirement savings bonus of between $1,000 and $1,500 will be given to seniors with retirement savings below the Basic Retirement Sum.

Companies to receive 50% income tax rebate, capped at $40k

Non-profitable companies will also be covered with a minimum cash payout of $2,000 for those that employed at least one local employee in 2023. The maximum working capital loan quantum will be permanently raised to $500,000 to help Singapore enterprises’ financing needs.

Personal income tax rebate, higher threshold for dependant-related relief claims
Fiscal responsibility has set Singapore on a strong footing for the next decade, while ensuring that Singapore’s overall system of public finances remains fair and progressive, said DPM Wong. – The income threshold for taxpayers who claim dependent-related reliefs will be raised to $8,000 from $4,000, with effect from the year of assessment 2025.

Workers aged 40 and older and ITE graduates will get more support to refresh their skills and progress in their careers

• $4000 Skills Future Credit (Mid- Career) top-up in May for selected training courses with better employability outcomes.
• Mid-Career Enhanced Subsidy for another publicly funded full-time diploma
• Upto $3000 monthly SkillsFuture Mid-Career Training Allowance for up to 24 months for selected full-time courses
• Top-up of $5000 to post-secondary education account upon enrolment.
• Top up of $10000 to CPF OA upon completion

Source: GWFM Research & Study