Singapore elderly in line for pre-polls budget boost

SINGAPORE: The republic’s elderly are primed to benefit from a generous budget unveiled next week, analysts say, as the government prioritises the needs of a fast-ageing population ahead of an election expected as soon as this year.

As pressure grows on more of the elderly to stay in the workforce beyond retirement age, the low-tax finance hub is set to try and assuage rising social angst over the welfare of a generation born near the end of British colonial rule when Singapore was a basic port town.

The Feb 18 budget, due to be delivered by Finance Minister Heng Swee Keat, will be his first since he was picked last year as the likely next leader of the People’s Action Party, which has governed for over half a century.

Singapore must hold its next general election by early 2021, but Prime Minister Lee Hsien Loong, eyeing retirement, has suggested it could be this year.

Analysts say other highlights of the budget will likely include increased security spending given a recent high-profile cyber attack, maritime tensions with Malaysia and plans to acquire F35 fighter jets.

While Singapore budgeted for a small deficit in fiscal year 2018, analysts at Maybank Kim Eng said their estimates for an accumulated S$19 billion (RM57 billion) fiscal surplus over the last three years provides “ample room for more social spending”.

Other analysts say increased spending is needed to tackle heightened external pressure on the economy, including from the United States-China trade war and Britain’s imminent departure from the European Union.