Singapore’s budget for 2024 is out, and there’s quite a lot to unpack. From vouchers and rebates galore in the revamped Assurance Package, to upskilling and retraining incentives with the SkillsFuture program, there’s something for everyone. Here are a few highlights:

1. Assurance Package: Payouts and vouchers and rebates, oh my!

In real terms (accounting for inflation), median income for Singaporeans declined in 2023. This,  combined with the ever-rising costs of living, has placed cash at the top of mind for many of us. Budget 2024 is the government’s response, with the cost of additional financial support under the Assurance Package estimated at S$1.9 billion.

Depending on circumstances, your eligibility for these various benefits may vary. As a guide, when you combine the variety of vouchers, rebates, and one-off cash payments, the average Singaporean middle-income family with two children will receive aid amounting to S$3,000.

An influx of cash always helps – even more so if you maximise its potential. Take this opportunity to revisit your family’s budget, plan for your more immediate needs, then invest any leftover cash to help reach your financial goals.

Putting your money in a higher interest earning account (our Simple Portfolios may be a good fit) lets it work harder, while still keeping it liquid. And for your longer-term goals, consider a well-diversified portfolio (our General Investing portfolios come to mind here).

2. SkillsFuture Level-Up Programme: Investing in the people

The government is staying one step ahead of potential mid-career job crises. With the advent of AI (here’s our take on the topic) and the rapid advance of other technologies, you aren’t alone if you’re worrying about the future of your work.

The budget introduces the SkillsFuture programme, which offers a top-up of S$4,000 for selected courses, for those aged above 40. That’s not all, the programme also offers a training allowance of S$3,000 (monthly!), which can alleviate financial stress if you decide to pursue a full-time course.

The message is clear, Singapore wants to invest in its people, in perhaps the best way it can: lifelong learning. And that’s a message we can get behind – investing in yourself enables you to earn more in the long run (yes, very much like compounding returns with your portfolio).

3. A future Singapore

Zooming out to a broader level, Singapore’s latest figure on GDP growth just came in short, at 1.1% for the full year of 2023 off the back of weaker manufacturing activity. The new budget might give the economy the boost it needs; it’s apparent that the government is now looking towards new avenues for growth.

For example, the National AI Strategy 2.0 will see S$1 billion invested into the emerging technology, and a further S$3 billion has been set aside for research and innovation. Like a well-oiled corporation, the country’s looking for ways to stay ahead of the competition (including Taylor Swift concerts supported by a grant from the Tourism Board!).

And to support local businesses, the government also announced a 50% corporate income tax rebate. This comes alongside enhancements to the Enterprise Financing Scheme, which should help SMEs (small-medium enterprises) access financing more readily (our Simply Finance section below explains further).

If you’re looking to invest in the future of Singapore, our Income portfolio might be right for you. It’s a diversified mix of Singaporean equities, bonds and REITs, giving you broad exposure to the country and the region.

🎓 Simply Finance: SME financing

SME financing refers to the various financing options available to small or medium-sized businesses. This can include loans, lines of credit, invoice financing, and other services.

These resources are vital for smaller companies, which may not have the same access to capital as large corporations. And that’s important to the global economy: SMEs represent about 90% of businesses and more than 50% of employment worldwide!

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