8 things to look out for in 2025
A general election, and a Budget that will set the stage. The Republic's diamond jubilee. Big policy moves, including on job protections and retirement adequacy. ST looks at the key changes and events for Singapore in 2025.
The Straits Times looks at the key changes and events for Singapore in 2025.PHOTO: ST FILE
1. Economic growth and inflation
The economic growth rate of Singapore is anticipated to decelerate in 2025, with most of its key trading partners expected to experience slower growth.
The Ministry of Trade and Industry estimates economic growth will range from 1 per cent to 3 per cent in 2025, less than the 3.5 per cent for 2024.
US President-elect Donald Trump, set to take office on Jan 20, has vowed to raise tariffs by as much as 20 per cent on all trading partners, and to have a 60 per cent rate for imports from China.
Even if Singapore avoids US tariffs, the US-China trade war will elevate import prices globally, diminish global demand and reduce trade volumes, which in turn would hurt Singapore's gross domestic product growth.
Inflationary pressures from higher tariffs will complicate the management of monetary policies for Asian central banks, including the Monetary Authority of Singapore, and could affect the downward trend in core inflation seen here in recent years.
The US Federal Reserve raised its inflation forecast for 2025 from 2.1 per cent to 2.5 per cent – significantly above its 2 per cent target – and indicated that the central bank may implement only two rate cuts in 2025, down from the four forecast earlier.
2. Budget 2025
The annual Budget, which outlines the Government's spending plans, will also detail support for Singaporeans at various life stages.ST PHOTO: GAVIN FOO
The cost of living and job security are among the top concerns on people's minds, and they will be addressed at Budget 2025, which will be delivered by Prime Minister Lawrence Wong on Feb 18.
The annual Budget, which outlines the Government's spending plans, will also detail support for Singaporeans at various life stages.
This includes additional help for those in the sandwiched group who care for both young children and ageing parents, as well as for young people entering the workforce or starting families.
The Government has also said it will do more to address longer-term care and housing needs for the elderly, and to alleviate cost-of-living pressures for those with more young children.
On the jobs front, Budget 2025 will prioritise helping people enhance their skills and their earning potential. It will build on existing initiatives, such as through enhancements to SkillsFuture, PM Wong said at a press conference in November.
Two other key themes for the Budget are economic strategies for the next bound, and strengthening Singaporeans' sense of solidarity and unity as the country marks SG60 – 60 years of independence.
The Ministry of Finance has opened up public consultations along these broad themes as it prepares for the yearly Budget statement.
Some economists said they are expecting an election budget, with help for all segments of society and businesses.
3. Singapore marks 60 years of independence
Singapore will celebrate its 60th birthday in 2025.PHOTO: ST FILE
Celebrations for SG60 will kick off on New Year's Eve, at a countdown at Marina Bay, Sentosa, Singapore Sports Hub and 17 heartland locations.
Besides a year of commemorative events, turning 60 will be an occasion for Singaporeans to "strengthen our sense of shared values, our sense of purpose and also our sense of solidarity with one another", said PM Wong in November.
Programmes to encourage Singaporeans to reflect and live out values which have been key to the nation's development since independence – such as multiculturalism and resilience – include the Chingay Parade, Racial and Religious Harmony Month and the Singapore Pavilion showcase at Expo 2025 Osaka, said the Ministry of Culture, Community and Youth.
There will also be platforms for Singaporeans to get involved and start ground-up initiatives, such as the SG60 Youth Engagements organised by the National Youth Council and People's Association, and consultations under the Urban Redevelopment Authority's (URA) Draft Master Plan exhibition.
People have been invited to share their views on SG60 – themed Building Our Singapore Together – as part of Budget 2025 consultations, such as on how to strengthen the collective Singaporean identity and better cultivate unity across diverse backgrounds.
The 60th anniversary also means an all-out National Day Parade at the Padang. The authorities have said the festivities will extend to Marina Bay and the heartland.
4. Going to the polls
Voters queueing outside a polling station in Jurong East to cast their ballots in the general election held on July 10, 2020.PHOTO: ST FILE
Singapore is slated to go to the polls by November 2025, though pundits expect the general election to be called months before that.
For months, political watchers have been looking out for the formation of the Electoral Boundaries Review Committee – convened before each election – to get a better sense of when the election will be held.
At a press conference in November, PM Wong said the committee had not been set up yet.
Dates that have been bandied about for the hustings include April, May and July – when Singaporeans have had time to digest Budget 2025 announcements, and are likely to be in a reflective mood as the nation approaches its 60th birthday.
The upcoming election will be PM Wong's first as secretary-general of the PAP, a post he took on in December after Senior Minister Lee Hsien Loong stepped down as party chief.
PM Wong has said that the coming election is a high-stakes one, where Singapore could end up with a much weaker government if there is just a modest swing in votes against the ruling party.
Political parties have meanwhile been gearing up for the battle, with potential candidates popping up alongside old-timers on constituency banners, at grassroots events and at walkabouts.
5. Increased parental leave
The increase in parental leave comes in response to feedback that parents would like more time with their children.PHOTO: ST FILE
Parents-to-be will get another 10 weeks of shared leave on top of their current leave entitlement, bringing the total amount of government-paid parental leave to 30 weeks by April 1, 2026.
The two additional weeks of voluntary paternity leave will also be made mandatory from April 1, 2025, which means employers must grant such leave applications.
The changes are being made in response to feedback that parents would like more time with their children, and to encourage dads to play a bigger role, PM Wong said in announcing the move at his first National Day Rally speech in August 2024.
In short, mums will get 16 weeks of maternity leave, while dads get four weeks of paternity leave. On top of that, parents will have 10 weeks of leave to be shared between them. This works out to around 7½ months of paid leave for parents of Singaporean babies.
To give employers time to adjust, changes to the shared parental leave scheme will be made in two phases, starting with six weeks of shared leave from April 1, 2025, then the full 10 weeks from April 1, 2026.
6. Changes to CPF system
Among the changes to the Central Provident Fund system in 2025 is the closing of the Special Account for those aged 55 and above.PHOTO: ST FILE
The Special Account for those aged 55 and above will be closed from the second half of January 2025, one of a slew of changes to the Central Provident Fund (CPF) system in the new year.
With the closure, Special Account funds for affected CPF members will be transferred to their Retirement Account, up to the full retirement sum. Any remaining monies will be transferred to their Ordinary Account.
Other changes are aimed at helping CPF members better meet their retirement needs.
For seniors who continue to work, CPF contribution rates for members aged from above 55 to 65 will be raised by 0.5 percentage point for employers and 1 percentage point for employees.
The grant cap for the Matched Retirement Savings Scheme will also be increased to $2,000 a year and the age cap will be removed. Meanwhile, the Enhanced Retirement Sum for 2025 will be raised to $426,000, four times the basic retirement sum.
To keep pace with rising costs and salaries, Silver Support Scheme quarterly payments will be increased by 20 per cent, and the qualifying income cap for the Workfare Income Supplement Scheme will be increased from $2,500 to $3,000.
The monthly salary ceiling for CPF contributions will also go up to $7,400, before being raised to $8,000 in 2026, which will help middle-income Singaporeans save more for retirement.
7. More protection for platform workers
Under the new Platform Workers Act, gig workers will get greater labour protections, with more adequate work injury compensation and the ability to save more for their housing and retirement needs.PHOTO: ST FILE
Singapore's gig economy is set to undergo a major shift when the Platform Workers Act comes into force from Jan 1, 2025.
Under the new law, which was passed in September 2024, ride-hailing drivers and freelance delivery workers who rely on online matching platforms for income will be placed under a distinct legal category of their own.
They will get greater labour protections, with more adequate work injury compensation and the ability to save more for their housing and retirement needs via the CPF scheme.
Industrial relations in the sector will also enter a new chapter as platform workers, who cannot unionise, will be able to form representative bodies called platform work associations.
Through these bodies, workers will be able to negotiate and sign legally binding collective agreements with operators and gain access to various avenues of redress, including the right to strike.
However, these protections come at a cost and consumers can expect to pay more come 2025, with ride-hailing companies here already raising platform fees in anticipation.
The start of the Platform Workers Act is the culmination of more than three years of study, consultation and debate.
8. Next Draft Master Plan to be unveiled in June 2025
A Recreation Master Plan will be unveiled under the Draft Master Plan to support and grow the way Singaporeans play.PHOTO: ST FILE
The URA's Draft Master Plan 2025 will be unveiled in June and will detail development plans for the next 10 to 15 years.
The masterplan, which dictates what a piece of land can be used for and how densely it can be developed, is reviewed every five years to ensure current and future needs can be met in land-scarce Singapore.
The new development blueprint is expected to give details on where new homes and amenities will be built in Singapore, and which existing areas might be redeveloped.
In public engagements leading up to the June 2025 exhibition, the URA has showcased plans to build new residential neighbourhoods in more central locations and to increase job opportunities in business centres outside the Central Business District.
A Recreation Master Plan will be unveiled under the Draft Master Plan to support and grow the way Singaporeans play.
More details on how places with rich heritage and identity will be improved are also expected.
The URA has been seeking public feedback on identity corridors such as the Historic East, which includes Geylang and Changi roads, as it works on plans to make these corridors more accessible and strengthen their character.
- Ovais Subhani, Shermaine Ang, Sue-Ann Tan, Kok Yufeng and Ng Keng Gene contributed to this report.
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