Expanded Cash Payouts Expected in Budget 2024, Chief Economist Predicts

SINGAPORE — Economists anticipate that Finance Minister Lawrence Wong’s Budget 2024 will introduce more robust measures to assist Singaporeans with rising living costs. RHB Chief Economist Barnabas Gan projects that enhancements to the Assurance Package will bring increased cash payouts and additional Community Development Council (CDC) vouchers.

Gan shared with Singapore Business Review that these measures could include boosted cash payouts, utility rebates, and possibly a one-off special payment aimed at offsetting recent costs from the Goods and Services Tax (GST) hike and rising utility bills. “We expect additional support for vulnerable families facing persistent inflationary pressures,” he added, highlighting the potential for new CDC vouchers or top-ups to support Singaporean households.

This outlook aligns with recent predictions from UOB economists Alvin Liew and Jester Koh, who similarly expect expanded cash payouts and U-save rebates under the Assurance Package. They also foresee potential one-off contributions to development accounts like Edusave or Child Development Accounts (CDA) to offer further financial relief.

Beyond household support, Gan anticipates Budget 2024 will focus on workforce transformation and business support, particularly in sustainability and technology. He expects measures to encourage small and medium-sized enterprises (SMEs) to adopt digital and automation solutions, as SMEs comprise 99% of businesses and employ 72% of the workforce. Additionally, he foresees enhancements to schemes like Workfare Skills Support (WSS) to promote inclusivity and workforce resilience in the evolving economy.