COMMENT: A mid-term Budget -- all eyes on Singapore's government

 

Shah Salimat is the editor-in-chief of Popspoken, an entertainment, lifestyle and issues newsblog. He tweets at @shahsalimat. The views expressed are his own.

Friday's Budget will come in the middle of a tumultuous political climate.
 
More than ever, there has been a growing call for the government to do more for its sandwiched citizens. More job opportunities for older PMETs, more healthcare support for the middle-class, more taxes on the rich to level out the playing field.
 
The increased pressure also comes at a time when new independent media websites are providing differing perspectives from the mainstream media's frontpage news, setting the scene for clashing viewpoints on the media front.
 
The government's Budget measures often get played out much earlier than the actual announcement. Already, the Pioneer Generation scheme and MediShield Life are two such measures that have made headlines and generated much public discourse.
 
With Friday's Budget coming in the middle of the electoral cycle, all eyes will be on the government to see if it is indeed listening to its electorate as hustings for the 2016 polls begin to pick up steam.
 
It will not just be about the "hongbao" monetary handouts anymore.
 
Listen for the tone
 
Much as how the National Day Rally speeches are viewed by the tone that the government sets for the year, the Budget announcement will be similarly cast in this lens as more Singaporeans anticipate the news.
 
With the range of flubs government bodies have committed in the past year, it will be interesting to see how it tries to make up for its mistakes. One big section is in public transportation, where a series of train faults and delays have angered a population bent on ensuring it gets compensated fairly.
 
Last year's Budget tried to meet the needs of the electorate. Analysts lauded the introduction of a more progressive tax system by taxing high-end property and luxury cars. The rich, once unperturbed by government policy, will now be watching closely to see how the government treats a section of the populace it once invited with open arms.
 
With an increased focus on ensuring no Singaporean gets left behind, government announcements and schemes are going back to the democratic socialist roots of the ruling party in its heyday. Inclusivity is becoming the lingua franca of the ruling party.
 
Finance minister Tharman Shanmugaratnam will be wise to watch his words.
 
Listen for the opposing viewpoints
 
Expect the opposing Workers' Party to chime in heavily with choruses of championing worker rights and those unable to cope with inflation once the Budget is up for debate after the announcement.
 
In a political climate where the rival party is on constant guard for its town council work, hawker centre management and public fair licensing, the political darts continue to be thrown both ways and this will continue in one of Singapore's biggest speeches come Friday.
 
In the private sphere, there is increased pressure from businesses for the government to continue defraying costs and provide support for businesses to retain talent and wean off cheap labour.
 
A big group to look out for would be the activists. Human rights groups such as MARUAH and AWARE will chime in with their thoughts if some of the proposed policies do not help other members of society.
 
Parents are also becoming an increasingly vocal community as they rally together in groups such as the Kiasuparents forum to ensure their children continue to receive affordable education.
 
Impaired by the "hard truth" tactic the government used pre-2011, the Budget will be a chance for the government to address these interest groups and factor in their viewpoints. A more calculated Budget would have everyone in mind.
 
Listen for a broader view
 
Analysts from OCBC expect the Budget to shift towards mid- to long-term issues, now that the labour market has tightened and median household income levels have risen despite criticism of such news from citizens.
 
This means elderly healthcare will continue to be pushed. Along with the Pioneer Generation scheme that seeks to help those who aided to build Singapore in its infancy, long-standing issues such as the hospital bed crunch and out-of-pocket specialist expenses are expected to be tackled.
 
An update on restructuring the economy is expected to be announced, after the government launched a well-received Productivity and Innovation Credit scheme that offers tax reliefs for businesses that invest in measures to boost productivity. While small local firms are expected to receive more aid, multinational corporations will look to see if Singapore is still as welcoming as before.
 
The government will also need to adopt a growing focus on other aspects of society who continue pushing for more support. In the arts and culture scene, there are growing calls to fund more local acts and push for greater, self-sustaining vibrancy. In science and technology, research and development efforts by local boards must continue to be sustained. In the startup scene, businesses will need more than just a couple of grants to grow innovatively and be productive.
 
The Budget is expected to be socially inclusive as the ruling party tries to get the 40 per cent of voters who voted against them in 2011 back in their good graces. Such is the pressure of a mid-term budget: one that is viewed with a stronger political undertone in mind.
 
Expected to be newly-involved in the Budget are the youth who will form the next electorate. The biggest move thus far to recognise this segment is reducing public transport fees for polytechnic students. Will university placements also be addressed? The political meaning of this move speaks louder than the economic angle.
 
Minister Tharman has a huge challenge on Friday as what he says between the lines will be closely watched. Cost of living, social inclusiveness, jobs -- these continue to be evergreen topics. If Tharman can speak with the listener in mind, it will bode well for the party behind him.
 
Let the political sparring begin.

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