The Editor’s Beat: Prudence is Our Best Insurance

With a staggering S$15.1 billion fiscal surplus for FY2025 – nearly double earlier estimates – it is tempting for Singaporeans to expect a fresh wave of “goodies”.

However, as Prime Minister Lawrence Wong noted during the Budget announcement on Feb 12, this windfall stems from a volatile mix of 5 per cent economic growth and higher corporate tax takings.

It is vital that we don’t allow today’s surplus to trap us into spending habits we can’t maintain tomorrow.

As MP Saktiandi Supaat rightly pointed out during the Budget debates, we cannot assume profit cycles will always remain in our favour. “It is therefore prudent that we channel today’s windfall towards strengthening resilience for tomorrow,” he noted.

Our experience during the pandemic serves as a stark reminder: we survived that crisis only because of the discipline exercised by previous leaders. We drew heavily from our coffers then; we must replenish them now.

In an era where smaller nations risk being bypassed, our surplus is not a prize – it is our shield against the next unknown disaster.

Ultimately, financial capital is only half the equation. With our Total Fertility Rate at a historic low, we must also invest in our human capital. No amount of fiscal surplus can offset a shrinking core.

To truly capitalise on our economic growth, we must move beyond the “surplus mindset” and focus on the foundations of our nation: our families.

A robust national coffer is only half the battle; its true value is realised only when there is a vibrant next generation to inherit it.