President Tharman lauds PAP Govt’s budget; RP’s Jeyaretnam questions his impartiality

SINGAPORE: Mr Kenneth Jeyaretnam, Secretary-General of the Reform Party, criticized President Tharman Shanmugaratnam’s recent remarks, alleging that he is leveraging his position to endorse the People’s Action Party (PAP) amidst speculation of an early election this year.

Mr Jeyaretnam underscored the expectation that as President, Tharman should remain impartial and above political affiliations. He also reiterated concerns regarding the opacity surrounding Singapore’s reserves.

Last Friday (22 March), in a Facebook video President Tharman announced his approval of the government’s spending plans for the coming financial year, which begins on 1 April.

Tharman emphasized Singapore’s distinctive approach to budgeting, noting the nation’s proactive measures to ensure financial sustainability and prudent spending practices.

He emphasized Singapore’s avoidance of what he termed as “magical thinking,” a practice prevalent in many countries.

Tharman noted the challenges posed by ageing populations and the imperative to address climate change, suggesting that most countries would need to increase spending in the years ahead.

“We have avoided what many countries are doing: Which is to spend first, borrow so they can finance the spending, let government debts rise to unsustainable levels, and hope that revenues will somehow spring up to pay for it later,” Mr Tharman said.

“Magical thinking always ends up unhappily.”

Mr. Tharman emphasized that the next generation faces a “raw deal” when governments inevitably confront economic realities.

This can lead to cuts in government spending, deterioration of critical public facilities, or significant increases in taxes, all of which he deemed inherently unfair and contrary to the principles established in Singapore’s constitutional framework.

“That’s simply unfair, and something that our whole system of rules in the Constitution is set up to avoid,” he added.

He further explained that he and the Council of Presidential Advisers scrutinized the financial sustainability of the plans presented by Deputy Prime Minister Lawrence Wong and the Finance Ministry (MOF).

“It is how we ensure that we never have to draw down our reserves, except when exceptional crises hit Singapore,” the President said.

“And that we remain fair, to today’s generation and to our grandchildren’s generation. And their grandchildren too.”

However, Mr Jeyaretnam suggested a perception of bias towards PAP, implying that Mr Tharman utilized his position as President to advocate for the party’s interests during a sensitive political period.

Mr Jeyaretnam further criticized the government, accusing it of subjecting Singaporeans to “endure unnecessary austerity and artificially high land prices in order to produce a vast and growing surplus that is never spent.”

He highlighted declining birth rates among Singaporeans and questioned the beneficiaries of this surplus. Additionally, he questioned Prime Minister Lee Hsien Loong and Finance Minister Lawrence Wong’s reluctance to provide transparency regarding the reserves.

DPM Wong hands out goodies in Budget 2024 amidst early GE speculation

On 16 February,  Deputy Prime Minister and Finance Minister Lawrence Wong announced Singapore’s 2024 Budget in Parliament.

DPM Wong emphasized that this year’s budget addresses immediate concerns related to the cost of living for both households and businesses.

Simultaneously, the budget outlines strategies to enhance economic competitiveness, offer support to young families, and ensure the relevance of the workforce.

While reassuring the government’s dedication to providing increased support to households, it is challenging for Singaporeans not to view this year’s Budget announcement through the lens of an “Election Budget.”

Speculation about an early poll in 2024 adds a layer of significance to the budgetary decisions made.

On 20 August 2023, PM Lee revealed intentions to step down in favour of Deputy Prime Minister Lawrence Wong, potentially around the PAP’s 70th anniversary on 21 November 2024, although an exact timeline was not disclosed.

Previously expressing his wish “to step down before his 70th birthday in February 2022,” the unexpected challenges of the pandemic disrupted Lee’s plans.

Despite the absence of a clear timeline, PM Lee’s announcement suggests a likelihood of the General Election occurring next year, possibly before the party’s anniversary in November.

In response to the PAP’s dominant 2/3 majority in Parliament, Singapore’s political landscape has witnessed increased manoeuvring,  intensifying grassroots outreach efforts, and witnessing alternative parties forming political alliances — both formal and informal — to contest in the upcoming GE.