Ms Indranee acknowledged that when the surplus was first announced, some had questioned whether the government had been too conservative. But much has changed in the world since the Budget statement was delivered, she said.
Economic uncertainty due to US tariff developments, and strikes by the US and Israel against Iran, with Iran’s retaliation, have “added to the overall climate of uncertainty”, she said, with potential knock-on effects on trade, investment, energy prices and the cost of living.
“As a small and open economy, Singapore will feel the knock-on impact keenly,ā said Ms Indranee.
Seen in that light, the surplus is “less about marksmanship and a whole lot more about assurance and quiet confidence”. “We have the ability to do more for Singaporeans with ballast and buffer against potential turbulence,” she said.
