Singapore Prime Minister Lawrence Wong gave his first National Day speech after taking office on Sunday (August 18th), with unemployment relief being a major highlight.

Wong said that Singapore will provide temporary unemployment assistance of up to SGD 6,000 (and $4560 USD) to unemployed workers for a period of six months.

For a government that has long opposed setting up an unemployment insurance program, this move is unprecedented. Singapore's former Prime Minister Lee Hsien Loong pointed out in 2020 that "the best unemployment insurance is actually to help employees find another job."

Wong said the government is willing to adopt new strategies, "losing a job is a major setback that can seriously undermine the stability of workers and their families, we must take some measures to alleviate the pressure on the affected."

In addition to unemployment benefits, the leader also announced measures such as training, increasing housing subsidies, and mandatory paternity leave. He had previously stated that these measures were intended to help Singaporeans cope with the wide-ranging changes and high costs of living in various industries.

"Campaigning" before the next election

The cost of living issue is becoming the most concerning issue for Singaporeans. Based on concerns about this issue, support for the ruling People's Action Party has also declined.

Although the People's Action Party won the vast majority of parliamentary seats in the previous election (89%), its support rate has still declined, recording its worst performance in history.

Currently, the 51-year-old leader is preparing to lead the People's Action Party in the next election, which is scheduled to be held before November 2025. Wong's latest National Day speech is his first important speech since taking office in May, and it is clear that he hopes to seek more support for the ruling People's Action Party before the national election.

It is worth mentioning that earlier this year, as Minister of Finance, Wong proposed a budget that includes SGD 5 billion for cash payments and tax breaks. By 2030, this number will reach nearly SGD 40 billion. He extended these plans in his Sunday speech.

In his speech on Sunday, Wong made the following points:

The government will launch the SkillsFuture Jobseeker Support program to help people who have lost their jobs due to company layoffs or bankruptcies by providing short-term financial assistance of up to SGD 6,000 within 6 months for low- and middle-income earners.；

Starting from April 1, 2025, paternity leave will become a mandatory vacation. The government will provide an additional six weeks of shared parenting leave, and one year later, the vacation time will be increased to ten weeks;

For Singaporean citizens aged 40 and above, the SkillsFuture Advance program will also be extended to students who take full-time courses and provide training subsidies of up to SGD 3,000 per month for up to 24 months;

From next year, single children who want to live close to their parents will be given priority when applying for pre-purchased public housing, making it easier to take care of their parents;

The elderly will have more housing options, and existing public housing will be more suitable for the elderly to live in. The government has recently issued a new round of neighborhood shopping vouchers, as well as subsidies for miscellaneous expenses and utilities, to reduce the burden on residents' lives;

Develop the "Kallang Alive Masterplan" to unleash the full potential of the Singapore Sports Hub and make the Kallang area more lively;

In addition, Wong also said in his speech that Singapore wants to create a friendly business environment and promised to reduce regulatory burdens to a minimum.

"For Wong, it's important to make sure people feel their concerns are being addressed and believe that he and his team can make better decisions for the country during these difficult times." said Nydia Ngiow, managing director of strategic business consulting firm BowerGroupAsia.

According to Eugene Tan, law professor at the Singapore Management University, the underlying message of the entire speech is that this is a society in which everyone can thrive... This was Huang Xinchai's first and only National Day rally before the general election, so the main purpose of this speech is to enhance the credibility of the People's Action Party government.

Huang Xinchai also quoted the words of Singapore's first prime minister, Lee Kuan Yew, in his speech, saying, "For survival, Singapore needs a government that is cautious but bold." Huang Xinchai said, "We have seen the situation of the middle class falling behind in other countries. Once the core of society cannot stand firmly, society will begin to fracture and collapse."

The Singapore government has narrowed its expectations for the outlook for external demand elasticity this month with regards to forecasting Gross Domestic Product. Singapore's economic growth is expected to be between 2% and 3% this year.