Please enable JavaScript.
Coggle requires JavaScript to display documents.
2021 Budget - Coggle Diagram
2021 Budget
National Reserves
Buffer against shocks and attacks on financial system
Bulwark against extraordinary crises
COVID-19 Assistance Fund
S$42.7 billion drawn down from past reserves in 2020
Total reserves used were equivalent to 2 decades worth of past financial surpluses
Stabilise the economy to avoid a sharp downturn (Short-Term)
Focused on helping the lowest income households
Workface Income Supplement
COVID-19 Support Grant
Top - ups to earnings and CPF
Focused on supporting companies to keep unemployment low
Tax deductions for profitable companies to encourage them to hire retrenched workers
Aid businesses with cash flows
Investing in structural policies for transformation (Long-Term)
Transformation geared towards enabling economic growth in a post-pandemic situation, making good on the drawn reserves
Encourage firms to restructure and train their workers during the downtime
Net Investments Returns Contributions (NIRC) offsets some of the reserves' drawndown
S$11 billion catered towards individuals and businesses in 2021 (2.2% of SGP's GDP)
Concerns on sustainability given contraction of Singapore's economy by 5.4% in 2020
Endowment Fund
Defence
S$13.63 billion in 2020 to S$15.36 billion in 2021 (12.7% increase)
Increase in spending is partly offset by the reduced spending (of S$1.5 billion) in FY2020 due to delays in projects
Big Ticket Items
SAFTI City (TBC in 2024)
State of the Art military training facility
Incorporation of smart technologies such as targets that are able to 'shoot back' at training troops and simulated battlefield effects like the use of smoke and loud sounds
Real- time actions of training troops can also be collected and processed by a data analytics system to provide feedback and aid in improving performance
Buildings which resemble a hotel, hospital and shopping centre and road networks that are configurable, to provide realistic and challenging scenarios for SAF troops
Focus on operations in built up areas as the chances of SAF fighting in jungle operations have diminished considerably
E.g Marawi conflict in Philippines in 2017, where terrorist snipers inflicted casualties on security troops and hampered efforts to take back the city
Invincible Class Submarines (TBC in mid 2022)
HQ Sense & Strike
Existing Regional Security Situation
US - China Tensions over the SCS is indicative of the mounting security tensions in the region
New Security challenges
Cyber-defence
Terrorism
Considerations for a high defence budget
Vulnerability that Singapore perceives as a small city-state
Economic success, which affords Singapore the resources to do so
Other potential areas of spending
Non-traditional Security Threats (E.g Climate change, Maritime Security, Counterterrorism, HADR)
CLIMATE CHANGE: Singapore can invest in multilateral capabilities to address the adverse effects of climate change - extreme weather, water wars, disruption of supply chains and essential goods, diseases, and forced migration
HADR: SAF created the Changi Regional Humanitarian Assistance and Disaster Relief Coordination Centre in 2014 to monitor and better coordinate multilateral military responses with the ASEAN Coordinating Centre for Humanitarian Assistance on Disaster Management (AHA Centre) and the UN Office for the Coordination of Humanitarain Affairs for HADR Operations