SINGAPORE — Singapore's economy grew four per cent in 2024, exceeding expectations, while median income has risen by 2.2 per cent per annum above inflation over the past decade.

Unlike in many developed countries, Singapore is not plagued by unemployment and stagnant wages. Most workers have received wage increases that outpace inflation, making them better off in real terms, said Prime Minister Lawrence Wong, who expects real incomes to rise further.

In his first New Year message on Dec 31 as prime minister, he said the collective effort of Team Singapore made all the difference — be it overcoming crises, supporting one another in times of need, or striving for excellence on the global stage.

This Team Singapore spirit must be carried into 2025 and beyond, said PM Wong, adding that he will set out the next steps of Forward Singapore in Budget 2025. The Budget speech will be delivered in Parliament on Feb 18.

Through Forward Singapore, policies will be revised, attitudes and mindsets reset, and the Singapore Dream refreshed.

"We will build a fairer and more inclusive society, where everyone is assured of opportunities to succeed, regardless of their starting points in life; where every one of us can realise our dreams, and live with dignity, security and hope for a brighter future," PM Wong said.

Rising geopolitical tensions, extreme weather events and natural disasters, and global inflation meant 2024 had been another eventful and turbulent year, he said. However, the Republic had tackled all challenges as Team Singapore, and distinguished itself amid turmoil and uncertainties.

"We remain a beacon of safety, security and stability in a troubled world.

"Our students continue to excel and learn, our businesses innovate and expand, and our workers adapt and embrace new opportunities in an ever-changing landscape," said PM Wong.

"This is just the beginning. We will do more," he said. "We will sharpen our economic competitiveness, to create exciting opportunities and good jobs for Singaporeans."

There will also be efforts to cushion the impact of the increase in cost of living, with more targeted help for those who find it harder to cope, especially older people and the lower-income groups.

Other segments will not be neglected, including the middle-income and middle-aged, who are caring for both elderly parents and young children, he said.

"Every citizen has a role and place in our society. No one will be left behind, because we are all in this together."

Singapore has taken major steps towards these goals, he added.

For example, housing policies have been updated to make Housing Board flats more affordable. The Majulah Package has enhanced retirement adequacy, especially for those in their 50s and early 60s. New programmes like Healthier SG and Age Well SG are providing seniors with better support.

Singapore is also reforming its approach towards education and investing heavily in SkillsFuture to help every Singaporean, including mature workers, develop to their full potential.

He noted that the Government did not get everything right in the first instance.

"But as always, we were upfront with Singaporeans when we fell short and could have done better. We learnt from our setbacks, pursued improvements, and continued to give our best to serve all Singaporeans," he said. "That is how we have consistently overcome obstacles — with solidarity and unity."

Singapore's tripartite partnership lies at the core of this solidarity, PM Wong said, with the Government, employers and unions working hand in hand to resolve issues and devise solutions to benefit all Singaporeans.

"We focus on advancing our shared goals, putting the collective good ahead of individual interests. This partnership is the foundation of our resilience and strength."

Citing the aviation sector as an example, he said air travel was decimated during the Covid-19 pandemic, which put many jobs at risk.

While the Government provided financial support to sustain critical capabilities and upgrade facilities, companies like the Changi Airport Group, Singapore Airlines Group and Sats used the downtime to reskill and upgrade their workforce. Unions supported the measures, and workers showed great resilience in adapting to the changes.

Today, Changi Airport is thriving, with strong growth momentum driving its recovery. Passenger traffic is almost back to pre-pandemic levels, and is expected to increase further in 2025.

Singapore's aviation workforce has surpassed pre-Covid-19 numbers, its air hub is stronger than before and, in a few months' time, it will break ground for the new Terminal 5 at Changi Airport, he added.

The nation has also tackled the pressures of cost of living together, with the Government implementing a full suite of measures including cash support, CDC vouchers and utilities rebates to mitigate the impact of inflation.

Community groups chipped in with ground-up initiatives, such as food distribution and grocery assistance programmes, and many companies helped out as well, supporting vulnerable groups in different ways.

Singapore's spirit of teamwork also shone brightly at the 2024 Summer Olympics and Paralympics.

PM Wong noted how Singapore cheered when kitefoiler Maximilian Maeder became the youngest Singaporean to win an Olympic medal, and Paralympian swimmer Yip Pin Xiu secured her seventh gold.

Their achievements, and those of their fellow athletes and para-athletes, were the result of the hard work of an entire community — coaches, sports scientists and administrators — as well as the unwavering support of family members, he said.

These examples highlight the importance of working together and closing ranks in the face of challenges.

"We must carry this Team Singapore spirit into 2025 and beyond," he said. "That was why we embarked on the Forward Singapore exercise — to renew our social compact and strengthen our solidarity, so we can navigate uncertainties confidently as one united people."

With 2025 marking the 60th anniversary of Singapore's independence, PM Wong said it is an opportunity to envision how Singaporeans can shape their future together.

"While there is occasion to celebrate, this milestone is really a time for reflection — on our shared values, who we are, and what we stand for."

The journey ahead will not be short of challenges, but Singapore has never allowed itself to be browbeaten or discouraged, he said.

He noted how, like the older generations, younger Singaporeans, too, showed resilience and fighting spirit during the pandemic. With the commitment of their teachers and support from their parents, they adapted to the Covid-19 measures, took them in their stride and continued to thrive.

PM Wong said that each time he meets and engages with old and young Singaporeans, he feels reassured and confident about Singapore's future.

"We know deep in our bones that Singapore was built against the odds," he said. "Together, we turned what seemed impossible into reality. We sustained this miracle through faith in our fellow citizens and our shared purpose."

He added: "Every generation has done its part, strived for excellence, and made their tomorrow better than today. Now it is our turn to blaze a bold path forward."

PM Wong wished all Singaporeans a very happy New Year.

This article was first published in The Straits Times. Permission required for reproduction.