Budget 2013 shows that Singapore Government is unwavering in its goal to restructure the economy and force businesses to look at achieving productivity gains as the only sustainable growth path.

This objective was set a few years back and since then, the yearly Budget statement has delivered that one consistent message – productivity is the only way to growth for the country and a better life for all. Kudos should go to the Government for the political will to take tough decisions, despite the predictable unpopularity of some of these measures.

It will be important for the Government to persevere in this journey. As other countries compete for ever more precious investment dollars, Singapore needs to make sure we can continue to attract businesses with the promise of a very productive workforce, an efficient Government and world-class infrastructure.

LISTENING TO THE GROUND

While not taking its eye off the economic ball, the Government recognises that it is important to listen to the ground. Although past Budgets have featured social transfers in one form or another, almost all were one-off measures.

Marking a shift in the Government’s long-held position, it has now progressively moved to institutionalising income redistribution into its spending programme, as evident in last year’s permanent GST Voucher scheme which was enhanced this year.

We have been successful economically since independence in 1965, and one of the foundation pillars of that growth was meritocracy. But as Finance Minister Tharman Shanmugaratnam admitted as much in his Budget speech, despite all good intentions, meritocracy alone cannot achieve social mobility and some form of help has to be given to the deserving in our society.

It is heartening to see the Government making a change and take the lead in recognising some of the issues that we face. A strong safety net should go a long way towards strengthening our social cohesion and assuring every one of us that while we have to work hard to achieve our individual goals, the Government will not let anyone be left behind.

Tan Tay Lek is a Partner at PricewaterhouseCoopers Services LLP.