Here is a summary of what is happening in Singapore:
1) Singapore government.s revenue is lower than expected
2) The government is tapping from its reserve to fund the government spending
3) The government will have to find ways to fund the spending sustainably, such as higher tax and more effective spending.
The action taken by the Singapore government is quite surprising as Singapore might be the only country that still emphasizes a fiscal surplus when every nation is printing tonnes of money to solve their debt problem and stimulate their economy.
As a result, the Singapore Dollar (SGD) will be a strong currency that will attract many investors to flock in to park their money. This is beneficial to the real estate, finance, and insurance industries. However, the strengthening currency will also create a devastating effect on the tourism and manufacturing industries. Both industries employ way more workers than the three benefited industries combined.
The changes in currency strength and industries that are thriving will lead to an effect where Singapore economic complexity will reduce in the next 10 years, Singapore Dollar will continue to strengthen and government spending on social welfare will increase.
Here is our opinion on how you could prepare yourself for this macro trend:
If you are an investor, Singapore's assets will be getting more attractive for years to come by
If you are not working in the three industries as per mentioned above, there are slim chances your company will survive in the next 10 years. We are seeing even Keppel Corp, Singapore largest ship and offshore rig fabrication company, is thinking to dispose of its marine and offshore arm.
If you are thinking you could earn 3x higher salary than your peers by working in Singapore, it is getting harder for a foreigner to get a work pass in Singapore.
In short, Singapore is no longer a nation full of growth opportunities. When there is a lack of growth opportunities, the level of wealth in society remains constant and someone gains will be someone loss. Hence, it's highly unlikely for the Millennial generation to experience the exponential wealth creation that Singapore had experienced in the past 50 years.