On 17 Aug 2025, Prime Minister Lawrence Wong delivered his second National Day Rally speech at the Institute of Technical Education Headquarters in Ang Mo Kio.
So, what can you expect?
These are the key takeaways from the speech.
Trade Challenges and Economic Response
PM Wong addressed the US Liberation Day tariffs, which impose a 10% tariff on Singapore. He noted that more trade barriers are likely to emerge globally, and that Singapore’s small, open economy will be affected.
Singapore has convened the Singapore Economic Resilience Taskforce (SERT), chaired by Deputy Prime Minister Gan Kim Yong (yes, the ‘Task Force Man’). The taskforce will review and update the country’s economic strategies.
The government’s priority remains jobs-focused: helping Singaporeans seize opportunities, enhancing job-matching services, and bringing more career fairs to tertiary institutions.
Government-Funded Traineeship Programme
Are you a student? Here’s some good news for you: A new traineeship programme will launch for Institute of Technical Education, polytechnic and university graduates. The government will fund this initiative to help address job-hunting challenges amid current economic uncertainties.
The initiative, led by the Singapore Economic Resilience Taskforce (SERT), is intended to provide young people with real-world work experience while receiving allowances.
During the pandemic, a similar co-funded programme helped keep graduates’ skills sharp while preparing for economic recovery. Now, with fresh government support, companies can offer even more training opportunities.
If the economy worsens, the programme will scale up.
Job Matching by Community Development Councils
Community Development Councils will lead a new job-matching initiative at the town level. By leveraging their strong networks with local merchants, SMEs, and community partners, they are well-positioned to match job seekers with suitable opportunities.
This approach particularly benefits those who prefer working closer to home (close to home ah, not work from home!). More details about this initiative will be shared soon.
SkillsFuture Level-Up Enhancements
Introduced in 2024, the SkillsFuture Level-Up Programme helps Singaporeans aged 40 and above refresh their skills. Participants receive $4,000 in SkillsFuture credits, along with training allowances of up to $3,000 per month for up to 24 months if they take time off work for full-time study.
The government will also make two enhancements. First, part of the training allowances can now be claimed for part-time courses. Second, course offerings will expand beyond institutes of higher learning to include high-quality courses from industry leaders and private training providers.
Artificial Intelligence for Economic Growth
PM Wong acknowledged that the world is entering a new era driven by Artificial Intelligence, which continues to advance rapidly.
Singapore aims to leverage AI as a ‘game changer’ to boost productivity and create new value across the economy. The government will equip enterprises, especially SMEs, to adopt AI effectively and stay competitive.
In partnership with unions, the government will help redesign jobs and train workers for emerging roles. For example, NTUC’s Company Training Committee initiative allows unions and management to collaborate on AI adoption, job redesign, and worker training.
Teachers are encouraged to use AI creatively to enhance learning outcomes and help students become responsible, discerning technology users.
PM Wong assured that embracing AI will not compromise Singapore’s key priorities: the government will continue to place Singapore at the centre and adopt new technology thoughtfully.
Age Well Neighbourhoods for Senior Support
The government will launch Age Well Neighbourhoods, starting with Toa Payoh and one or two other HDB towns with higher elderly populations. These neighbourhoods borrow key elements from Community Care Apartments, which combine housing with care arrangements for seniors.
Seniors will have easier access to active ageing centres, and home-based services such as simple home repairs and basic health checks will expand. Dedicated care staff will visit regularly and act as first responders during emergencies.
Healthcare services will be brought closer to seniors so they can age in place with dignity and purpose.
More Community Care Apartments will also be built across HDB towns in the coming years.
Stricter Vaping Penalties
The government will “take much tougher actions against vaping”, which PM Wong identified as a “serious concern”.
Vaping will now be treated like a drug issue, with much harsher penalties. Those caught selling vapes containing harmful substances could face jail or other severe punishments. People addicted to vapes will receive supervision and rehabilitation to help them quit successfully.
Online Safety for Children
The government is looking for ways to help parents improve online safety for children, drawing on lessons from countries that have introduced laws limiting internet and social media access for minors.
More allied educators and teacher-counsellors are being deployed in schools, with greater emphasis on Character and Citizenship Education.
Singapore College of Islamic Studies Campus
The new Singapore College of Islamic Studies will have its own campus next to the Singapore University of Social Sciences in Rochor. Each institution will occupy a separate building, highlighting their distinct identities and purposes.
Northern Singapore Development Plan
The government will rejuvenate northern Singapore, focusing on Woodlands, Kranji, and Sembawang.
In Woodlands, the checkpoint will be redeveloped to be five times larger. The Johor Bahru–Singapore Rapid Transit System (RTS) Link is expected to open by the end of next year, and around 4,000 HDB units will be built.
Kranji will become a new public housing estate, accommodating up to 14,000 homes.
Sembawang and Sembawang Shipyard will feature new community spaces for gatherings with family and friends.
