Singapore to fork out billions for Changi airport upgrades, BA

Singapore is set to invest an additional SGD 3.7 billion in upgrades at Changi airport, including the construction of a fifth terminal, in a bid to maintain its position as a top global aviation hub. Prime Minister Lawrence Wong made the announcement while presenting the city-state’s 2025 budget, which also includes various cash incentives for locals in anticipation of upcoming elections.

In his dual role as finance minister, Wong revealed that part of the funds will be allocated to the construction of the fifth terminal at Changi airport, which welcomed around 67.7 million passengers last year.

“Once completed, Terminal 5 will increase our airport’s capacity by over 50 percent, ensuring that Singapore remains a crucial gateway for global travel and trade,” he stated.

The additional SGD 3.7 billion injected into the Changi Airport Development Fund will guarantee ample resources for the development of the air hub, according to Wong. The construction of Terminal 5, initially proposed in 2013, is expected to commence later this year after pandemic-related delays.

The new terminal is projected to be operational by the mid-2030s. Despite facing competition from other airports like Doha and Seoul, Singapore’s Changi has consistently ranked among the best airports globally. With over 100 airlines operating from the airport, Changi is one of the largest transit hubs in Asia. The government had previously allocated SGD 3 billion to its airport development fund in 2015, followed by SGD 1 billion in 2016, and SGD 2 billion in 2023, as reported by local media.

In his first budget speech as prime minister, Wong announced various government handouts aimed at helping citizens manage high living costs and enhance job skills. These initiatives include distributing SGD 800 worth of vouchers to every Singaporean household starting from May, as part of regular state disbursements.

These budget proposals come ahead of the upcoming general elections, which must be held before November. The ruling People’s Action Party (PAP), in power since 1959, is expected to face a tough challenge from a growing opposition that made significant gains in the 2020 polls, winning 10 seats. Wong also disclosed plans to allocate an additional SGD 5 billion to a coastal and flood protection fund, as well as another SGD 5 billion to support clean energy initiatives.

Singapore is exploring the potential of nuclear energy and will take steps to enhance capabilities in this area, the prime minister added.