Ms Grace Fu, Minister in the Prime Minister's Office, has praised this year's Budget for being a very "far-sighted" one that addresses long-term issues.

For example, the 1 percentage point increase in Central Provident Fund (CPF) all round and 2.5 percentage point increase for those aged 50 to 55 addresses the issue of longer working life and longer life expectancy, she said.

"(The Budget) is getting us ready for the future...not just on the personal and social side, but also on the businesses side," she said on Saturday.

Speaking to reporters at an exhibition about electronic waste, Ms Fu said that the schemes that were announced on Friday allow Singapore "to think about how we want our businesses to be organised, and what kind of businesses and what kind of jobs we would like for the future".

Ms Fu, who is also Second Minister for the Environment and Water Resources, and Foreign Affairs, said that she understands that some small and medium-sized enterprises may find the higher CPF contributions an additional cost that they have to worry about.

But she is confident that employers will be able to find a sustainable level of wages that takes it into consideration, as the labour supply tightens and wages adjust themselves. "I'm sure that they will find a sustainable level...and hopefully there's good growth for our people as well," she said.