"The current global environment is not, however, just a temporary challenge," said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam in his budget speech.
"We may see prolonged, sluggish growth in the advanced world, as well as continued consolidation in China's growth as it reforms and rebalances its economy," he said.
Read More Singapore more than triples earlier Q4 growth print
Singapore expects its economy to grow between 2 to 4 percent in 2015,compared with 2.9 percent in 2014.
The budget for fiscal 2015/2016 in effect increases forced savings for retirement by raising the ceiling on how much of a citizen's or permanent resident's income is subject to deductions for the state provident fund to S$6,000 ($4,406) a month from January 2016, from S$5,000. Also, the pension scheme will pay higher interest rates for older workers.
It also extended a wage credit scheme, which subsidies wage increases for lower-salaried workers.
Tharman said development expenditure will increase to about S$20 billion or 4.8 percent of gross domestic product in the coming fiscal year and grow further to about S$30 billion or 6 percent of GDP by the end of the decade.
Read MoreSingapore's jubilee budget: What to expect
The investments include a new terminal at Changi Airport and development of Tuas seaport.