SINGAPORE: In a recent video, Prime Minister Lawrence Wong emphasised the government’s commitment to tackle the rising cost of living, which has become a pressing issue for many Singaporeans. “I know that for many Singaporeans, the biggest concern is the cost of living and understandably so. Prices have gone up, and it is tough for many families,” he stated.
Beyond the Goods and Services Tax
While some have linked the recent increase in the Goods and Services Tax (GST) from 7% to 9% to the rise in living expenses, PM Wong clarified that the current challenges extend far beyond just this tax hike. He noted that global inflation, spurred by conflicts and supply chain disruptions, has affected economies worldwide, including Singapore’s, which relies heavily on imports.
Government Support Measures
- SG60 package: $600 vouchers for Singaporeans aged 21 to 59 in 2025.
- Seniors aged 60 and above: Will receive $800.
- All households: $800 in CDC vouchers, with $500 disbursed in May 2024 and $300 in January 2026.
“We will keep doing what is necessary to help Singaporeans through these difficult times and for as long as it is needed,” said PM Wong.
The Assurance Package
The Assurance Package, designed to mitigate the impact of the GST increase, was first introduced in the 2020 Budget. Initially set at $6 billion, it has been enhanced over the years to exceed $10 billion, offering cash payouts, MediSave top-ups, and rebates for service and conservancy charges.
Looking Ahead
As Singapore navigates these economic challenges, PM Wong reiterated the government’s responsibility to ensure adequate resources for ongoing support, especially for the burgeoning elderly population. He remarked, “This is who we are as Singaporeans: We look out for one another, we overcome challenges together…”