Govt will help S’poreans cope with cost pressures for as long as needed: PM Wong
(Photo credit: ST File)
Source: The Straits Times
Every bit of support to address the cost of living counts, and the Government will keep doing what is necessary to help Singaporeans for as long as needed, said Prime Minister Lawrence Wong on March 3.
In a video uploaded to his social media accounts, PM Wong acknowledged that the cost of living is the biggest concern for many Singaporeans, and understandably so.
“Prices have gone up, and it is tough for many families. You feel it when you buy groceries, pay your bills and manage your daily expenses,” he said.
PM Wong noted that the Government provided additional measures in the 2025 Budget to further ease cost pressures. These include a special SG60 package that gives $600 in vouchers to all Singaporeans aged between 21 and 59 in 2025. Seniors aged 60 and above will get $800.
Among other measures, all households will receive $800 in CDC vouchers, with $500 to be disbursed in May, and the remaining $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,” PM Wong said.
He added that some have wondered if the increase in the goods and services tax (GST) made the cost of living situation worse. The GST rate was raised from 7 per cent to 9 per cent in two stages, in 2023 and 2024.
“But let’s be honest, the reality is that what we are facing goes far beyond the GST,” said PM Wong, who is also Finance Minister.
Around the world, inflation has surged because of wars and supply chain disruptions, he noted, adding that no country has been spared.
Singapore feels the same pressures, too, especially as a small and open economy that imports almost everything it consumes, he said.
He noted that at the start of the decade, the Republic faced great uncertainty battling Covid-19, with unknowns about its duration, mutations and future infection waves.
The nation’s finances were stretched, and the Government had to seek the President’s approval to draw on past reserves five times. It drew more than $40 billion for the Covid-19 crisis.
“We were not sure if we would have enough resources to recover from Covid-19, create jobs for our people, and look after our seniors. We did not know how deep a fiscal hole we would end up with,” PM Wong said.
He added that healthcare spending is rising year after year, and would keep increasing because of Singapore’s rapidly ageing population.
Raising the GST was not an easy decision, but the Government felt it was a necessary and responsible step, he said. That is why it proceeded with the increase once the economy showed signs of stabilising.
However, the Government rolled out the Assurance Package along with the tax increase to effectively delay the impact of the GST hike for the vast majority of Singaporeans, PM Wong said. He added that this package has been enhanced over the years to further cushion the impact of rising costs.
The Assurance Package, first announced in the 2020 Budget, initially provided $6 billion to cushion the impact of the GST increase for Singaporeans.
After several enhancements, it now provides more than $10 billion in cash payouts, MediSave top-ups and CDC vouchers, as well as additional U-Save and service and conservancy charges rebates to households here.
“We know that every bit of support matters and we will always stand with you,” PM Wong said.
He stressed that the Government will make sure it has the resources to tackle the challenges ahead. These include taking better care of seniors and gearing up for a world that is becoming more dangerous, turbulent and unpredictable.
“This is who we are as Singaporeans: We look out for one another, we overcome challenges together, and we do everything we can to keep our Singapore miracle going, generation after generation,” he said.