Cost of living — Topics

11 Jan 2022

Measures to Help Singaporeans Cope with Rising Inflation and Impact of Government's Fiscal Support for Businesses and Households on Inflation

The government has provided substantial fiscal support, including rebates for utilities, vouchers for groceries and transport, and income support schemes, to help Singaporeans cope with rising inflation, with emphasis on shielding lower-income households and seniors from cost pressures.
The planned GST increase from 7% to 9% remains part of long-term fiscal sustainability strategy, but the government will mitigate its impact through the $6 billion Assurance Package, delaying the effect by at least five years for most households and up to ten years for lower-income groups.
Officials attributed recent inflation primarily to global factors like energy and food prices, which are expected to be temporary, and emphasized structural measures such as wage growth, productivity support for businesses, and targeted assistance in Budget 2022 to address cost-of-living concerns.

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11 Jan 2022

Reasons for Recent Rise in Costs and Measures to Help Singaporeans Cope

The recent rise in inflation is driven by global factors such as higher energy and food prices, supply bottlenecks, and transport costs, alongside domestic factors like increased car and rental housing prices, with Singapore's CPI-All Items inflation reaching 3.8% in November 2021.
The government expects inflation to ease gradually over the year, with core inflation projected to average in the upper half of the 1% to 2% forecast range for 2022, and will continue to monitor trends and adjust policies as needed.
Measures to mitigate impact include maintaining economic competitiveness for wage growth, tightening monetary policy to strengthen the Singapore dollar, managing supply-side constraints, diversifying food sources, partnering retailers to keep prices affordable, and providing targeted assistance to lower-income households.

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10 Jan 2022

Factors for Higher-than-expected Inflation in 2021 and Possibility of Measures to Dampen Rise

Shawn Huang asked for the forward-looking indicators of inflation, the key contributors to the 2021 rise, the 2022 outlook, and the Ministry’s planned measures to dampen inflation.
Derrick Goh questioned whether the Government would revise its 2022 inflation projection following the 3.8% November 2021 figure and requested details on the new projection, direction, and drivers.
Gan Kim Yong indicated that the questions would be addressed in his upcoming reply during the next Sitting, referring to an earlier Official Report on cost increases and relief measures.

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10 Jan 2022

Mitigating Cumulative Impact of Inflationary Pressures from General and Specific Price Increases

Derrick Goh questioned the government on actions to mitigate the cumulative impact of inflation and rising borrowing costs on lower- and middle-income households and small businesses.
Lawrence Wong highlighted that household balance sheets are healthy due to prior measures, and prudential credit rules like the Total Debt Servicing Ratio help manage mortgage burdens.
For businesses, support includes the Temporary Bridging Loan Programme and MAS’s SGD Facility for Enterprise Singapore loans, offering fixed low-interest rates until March 2022.
The government is monitoring the situation to ensure continued credit access for businesses amidst inflationary pressures.

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3 Nov 2021

Impact to Food Prices in Next Six Months Given Supply Chain Disruption and Increase in Energy Costs

Minister Gan Kim Yong explained that food prices are influenced by imported prices, energy costs, freight, labour, and seasonal weather, and have risen due to global commodity price increases, higher energy prices, supply chain issues, and labour shortages.
He noted that food prices are expected to rise further in the coming months because of increasing energy costs, which may lead suppliers to adjust prices to cover these higher expenses.
The government will continue to support low-income households through ComCare assistance and grocery vouchers, while also diversifying import sources to maintain competitive prices and improve supply resilience.

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3 Nov 2021

Near- and Medium-term Outlook for Inflation in Singapore and Steps to Mitigate Sharp Rise

Singapore's near-term inflation is projected at around 2% for 2021 and averaging 1.5% to 2.5% in 2022, driven by higher global energy and food prices, supply bottlenecks, and domestic labour and rental cost pressures, while economic recovery remains on track with GDP growth expected between 6% and 7%.
The government is adopting a multi-pronged approach to mitigate inflation, including an appreciating Singapore dollar via monetary policy, managing supply-side constraints through business support schemes, diversifying food import sources, and providing direct assistance to lower- and middle-income households via vouchers and grants.
Additional pre-emptive measures involve monitoring retail prices through consumer tools like the CASE Price Kaki app, collaborating with cooperatives for price stability, and ensuring long-term trade facilitation through agreements like RCEP and CPTPP to maintain export competitiveness and manage cost pressures.

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2 Nov 2021

Proposal to Raise Singapore Allowance for Low-income Government Pensioners in View of Inflation

Mr Murali Pillai asked if the Singapore Allowance for low-income government pensioners will be raised to counter inflation.
The government noted the Singapore Allowance was last revised in 2019 and, after a recent review, was retained due to low inflation, with periodic reviews continuing.
Additional support for eligible pensioners includes GST vouchers, CDC vouchers, grocery vouchers, and service and conservancy charge rebates.
Pensioners meeting Pioneer or Merdeka Generation criteria also receive Medisave top-ups, outpatient subsidies, and MediShield Life premium support.

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2 Nov 2021

Impact of Global Supply Chain Disruptions on Economy, Prices and Business Operations

Global supply chain disruptions have led to higher costs for Singapore’s manufacturing and construction sectors, with rising prices for construction materials like steel and cement, and increased working capital needs for SMEs due to inventory buffers and payment terms.
Consumers face price increases for imported goods and food due to higher global commodity prices, freight charges, and port congestion, with measures like import diversification and the Price Kaki App to help compare prices and support low-income households.
The government is monitoring essential goods prices and acting against profiteering, while continuing to support SMEs through the Enterprise Financing Scheme and ComCare assistance for daily expenses.

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2 Nov 2021

Goods and Services Tax (Amendment) Bill

The Bill introduces GST on low-value goods imported via air or post and on imported non-digital services from 1 January 2023 to create a level playing field for local businesses and ensure tax fairness.
It updates the GST treatment for media sales based on the location of the contractual customer and beneficiary, effective from 1 January 2022, to reflect modern digital advertising practices.
Amendments also revise transitional rules for GST treatment changes and make miscellaneous updates to Overseas Vendor Registration and Reverse Charge regimes to prevent revenue risks and ease compliance.
MPs support the Bill to address tax leakage and support local retailers but express concerns about enforcement, impact on low-income households, and the broader effect of a potential GST hike amid inflation.
The Minister acknowledges public feedback and emphasizes that the changes are necessary to keep the GST system resilient and aligned with international standards.

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1 Nov 2021

Drivers for Inflation Over Next 24 Months and Impact on Singapore's Economy

Mr Desmond Choo asked about expected inflation, its drivers, and its impact on Singapore’s economy over the next 24 months.
Minister Gan Kim Yong projected CPI inflation at 1.5–2.5% in 2022, driven by higher global energy and food prices, supply bottlenecks, and rising domestic labour and housing costs.
Despite inflation, Singapore’s economic recovery is on track, with 2021 GDP growth expected between 6% and 7%, supported by outward-oriented sectors.

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1 Nov 2021

Support for Industry and Consumers Given Higher Electricity Prices and Recent Exit of Electricity Retailers

Several electricity retailers have exited the market due to global energy supply shocks and high wholesale prices, impacting about 9% of consumers, who will be transferred to SP Group or other retailers without disruption, and government measures are in place to secure energy supply and assist affected households.
The government is implementing pre-emptive measures to ensure energy resilience, including standby fuel facilities, enhanced fuel stockpiling, and diversification of energy sources like solar and low-carbon electricity imports, while maintaining sufficient generation capacity.
Regulatory safeguards for the Open Electricity Market are being strengthened, including reviewing licensing requirements and hedging strategies, to better protect consumers and ensure market viability amid volatility.
Targeted financial assistance, such as U-Save rebates and potential further support, will be provided to vulnerable households, while energy conservation and efficiency programs are promoted to help manage costs.
The government is exploring longer-term strategies to reduce reliance on imported natural gas, including increasing solar deployment, importing low-carbon electricity, and advancing technologies like hydrogen and energy storage.

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5 Oct 2021

Data on Consumer Price Index Changes by Income Groups

Chua Kheng Wee Louis asked if the Department of Statistics will track Consumer Price Index changes by different income groups.
Gan Kim Yong confirmed that the Department of Statistics already publishes this data for the lowest 20%, middle 60%, and highest 20% household income groups on a half-yearly basis.
The data is available on the Department of Statistics' website.

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5 Oct 2021

Mitigating Steep Rise in Electricity Prices for Households Despite Natural Gas Price Increases

The government acknowledged that rising global fuel prices will affect Singapore’s electricity costs but has mechanisms like multi-year gas contracts and fixed-price plans to cushion short-term spikes.
Support measures include providing GST Voucher–U-Save rebates and additional special payments to help eligible households manage utility expenses during the pandemic.
To promote energy efficiency, households are being equipped with smart meters, online resources, and e-vouchers to switch to energy-saving appliances, encouraging long-term conservation habits.

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4 Oct 2021

Assistance for Resource-constrained Families with Anticipated Rise in Cost for Essential Services and Food

The Minister outlined multiple layers of government support, including financial assistance for basic living expenses and subsidies for housing, healthcare, and education, alongside specific grants like the COVID-19 Recovery Grant for those affected by the pandemic.
The government is implementing initiatives such as expanded Progressive Wages, enhanced Local Qualifying Salary, and the Progressive Wage Mark to uplift lower-wage workers’ incomes, which are expected to improve their financial circumstances despite potential cost pass-through to consumers.
ComCare provides flexible assistance through Long-Term and Short-to-Medium-Term schemes, with eligibility criteria reviewed regularly to reflect changes in living costs and input from community stakeholders, with the next review scheduled for 2022.
The public is encouraged to help identify those in need by contacting the ComCare hotline or nearest Social Service Office for appropriate support.

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13 Sep 2021

Measures to Mitigate Overall Increase in Costs of Living on Wage Increments for Low-wage Workers

The Government employs a multi-pronged approach to manage cost of living pressures, including for low-wage workers, by keeping the economy competitive to create good jobs and sustain income growth through productivity schemes like the Productivity Solutions Grant.
It promotes competition in markets and diversifies supply sources, such as for food, to prevent sharp price increases and ensure competitive prices for Singaporeans.
The Government moderates business cost increases by managing domestic supply-side constraints, like ensuring adequate industrial and commercial space, to relieve price and rental pressures that affect consumers.
Assistance through ComCare continues to be provided to low-income and vulnerable Singaporeans to help with daily living expenses, while policies are monitored and adjusted as needed.

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26 Jul 2021

Rising Prices of Vegetables and Fresh Produce Imported from Malaysia

Minister Gan Kim Yong noted that while the CPI for leafy and fruit vegetables saw a minimal increase of under 1% in June 2021, likely due to Malaysia's Enhanced Movement Control Orders and seasonal weather affecting supply, Singapore has been diversifying import sources to stabilize prices.
The government provides support through ComCare assistance from Social Service Offices for low-income households to cover daily living expenses including food.
Additional one-off measures, such as the Budget 2020 Grocery Vouchers Scheme, have been introduced to help families manage household costs during economic uncertainty.

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6 Jul 2021

Possibility and Impact of Quickened Pace of Inflation in Singapore

Desmond Choo questioned whether Singapore would face a quickened pace of inflation and its potential economic impact over the next 12 months.
Gan Kim Yong stated that MTI expects inflation to average between 1% and 2% this year, citing moderate consumer price increases despite elevated global inflationary pressures from higher oil prices and inflation in major trading partners.
MTI noted that the projected inflation reflects normalising prices during an uncertain recovery and is not expected to adversely affect the Singapore economy, with the government continuing to monitor trends and assist Singaporeans with cost of living pressures.

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5 Jul 2021

Diversification of Supply of Vegetables into Singapore to Mitigate against Price Increases and Measures to Deter Illegal Imports

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11 May 2021

Keeping Grocery Prices Affordable for Singaporeans Given Rising Prices in Global Commodity Markets

The Minister explained that rising global food prices are due to strong demand, tight supply from adverse weather, and export restrictions, which impact Singapore as an open economy that imports most of its food.
The government has diversified food import sources from over 170 countries and maintained supply resilience during crises like COVID-19, helping keep prices competitive.
To support affordability, the government works with cooperatives like NTUC FairPrice on programs such as price freezes on essential house-brand items, and provides targeted financial assistance to low-income households through ComCare schemes.
The government remains committed to protecting essential food supplies and stabilizing prices but acknowledges ongoing volatility from global uncertainties like transportation delays and shipping shortages.

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11 May 2021

GST Vouchers' Offset of GST Paid by Lower-income Households

The GST Voucher scheme offsets an average of 84% of the annual GST paid by the bottom 20% of households through permanent measures like cash payouts and utilities rebates, with additional one-off payments in 2019 and 2020 further offsetting 33% of GST, resulting in a total offset exceeding the GST payable during those years.
The government is studying enhancements to the permanent GST Voucher scheme to increase the offset for lower and middle-income households, with details to be provided later, aiming to ensure these groups receive more benefits than the taxes they pay.
The GST Voucher scheme targets households with an assessable income below $28,000, which is significantly lower than the median monthly income, to focus support on lower-income groups while addressing broader inequality through a range of social measures.

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