Cost of living

Jessica Tan Soon Neo raised concerns about rising electricity and gas tariffs affecting middle-income households and retirees living in private properties who do not qualify for existing support schemes. Dr. Tan See Leng responded that the tariff increase is due to higher fuel costs, and many households receive GST vouchers and U-Save to help offset utility bills. He noted that retirees aged 60 and above are eligible for SG60 vouchers worth $800, while those retired between 55 and 59 can receive $600. The Minister emphasized that there are various support schemes available and highlighted the need for energy conservation to sustain future assistance.

• Singapore's electricity tariffs are influenced by its heavy reliance on imported natural gas, which accounts for over 95% of its energy needs, leading to fluctuations based on global fuel costs.
• The electricity tariff saw a slight increase of 0.3% in Q4 2025, but overall, tariffs have decreased by about 9% since their peak in Q3 2022.
• The government is focusing on increasing the share of renewable energy, particularly solar, to mitigate exposure to fuel cost volatility, having already surpassed its 2025 solar deployment target.
• Despite efforts to transition to renewable energy, Singapore's small size limits its capacity for domestic renewable energy deployment, meaning natural gas will continue to play a significant role in the energy mix.
• The long-term impact of transitioning to low-carbon energy sources on electricity prices remains uncertain and will depend on the types and timing of new energy sources introduced.

Xie Yao Quan asked about the government's response to a study indicating that Singapore is the most expensive city in Asia for locals and expatriates and how it plans to help citizens cope with rising living costs. Gan Kim Yong clarified that Singapore ranked fourth for expatriates and 28th for residents in the study, with core inflation moderating to 0.3% year-on-year in August 2025. The government has implemented various measures to help households, including $800 in CDC vouchers and increased U-Save rebates for eligible HDB households. Additional long-term support has been offered in areas such as housing, healthcare, education, and employability to ensure assistance throughout all stages of life. The government will continue to monitor living costs and provide necessary support.

Saktiandi Supaat raised concerns about the impact of rising healthcare and living costs on retirement adequacy and sought policy refinements for CPF withdrawals and the Silver Support Scheme. Tan See Leng acknowledged the government's recognition of these concerns and highlighted efforts to strengthen the CPF system to ensure basic needs are met in old age. He emphasized the balance needed between withdrawal flexibility and ensuring sufficient retirement income, detailing existing support measures like the Majulah Package, enhanced Silver Support, and various schemes aimed at improving retirement adequacy for seniors. The government also provides additional support to address broader cost-of-living issues through specific assistance packages.

Shawn Loh questioned the Prime Minister on factors influencing the continuation of Government cost-of-living support amidst moderated inflation and persistent anxieties. Indranee Rajah explained that the Ministry of Finance assesses a range of factors, including inflation, economic conditions, and challenges faced by lower- and middle-income households when determining support. Loh highlighted concerns specifically from seniors and lower-income households and inquired about the Ministry's consideration of public sentiment in addition to data, as well as the potential for targeted support for vulnerable groups. Rajah affirmed that they do consider various demographics and specific needs when providing assistance, including targeted measures for certain groups, while emphasizing that support would be based on demonstrable needs.

Poh Li San questioned the Minister for Sustainability and the Environment regarding the anticipated impacts of the planned increase in carbon tax on emissions in Singapore, household utility costs, and whether the 2028 increase might be postponed or reduced due to rising business costs. Grace Fu Hai Yien referred to a previous written reply from September 2025 that addressed similar questions about the carbon tax and its implications.

• Edward Chia Bing Hui proposed allowing households with low utilities usage to use excess U-Save rebates to offset Service and Conservancy Charges (S&CC).
• Lawrence Wong responded that U-Save rebates are specifically for utilities expenses and can be rolled over indefinitely for future use.
• Wong noted that eligible households will receive a separate GST Voucher for S&CC, which will cover 1.5 to 3.5 months of charges in Financial Year 2025.

• The debate focused on the impact of global supply chain disruptions and rising rental costs on the prices of essential goods in Singapore.
• The government is working to ensure affordability by diversifying import sources and enforcing fair competition among businesses.
• Additional support measures, such as CDC vouchers and U-Save rebates, have been introduced to help households manage rising expenses.
• A pilot initiative for displaying unit prices in major supermarkets aims to help consumers compare prices and make informed purchasing decisions.
• Supermarkets are implementing various campaigns and discounts to keep essential item prices affordable for consumers, particularly for vulnerable groups.

• Denise Phua Lay Peng proposed considering the Anchor Operator partnership model from preschools for other sectors to help moderate living costs and enhance supply chain security.
• Gan Kim Yong responded that the Anchor Operator scheme is not suitable for food and essential item suppliers due to global market influences and the risk of distorting market prices.
• The government prioritizes diversifying import sources and promoting free market competition to ensure competitive pricing and consumer choice.
• To address cost of living challenges, the government has introduced financial support measures, including vouchers and utility subsidies for households.
• Initiatives by social enterprises, like FairPrice Group's price control and discounts, aim to help consumers manage living costs effectively.

Yip Hon Weng asked about the possibility of extending the GST Voucher scheme to assist more middle-income households due to rising living costs, reviewing the income threshold for GST assistance, and providing more support for families with children under the qualifying income threshold. Shawn Huang Wei Zhong responded that the GST Voucher scheme supports lower- and middle-income households, with ongoing reviews of the income threshold. The government has introduced Cost-of-Living measures, including additional CDC Vouchers and U-Save for HDB households, alongside $500 Child LifeSG Credits for children under 12 and top-ups for Edusave accounts. Structural enhancements are being made to support families, such as reduced childcare fees and new childcare places, along with the Large Families Scheme that offers annual credits for families with multiple children.

Hazel Poa raised a question regarding whether the Department of Statistics accounts for shrinkflation in the Consumer Price Index (CPI) due to variations in goods' sizes and weights. Gan Kim Yong confirmed that the Department of Statistics adjusts for changes in quantities or packaging sizes during CPI compilation. This adjustment is made using a fixed unit of measurement, such as a per 100g basis, to reflect equivalent price changes accurately in the CPI.

Yip Hon Weng asked how the Monetary Authority of Singapore (MAS) assesses the impact of a more gradual appreciation of the Singapore dollar on import prices and what measures are in place to support consumers. Gan Kim Yong responded that inflation has decreased since its peak in 2022-2023, with core inflation below 2% as of November 2024 and projected to ease further in 2025. The MAS expects imported cost pressures to remain contained due to favorable supply conditions and declining global oil prices. The Government is actively addressing cost-of-living pressures through diversifying supply sources and increasing support for Singaporeans, particularly in the upcoming Budget 2025.

• The decline in global food commodity prices may not lead to immediate decreases in Singapore's food prices due to various domestic factors affecting costs.
• Domestic food prices are influenced by energy, freight, storage, and labor costs, which can delay the impact of global price changes.
• Although food inflation has moderated significantly, it is expected to continue decreasing over the long term as global prices stabilize.
• The Singapore government is actively monitoring food inflation and has introduced measures, such as additional vouchers, to support households facing higher food costs.

• The Budget 2025 debate highlighted significant government initiatives aimed at addressing the rising cost of living, with various vouchers and support schemes introduced to assist families, particularly those with children and seniors.
• Concerns were raised about the effectiveness of these measures, with some parliamentarians arguing that ad hoc financial assistance does not address the structural economic issues facing Singaporeans, such as stagnant wages and high living costs.
• The debate also focused on the need for long-term strategies to enhance job security and economic resilience, particularly in light of technological disruptions and an ageing population.
• Several speakers emphasized the importance of fiscal prudence and questioned the necessity of recent tax increases, given the government's projected budget surpluses.
• There was a call for a more inclusive approach to policy-making, with suggestions for better tracking of social outcomes and the establishment of a dashboard to measure the effectiveness of government initiatives in improving the quality of life for all Singaporeans.

• The Prime Minister presented the Annual Budget Statement for the financial year 2025, emphasizing Singapore's resilience and progress over the past 60 years since independence.
• The budget aims to address rising costs for individuals and businesses, with measures including CDC vouchers, utility rebates, and enhanced support for lower-income households and families with children.
• Economic growth is projected to moderate, with a focus on advancing technology, innovation, and infrastructure to maintain competitiveness in a changing global landscape.
• The budget includes significant investments in clean energy, climate resilience, and social support systems, particularly for seniors, families, and persons with disabilities.
• The government aims to foster unity and inclusivity among Singaporeans, with initiatives to strengthen community bonds and support for various social causes.