Cost of living

• Ms. Carrie Tan proposed the idea of utilizing neighbourhood shops and minimarts as social enterprises to provide essential services and subsidized groceries to families in need.
• The Ministry for Social and Family Development acknowledged existing community initiatives that support similar goals, including partnerships with local merchants to deliver meals and supplies at lower prices.
• The Ministry highlighted its own programs, such as the Meals-on-Wheels service and vendor appointments for Long-Term Assistance clients, to ensure they receive necessary supplies.
• There is an emphasis on community collaboration as part of a broader social compact to support those who are financially challenged and mobility-compromised.

Gerald Giam Yean Song questioned the Minister for Manpower about the $140,000 CPF contribution threshold for the Silver Support Scheme, asking if it had been reviewed in light of inflation, what indicators guide adjustments, and if a systematic review process would be established. Tan See Leng responded that the Silver Support Scheme targets seniors with lower incomes and limited support, with periodic reviews considering inflation and sustainability. Starting January 2025, the qualifying per capita household income threshold will increase to $2,300, and quarterly payments will rise by 20%. The government has also introduced additional measures to assist Singaporeans with cost-of-living concerns, including an Assurance Package exceeding $10 billion.

• Mr. Gan Thiam Poh raised concerns about the adequacy of current government assistance schemes for low- and medium-income workers in light of rising living costs due to inflation.
• Chee Hong Tat, representing the government, stated that social support schemes are regularly reviewed and have been enhanced to better support lower- and middle-income workers, including increases in the Workfare Income Supplement.
• The government has introduced additional measures, such as the Assurance Package and various rebates, to assist families with the cost of living.
• Chee emphasized that increasing real wages over time is crucial for helping workers cope with living costs, highlighting efforts to grow the economy and promote skills upgrading.
• The government will continue to monitor economic conditions and adjust support measures as necessary to ensure they meet the needs of workers.

Ang Wei Neng questioned the Deputy Prime Minister about the potential effects of the escalating conflicts in the Middle East on energy prices, inflation, and the Singapore economy. Gan Kim Yong responded that the current impact on Singapore's economy has been limited, with the involved countries not being major trading partners. Although Brent crude oil prices have risen recently, they remain below last year's average. The situation is volatile, and further escalations could affect global oil prices, growth, and inflation. The government will continue to monitor developments closely.

• Christopher de Souza questioned why electricity and gas tariffs rose from July to September 2024 despite global oil prices dropping.
• Gan Kim Yong explained that tariffs are based on average fuel prices from the preceding quarter, with the July–September rates reflecting April–June prices.
• The fuel cost component increased by about 1% between the first and second quarters of 2024, leading to a 0.3% rise in electricity tariffs and a 1.3% rise in gas tariffs for the third quarter.

• Yip Hon Weng questioned whether record hawker stall rents exceeding $10,000 per month indicate a rising trend and how this affects food affordability for Singaporeans.
• Dr Koh Poh Koon clarified that high tender prices are not the norm, with median rents at $1,800 and many stalls awarded at or below $500, and NEA uses measures like no reserve rent and disallowing subletting to keep rentals fair.
• The government provides support such as staggered rentals for new hawkers, cost certainty through management models, and rent adjustments after the first tenancy to ease financial pressure on stallholders.

• Zhulkarnain Abdul Rahim asked about plans to encourage more food and beverage merchants to offer budget meal options and affordable services for CDC Vouchers Scheme 2024.
• Edwin Tong Chun Fai confirmed that CDCs and the Ministry of National Development are collaborating with coffee shop chains to provide more budget meal options.
• These coffee shops allow CDC Voucher redemptions at participating stalls, helping households stretch voucher value and manage living expenses.
• The initiative aims to maximise voucher usage by increasing affordable choices for households across Singapore.

• Hazel Poa questioned the Deputy Prime Minister on the estimated impact of Malaysia’s 56% diesel price hike in June 2024 on Singapore’s inflation, particularly food prices.
• Gan Kim Yong responded that the increase is unlikely to significantly affect Singapore’s inflation, given that land imports from Malaysia make up only 6.3% of total imports and 14.4% of food imports in 2023.
• The exchange highlights Singapore’s limited direct exposure to Malaysian diesel price changes due to the small share of imports from Malaysia.
• It underscores the government’s assessment that domestic inflation pressures remain manageable despite regional energy price fluctuations.
• The debate focuses on monitoring cross-border cost impacts while maintaining economic resilience.

• The Ministry highlighted that raw materials and manpower are the main cost drivers for hawker food, accounting for 56% and 20% of operating costs respectively in 2022.
• The National Environment Agency (NEA) supports hawker affordability by moderating rents, disallowing subletting, and considering total costs in tender awards for Socially-Conscious Enterprise Hawker Centres.
• NEA provides productivity grants and programmes to help hawkers improve efficiency, while some centres offer bulk purchasing to moderate ingredient costs.

• Gan Kim Yong explained that hawker food price increases in 2022 and 2023 were driven by higher import costs due to global supply disruptions, and that inflation has since moderated to 3.7% in May 2024, broadly in line with overall CPI.
• The government introduced support measures including an enhanced Assurance Package with CDC Vouchers, a Cost-of-Living Special Payment, and initiatives like the BudgetMealGoWhere website and Price Kaki app to help consumers access affordable food.
• The Committee Against Profiteering has investigated and resolved 16 cases of alleged GST misrepresentation by food outlets since 2022, with no such feedback received since March 2024.

• MP Gan Thiam Poh proposed enhancing the Assurance Package to provide monthly assistance scaled by per capita income to help low-income families cope with rising costs.
• Senior Minister Chee Hong Tat explained that the Assurance Package, recently enhanced by $1.9 billion, uses criteria like individual income and housing type, not per capita income, but still provides more support to lower-income and larger households.
• Chee noted that lower-income households with children can receive around $5,500 in combined benefits from the Assurance Package and GST Voucher scheme in FY2024, alongside other subsidies for public services.
• The Government continues to monitor living costs and regularly reviews support measures to address Singaporeans' concerns.

• As of 31 December 2023, 6,300 Singaporean resident households (0.5%) had water bills in arrears for six months or more, with a median arrears duration of less than one month.
• Eligible households receive U-Save rebates to offset utility expenses, with enhanced rebates of up to $950 in Financial Year 2024 as announced in Budget 2024.
• Households needing further aid can access various community and social assistance schemes, with figures rounded to the nearest hundred.

• Yip Hon Weng asked about the factors behind the decline in real income growth for the bottom 10% in 2023 and potential additional initiatives to support low-income households.
• Lawrence Wong explained that uneven growth and higher prices in 2023 caused negative real income growth for the bottom 10% and top deciles, while median incomes rose and overall inequality decreased.
• He noted that the bottom 10% still saw strong long-term real income growth over the past decade and highlighted ongoing efforts like Progressive Wages and Workfare to uplift lower-wage workers.
• The government announced an increase in the Local Qualifying Salary and enhanced Workfare support from 2024 to 2025, alongside other measures to assist low-income households with essential costs.
• Additional support will come through the enhanced Assurance Package, focusing on areas such as daily essentials, utilities, and public transport for those in need.

• The government introduced the Assurance Package and Enterprise Support Package, providing cash payouts, vouchers, and rebates to households and businesses to address immediate cost-of-living pressures and support economic resilience.
• It launched the Forward Singapore agenda to enhance social mobility and support mid-career workers through the SkillsFuture Level-Up Programme, which includes top-ups for training and subsidies for full-time diplomas for those aged 40 and above.
• Fiscal measures were outlined, including a Personal Income Tax Rebate, adjustments to property and stamp duties, and implementation of the BEPS 2.0 global tax rules, alongside a new Future Energy Fund to secure clean energy infrastructure.

• The Ministry of National Development outlined measures to support coffee shop stallholders, including stable HDB rental rates with a 1.6% median rent increase over five years and a 5% rental discount for operators adopting budget meals by 2026, while noting that privately owned coffee shops are not regulated.
• HDB has not sold coffee shops since 1998 and uses a Price Quality Method for new tenders to balance rent and quality, emphasizing the need to maintain affordable food availability without direct government control over cooked food pricing.
• In response to concerns about rising rents and food prices, the Ministry commits to studying specific cases of HDB-owned coffee shops and considers interventions, while highlighting the importance of market principles and broad F&B availability as a safeguard against price hikes.

• The GST increase is expected to contribute slightly less than one percentage point to core inflation, with overall core inflation projected to average 2.5% to 3.5% in 2024, down from 4.2% in 2023.
• Other key drivers of inflation this year include higher electricity and gas tariffs due to rising oil prices and increased water prices from higher production costs.
• To manage price stability, MAS will maintain a steady appreciation of the exchange rate policy band to dampen imported inflation, and the government will monitor trends and provide support to households and businesses.

• Edward Chia inquired about complaints regarding price hikes linked to the GST increase to 9%, sector-wide price escalations, and potential scrutiny of competitive practices.
• Gan Kim Yong stated that the Committee Against Profiteering has not observed a significant rise in complaints in January 2024 and has not received allegations of anti-competitive behaviour related to the GST hike.

• Ms See Jinli Jean raised concerns about how global shipping disruptions might affect local consumers and businesses, particularly regarding the prices of essential food items for lower-income households.
• The Minister of State for Trade and Industry, Mr Alvin Tan, noted that minimal disruptions are expected for critical supplies like food, as most are delivered by air or avoid the Red Sea, and highlighted the government's stock-piling and diversification strategies.
• The Minister also assured that monetary and fiscal policies, including the exchange rate policy and the $1.1 billion Cost-of-Living Support Package, will help manage imported inflation and support lower-income families.

• Joan Pereira asked about a rise in complaints to the Committee Against Profiteering since January 2024 regarding businesses raising prices due to the GST increase to 9%, as well as feedback about businesses in the same industry raising prices together, and whether the Ministry would investigate potential anti-competition violations.
• Gan Kim Yong responded that the Committee Against Profiteering reviews and investigates feedback on unjustified price increases of essential products and services that use the GST increase as an excuse.
• He added that the Committee has not seen a significant increase in such feedback in January 2024 and has not received allegations of anti-competitive behaviour during this period.

• Ms He Ting Ru inquired about the anticipated impact of Red Sea shipping disruptions on Singapore’s consumer prices, fuel costs, and logistical delays, as well as mitigation measures.
• Minister Gan Kim Yong stated that while shipping routes are rerouted via the Cape of Good Hope, adding 10–15 days to transit, delays remain manageable and critical supplies are adequately stockpiled.
• Singapore’s oil supply is largely unaffected due to reliance on the Strait of Hormuz, but sea freight costs may rise due to longer voyages and higher insurance premiums.
• The government will continue monitoring the situation and assist businesses in strengthening supply chain contingency plans to manage potential longer-term disruptions.