Cost of living — Topics

10 Jan 2024

Impact of Cost Increases on Affordable Food Options at Socially-conscious Enterprise Hawker Centres

Edward Chia asked the Ministry to assess how rising costs are affecting affordable food prices at socially-conscious enterprise hawker centres.
Operators of these centres must provide at least one affordable meal option per stall, with hawkers free to price other items based on market and cost factors.
The National Environment Agency will review any proposed price adjustments for affordable meals to ensure they are reasonable.

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10 Jan 2024

Use of GST U-Save Vouchers to Pay for Other Living Expenses

Mr Gan Thiam Poh asked if households can use GST U-Save vouchers for expenses like service and conservancy charges.
Lawrence Wong stated that U-Save rebates are exclusively for utilities, can be rolled over, and separate rebates already offset S&CC charges.
He noted multiple existing support measures, such as Assurance Package cash payouts and CDC vouchers, to help with living expenses.

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7 Nov 2023

Cost of Living Crisis

The government outlined its multi-pronged approach to manage the cost of living crisis, including tightening monetary policy to strengthen the Singapore dollar, maintaining economic competitiveness for wage growth, and ensuring basic services remain affordable, while providing targeted support like the Assurance Package and Cost-of-Living Support Package to cushion inflation's impact on households, especially lower- and middle-income groups.
Debates highlighted specific policy measures and opposition proposals, such as water and electricity pricing to reflect scarcity, GST increase defended as necessary for long-term fiscal needs like healthcare, and COE system adjustments to smooth supply, with the government rejecting ideas like broad-based subsidies or a points-based COE system as inefficient or impractical.
Housing affordability was a major concern, with the government defending its BTO framework and supply measures to address imbalances, while opposition members called for increased housing supply, especially rental flats, and deferral of the GST hike given higher-than-expected revenues.
The motion, as amended, was passed, acknowledging the global nature of cost-of-living pressures and calling on the government to continue policies that lower these pressures sustainably without burdening future generations.

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7 Nov 2023

Cost of Living Crisis

Workers' Party MPs called for a review of government policies to alleviate cost-of-living pressures, proposing structural changes such as revising water and electricity pricing tiers and easing MediSave withdrawal rules to better support low- and middle-income households.
Government MPs countered that Singapore's strong currency, competitive market, and direct assistance schemes like the Assurance Package are effectively managing global inflation, and they amended the motion to emphasize the need for policies that do not undermine fiscal sustainability or burden future generations.
Opposition MPs also suggested specific measures like lowering the GST, introducing a universal health scheme, reforming COE pricing, and establishing a social protection framework to track the effectiveness of aid programs for vulnerable groups.

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7 Nov 2023

Impact of Price Increases on Real Wage Growth

Members of Parliament raised concerns about real wage growth in Singapore amid rising costs, asking for current rates, future forecasts, comparisons with past years, and support measures for businesses and vulnerable workers.
The Senior Minister of State for Manpower responded that real median income grew 9.4% from 2017 to 2022 but declined by 4.5% year-on-year in the first half of 2023 due to high inflation, with the government implementing a $1.1 billion Cost of Living Support Package and initiatives like the Progressive Wage Model and National Wages Council guidelines.
Lower-wage workers experienced stronger real income growth of 15.4% from 2017 to 2022, supported by expanded Progressive Wage Model coverage, co-funded wage increases, and enhanced Workfare schemes, while businesses are encouraged to boost productivity through industry transformation and job redesign programs.
Wage growth is expected to moderate in 2024, with certain sectors like travel and labour-intensive services facing persistent challenges, and the government plans to continue supporting workers through upskilling, career conversion programs, and future initiatives to improve job matching and long-term career planning.

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4 Oct 2023

Effect of Increases in Public Transport Fares and Higher COE Prices on Inflation in 2024

Public transport fare increases are projected to contribute 0.17 percentage point to core inflation in 2024, while the impact of COE price changes on inflation cannot be projected at this time.
The government is maintaining affordability through annual subsidies exceeding $2 billion and additional measures such as $300 million in 2024 subsidies and $50 Public Transport Vouchers for lower-income households.
Broader cost-of-living support includes a $1.1 billion package with cash payments, vouchers, and rebates, building on existing assistance from Budget 2023.
Support for businesses includes enhanced financing schemes to help manage cashflow and rising costs.
The government continues to monitor inflation pressures and implement measures to mitigate impacts on living and business costs.

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4 Oct 2023

Change in Cost of Producing NEWater and Desalinated Water, and Support for Businesses facing New Water Recycling Requirements

The government announced a 50-cent increase in water prices over 2024 and 2025, citing rising costs in electricity, chemicals, maintenance, and construction since 2017, while introducing rebates to offset impacts on households and mandating water recycling for industries to manage demand.
Businesses face new water recycling requirements starting next year, with enhanced funding support for efficiency projects, though concerns were raised about supporting existing investments and preventing cost pass-through to consumers.
Debates highlighted the need to balance water pricing with affordability, considering a progressive pricing system and ensuring long-term cost stability post-2061 when the Johor water agreement expires.

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3 Oct 2023

Frequency of Government Reviews to Ensure Support Scheme Payouts Remain Adequate in Light of Inflationary Pressures

The Government regularly reviews social support schemes, factoring in macroeconomic trends such as inflation, with specific bodies like the Ministry of Social and Family Development and Ministry of Manpower conducting periodic assessments.
Payouts are not automatically indexed to inflation, but reviews consider price data, projected inflation, and expert consultations to adjust support appropriately, as seen in recent ComCare and Silver Support Scheme enhancements.
The Silver Support Scheme saw a 20% payout increase in 2021, with ongoing reviews planned, and the government has introduced new initiatives like the Majulah Package while providing targeted one-off support such as the $1.1 billion Cost-of-Living Support Package.

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3 Oct 2023

Cumulative Impact of Series of Price Increases on Households and Small Businesses

Liang Eng Hwa raised questions about the cumulative impact of price increases on households and small businesses, risks of an inflationary spiral, adequacy of government support, and potential further fiscal measures.
Lawrence Wong explained that the recent Cost-of-Living Support Package is designed to cushion the impact, with household inflation expected to rise by less than 0.3 percentage points and business operating costs by less than 0.1% due to specific price adjustments.
The government asserted that combined support measures would fully cover inflation-induced spending increases for lower-income households and substantially cover them for middle-income households, while maintaining a targeted approach to avoid fuelling inflation.
For businesses, support includes extended financing schemes and grants, with plans for further measures to aid transformation and efficiency to be announced in Budget 2024, as the government continues to monitor the situation.

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3 Oct 2023

Cases Referred to Committee Against Profiteering Per Quarter Since Reconvening in March 2022

The Committee Against Profiteering (CAP) has received over 350 feedback submissions since March 2022, with 32 cases involving GST misrepresentation investigated and resolved, and no repeat complaints against the same businesses.
The government encourages the public to report potential profiteering through online, hotline, or community club channels, and acknowledges a suite of cost-of-living support measures alongside efforts by businesses to absorb costs and maintain fair pricing.
While acknowledging concerns about price increases linked to water and electricity costs, CAP monitors inflation and GST impacts, though there is no specified formula to distinguish profiteering from general price rises, relying instead on feedback and existing monetary and fiscal policies.

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3 Oct 2023

Budget Meals As a Proportion of All Meals Sold Hawker Stalls

Mariam Jaafar questioned the proportion of budget meals sold at hawker stalls and whether hawkers are struggling to sustain them due to rising food prices.
Dr Koh Poh Koon stated that while prices are not regulated, affordable options remain, with many stalls offering at least one budget meal, supported by rental rebates and other measures.
Jaafar noted increasing price divergence between budget and regular meals, with some budget options creeping above $4, and asked if rebates would be extended.
Koh responded that no price regulations exist, but NEA provides rental assistance and monitors costs, encouraging productivity and cost-of-living support packages to help hawkers and consumers.

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19 Sep 2023

Help Measures for Households and Businesses Given Continued Rise in Food and Fuel Prices

The Minister of State for Trade and Industry outlined that inflation in Singapore has eased, with CPI-All Items inflation at 4.1% in July, and is expected to average 4.5% to 5.5% for the full year, though upside risks remain from global shocks and commodity prices.
The government has implemented a multi-pronged approach to support households and businesses, including the Assurance Package for cost-of-living support, enhanced financing schemes for businesses, and energy efficiency grants to mitigate rising costs.
To address rising rice prices due to export bans and supply issues, the government has diversified food import sources, strengthened local production, and secured waivers from India for rice imports, while encouraging consumers to use tools like the Price Kaki app for price comparisons and consider alternative rice varieties.
Monetary policy remains focused on maintaining a strong Singapore dollar to dampen imported inflation, with the Monetary Authority of Singapore set to review its stance in October.
Officials emphasized continued monitoring of inflation trends and readiness to provide further support to Singaporeans and businesses if necessary.

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19 Sep 2023

Projection of FY2023 Tax Revenue Growth and Impact on Additional Help for Singaporeans to Deal with Inflationary Costs

Mr Ang Wei Neng asked whether the tax revenue growth trend is expected to continue and if the government will provide additional monetary payouts to combat inflation before the next Budget.
The Senior Minister of State for Finance replied that tax revenue growth is linked to GDP and economic recovery post-COVID, but the trend's continuation is uncertain due to global economic uncertainties. The government has enhanced the Assurance Package to $9.6 billion and is studying further enhancements to provide more support.
Mr Ang Wei Neng sought clarification on Q1 FY2023 tax revenue comparisons and whether the enhanced Assurance Package would be in the form of cash or vouchers, noting the economic impact of each.
The Senior Minister of State reiterated that tax collections reflect past economic activity and the global outlook remains challenging. The government is considering how to best enhance the Assurance Package, including the mix of cash, vouchers, and other assistance, to maximize impact.

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19 Sep 2023

Income Criteria for Blue and Orange CHAS Cards in View of Inflation

The Ministry of Health (MOH) confirmed it regularly reviews CHAS income criteria and subsidy levels, with the last review in 2019, and noted that three in four of the 14,000 appeals for card upgrades over the past two years were successful.
MOH indicated it will consider the MP's suggestions to incorporate inflation or wage indices into future reviews of CHAS income criteria and subsidies, taking into account post-pandemic changes and the holistic circumstances of applicants.
The discussion highlighted that CHAS cardholders will benefit from the Healthier SG Chronic Tier from early next year if they enrol with a Healthier SG GP clinic, which is part of the ongoing healthcare support framework.

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19 Sep 2023

Proposal to Review CPF Withdrawal Limit for Singaporeans who Have Not Met Full Retirement Sums in View of Inflation

Leong Mun Wai proposed increasing the $5,000 CPF withdrawal limit to match inflation, arguing it is too small for Singaporeans to meet aspirations and cope with rising costs.
The Minister for Manpower rejected the increase, stating it would reduce future retirement payouts and that the government’s priority is long-term retirement adequacy through the CPF system.
The Minister emphasized that other government measures, such as the Assurance Package and U-Save rebates, are designed to provide immediate support for cost-of-living pressures instead of altering CPF withdrawal limits.

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18 Sep 2023

Moderating or Reversing Escalating Home Rental Prices

Henry Kwek asked the Ministry for National Development about the outlook for home rental prices and what more can be done to moderate or reverse escalating costs.
Desmond Lee reported that rental growth has moderated in recent quarters, with private and public housing rents increasing at slower rates.
The Ministry expects rental pressures to ease further due to a significant number of residential units being completed from 2023 to 2025, which will increase rental supply and reduce demand.
HDB offers schemes like the Public Rental Scheme and Parenthood Provisional Housing Scheme to support Singaporeans who need to rent.
The Ministry is monitoring the rental situation and will adjust policies as necessary to help tenants manage their cost of living.

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3 Aug 2023

Households Receiving Lower GST Voucher Payouts Due to Revision in Annual Valuation of Property

Assoc Prof Jamus Jerome Lim questioned how many households saw their GST voucher payouts reduced from $500–$700 to $250–$350 due to the Annual Valuation revision and whether this undermines the voucher’s purpose.
Lawrence Wong explained that the 2022 Annual Value of residential properties determined this year’s GST voucher payouts, with all HDB flats having an AV below $13,000, qualifying them for the higher tier.
The Ministry is reviewing the AV thresholds for social support schemes to ensure needy Singaporeans receive appropriate support and will provide updates once ready.
The exchange highlights concerns that valuation changes may unintentionally reduce support for lower-income households.
The government acknowledges the need to adjust criteria to maintain the effectiveness of the GST voucher scheme.

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2 Aug 2023

Allowing Households to Withdraw Unutilised GST U-Save Vouchers for Other Living Expenses

Henry Kwek asked if households can withdraw unused GST U-Save vouchers for other living expenses.
Lawrence Wong explained that the vouchers are only for utilities and any unused portion can be rolled over indefinitely.
He noted the government already offers other support like CDC Vouchers and cash payouts for living costs.

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3 Jul 2023

Budget Meal Options at Market and Food Stalls Sold to Private Owners

Chong Kee Hiong asked about measures to help residents in estates where market and food stalls are sold to private owners access budget meal options, especially low-income households.
Desmond Lee explained that HDB's Budget Meals initiative requires rental coffee shops renewing tenancies from May 2023 to offer budget meals, with all 374 such shops expected to comply by May 2026.
HDB has reached out to privately-owned coffee shops to voluntarily join the initiative and is studying regulatory options, such as linking budget meal provision to outdoor refreshment area approvals.

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3 Jul 2023

Request to Build Hawker Centre in Bishan to Provide Budget Meal Options

Chong Kee Hiong urged the National Environment Agency to build a hawker centre in Bishan to offer affordable budget meals amid inflation.
Grace Fu Hai Yien explained that the agency prioritizes new or underserved housing estates and requires sufficient residential and commercial customer bases for viability.
She noted Bishan already has existing food centres, coffee shops, and food courts, plus access to nearby hawker centres in Ang Mo Kio and Toa Payoh.
The government will continue to monitor and review the adequacy of food options in Bishan.

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