Cost of living — Topics

10 May 2023

Further Measures to Moderate Rise in Consumer Price Index

The Government has introduced multiple financial support schemes, such as CDC Vouchers, Cost of Living Special Payment, enhanced GST Vouchers, and Assurance Package Cash, to help households cope with rising costs, with lower- and middle-income families benefiting significantly.
The Monetary Authority of Singapore has tightened monetary policy five times since October 2021 to appreciate the Singapore dollar and curb imported inflation, with effects expected to continue dampening price increases.
While private transport costs have risen, the Government ensures public transport affordability through subsidies and concessionary fares, with plans to monitor prices and take further action if needed.

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28 Feb 2023

Mandatory Unit Pricing for Essential Food Items in Supermarket and Grocery Store Chains

Leon Perera proposed mandatory unit pricing for essential food items in supermarkets to increase transparency and counter shrinkflation.
Gan Kim Yong highlighted the Price Kaki app’s unit pricing feature launched by CASE to help consumers compare prices across products and brands.
The government will study the feasibility and benefits of mandatory unit pricing based on insights from the Price Kaki initiative.

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24 Feb 2023

Debate on Annual Budget Statement

Members highlighted the need for better employment and respite care support for caregivers of persons with severe disabilities, while also questioning the adequacy of assistance for middle-income families, singles, and seniors.
The debate addressed fiscal sustainability, with the government defending the need for the GST increase and explaining its revenue and expenditure projections, while some members suggested alternative revenue options like wealth taxes.
Concerns were raised about the impact of government policies on housing affordability, business competitiveness, and wage growth, with the government defending its approach to land pricing, industry transformation, and supporting lower-wage workers.

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23 Feb 2023

Impact of Market Players' Anti-competitive Behaviours on High Food Prices

Leong Mun Wai queried whether anti-competitive behaviours by market players are contributing to the high prices of chicken, pork, and seafood.
Gan Kim Yong stated that the Competition and Consumer Commission of Singapore has found no evidence of anti-competitive conduct in the food items mentioned.
He encouraged the public to report any suspected anti-competitive activity to the commission for investigation and potential enforcement action.

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22 Feb 2023

Review of Allowances for Full-time National Servicemen Given Inflationary Pressures

Gerald Giam raised concerns about inflation affecting full-time National Servicemen’s allowances and suggested pegging increases to inflation indices.
The Senior Minister of State for Defence noted that NSFs’ allowances are reviewed regularly, with three adjustments in the past decade, the latest in March 2020, and that MINDEF will continue periodic reviews.
Giam emphasized that inflation has risen since 2021 and asked for the next review to be brought forward, while the Minister explained that allowances already account for costs covered by SAF and Home Team, and future reviews will consider all factors.

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14 Feb 2023

Annual Budget Statement

The Finance Minister outlined Singapore's economic recovery post-COVID, acknowledging ongoing inflation pressures and global uncertainties, and projected modest GDP growth of 0.5% to 2.5% for 2023.
The Budget introduces enhanced cost-of-living support, including a $9.6 billion Assurance Package, permanent GST Voucher increases, and one-off payments to cushion inflation and GST impacts for lower- and middle-income households.
Major investments are planned to grow the economy and support businesses and workers, such as a $4 billion top-up to the National Productivity Fund, new innovation tax incentives, and extended support for senior employment and lower-wage workers.
Significant measures are aimed at strengthening families, including increased housing grants, enhanced Baby Bonus benefits, doubled paternity leave, and expanded childcare support to address demographic and social challenges.
The government will bolster national resilience through fiscal prudence, without drawing on past reserves for 2023, and implement progressive tax adjustments on properties, vehicles, and tobacco to ensure sustainable funding while maintaining a fair and inclusive system.

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14 Feb 2023

Effect of Prices of Goods on Major E-commerce Platforms on Consumer Price Index

Gan Thiam Poh inquired whether major e-commerce platforms like Shopee, Lazada, and Qoo10 are considered in the Consumer Price Index (CPI) and if their competitive pricing helps lower the cost of living alongside a stronger Singapore dollar.
The Minister of State for Trade and Industry confirmed that prices from these e-commerce platforms are included in the CPI calculation.
The minister highlighted that e-commerce provides consumers with more choices and price ranges, reducing costs associated with physical retail outlets.
The discussion emphasized that e-commerce could contribute to a lower cost of living for local residents through wider diversity and competitive pricing.
The debate concluded that both the inclusion of e-commerce prices in the CPI and their impact on consumer affordability were acknowledged by the government.

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7 Feb 2023

2023 Outlook for Inflation, Cost of Living and Singapore Dollar

The Minister of State for Trade and Industry projected that Singapore’s inflation would remain elevated in the first half of 2023 before moderating in the second half, with full-year CPI-All Items inflation expected to be 5.5% to 6.5% and core inflation between 3.5% and 4.5%, driven by persistent global energy and food prices, tight labor markets, and domestic cost pass-throughs.
The government highlighted that domestic inflation pressures stem from businesses passing on elevated import, utilities, and labor costs, as well as high housing rents and car inflation due to strong rental demand and tight COE quotas, with the Monetary Authority of Singapore’s earlier monetary tightening and a stronger Singapore dollar helping to curb imported inflation.
To manage domestic cost pressures, the government noted initiatives like the Progressive Wage Credit Scheme co-funding wage increases for lower-wage workers, while emphasizing that labor market tightness is expected to ease with global economic headwinds and non-resident inflows, and that more support for businesses will be assessed if needed.

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6 Feb 2023

Adequacy of CPF Basic Retirement Sum in View of Prolonged Period of High Inflation Rate

The Basic Retirement Sum is designed to provide lifelong payouts that cover a basic level of retirement expenses, factoring in long-term inflation and lifestyle increases, with projected payouts rising to about $1,000 per month for the cohort turning 55 in 2027.
Most CPF members are expected to meet the Basic Retirement Sum, and those who set aside higher sums can receive larger payouts, with options like the CPF LIFE Escalating Plan to help counter inflation.
Beyond CPF, seniors can rely on other sources such as private savings, family support, and government schemes like the Silver Support scheme, which provides additional cash aid.
The government has rolled out multiple measures, including cash payments and CDC vouchers, to help Singaporeans cope with high inflation and cost of living, with support targeted at lower-income and retiree households.
The Basic Retirement Sum is regularly reviewed to ensure it meets long-term retirement needs, with ongoing efforts under the Forward Singapore Exercise to explore further support measures.

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6 Feb 2023

Reports of Businesses Using GST Increase as Pretext for Price Increases and Measures Taken

Dr Wan Rizal asked whether the Committee Against Profiteering (CAP) received cases of businesses using the GST increase as a pretext for price hikes beyond the tax change and what measures were taken.
CAP received 286 feedback submissions from April 2022 to January 2023, with 26 cases specifically alleging GST misrepresentation.
CAP collaborated with agencies like CCCP, CASE, and PA to engage businesses, which were cooperative and committed to pricing transparency.
The government will continue monitoring the situation to prevent profiteering under the guise of GST increases.

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6 Feb 2023

Reports of Unjustified Price Increase Made to Committee Against Profiteering

The Committee Against Profiteering received 286 feedback submissions from April 2022 to January 2023, with 26 cases specifically alleging GST misrepresentation.
Partner agencies like the Competition and Consumer Commission of Singapore, CASE, and PA engaged relevant businesses to seek reasons for price increases, and all were cooperative and committed to greater pricing transparency.
The Minister stated the situation will be monitored closely, but did not provide explicit numbers on how many reports were substantiated or specific cases taken to task.

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10 Jan 2023

Rise in Prices of Popular Food Items in View of Lunar New Year

Melvin Yong Yik Chye questioned whether prices of popular food items like seafood and poultry will rise significantly during Lunar New Year and if more public education will be done to encourage buying from non-traditional sources.
Grace Fu Hai Yien explained that food prices are influenced by supply and demand, with inflationary pressures from rising costs, global disruptions, and higher festive demand expected to push prices up.
She noted that the Singapore Food Agency has been promoting public communications and alternative food sources, and will continue to encourage flexibility in food types and forms.

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10 Jan 2023

Presence of Halal Vendors as Factor in Price-quality Method used for HDB Tenancies for Precinct Supermarkets and Coffee Shops

Assoc Prof Jamus Jerome Lim questioned whether halal vendor inclusion is part of HDB's price-quality method for tenancies, which component of the quality score it falls under, and how halal options are ensured if not.
He also asked if affordability criteria are monitored after the initial award and how HDB ensures coffeeshops maintain affordable pricing.
HDB explained that the price-quality method focuses on quality tenants with an emphasis on affordable food and groceries, with budget options monitored through inspections and tenancy reviews.
New coffeeshop operators must offer budget meals at around $3, and supermarkets must provide budget options in 20 essential categories, with compliance tracked.
Halal food options are ensured by requiring at least one halal food stall in new HDB coffeeshops, a rule introduced in 2005.

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9 Jan 2023

Review of Eligibility Income Threshold for Tertiary Tuition Fee Subsidy Scheme Given Cost-of-living Inflation

Muhamad Faisal Bin Abdul Manap asked whether the government will review the income threshold for the Tertiary Tuition Fee Subsidy (TTFS) scheme due to cost-of-living inflation.
Masagos Zulkifli B M M explained that TTFS provides up to 100% tuition fee subsidies for eligible Malay students from households with per capita income of $2,000 and below.
The government is committed to ensuring access to higher education for financially challenged Malay students and regularly reviews TTFS eligibility criteria, considering the prevailing economic situation.

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9 Jan 2023

Keeping Food Prices Affordable

The government is using a strong Singapore dollar through exchange rate policy to moderate inflation and is diversifying food sources to reduce exposure to price shocks.
Households receive direct support via CDC vouchers and past packages that offset cost-of-living inflation, with retailers also absorbing GST increases on essentials temporarily.
Consumers are encouraged to use tools like the Price Kaki app and adjust food choices to manage budgets, while the government monitors the situation for further measures if needed.

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9 Jan 2023

Enforcement against Businesses who Raise Prices Using GST Increase as Excuse

The Committee Against Profiteering (CAP) investigates and may publicly highlight businesses that unjustifiably raise prices using the GST increase as an excuse, while encouraging transparent pricing communications through guidelines from IRAS and trade associations.
Consumers can report suspected GST misrepresentation to CAP via online forms, hotlines, or community centres, and the government monitors essential item prices through the Department of Statistics and the Consumer Price Index.
The Price Kaki app, developed by CASE with MTI and CCCS, allows consumers to compare prices of over 10,000 supermarket items and 37,000 cooked food items, and now includes unit price comparisons for over 1,200 grocery items to help make informed purchasing decisions.

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28 Nov 2022

One-time Wage Adjustment for Civil Servants to Offset Anticipated High Core Inflation Rate in 2022

Ang Wei Neng asked if the Public Service Division would consider a one-time wage adjustment for civil servants to offset the high core inflation rate in 2022, citing reports that many employees might change jobs if pay does not keep up with inflation.
The Minister for Education, Chan Chun Sing, replied that civil service salaries are reviewed periodically to align with market benchmarks, and that recent salary increases, annual increments, and AVC payments are expected to exceed the inflation rate for eligible civil servants, with additional government support measures to cushion inflation impact.
Ang Wei Neng sought clarification on whether civil servants would receive increments above the 5.1% core inflation rate and whether this would encourage other Singapore companies to follow suit, to which the Minister confirmed that the total salary increases would exceed inflation for most civil servants, with minimal exceptions, and that the National Wages Council provides recommendations for the broader economy.

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9 Nov 2022

Monetary Policy and Targeted Measures to Rein in Food and Accommodation Prices

The Minister of State explained that MAS has tightened monetary policy five times since October 2021 to combat high core inflation, which is expected to remain firm before easing in the second half of 2023, and will continue to use exchange rate policy to ensure medium-term price stability.
The government is addressing food and accommodation prices through a stronger Singapore dollar, diversified food supply sources, targeted assistance for vulnerable groups, and increased housing subsidies and supply to maintain affordability.
Officials emphasized that monetary policy affects inflation with a lag and that tripartite partnerships, industry transformation, and productivity enhancements are crucial to mitigating inflation's impact on wages and employment without adversely affecting unemployment.
MAS clarified its unique approach of using the exchange rate as the sole monetary policy target, with interest rates largely determined by global markets, and responded to queries on money supply and reserves by deferring detailed answers to separate parliamentary questions.

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8 Nov 2022

Pegging Cost-of-Living Support to Numbers in Households

Gan Thiam Poh suggested reviewing cost-of-living support to be based on household size to better assist larger low- and middle-income families with children.
Lawrence Wong explained that current schemes use a mix of individual and household criteria, with measures like CDC vouchers and education subsidies already accounting for family sizes.
The government provides targeted support such as cash payouts, education top-ups, and lowered childcare fees, while continuously reviewing criteria to ensure assistance reaches those with greater needs.

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8 Nov 2022

Public Transport Fare Adjustment in Fare Review Exercise 2022

The Public Transport Council (PTC) set a maximum fare adjustment of 13.5% for 2022 but implemented only a 2.9% increase, carrying over 10.6% to future exercises after considering economic and social factors, with the government providing an additional $200 million subsidy.
Minister S Iswaran emphasized that fare adjustments balance cost sustainability with affordability, noting that public transport spending as a proportion of household income has decreased over the past decade, and support measures like concession fares and Public Transport Vouchers (PTVs) target vulnerable commuters.
Questions on bus service reliability, headway reductions, and the sustainability of fare gaps were raised, with the Minister highlighting cost implications and ongoing reviews to ensure the financial health of the public transport system.

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