Cost of living — Topics

8 Nov 2022

Revision of Electricity Market Structure and Its Impact on Singapore's Energy Security and Prices for Consumers

The government plans to introduce new safeguards for Singapore's electricity market, including a centralised tender for new power generation capacity and permanent regulations to ensure fuel supply resilience, aiming to manage volatility and prevent shortages.
Enhancements to the retail electricity market will raise eligibility criteria for retailers and tighten rules for Wholesale Electricity Price plans to better protect consumers, with implementation starting from 2023 after public consultation.
While these measures may lead to higher costs, the government will balance affordability with energy security, and will also strengthen consumer education and dispute resolution mechanisms to help households navigate contract choices.

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8 Nov 2022

GST Paid by Foreigners Residing in Singapore, Tourists and Top 20% Of Households, and GST Refunds Disbursed to Tourists

Assoc Prof Jamus Jerome Lim asked the Deputy Prime Minister for estimates on the share of GST paid by foreigners residing in Singapore, tourists, and the top 20% of households, as well as the proportion and amount of GST paid by non-residents from 2016 to 2021 and the total GST refunds disbursed to tourists from 2010 to 2021.
The Senior Minister of State for Finance responded that foreigners and tourists accounted for about 50% of net annual GST, while the top 20% of households contributed close to 20%, with the remaining 30% spread across other households; the Tourist Refund Scheme paid out around $200 million annually from 2010 to 2019, which is about 2% of total GST collections.
Assoc Prof Lim followed up by questioning whether the revenue gain from foreign tourists is worth the impact on middle-income households and asked for estimates on whether GST burdens might fall on local businesses rather than foreign consumers, to which the Minister replied that the data is based on actual collections and highlighted support measures for middle-income groups, including non-means-tested payments.

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7 Nov 2022

Reasons for Public Transport Fare Hikes and Help for Lower-Income Singaporeans

Mohd Fahmi Aliman asked about the number of public transport fare hikes in the past two years, the underlying reasons for these increases, and whether additional long-term measures would be implemented to help lower-income Singaporeans beyond one-off vouchers.
S Iswaran acknowledged the question and indicated he would provide a detailed reply at the 8 November 2022 Parliament sitting, referencing an official report on the 2022 fare review exercise.
The debate focused on the impact of fare adjustments on lower-income households and the need for sustained support measures to alleviate financial burdens.

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7 Nov 2022

Goods and Services Tax (Amendment) Bill

Leon Perera from the Workers' Party raised concerns about the adequacy of Singapore's reserves, the risk of inflation from the GST hike, and whether the projected healthcare expenditure increase justifies the immediate need for a GST hike.
Deputy Prime Minister Lawrence Wong defended the government's position, stating that using more past reserves would burden future generations and that the GST system is fair and effective, with past experience showing that profiteering can be managed.
The Workers' Party expressed philosophical disagreements with the government on reserves growth and GST increases, leading to a recorded dissent during the vote, though the bill was passed.

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7 Nov 2022

Goods and Services Tax (Amendment) Bill

Lawrence Wong defended the GST increase by arguing it is not regressive in Singapore due to permanent offsets like the GST Voucher and Assurance Package, which delay the financial impact on most households until around 2030 and ensure lower-income families pay little to no effective GST.
He emphasized that the broader GST system, combined with targeted support, ensures high-income households, foreigners, and tourists bear most of the burden, making it a fair and sustainable way to fund future needs like healthcare without over-relying on volatile revenues or raising other taxes.
In clarifications, Wong addressed concerns about fiscal outturn, NIRC contributions, and GST exemptions, noting that revenues and spending have risen, NIRC is expected to keep pace with growth, and expanding exemptions would complicate the system like in other countries.
He rejected calls to delay or pause the GST hike, stating the Assurance Package already provides longer relief, and dismissed multi-tiered GST systems as ineffective based on global studies, favoring Singapore’s income-tiered approach.
Leong Mun Wai pressed questions on NIRC allocation and HDB grants, but Wong clarified all revenues are pooled into a consolidated fund with no hypothecation, and any surpluses are prudently set aside for long-term needs like climate adaptation.

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7 Nov 2022

Goods and Services Tax (Amendment) Bill

The Bill will increase the GST from 7% to 8% in 2023 and to 9% in 2024 to fund rising healthcare and social spending, with the government emphasizing that the Assurance Package and permanent GST Vouchers will offset the impact for lower- and middle-income households for at least five to ten years.
The opposition, including the Workers’ Party and Progress Singapore Party, argued the GST hike is ill-timed due to high inflation and economic uncertainty, proposing alternatives like raising the Net Investment Returns Contribution or land sales revenues instead.
The government defended the hike as necessary for long-term fiscal sustainability, countering that alternatives either reduce reserves for future generations or are insufficient, while highlighting measures to curb profiteering and support vulnerable groups.

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20 Oct 2022

Review of Payouts to Retirees on Government Pension Schemes Given Rising Cost of Living

Members of Parliament asked if pension payouts for retirees should be reviewed to address rising living costs and inflation.
The Government explained that pensions are fixed based on service and salary, but provides the Singapore Allowance to counter inflation, with the latest increase of $30 in September 2022.
Regular reviews are conducted on the Singapore Allowance and pension ceiling, and retirees also receive additional support like GST vouchers and other rebates.

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20 Oct 2022

Rising Prices of Fresh Fish

Melvin Yong asked about the extent of fresh fish price increases over the past six months and whether the upward trend is expected to continue into 2023.
Grace Fu stated that fish and seafood prices rose by 4.7% on a seasonally-adjusted basis from February to August 2022, citing climate change, adverse weather, and higher feed and energy costs as key factors.
She noted Singapore’s heavy reliance on imported food and highlighted efforts to diversify food sources and develop local aquaculture to enhance resilience.
The government encouraged businesses to adopt continuity plans and consumers to be flexible with food choices to mitigate impacts.
No explicit forecast for 2023 was provided, but the response emphasized ongoing diversification and local production strategies.

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4 Oct 2022

Impact of India's Rice Export Ban and Thailand and Vietnam's Plans to Raise Rice Export Prices

The Minister assessed that India's rice export ban mainly affects broken rice, which Singapore consumes little of, and noted that Thailand and Vietnam have no confirmed plans yet to raise rice export prices.
Singapore employs a multi-pronged strategy including import diversification and a Rice Stockpile Scheme requiring importers to hold buffer inventory twice their monthly imports to ensure supply stability.
The government reviews inventory buffers regularly and is prepared to adjust measures if needed, while a strong Singapore dollar via MAS monetary policy tightening helps mitigate higher food import prices.
Additional support is provided through packages like the $1.5 billion MOF initiative to assist lower-income and vulnerable Singaporeans in facing food price impacts.

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3 Oct 2022

Support for Self-employed School Canteen Stallholders to Manage Higher Costs of Ingredients and Utility Charges

Ms Ng Ling Ling raised concerns about rising ingredient and utility costs affecting self-employed school canteen stallholders and asked for support measures to prevent price increases for students, including potential bulk utility rate negotiations.
Minister Chan Chun Sing outlined that MOE monitors canteen food quality and prices, supports affordability through low stall rentals ($5–$15 monthly), and reviews subsidies for low-income students to cope with inflation.
MOE provides guidelines on food prices and seeks favorable utility rates for schools, extending these rates to canteen stallholders where possible to help manage higher costs.

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3 Oct 2022

Sufficiency of Exchange Rate, Fiscal and Macroprudential Measures to Contain Rising Cost of Living

The Government adopts a multi-pronged approach, using tighter monetary policy to dampen imported inflation and targeted fiscal and credit support to help vulnerable Singaporeans cope with rising costs.
The Monetary Authority of Singapore estimates its policy moves since October 2021 will restrain core inflation by an average of 1.2 percentage points annually over 2022-2023, preventing it from being 30% higher.
Fiscal support is crucial to cushion the impact of global food and energy price surges, as monetary policy alone cannot fully offset these effects, similar to other countries facing high inflation.
Rising interest rates affect borrowing costs, prompting MAS and HDB to implement measures to prevent excessive household borrowing for home purchases.
Given global uncertainties, the Government and MAS will continue to deploy fiscal, monetary, and macroprudential tools as needed to ease inflationary pressures and support Singaporeans.

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3 Oct 2022

Additional Workfare Income Supplement Cash Support to Cushion Inflation

Gan Thiam Poh asked if additional Workfare Income Supplement cash support can be provided to help beneficiaries cope with inflation.
Tan See Leng responded that Workfare is regularly reviewed and was enhanced from 2023, with maximum annual payouts raised and cash portions increased for lower-wage workers.
The government is also raising lower-income wages through Progressive Wages, Local Qualifying Salary, and annual wage recommendations, supported by a $1.5 billion relief package.
The government will continue monitoring the situation and provide targeted help if needed.

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3 Oct 2022

Bringing Forward Distribution of CDC Vouchers

Ang Wei Neng proposed distributing CDC Vouchers earlier in Q3 2022 and issuing them per individual rather than per household to better address high inflation.
The government highlighted that most households have claimed and used existing CDC Vouchers, along with other support measures, and will consider more assistance if inflation worsens.
Ang Wei Neng emphasized rising inflation rates and asked if larger households could receive more vouchers and if support could be extended individually.
The government explained that while CDC Vouchers are broad-based, targeted measures like GST-Voucher cash payments are more effective for lower-income individuals.

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13 Sep 2022

Annual Public Transport Subsidy Amount and How This Compares with Other Government Subsidies and Support

The Government subsidizes public transport by over $2 billion annually, with costs rising due to network expansion and inflation, and aims to balance affordability for commuters with fiscal sustainability across generations.
The Public Transport Council will review the fare adjustment formula to account for changing commuting patterns, energy costs, and inflation, ensuring the formula remains relevant for the next three to five years.
Public Transport Vouchers are provided to support low-income households, with eligibility covering up to 40% of Singapore households, and these are considered part of broader household support measures like the GST Offset Package.

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12 Sep 2022

Impact of Inflation on Workers and Provision of Appropriate Wage Increments

The Government promotes a tripartite approach with employers and employees to boost productivity and wage growth through Industry Transformation Maps and upskilling programmes to help workers cope with inflation.
Various grants and policies, including the Progressive Wage moves and tightened foreign workforce rules, are used to support businesses in restructuring, reskilling employees, and ensuring fair wages for locals.
The National Wages Council will issue annual wage guidelines later this year to guide employers on fair and sustainable wage increments, taking into account the economic recovery and inflation impact.
Lower-wage workers have seen strong real income growth in recent years, and the government has introduced support measures like the $1.5 billion package to help vulnerable groups with cost-of-living pressures.

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12 Sep 2022

Prices of Cooked Food Sold in Mature Estates, Non-mature Estates, Older Coffee Shops and Newer Coffee Shops

Assoc Prof Jamus Jerome Lim asked whether the Ministry tracks average cooked food prices in mature vs non-mature estates and older vs newer coffee shops, and if there are systemic price differences.
Desmond Lee responded that HDB does not track prices by estate or coffee shop age, but monitors overall cooked food affordability via the national Consumer Price Index and requires HDB coffee shops to offer budget meals around $3 through Price-Quality tenders.
HDB may take action such as not renewing tenancies if there is persistent feedback on high food prices, but prices vary by competition, location, and menu items, with no systematic data on differences between estate types or coffee shop ages.

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12 Sep 2022

Proposal to Defer GST Increase Given Increased Tax Collection in FY2021/2022 and Below-inflation Income Growth

Parliamentarians asked if the 22.4% increase in tax revenue for FY2021/2022 could allow deferring the planned GST rises in 2023 and 2024, given below-inflation income growth.
The Deputy Prime Minister explained that the revenue surge was partly due to volatile stamp duty collections from a buoyant property market and was used for new spending needs; therefore, the government will proceed with the GST increase as planned to meet future expenditure commitments.
He assured that the government will maintain measures to shield households from the GST impact, enhancing support for lower-income groups if necessary, while acknowledging the difficulty in predicting revenue due to Singapore's economic volatility.

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2 Aug 2022

Assessment of Quantum and Proportion of Household Cost of Living Attributable to Energy Consumption

Dr Tan Wu Meng asked the Ministry for Trade and Industry about the projected short- and long-term changes in the quantum and proportion of household cost of living attributable to energy consumption, considering geopolitical and climate factors, and requested a breakdown by income decile.
Gan Kim Yong cited that in 2017/2018, households spent an average of $220 monthly on energy, representing about 4.5% of total expenditure, and noted that recent global energy price increases due to the Russia-Ukraine war and supply constraints may raise energy costs, with more data expected from the next survey.
The Ministry highlighted that Singapore’s reliance on imported energy makes domestic prices vulnerable to global volatility, and while current projections indicate potential impacts on household energy expenditure, detailed decile breakdowns are not yet available.
The Government is monitoring energy prices and has introduced support measures, such as enhanced GST Voucher U-Save vouchers and a $100 Household Utilities Credit, to help households cope with rising energy costs.
Additional support has been extended to self-employed persons affected by higher fuel costs, including a one-off relief of $150 for eligible taxi and private hire car drivers.

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2 Aug 2022

Enforcement Against Businesses Using Impending GST Increase as Excuse for Unjustified Price Increases

Yip Hon Weng asked whether the Committee Against Profiteering (CAP) takes enforcement against businesses using the GST increase as an excuse for unjustified price hikes, what actions ensure compliance from repeat offenders, and if offending businesses will be named.
Gan Kim Yong explained that CAP investigates such feedback, engages businesses to address issues, and may publicize errant businesses, noting that CAP reviewed about 100 submissions in 2022 with five GST-related cases that were swiftly addressed through collaboration with agencies.
The five cases resulted in businesses committing to transparent pricing and communications, with no repeat complaints so far.

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1 Aug 2022

Use of Per Capita Annual Value of Homes as Basis for Assistance Packages to Offset Cost of Living

Kwek Hian Chuan Henry asked whether future cost-of-living assistance could use the per capita annual value of homes to better support larger families in non-HDB flats.
Lawrence Wong explained that social support schemes are means-tested using criteria like per capita household income, while annual value serves as a proxy for wealth and family support, with appeals possible for borderline cases.
Some support measures, such as recent utility credits and CDC vouchers, are not means-tested and provided to all households.
The government will continue reviewing assistance criteria for appropriateness and fiscal sustainability, prioritizing those with greater need.

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