Cost of living — Topics

4 Apr 2022

Impact of Recent Global Events on Costs of Daily Necessities and Goods and Support Measures for Needy Singaporeans

Gerald Giam asked the Minister for Finance to detail any studies on how global events like rising commodity prices, inflation, the Russia-Ukraine conflict, and the COVID-19 pandemic might affect the cost of daily necessities and goods in Singapore.
He also inquired about additional government measures beyond the Assurance Package for the GST increase to help needy Singaporeans cope with rising costs of non-GST-related daily necessities.
Lawrence Wong responded that the question was addressed in a joint Ministerial Statement delivered on 4 April 2022, referencing an official report on inflation and business costs.

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4 Apr 2022

Plans and Long-Term Strategies to Address Rising Costs for Businesses and Cost of Living in Singapore

Sitoh Yih Pin inquired about the trajectory of energy prices and the Government's plans to mitigate rising business costs and the cost of living for Singaporeans.
Desmond Choo and Melvin Yong Yik Chye questioned the impact of the Ukraine-Russia conflict on food prices, requested information on specific price increases and stockpiles, and asked about long-term strategies to keep basic food affordable.
Minister Gan Kim Yong stated that the questions had been addressed in earlier Ministerial Statements by Ministers Lawrence Wong and Tan See Leng on 4 April 2022.

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4 Apr 2022

Additional Cost of Implementing Multi-tiered GST for Exemption of Basic Necessities

Hazel Poa asked about the additional cost of implementing a multi-tiered GST to exempt basic necessities, and Lawrence Wong responded that Singapore already achieves multi-tier effective GST rates through GST Vouchers and GST absorption on subsidized services, which targets low-income households more effectively than blanket exemptions.
Wong noted that exemptions for essential goods tend to benefit higher-income households more, as they consume more of all goods, and such a move would not enhance GST fairness; he also highlighted that businesses and IRAS would pass implementation costs to Singaporeans.
He cited European and Swedish studies showing multi-rate GST systems increase compliance costs, disproportionately burden SMEs, and lead to higher fraud and disputes, with Sweden estimating a 30% compliance cost reduction from switching to a single rate.
The Swedish study also estimated around S$146 million in public and private sector resources spent on GST dispute cases, underscoring the inefficiencies of multi-rate systems.

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4 Apr 2022

Review of ComCare Payouts Given Inflation

Assoc Prof Jamus Jerome Lim asked if ComCare payouts and eligibility criteria will be reassessed and expedited due to rising inflation.
Masagos Zulkifli B M M stated that ComCare assistance is tailored to needs, with reviews every two to three years considering inflation and stakeholder input, and the next review is due mid-year.
The minister announced that additional support measures for low-income households, including potential payout adjustments and administrative flexibilities, will be detailed after a joint Ministerial Statement on inflation.

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4 Apr 2022

Public Transport Vouchers to Encourage More to Switch to Public Transport Given Spike in Oil Prices

The Minister for Transport, S Iswaran, noted that public transport remains affordable, making up only 2% to 3% of household expenditure for lower-income groups over the past five years, supported by over $2 billion in annual government subsidies and additional discounts for students, seniors, and persons with disabilities.
Targeted support is provided through Public Transport Vouchers (PTVs), with 600,000 vouchers worth $30 each available in the 2021 exercise, and about 300,000 households have already received them, with a second round from April 2022 for low-income households.
Households in need can obtain PTVs from community centres or clubs until 31 October 2022, ensuring assistance is accessible to those who require it.

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4 Apr 2022

Inflation and Business Costs

The Minister for Finance outlined that global inflation is driven by post-pandemic demand surges, supply chain disruptions, and the Ukraine conflict, which has spiked energy and food prices, and he announced the early disbursement of budget measures like CDC vouchers and utility rebates to help households, while ruling out fuel duty cuts as they would disproportionately benefit car owners and undermine green transition efforts.
The Second Minister for Trade and Industry detailed measures to manage energy costs, including securing electricity supply through LNG facilities and extending support schemes for businesses, while emphasizing the need for energy efficiency and diversification of energy sources to enhance long-term resilience.
The government will monitor the economic situation closely and stand ready to provide further assistance if needed, while urging businesses and households to adapt through transformation and productivity improvements to withstand external shocks and sustain income growth.

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4 Apr 2022

Impact of Higher Electricity and Ingredient Prices on Earnings of Hawkers

Hawk ers have been affected by rising electricity and ingredient prices as well as COVID-19 dining restrictions, but footfall is improving with eased measures and travel reopening, though the government does not track individual hawkers’ earnings.
The government has provided support including rental waivers, service subsidies, cash payouts, and a new Small Business Recovery Grant offering up to $10,000 per hawker business, while low-income families can seek assistance through ComCare and CDC vouchers.
In response to concerns about private hawker centres and targeted aid, the government noted that most rental reviews result in no change or reductions, the Small Business Recovery Grant applies to eligible stallholders, and CDC vouchers can already be used at participating hawker stalls.

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4 Apr 2022

Measures to Dampen Inflationary Pressures or to Help Singaporeans Cope Given Higher Prices

Parliament members proposed various measures to ease inflation, including reducing petrol and diesel excise duties, providing road tax rebates, and offering utility rebates or CDC vouchers to households.
Several speakers asked about government interventions for businesses and lower-income groups, such as temporary tax cuts, support for SMEs, and measures against profiteering and shrinkflation.
The Minister for Finance indicated that the government would address these concerns in a later ministerial statement on inflation and business costs.

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11 Mar 2022

Acknowledgement to the Chair

The debate highlighted the uniquely challenging circumstances of Budget 2022, including the impact of COVID-19 on parliamentary proceedings, the urgency of climate change, and the global repercussions of the Ukraine conflict, all of which shaped the budget's focus on a fairer, greener, and more inclusive Singapore.
Key measures in the budget were detailed, such as support for businesses and workers through the Progressive Wage Model, transitioning to a sustainable society with increased carbon tax and green initiatives, strengthening the social compact through cost-of-living support, and funding these through a reformed tax structure including GST with offset packages.
The Leader of the House contrasted the government's philosophical approach to funding—balancing taxes, reserves, and competitiveness—with the Workers' Party's proposals to rely more on taxing large companies, the wealthy, or using reserves, cautioning against potential negative economic impacts.
The Speaker reflected on broader themes of governing in uncertain times, emphasizing the need to rise above a "post-truth" world where stories and misinformation can distort public discourse, while acknowledging Singapore's strengths in housing, employment, and social trust amid global challenges.
The session concluded with gratitude for all contributors to the budget process, from MPs and public servants to support staff, underscoring the importance of disciplined execution and public trust to achieve long-term national goals.

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2 Mar 2022

Committee of Supply – Head M (Ministry of Finance)

Members questioned the effectiveness, governance, and future lessons from Singapore’s extensive COVID-19 spending, seeking reviews on outcomes, controls, and continued support for hard-hit sectors like construction and tourism.
Debates focused on revenue measures, including the GST hike, with calls to exempt basic essentials and inquiries about the tax impact on lower-income households and businesses like taxi drivers.
The Second Minister for Finance outlined measures to ensure accountability, value-for-money in infrastructure projects, and support for businesses via timely payments and targeted schemes, while defending the GST approach as progressive through vouchers and rebates.

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2 Mar 2022

Debate on Annual Budget Statement

Multiple MPs raised concerns about the mental health of caregivers and support for vulnerable groups, with calls for enhanced financial aid for informal caregivers and better protection for healthcare and education workers.
The debate focused on fiscal policy, with the government defending the GST hike and other tax measures as necessary for long-term revenue, while opposition parties proposed alternatives like higher wealth and income taxes and using more reserves.
The Finance Minister summarized the Budget's focus on economic recovery, climate action, and a fairer society, and defended the GST increase by highlighting offset packages that protect lower-income households.

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1 Mar 2022

Debate on Annual Budget Statement

Dr Shahira Abdullah highlighted rising inflation and cost-of-living concerns, supporting the Budget's progressive tax measures but questioning the eligibility criteria for GSTVouchers and calling for greater social support for vulnerable groups like migrant workers and persons with disabilities.
Xie Yao Quan argued that the unique design of Singapore's GST system makes it the fairest way to raise revenue for healthcare, as most GST is paid by foreigners and high spenders, and emphasized that a renewed social compact requires both higher contributions from the wealthy and stronger support for those in need.
Raj Joshua Thomas called for better work-life harmony for all workers, including lower-wage and outsourced workers, and urged a cap on social workers' caseloads, increased resources for research and community work, and fairer pricing in outsourced service sectors.
Louis Ng Kok Kwang advocated for systemic support for social workers, including caseload caps, dedicated funding for research and community work, and stronger resources to address the root causes of social issues rather than just symptoms.
Tin Pei Ling and Ang Wei Neng emphasized the need to manage the psychological impact of inflation, protect national reserves for future crises, and transform Institutes of Higher Learning to better equip students for a rapidly changing economy.

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1 Mar 2022

Debate on Annual Budget Statement

The debate highlights Singapore’s response to the pandemic and future challenges, emphasizing unity and the need to position the economy for growth amid global competition, digitalization, climate change, and an ageing population.
Key concerns raised include the impact of GST increases on households, the effectiveness of the Committee Against Profiteering, and the need for sector-specific industry transformation through refreshed Industry Transformation Maps (ITMs) to ensure inclusive growth and support for low-wage workers and SMEs.
Speakers stress the importance of building national resilience, innovation, and a sustainable future, with calls for more progressive taxation, support for platform workers, and ensuring that policies reflect diverse household structures and gender equity.

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28 Feb 2022

Debate on Annual Budget Statement

The debate centered on the government's plan to raise the Goods and Services Tax (GST), with the Workers' Party and Progress Singapore Party strongly opposing it, arguing it is regressive and ill-timed amid high inflation, and proposing alternative revenue sources like higher wealth and corporate taxes.
The government defended the GST hike as necessary for long-term fiscal sustainability, particularly for healthcare and an aging population, highlighting the extensive $6.6 billion Assurance Package and other permanent offsets to cushion the impact, especially for lower and middle-income households.
Other key budget measures discussed included significant increases in carbon tax, property tax, and luxury car taxes to enhance progressivity, as well as expanded support for low-wage workers through the Progressive Wage Model and Workfare schemes.
Members also raised concerns about the impact of the Ukraine conflict on Singapore's economy, the need for stronger support for SMEs amid rising costs, and calls for greater transparency in long-term fiscal projections.

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18 Feb 2022

Annual Budget Statement

The Minister for Finance outlined a comprehensive budget to support Singapore's post-pandemic recovery, proposing targeted measures like a $500 million Jobs and Business Support Package and a $560 million Household Support Package to aid struggling sectors and households amid inflation and economic uncertainties.
To address long-term challenges, the budget emphasized investing in new capabilities, including digital infrastructure and R&D, advancing the green transition by raising the carbon tax and setting a net-zero emissions target by around 2050, and strengthening the social compact through enhancements to lower-wage worker support, retirement adequacy, and healthcare reforms.
Revenue enhancements were announced, including higher personal income tax rates for top earners, increased property tax rates for non-owner-occupied and high-value homes, and a staggered GST increase from 7% to 9% starting in 2023, accompanied by an enhanced Assurance Package to cushion the impact on Singaporeans.
The budget also detailed adjustments to foreign worker policies, such as raising qualifying salaries for Employment Pass and S Pass holders, and reflected a revised fiscal outlook with lower-than-expected draws on past reserves for COVID-19 relief, while maintaining deficits for FY2021 and FY2022.

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15 Feb 2022

Steps to Diversify Sources of Seafood and Vegetable Items Ahead of Major Festivities to Mitigate Price Increases

The Singapore government has diversified seafood and vegetable imports from over 10 source countries to strengthen supply resilience and mitigate festive price increases, while also working with retailers and CASE to promote consumer awareness.
Prices rise due to seasonal demand surges, and the government employs a multi-pronged strategy—including import diversification, local production goals, and stockpiling—to stabilize food prices amid global disruptions like climate change and supply chain issues.
Retailers are actively moderating prices through campaigns and discounts, and the government collaborates closely with local companies to ensure sufficient supply, with factors like currency appreciation and passing monsoon seasons helping to temper cost pressures.

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12 Jan 2022

Freeze on Increases to Fees Imposed by Government Agencies and Statutory Boards

Member of Parliament Chua Kheng Wee Louis asked the Minister for Finance whether the government would consider mitigating fee increases by government agencies and statutory boards for lower-income households over the next 12 months.
Minister for Finance Lawrence Wong stated that this issue had already been addressed in a combined reply by the Ministry of Trade and Industry and Ministry of Finance during the 11 January 2022 Parliament sitting.
The reply covered multiple questions from the Order Paper on 10 and 11 January 2022, both oral and written, regarding cost rises and measures to help Singaporeans cope with inflation.
Official reports from 11 January 2022 were referenced, detailing reasons for rising costs, measures to assist households, and analysis of inflation drivers and fiscal support impacts.
The government’s position indicates that existing measures and responses are in place rather than implementing a new freeze on fee increases for lower-income households.

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11 Jan 2022

Assessment of Second-round Inflation Effects in 2022 and Additional Fiscal Policy Related Measures to Offset Impact of Non-demand Driven Inflation Effects

Saktiandi Supaat questioned the assessment of second-round inflation effects in 2022 and additional fiscal measures to offset non-demand driven inflation from supply-side constraints.
Lawrence Wong stated that the matter was already addressed in a combined oral reply by MTI and MOF on 11 January 2022.
The response referred to an official report on measures to help Singaporeans cope with rising inflation and the impact of fiscal support on inflation.

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11 Jan 2022

Emergence of Second-round Effect of Inflation and Main Drivers Contributing to Wage and Services Inflation Outlook in 2022

Saktiandi Supaat inquired about the emergence, persistence, and drivers of second-round inflation effects, alongside wage and services inflation outlook, price stabilization measures, and retailer cooperation in 2022.
Gan Kim Yong responded that the matter had been previously addressed in an oral reply on January 11, 2022, directing attention to an official report on cost rises and measures to help Singaporeans cope.
The debate highlighted concerns over supply-side cost drivers and excessive pricing on essentials, with the government indicating existing responses rather than new announcements.
No new policy measures or specific cooperation plans with retailers were detailed in the exchange, emphasizing reliance on prior official communications.

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11 Jan 2022

Review of Household Income and Per Capita Income Criteria for ComCare Assistance Given Rising Inflation

Edward Chia asked the Minister for Social and Family Development if the Ministry would review household and per capita income criteria for ComCare assistance given rising inflation and slower economic growth.
The Minister stated that ComCare assistance is assessed holistically with flexible criteria, not strict thresholds, and that eligibility is reviewed every two to three years, with the last review in 2019 and a new review planned for this year.
Edward Chia followed up by asking about reducing the time lag between reviews and cost-of-living increases, and whether the short-to-medium-term assistance periods could be extended to lessen anxiety for families.
The Minister explained that review periods are guidelines to help assess needs, and that assistance periods have been automatically extended during crises like COVID-19 to ensure continued support.
The Minister emphasized the importance of community involvement and encouraged referring those in need to ComCare hotlines or local service centers for assistance.

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