Measures include cash payouts, rebates, and vouchers to ease financial pressures.
The Singapore government has announced a new S$1.1 billion support package aimed at helping citizens, particularly lower- to middle-income families, cope with rising living costs. Finance Minister Lawrence Wong revealed the package, which includes no need to dip into past reserves. This initiative includes an additional top-up to the Goods and Services Tax (GST) Assurance Package, which now totals over S$10 billion to mitigate the impact of rising GST, which increased to 8% this year, with a further hike planned in January 2024.
The package provides a range of relief measures for Singaporeans facing price increases, despite inflation easing from its peak. Specific support includes an additional one-time cash payout of up to S$200 for around 2.5 million eligible Singaporeans, with payouts planned for December. Additionally, all Singaporean households will receive an extra S$200 in Community Development Council (CDC) vouchers, bringing the total amount for 2024 to S$500. These vouchers can be used at participating local shops and hawker centers.
To help with utility costs, the government will also provide a one-off rebate for service and conservancy charges (S&CC) and an increase in U-Save rebates, offering eligible households S$20 per quarter from January 2024 until December 2025. These measures are designed to benefit around 950,000 households living in Housing and Development Board flats.
In response to concerns about public transport costs, additional transport-related measures will include S$50 worth of public transport vouchers for households with a monthly per capita income of up to S$1,600. Furthermore, the government will allocate an extra S$300 million in public transport subsidies for 2024 to offset a planned 15.6% fare hike.
Despite these inflationary challenges, Singapore is not expected to enter a recession this year, although risks remain due to global economic uncertainties. Minister Wong emphasized the importance of these support measures to protect citizens and maintain long-term public finances.
