Speeches

1.  Mr Speaker, central to this motion is the issue of costs of living and the important role played by hawker centres in ensuring Singaporeans have access to good affordable food. SMS Koh will be speaking about the Government’s policies to keep food affordable and enable hawkers to earn a living and fair income. Before he does so, I would like to share how the Government has been supporting Singaporeans with cost of living pressures. 

2.  This Government understands Singaporeans’ concerns and anxieties about high prices. We have taken decisive action to help. And will not hesitate to do more if necessary.

3.  First, the Government has taken actions to tackle inflation. 

a. A big part of the inflation we are facing has external causes. The COVID pandemic and the wars in Europe and the Middle East had contributed to rising food, energy, and transport prices globally.

b. The Monetary Authority of Singapore, MAS, acted quickly to tighten monetary policy five times. The stronger Singapore dollar meant that inflation did not reach the highs seen in other countries.

c.  Inflation has now fallen significantly from its peak. Hawker food inflation has fallen compared to the earlier part of this year. Overall, core inflation in 2024 is expected to continue to decrease, and drop further in 2025.

d.  MAS’ monetary policy will continue to ensure medium-term price stability.

4.  Second, we have introduced a comprehensive package of measures to cushion the impact on households, and enhanced it several times. Even as inflation has moderated, we know that Singaporeans still feel the impact of higher prices. 

a. Hence we have enhanced the Assurance Package several times since it was first introduced in 2022, to help Singaporeans cope with rising costs of living. And to date, we have enhanced the Assurance Package to more than $10 billion, comprising cash payouts, MediSave top-ups, CDC vouchers, as well as additional U-Save and S&CC rebates. 

i. In particular, the Government has been giving out CDC Vouchers to Singaporean households every year since the COVID pandemic in 2020. The number of participating hawkers has grown over time, and now, half of the CDC Vouchers can be spent at hawkers and heartland merchants. This means that the CDC Vouchers not only help Singaporean households with their cost of living, but also support our hawkers. 

ii. There is more support on the way. In January 2025, every Singaporean household will receive another $300 in CDC Vouchers. In the coming months, all adult Singaporeans will also receive between $200 and $600 in cash payouts. 

b. The Assurance Package is on top of the permanent GST Voucher scheme that already supports lower- and middle-income Singaporeans and households with daily living expenses, including food. We introduced this scheme in 2012, and have enhanced it over the years. Most recently, we increased the GSTV-Cash amount in 2023 so that eligible Singaporeans can receive up to $850 in cash each year.

c. We also implemented a Personal Income Tax Rebate of 50% of tax payable for Year of Assessment 2024, capped at $200 so that the benefits go mostly to middle-income workers.

d. Ms Hazel Poa has proposed more help for vulnerable groups, such as food discounts and more CDC Vouchers for the lower income.  And in fact, this is what the Government is doing.  When you add up all these measures, for example: 

i. A middle-income household with two young children will get about $4,400 in rebates, payouts, and support this year; 

ii. A lower-income household with two young children will get about $6,500; and

iii. A retired elderly couple with no income will get about $12,400.

e. Over the years, we have continued to enhance our measures that provide more targeted support to those who are more in need. For example, in Budget 2024, the Government announced an increase in the quarterly Silver Support payments and the income threshold to qualify for support, to provide more help to low-income seniors.

f. And on top of the national schemes, the CDCs and grassroots organisations also have their own schemes.  We have heard what Mr Edward Chia, Mr Liang Eng Hwa and Ms Mariam Jaafar have highlighted and what they have done for their communities.

5.  Third, the Government stands ready to do more to support Singaporeans should it be necessary.  

a. The Government will continue to monitor global conditions closely. For example, an increase in geopolitical and trade tensions may lead to higher commodity prices and reverse the decline in imported costs.

b. The broad-based support that we have provided over the past few years will help every family, but we recognise that there may still be gaps for some households. For these households, we will continue to review and update our social support schemes. 

c. We are also heartened that many in society have come together to help with the cost of living, especially for more vulnerable groups. 

d. Importantly, we will continue to sustain real income growth for Singaporeans. We do this by creating good jobs for Singaporeans. We help them upgrade their skills and earn higher pay. Itis a more sustainable way to manage price pressures – by ensuring that our incomes grow faster than inflation.  

6.  Let me reiterate the Government’s approach:  

a. We cannot control external factors like wars or disruptions. But a stronger Singapore dollar has helped to keep inflation rates in Singapore lower than elsewhere.

b. We have rolled out significant and broad-based support measures over the past few years, to help Singaporeans with higher cost of living.

c. We stand ready to do more to help Singaporeans if needed – in a sustainable, fair and effective way, with more help to lower- and middle-income Singaporeans. We will continue to listen to Singaporeans’ concerns and take the necessary measures to address these concerns.  

d. We will continue to help Singaporeans sustain real income growth, through higher productivity and enhanced skills. 

7.  Thank you.