Factors for Continuation of Government's Cost-of-living Support

Parliamentary Question by Mr Shawn Loh:

To ask the Prime Minister and Minister for Finance in relation to the Government’s statement in May 2025 that the Government will provide cost-of-living support for as long as it is needed, what are the factors that determine whether such Government support should continue, given that inflation has moderated, but cost of living anxieties remain elevated.

Parliamentary Reply by Second Minister for Finance, Ms Indranee Rajah:

We take a holistic approach to determine Government support for cost-of-living, taking into consideration factors such as inflation, economic and labour market conditions, fiscal sustainability, as well as the affordability challenges faced by lower- and middle-income households. 

We recognise that while inflation has moderated, Singaporeans are still adjusting to higher price levels. That is why we had provided additional support for Singaporeans at Budget 2025, including CDC Vouchers and additional U-Save rebates.

Beyond transitional cost-of-living support, we also strengthened structural social support in housing, healthcare, education, and retirement, to provide Singaporeans with assurance at every stage of life. 

We will continue to monitor economic conditions closely and adjust cost-of-living support as necessary. In the longer term, the best way to help Singaporeans is to have broad-based and inclusive real wage growth.