Deciding how best to help Singaporeans cope with cost pressures

The cost of living is a key concern for many Singaporeans. With the issue being top of mind, the three parties in Parliament have all put forward proposals in this term of government to keep prices in check.

- Chin Soo Fang

Global inflation rose sharply in 2022 following the outbreak of the war in Ukraine, and remained high after that due to energy, food and supply chain disruptions. Like many other countries, Singapore felt the impact, Prime Minister Lawrence Wong said in his Budget 2025 speech on Feb 18.

While inflation came down in 2024 and is expected to ease further in 2025, Singaporeans are still adjusting to the new price realities and tightening their belts, added PM Wong, who is also Finance Minister.

In Budget 2025, the PAP government assembled a slew of measures to help Singaporeans with immediate cost concerns. They included a $1.9 billion enhancement to the Assurance Package to offset the effects of inflation for lower-income households, an additional $800 in CDC vouchers in total for every Singaporean household to be disbursed in May 2025 and January 2026, and Utilities-Save (U-Save) rebates to help eligible households cope with their utility bills.

On the back of higher-than-expected revenues, particularly from corporate income tax receipts, the Government also announced that all Singaporeans aged between 21 and 59 in 2025 will get a one-time $600 handout, in conjunction with the Republic's 60th year of independence.

Seniors get another $200, while children aged one to 12 will receive $500 in LifeSG credits and those aged 13 to 20 will receive top-ups to their Edusave or Post-Secondary Education Account.

Families with young children and lower-income individuals and households also received additional help in the form of credits, rebates or higher payments.

The Budget also set aside resources for longer-term measures that the Government said were more sustainable solutions to dealing with the rising cost of living.

They include training workers so they can find better-paying jobs and firing up the engines of economic growth, such as in technology and innovation.