Prime Minister Lee Hsien Loong addressed a number of issues during his National Day Rally last night (20 August), among the issues he spoke on were the increase in cost of living and higher inflation.
Snippet of PM Lee’s speech
Good evening, my fellow Singaporeans. Over the last three years, through the pandemic, we stayed united, and overcame challenges. Life has returned to normal. We are organising National Day Dinners once again, to celebrate National Day. Some Singaporeans have developed the good habit of wearing masks when they have a cold or flu, protecting themselves and others.
Cost of Living
Even as we emerge from the pandemic, geopolitical tensions are rising and the international economic situation is uncertain. Prices are soaring globally, resulting in higher inflation.
To reduce the burden of rising costs on Singaporeans, the Government has given out various subsidies. Last year, I used a calendar to show you the support that a Singaporean household living in a 3-room HDB flat would receive. This included U-Save and S&CC rebates, CDC vouchers, cash payouts and Medisave top-ups, amongst others. The Government gave out different subsidies to help low-income families almost every month. Other Singaporeans also received subsidies. Everyone should have received them.
We also have a calendar this year. Like the past year, Government will continue to provide various subsidies almost monthly. In August, we have cash payouts. There are subsidies in September; then U-Save and S&CC rebates in October and cash payouts again in December. In January next year, we will have CDC Vouchers again. In time for everyone to buy goodies for Chinese New Year. We have kept our promise to take care of Singaporeans.
Assurance Package
We know that the GST hike this year has affected Singaporeans, so we rolled out the Assurance Package to alleviate the pressure on Singaporeans, especially middle- and lower-income families. Last year, as a result of the Government’s savings, we had a budget surplus. Therefore, in this year’s Budget, we further enhanced these support measures. The extra CDC Vouchers were very popular. I am glad that these measures have been effective and Singaporeans have benefitted from them.
From 1 January next year, we will adjust the GST to 9%. We will continue with the Assurance Package, as planned. I am confident it will be effective in buffering the impact of the adjustment to 9%. But I am sure you are wondering: could we further enhance the Assurance Package. So everyone gets a little more help? You asked me, so I asked Finance Minister Lawrence Wong. He said he will study it carefully. Let’s wait — and of course, we hope for good news.
However, we must understand the Government cannot give out subsidies infinitely. The long-term solution is to make ourselves more productive, transform our businesses, and grow our economy. Then our real incomes can rise and we can all be better off.
Govt has been stabilising prices
Actually, the Government has been stabilising prices through various policies. In 1973, NTUC established NTUC Welcome, the predecessor of today’s NTUC FairPrice. Its social mission was to ensure that Singaporeans could purchase necessities at affordable prices. Fifty years later, FairPrice is now the largest local supermarket chain. It plays a leading role maintaining costs at a reasonable level, so Singaporeans can continue to buy affordable and good quality goods. As a result, other supermarkets have no choice but to emulate FairPrice by offering their own house brands and promotions.
To reduce daily expenses, we can make smart choices when purchasing daily necessities. Many Singaporeans know how to compare prices. They know which supermarket has the lowest price on which day for which item. They can go to NTUC FairPrice today, Sheng Siong tomorrow and Giant the day after. Some are expert, use mobile applications such as Price Kaki, or access chat groups to decipher where the best “lobangs” (deals) are. If you are from the Pioneer or Merdeka Generation, or hold a blue CHAS card, from Mondays to Fridays, you can go to different supermarkets and enjoy discounts everyday. Many people look out for money-saving hacks, and buy value-for-money necessities to keep their wallets full. So long as we shop wisely, we can still get our hands on cheaper items.