During campaigning for the recent general election, many opposition parties objected to the planned goods and services tax (GST) hike from 7 per cent to 9 per cent.

In the initial stage of the hike, there would be difficulties coping with a fall in disposable income. Opponents of the hike argue that it may lead to adverse inflation, putting a greater financial burden on lower-income households and worsening inequality.

However, in the long run, as people adjust to the hike, consumption habits would resume. The consumption level and economic growth would eventually recover. And the GST collected would provide much-needed funds for the country's expenses.

Regina Cheong Lay Yen, 20

University undergraduate