Govt will do everything it can to help Singaporeans tackle cost-of-living concerns: PM Wong

SINGAPORE – Singaporeans will get help to tackle ongoing cost-of-living worries, said Prime Minister Lawrence Wong, acknowledging that the issue remains a concern even as inflation has been moderating.

“My team and I will do everything we can to help you get through this difficult period,” he said in a video posted on his YouTube channel on Oct 2, addressing Singaporeans’ concerns about the cost of living.

While inflation is expected to come down further in 2024, this does not mean prices will never go up, he added.

“Price increases in goods and services will have to be done from time to time. To delay such adjustments will only make the pain worse in the future. But if such increases are needed, we will find ways to mitigate the impact,” said PM Wong.

He added that in the longer term, the key to managing the cost of living is to ensure that Singaporeans continue to enjoy good jobs with better wages.

“Then our workers will be able to earn more, with wages going up by more than inflation, and we can all become better off in real terms,” he said.

Laying out the forecast for 2024, PM Wong said the expected higher economic growth and lower inflation contribute to a favourable outlook. More workers should also experience increases in their real incomes, he added.

The Government is looking closely at how economic conditions will unfold in 2025, he said.

PM Wong added that for now, inflation is expected to continue easing to the lower levels seen before the Covid-19 pandemic, while the Government will continue to push for productivity and innovation across the economy.

He said that he will reveal more of the Government’s plans in the 2025 Budget.

He recapped previous policy announcements to address cost-of-living concerns.

In total, more than $10 billion has been earmarked for the Assurance Package to help cushion the impact of cost-of-living increases.

The package has also been enhanced three times.

“So far this year, every Singaporean household has received $800 in CDC vouchers. Households in HDB flats have received up to $400 in utilities rebates,” PM Wong noted. “And eligible citizens have received up to $700 in cash payouts.”

More help will also arrive in the coming months, he said.

This includes more utilities rebates, another $300 in CDC vouchers for every household in January 2025, as well as up to $600 in cash payouts for every Singaporean.

PM Wong also spoke of how inflation is coming down around the world and how the global picture is getting better.

For more than a decade before the Covid-19 pandemic, global inflation was largely stable, including in Singapore, where price increases were lower than global inflation in most years, he said.

But after 2020, supply chains were disrupted because of the pandemic and wars in Europe and the Middle East, impacting food and energy prices everywhere.

“We cannot control global prices. But we can and have mitigated the impact on Singaporeans,” PM Wong said.

During this period, the Singapore dollar was kept strong as the Monetary Authority of Singapore tightened monetary policy five times, shielding the country from most imported inflation, he added.

As a result, inflation in Singapore did not reach the peaks seen in many other countries, he said.

He added that it is not just the Government that has done more to address cost-of-living concerns. Organisations are also doing their part, such as DBS Bank providing rebates on hawker meals, and supermarket chains providing discounts to senior citizens.

Community and grassroots organisations are also working with donors and partners to support vulnerable groups, said PM Wong.

Some give out grocery packs regularly, while others set up makeshift community shops.

PM Wong also highlighted community initiatives to redistribute unsold or excess food in Singapore, noting that a lot of food is wasted here yearly.

“We should aim to redistribute such surplus food from restaurants, supermarkets and wholesalers. This will not only reduce food waste, but also help our vulnerable families,” he said.

PM Wong thanked all who had stepped forward to help other Singaporeans.

“There are challenges ahead. But we have every reason to be confident,” he said.

“We are making meaningful changes and charting a bold new way forward. Together, we can keep the cost of living stable and improve the lives of Singaporeans year by year.”