NDR 2023: Govt studying if Assurance Package can be enhanced to help S’poreans cope with GST hike
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PM Lee said the Assurance Package will continue as planned, and has asked DPM Lawrence Wong to see if it can be enhanced.
ST PHOTO: KUA CHEE SIONG
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SINGAPORE – The Finance Minister will study carefully if the Assurance Package for GST can be further enhanced, as the goods and services tax (GST) is set to go up to 9 per cent in 2024, Prime Minister Lee Hsien Loong said on Sunday.
During his Mandarin speech at the National Day Rally, PM Lee said the Assurance Package will continue as planned, and that he is confident it will be effective in offsetting the impact of the 1 percentage point GST hike.
“But I am sure you are wondering, Could we further enhance the Assurance Package, so everyone gets a little more help?” he said.
To that, PM Lee said he has asked Deputy Prime Minister and Finance Minister Lawrence Wong to study the matter carefully.
He added: “Let’s wait – and of course, we hope for good news.”
The Assurance Package, first announced in Budget 2020,
The $6 billion support package was later beefed up to $6.6 billion at Budget 2022, and then enhanced again to $9.6 billion in Budget 2023.
The GST rate was raised from 7 per cent to 8 per cent on Jan 1, 2023, and will go up another point on Jan 1, 2024.
The support package represents the Government’s commitment to ensure that the impact of the GST increase will be offset for the majority of Singaporean households for at least five years, and for lower-income households for about 10 years.
Among the enhancements made in February was a new Cost-of-Living Special Payment
An additional senior bonus of between $200 and $300 was also introduced for eligible Singaporeans aged 55 and above, while cash payouts were increased by between $300 and $650 for eligible Singaporeans. This brings the total amount received by each adult Singaporean to between $700 and $2,250 over five years.
As with his Rally speech in 2022, PM Lee displayed a calendar to show that there are various ongoing subsidies
These include cash payouts and MediSave top-ups in August; subsidies in September; U-Save and service and conservancy charges rebates in October; and the Assurance Package Cash payout in December.
In January 2024, Community Development Council (CDC) Vouchers will be issued again – “in time for everyone to buy goodies for Chinese New Year”, he said.
“We have kept our promise to take care of Singaporeans,” he said.
PM Lee said the Government was able to enhance its support measures in Budget 2023 because it had saved money and there was a budget surplus. For instance, Singaporean households received $300 in CDC vouchers,
While these measures have been popular and effective, Singaporeans must understand that the Government cannot give out infinite subsidies, he said.
“The long-term solution is to make ourselves more productive, transform our businesses, and grow our economy,” he said. “Then our real incomes can rise, and we can all be better off.”
PM Lee also urged people to sign up for Healthier SG, which was launched by the Health Ministry (MOH) in July
The Republic’s major preventive care strategy aims to help residents take charge of their health and maintain their well-being.
He and his wife, Madam Ho Ching, have enrolled, he said.
With Healthier SG, MOH will spend more on preventive care with the goal of helping Singaporeans age well and spend less on medical bills over the long run. This will hopefully also slow the growth of the country’s overall healthcare spending, he added.
He noted that there are still some who are reluctant to visit the doctor regularly – even when they are unwell – for fear of hearing bad news. “I hope you can change your mind,” he said. “Visit your doctor regularly, listen to their advice, and develop good habits to take care of your health.”
Reflecting on the past three years, PM Lee noted that Singapore was among the first few countries to emerge from the Covid-19 pandemic and recover quickly.
Investors say how the Republic performed in the crisis and gained more confidence in it, has strengthened its position as a regional hub for technology, research and development, and logistics, and as a global financial hub, he added.
“All these did not happen by chance. It was because we planned ahead and maintained mutual trust between the Government and Singaporeans, working closely with each other to turn our dreams into reality,” he said.
By upholding the nation-building ideals of the founding fathers, PM Lee said Singapore can continue to prosper and progress towards a better tomorrow, no matter the winds and storms.
READ MORE: What are the 8 highlights of NDR 2023?
Watch PM Lee’s National Day Rally speech here:
