Tackle inequality, address cost-of-living concerns: MPs at Day 1 of Budget debate
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The rising cost of living remains one of the top concerns among Singapore households, MPs said.
ST PHOTO: GIN TAY
- MPs debated Budget 2024, with Pritam Singh calling for greater transparency on public spending and delinking GDP from ministers' bonuses.
- MPs addressed rising cost of living, suggesting refined CDC vouchers, reviewing tax thresholds, and questioning the GST hike's necessity. They also discussed wealth inequality.
- Proposals included enhanced support for families with more children, free childcare, integrated family support hubs, and flexible work policies to boost social mobility and caregiving.
AI generated
SINGAPORE – The first day of the Budget debate saw a majority of the 31 MPs speak on Singapore’s national artificial intelligence push
MPs asked for sustained coaching and structured programmes to learn to use the technology.
They also advocated for the fruits of the technology’s promised growth to be shared equally across all segments of society.
Separately, MPs also raised questions about the country’s record surplus of $15.1 billion
In addition, issues like tracking public spending, tackling inequality and addressing cost-of-living concerns were also raised.
The House will sit again on Feb 25 for Day 2 of the three-day debate on the Budget statement,
Track outcomes of public spending, delink GDP growth from ministers’ bonuses
Workers’ Party chief Pritam Singh (Aljunied GRC) said much has to be done in demonstrating how efficaciously taxpayer dollars have been spent.
There had been no well-publicised tracking of cumulative spending for the Forward Singapore exercise
There was also no comprehensive report on how the $25 billion was used for the Research, Innovation and Enterprise plan, he said.
“Such transparency allows Members of Parliament, on both sides of this House, to fulfil their duty in scrutinising public expenditure as part of their responsibilities as MPs,” he said. “It also gives our people – and our youth, in particular – a clearer picture of the opportunities ahead and helps attract the best minds to Singapore.”
Mr Singh also cited remarks by Deputy Prime Minister Gan Kim Yong at a media interview on the midterm review of the Economic Strategy Review
GDP growth rate is one of four indicators that determine the national bonus, which makes up a part of the salaries of political office-holders, said Mr Singh.
“And if GDP growth will no longer reliably create good jobs for Singaporeans, should it remain in the ministerial bonus formula at all?” he asked.
Mr Singh also questioned the continued usefulness of two other indicators: the unemployment rate and the real growth rates of the incomes of the bottom 20th percentile of Singaporeans.
He said that the national bonus political office-holders receive should be anchored in one outcome: good jobs for Singaporeans in the age of AI.
Address cost-of-living concerns
The rising cost of living remains one of the top concerns among Singapore households, MPs said.
Mr Singh said the CDC voucher scheme
He proposed retaining the $500 voucher base for all households with three members or fewer, but providing an additional $150 per person for those with more than three members.
“This is a modest and practical refinement – one that better reflects the actual cost-of-living burden larger families carry,” he said.
Nominated MP and public policy academic Terence Ho said vouchers and credits can be redefined as a “social dividend” – an annual sum given to citizens that signifies their stake in the country.
MPs also discussed the need for taxation while juggling cost-of-living concerns.
Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) called for a raise of the personal income tax exemption threshold, which now stands at $20,000. He wanted it raised to $25,000 or $30,000 to keep pace with rising median incomes.
Mr Yip Hon Weng (Yio Chu Kang) suggested that further tax increases can be avoided in the near term, and that revenue adjustments be designed with cost pressures in mind.
Mr Shawn Loh (Jalan Besar GRC) agreed and proposed that the Government commit to not making any major revenue-raising moves up to 2035, barring any adverse economic situations.
He also said that unexpected fiscal surpluses should be shared to uplift Singaporeans, such as the elderly. He suggested an increase in Silver Support payouts, and for the highest tier of Silver Support to be given to seniors above the age of 80 or 85 who live in HDB flats.
Tackle inequality and preserve social mobility
Mr Saktiandi noted that though real income has grown and inequality declined, wealth inequality remains higher than income inequality, and relative mobility may moderate as the economy matures.
He suggested making the new CPF life investment scheme
Citing an example, he said a student from a lower-income household may have the ability to pursue a specialised course or industry attachment but lack the financial buffer. Such an account could support these opportunities, as well as his reskilling at key life stages, housing stability and CPF top-ups.
“In this way, we are not just supporting income, we are enabling mobility across the life cycle,” he said.
Associate Professor Ho said children from affluent families have access to private tuition and enrichment programmes in both academic and non-academic domains.
This raises the question of whether more resources and opportunities can be provided for children from lower-income or disadvantaged households.
He suggested liberalising the use of Edusave to cover high-quality, non-school-based enrichment activities. The Government could also provide children from low-income families with additional support via the Child Development or Edusave accounts, he said.
Donors could also be encouraged to top up the accounts of less well-off children identified by schools or community organisations with matching funding from the Government in the spirit of a “we-first” society, he added.
Ms Gho Sze Kee (Mountbatten) said the Direct School Admission (DSA) scheme for students is “an uneven battleground in the education arms race”, where those with the advantage of parental resources enjoy a leg-up over their less privileged peers. She proposed that the Ministry of Education set aside a separate quota for non-affiliated and non-DSA students.
“It is unfair for these students to find themselves crowded out from the race for a particular school even before they get to the starting line,” she said. “This will preserve an open pathway to some popular schools for them, and I think it will be at least a good interim measure.”
Support parenthood and “sandwiched class”
Mr David Hoe (Jurong East-Bukit Batok GRC) said that families planning to have children, or more children, can be given flats with extra bedroom space, or “jumbo Build-To-Order flats”, which could be priced similarly to smaller units through additional subsidies.
The Government should also give families more flexibility to upgrade their flats when a new child arrives, and relax existing rules around minimum occupation periods for these families, he added.
Ms Valerie Lee (Pasir Ris-Changi GRC) noted that many structural family schemes are still designed to provide additional benefits only from the third child onwards, when having the first two children can already place “significant demand on household resources”.
She asked for more support for members of the “sandwiched generation” who have to care for children and ageing parents. This is especially so for smaller families who are in the middle-income bracket but do not qualify for the highest tiers of assistance.
Mr Loh (Jalan Besar GRC) said the basic costs of child-raising should never be a barrier to having children. He suggested free basic childcare, infant care and student care.
Ms Jessica Tan (East Coast GRC) suggested piloting integrated family support hubs, which are one-stop touchpoints that coordinate childcare, eldercare, respite services and employment assistance.
Incentives for caregiving-friendly workplace policies such as caregiving leave, flexible hours and phased return-to-work schemes would encourage more firms to adopt practices that keep caregivers employed and productive, she said.
Expanding daycare and short-notice respite capacity will also give caregivers the breathing space they need, she added.
WP Non-Constituency MP Eileen Chong said Budget 2026 contains welcome measures for families
She will be putting forward proposals on per-child childcare leave, caregiving leave and having actual, enforceable flexible work arrangement policies rather than guidelines. “We also need a supplementary set of policies... focused on giving Singaporeans back the time and energy to actually build a family, and parent with presence, patience and joy,” she said.
