SINGAPORE, Apr 23 — Singapore’s Prime Minister Lawrence Wong warned yesterday that while many “tempting” proposals to manage cost-of-living pressures may surface during Singapore’s General Election, not all are financially sound.
He said some of these ideas could harm Singapore’s economy and public finances if implemented.
“In this election, you will hear many tempting proposals. Some may sound appealing, but not all are sound,” Wong said in a four-minute video message shared on Facebook and his other social media platforms, as he went on to explain the global factors contributing to rising living costs.
“If they weaken our public finances, the burden will fall on our children. If we mismanage the economy, investors will lose confidence and our incomes will suffer.
“Then we won’t have the resources to sustain permanent schemes — or even to provide temporary relief,” he added.
According to CNA, the message was released on the eve of Nomination Day.
Today marks the beginning of a nine-day campaign period before voters head to the polls on May 3.
Wong said the government has already taken action to manage the economy and support Singaporeans through targeted measures.
“The government’s approach is prudent and responsible — especially crucial in these uncertain times. I will not gamble with your lives or your future,” he said.
“We will always support you, stand with you, and go all out to secure a brighter future for you.”
In the lead-up to Nomination Day, political parties have outlined their manifestos, many of which propose ways to address rising costs.
The Workers’ Party (WP) suggested alternative revenue sources to the Goods and Services Tax (GST), calling them “less regressive revenue options” that could cover increased health and aged care costs.
The Progress Singapore Party (PSP) proposed rolling back GST from 9 per cent to 7 per cent and exempting essential items like rice and milk formula.
The Singapore Democratic Party (SDP) also called for a GST reduction and the removal of the tax from essentials such as food and medicine.
Red Dot United (RDU) proposed a “Citizen’s Dividend”, described as an unconditional cash transfer to serve as a financial safety net for all Singaporeans.
Wong said cost-of-living pressures are “a real concern” and pointed to global factors such as wars in Europe and the Middle East, supply chain disruptions, and trade tensions.
He said the government had anticipated some of these challenges earlier in the year and responded with a comprehensive support package in the Budget.
These measures include Community Development Council (CDC) vouchers, SG60 vouchers, cash payouts, LifeSG credits and U-Save rebates.
He said a typical family of four with two young children could receive around S$5,000 (RM16,797) in support this financial year.
The rollout schedule begins with CDC vouchers in May, followed by SG60 vouchers in July, Child LifeSG credits from July onwards and U-Save rebates in July and October.
“So nearly every month, you can expect something,” Wong said.
He added that the government is closely monitoring the situation and is prepared to step up support if necessary.
“And beyond this year, we will continue the help for as long as it is needed.”
Wong said that strong fiscal management by the People’s Action Party (PAP) government has enabled such aid.
“Our public finances are healthy and strong. Many other countries borrow heavily, and pay interest on their loans. We do not. We have reserves, which we invest, and all Singaporeans benefit from the investment income generated.”
He said the government is in a position to deliver more support and strengthen social safety nets while others cut benefits.
He noted that the bulk of government social spending goes to permanent programmes and now surpasses defence as the largest Budget item.
“That is how we provide real, sustained support to help every Singaporean with the cost of living, and at every stage of life,” he said.
Wong said the best way to address cost pressures is to ensure incomes continue rising faster than inflation.
“For this to continue, our economy must keep growing. So we must manage it prudently and responsibly,” he said.
