Last week, Singaporeans would have all been made aware that there might well be a shortage in chicken supplies, as Malaysia has announced that it will be halting the export of chickens in a bid to curb food inflation. Memes on this potential shortage were quick to appear on social media sites as Singaporeans pondered how and when they would be able to partake in national favourites such as chicken rice or nasi briyani again.
The bigger question however is the issue of escalating global prices and Singapore’s place in all of this. Back in November 2021, Minister for Trade and Industry, Gan Kim Yong, had already raised the issue of increasing prices. He said then that the costs of food would “rise further in the coming months”, adding that “Higher global food prices will, in turn, exert upward pressure on domestic food prices.”
This was before we had Russia’s invasion of Ukraine to contend with! With this added pressure and the war not showing signs of ending, there is no doubt that things are getting worse and may get even worse yet.
To what extent is the Government preparing to support Singaporeans amid global chaos?
Of course, factors such as the effects of the global COVID-19 pandemic and Russia’s war on Ukraine cannot be blamed on the Singapore Government. These are factors outside its control. That said, what is the Government doing within its control to alleviate the domestic pressures?
Will Singapore perhaps take stock of the current situation and postpone the planned Goods and Services Tax (GST) hikes?
This is certainly the view of netizens, some of whom have questioned Prime Minister Lee Hsien Loong (PM Lee) on this in response to his interview with Nikkei Asia when he said that inflation was a very serious problem for the world.
Similar questions were raised by Netizens in response to PM Lee’s May Day speech when he warned of tougher economic times.
Given that GST is a consumer tax which would disproportionately hit the middle class and lower income families the most, the concern voiced by many average Singaporeans is understanding. In Singapore, essential goods such as rice, diapers or baby food are not exempt from GST. No matter how much people try to tighten their belts, they will still need to consume the necessities just to live, which in turn means that they will be affected by the GST at every turn. With this in mind, it will of course be those who earn less that will bear the brunt of the increments.
In a time of global economic turmoil, is this really the best time for the Government to push ahead? After all, the hallmark of any good Government is for it to be able to be nimble and flexible when things change. Things have changed. Will the Singapore Government be able to change its policies to suit changing needs? Or will it remain wedded to old plans no matter what?
Even if the Singapore Government does not want to postpone the GST hikes, can it not consider making certain basic goods such as rice, bread, or baby food tax-free? In that way, the strain on the lower income can be alleviated.
The Government has introduced cash GST vouchers — it has said will help needy families. However, given that this scheme is means tested and does not consider extenuating circumstances such as the number of dependents each household may have, its utility might be limited. It is also capped at $400 yearly, which, in a climate of escalating costs, may be woefully insufficient. Why not introduce exemptions on certain types of goods instead? In that way, families can budget according to their needs and buy only tax-free essentials instead of relying on handouts which may not be enough anyway?
It is worth remembering that Singapore is not a country that has a minimum wage. Despite the Workers’ Party (WP) lobbying hard for it, the overwhelming People’s Action Party (PAP) members in Parliament make this next to impossible to ever impose. So, in a landscape of no minimum wage plus rising costs of living and a planned GST hike, how will the Singaporeans fare? Will the poor become destitute and the middle class become poor?
The idea that there is some disparity between the rank and file Singaporeans and the politicians who rule us has not escaped Singaporeans. A Singaporean man by the name of Bruce has taken to TikTok to state what he would do if he were the Prime Minister of Singapore. In his video, firstly, he said he would “give 90 per cent of my salary to help the poor. $300,000 minus $270,000, $30,000 I can live comfortably. A good life, and to send a clear signal that I am not in it for the money”.
Chicken rice jokes aside, how is the Government going to manage the rising costs of living in a way that is more equitable for all Singaporeans? Postponing the GST hikes for now or perhaps introducing some exemptions on necessities might be a good way to start.
Otherwise, “got no chicken rice but got GST hikes? Fair meh?”