SINGAPORE: In a video published early on Monday evening (March 3), Prime Minister Lawrence Wong addressed the issue of the Goods and Services Tax (GST) hike from 7% to 9% in 2023 and 2024 in relation to the cost-of-living pressures Singaporeans face.
“I know that, for many Singaporeans, the biggest concern is the cost of living, and understandably so. Prices have gone up, and it’s tough for many families. You feel it when you buy groceries, pay your bills, and manage your daily expenses.
Some wonder if the GST increase had made things worse, but let’s be honest, the reality is that what we are facing goes far beyond the GST,” he said.
@lawrencewongst Tackling cost pressures— we will continue to stand with you, and get through these difficult times together. That’s why we’ve rolled out additional help for every Singaporean in this Budget. #SGBudget2025 @Ministry of Finance
While PM Wong mentioned no names, it made the news when Pritam Singh, the head of the Workers’ Party and the Leader of the Opposition, called the GST increase a “poor decision” that helped “turbocharge” inflation when he made his budget speech on Feb 26.
Mr Singh added that even if the first tranche of the increase had been necessary, there had been “ample policy space to delay” the second increase amid high inflation rates.
The Prime Minister, however, said that inflation has gone up across the globe due to wars and disruptions to the supply chain and that this has affected every country. Singapore, which is reliant on imports for “everything we consume”, has felt this keenly.
He also noted that the world is just a few years removed from the COVID-19 pandemic, which came with a lot of uncertainty, and Singapore had needed to rely on its reserves during this time.
PM Wong also underlined that increasing the GST was not an easy choice but one that had been made in the face of rising expenditures due to an ageing population.
“We had to act responsibly,” he said. “That’s why when the economy showed signs of stabilizing, we decided to proceed with the GST increase.”
He also reminded everyone that with the GST increase, the Government issued the Assurance Package to help Singaporeans cope, which has been enhanced over the years, adding that the Government will continue to provide help “as long as it is needed” and prepare for coming times that would be more turbulent and unpredictable.
“This is who we are as Singaporeans, we look out for one another. We overcome challenges together, and we do everything we can to keep our Singapore miracle going generation after generation.” /TISG
Read also: Pritam Singh calls out ‘poor’ decision to go ahead with GST hike amid raging inflation
