SINGAPORE: Lee Hsien Yang, the estranged younger brother of Singapore Prime Minister Lee Hsien Loong, has again criticised the goods and services (GST) tax hike that came into effect earlier this month (1 Jan), bringing the GST to 9 per cent.
Calling the tax hike “unnecessary,” Mr Lee Hsien Yang said on Facebook: “On 1 Jan 2024 GST rises 1% from 8% to 9%; this is a 12.5% increase in GST. I am not convinced that this is necessary. It will contribute to inflation, and cause economic hardship. The handouts to mitigate this are temporary and the increase is permanent.”
The rift between the Lee brothers became public in 2017, two years after their father – founding Prime Minister Lee Kuan Yew – passed. Although their dispute initially centred around their father’s will, their differences deepened when Mr Lee Hsien Yang’s wife and son became embroiled in legal matters.
The younger Lee later threw his hat into the political fray, joining the opposition Progress Singapore Party (PSP) despite declining to stand for elections.
In his latest Facebook post on Monday evening, Mr Lee Hsien Yang pointed out how his elder brother said in 2015 that “profligate spending and irresponsible and unsustainable plans” is what will cause a need to raise the GST – only for the 2 per cent GST hike to be introduced, a mere two and a half years later.
He wrote: “In 2015, when the possibility of GST rising was an election issue Mr Low Thia Kiang suggested presciently that the PAP “could change its mind anytime” and increase GST, PM Lee asserted “What would make you need to raise GST? Profligate spending and irresponsible and unsustainable plans. That is what will hurt and require you to raise GST”
“Just two and a half years later in 2018, PAP had indeed “changed its mind”, and justified a GST hike, amongst others, on the basis of funding healthcare for an aging population. Didn’t PM Lee and his ministers foresee the ageing population issue in 2015?”
Asserting that Singapore has been running a chronic balance account surplus over the past two decades, according to data by the International Monetary Fund, Mr Lee said: “A rise in GST now with all the attendant hardship it will engender for Singaporeans is callous and unjustifiable. Rises in water, electricity and gas prices is adding fuel to this fire.”
Meanwhile, his brother, the PM, said in his New Year’s message that Singapore avoided a recession in 2023, but 2024 and beyond may have a bleaker outlook.
Noting that the cost of living squeeze continues to impact households, although he claimed inflation is gradually coming down, the PM said: “For some years to come, we must expect the external environment to be less favourable to our security and prosperity.”
Calling for the full support of Singaporeans for his successor, Lawrence Wong, as the Government embarks on its long-awaited leadership transition, the PM said:
“…transitions are always delicate. Singapore will come under close scrutiny. People near and far are watching to see how the new leaders bond with Singaporeans, and whether our small nation can remain successful and exceptional.
I urge Singaporeans to stand together, give your full support to Lawrence and his 4G team, and work with them to build a nation that is vibrant and inclusive, fair and competitive, and resilient and united.
This is how we have come through successive crises and done well, and this is how we must surmount future challenges which are bound to come.”