SINGAPORE — Trips, watches, appliances, and furnishings are reportedly among the items that the younger generation is buying before the Goods and Services Tax (GST) goes from seven to eight per cent on January 1, 2023.
“They are less worried about job security because they are able to find jobs far easier because of their skill sets compared to their parents. They are more willing to take risks and spend more as well. They may take the higher GST in their stride far more quickly than their parents,” CIMB Private Banking economist Song Seng Wun is quoted as saying in the South China Morning Post (SCMP) said in a Dec 27 report.
Their spending habits are unlikely to change despite higher expenses, given that their skill sets make them more employable than their elders. Therefore, job security is less of a concern for younger Singaporean employees.
Mr Song added that younger Singaporeans embrace the philosophy of YOLO (you only live once), which means they are inclined to spend more and save less. And this could be beneficial to Singapore’s economy.
The SCMP piece quotes a 26-year-old small business owner with four holidays planned for 2023, including a flight to Berlin next May. “I have been monitoring the prices for a bit to see if they drop. With the GST hike, I knew it wasn’t going to drop so I pulled the plug and booked it,” he is quoted as saying, adding, “I’d rather be more frugal in Singapore than to cut on experiences overseas.”
Another 26-year-old, scheduled to marry in March of next year, paid for her S$16,000 wedding banquet in advance, ahead of the GST increase. “As a young couple, we have so many things to pay for. Our house, our [home] renovations, our furniture. If we have to pay 1 per cent more on so many things and the amounts are huge, they add up,” she said.
While the hike will be felt by Singaporeans, eligible individuals were slated to receive up to S$700 worth of vouchers this month from the government to offset the increase as well as higher costs of living. /TISG