WP's Gerald Giam asks if NSF allowances could be raised due to inflation, Heng Chee How says items like lodging, food are paid for

Three allowance reviews have been conducted in the past 10 years.

Sulaiman Daud | February 22, 2023, 01:28 PM

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The government regularly reviews allowances for full-time National Servicemen (NSFs), but important items that impact the cost of living, such as food and lodging, are already provided.

This was the subject of an exchange in Feb. 22's Parliament sitting on NSF allowances in the current high-inflation environment.

Raise for NSFs?

Gerald Giam of the Workers' Party (WP) asked if there had been consideration to raise the allowances of full-time National Servicemen (NSFs) in view of "inflationary pressures" and the spike in the cost-of-living.

In response, Senior Minister of State for Defence Heng Chee How said:

"The full-time National Servicemen or NSFs receive an allowance to support their basic personal upkeep. The allowance takes into account that lodging, food, clothing and medical care are provided, given that most NSFs actually stay in camp. Mindef regularly reviews and adjusts the allowance. Three adjustments have been made over the last 10 years, with the most recent being in March 2020. Mindef will continue to conduct such regular reviews (on the) allowances."

In a follow-up question, Giam said that the last review took place in March 2020, but the cost of basic upkeep has "increased significantly" due to high inflation that started around mid-2021.

He asked if NSF allowances could be pegged to the "significant increases in the CPI (Consumer Price Index) or the MAS core inflation measure", so as to minimise the lag time between the increases in cost of living and the adjustment to NS allowances.

He also asked when is the next such review, and asked if it could be brought forward in view of the current situation.

3 reviews in 10 years

In response, Heng said that when the allowances are calibrated, the "overall price levels" in the country are taken into account.

However, it is pertinent to remember that it is not the "general cost of living" that applies to the upkeep of the NSF, Heng said.

This is because items that impact the overall cost of living, like lodging, food, clothing and medical care, are taken care of and paid for by the Singapore Armed Forces and the Home Team.

Heng added that "everything" will be taken into account in the review of NSF allowances, and pointed out that no fewer than three such reviews had been undertaken in the past 10 years.

Heng was in fact the political office-holder who announced the increase in NSF allowance in 2020.

In 2020, Heng announced that all NSFs in the SAF and Home Team across all ranks will receive a S$70 to S$120 increase in their monthly NS allowance, from March 1, 2020.

Top image via Mindef Facebook