PM Wong outlines efforts to address cost of living concerns

Singapore's Prime Minister Lawrence Wong released a video on Oct. 2, aimed at addressing Singaporeans' concerns about the cost of living.

He also highlighted measures that his government, private, and community groups had done to help mitigate the effects of rising costs and addressed the outlook for the future.

Stable for a decade, then Covid and war

PM Wong began by acknowledging that inflation had been in most recent years increasing by significant amounts in Singapore and around the world.

Inflation had been largely stable for over a decade, with prices in Singapore increasing by less than global inflation.

But since 2020, the Covid-19 pandemic and the onset of wars in Europe disrupted supply chains, impacting the prices of food and energy globally.

PM Wong said that Singapore’s government had tried to mitigate the effects of that disruption, and the Monetary Authority of Singapore (MAS) has tightened monetary policy five times.

This kept the Singapore dollar strong and shielded Singapore from imported inflation, resulting in lower inflation than in many other countries.

Improving global picture

PM Wong said that the global picture was improving with inflation coming down.

In Singapore, inflation had also been moderating and was expected to moderate further for some time.

PM Wong acknowledged that the cost of living remained a significant concern and assured Singaporeans that his government would take action to help.

Prices, however, would still go up from time to time because delaying such increases would make the situation worse in the future.

Assurance package

PM Wong said the government had undertaken measures to mitigate such price rises, announcing a number of measures in 2022 under the Assurance Package, and has since enhanced the package three times.

More than S$10 billion has been earmarked for the Assurance Package.

This translated into every Singaporean household receiving $800 in CDC vouchers, HDB households receiving up to $400 in utility rebates, and eligible Singaporeans receiving up to $700 in cash payouts.

He said that in the upcoming months, more help would be dispersed in the form of more utility rebates, an additional $300 in CDC vouchers for every household, and up to $600 in cash payouts for every Singaporean.

Private efforts

PM Wong highlighted the efforts of private organisations that had sought to help.

He mentioned DBS's subsidy of over eight million hawker meals over one and a half years.

NTUC Fairprice and other supermarket chains also provided discounts to seniors, and community and grassroots organisations were working with donors and partners to support vulnerable groups.

PM Wong gave the example of community groups setting up makeshift shops in void decks, where supplies were stored, and residents were allowed to come in and shop for food that they needed.

He then mentioned the Good Samaritan Food Donation Bill, championed by Member of Parliament Louis Ng.

The future

PM Wong then turned to the future, saying that the key to managing the cost of living is to ensure that Singaporeans continue to enjoy good jobs with better wages.

Only then would Singaporean workers be able to have wages that outpaced inflation, and could all be better off in real terms.

He said that, in 2024, the government expected a more favourable outlook, with higher economic growth and lower inflation.

Because of this, workers should experience increases in real incomes.

The government will also continue to push for productivity and innovation across Singapore's economy, and PM Wong said he would share more about the government's plans in the budget next year.

He warned that there were challenges ahead but said that Singaporeans had every reason to be confident and that the government was “making meaningful changes and charting a bold way forward”.

“Together, we can keep the cost of living stable and improve the lives of Singaporeans year by year.”

Related stories

Top image via Lawrence Wong/Facebook