Vouchers will help for a little while, but not for long: Pritam Singh on Budget 2025

"Life is very tough for the Singapore that is in the heartland," said the Leader of Opposition, Workers' Party leader Pritam Singh during a Feb. 26, 2025 parliamentary debate on the Budget statement.

While the numerous vouchers introduced in the Budget can provide temporary relief, Singh emphasised that concerns over jobs, prices, housing costs, and opportunities continue to affect many Singaporeans and their households.

He noted that no Goods and Services Tax (GST) offset package lasts forever.

However, notwithstanding his concerns, Singh said the Workers' Party supports the Budget.

Cost of living concerns

Singh acknowledged the broad statistics presented by Prime Minister and Finance Minister Lawrence Wong in his Budget speech, which indicated easing inflation and wage increases outpacing inflation.

However, he said that the "reality for many Singaporeans" over the past year "does not correspond with the bright summary revealed by these figures."

Singh highlighted that 2024 marked two milestones, with Singapore’s total fertility rate falling below one for the first time in history, while the total population surpassed 6 million.

Additionally, he referenced the 2019-2020 HDB annual report, which projected 1.55 million dwelling units in Singapore.

This figure has now risen by 53,000 units in the 2023-2024 HDB report.

In a denser city with limited space, the "Singapore of tomorrow" is a difficult one for some to imagine, Singh said.

"What cans are we kicking down the road for future generations of Singaporeans who will live in a far denser city than today?"

Job competition from foreigners

Singh noted recent announcements that the government intended to tap into foreign manpower pools for positions such as paramedics and auxiliary police officers.

"With a growing population and a manpower shortage in many areas, it is inevitable that more of such basic manpower needs of our country will go down a similar path," he added.

Singh expressed that Singaporeans may fear competition from foreigners for jobs traditionally held by locals.

"Integration and a sense of rootedness will continue to be a major issue in Singapore in the years to come, and no amount of vouchers can make people feel rooted to Singapore," he said.

He added that the government "is aware of this", with leaders emphasising the importance of unity and the integration of foreigners into Singapore society, but criticised certain government policies in this area, giving the example of elected MPs being "kept away" from new citizens during citizenship ceremonies.

Struggling businesses

Singh noted that businesses, particularly in the food and beverage sector, faced difficulties in 2024, saying over 3,000 establishments closed their doors due to dwindling business and higher operating costs.

He also pointed out that amidst the rising cost of basic goods in Singapore had led many Singaporeans to travel regularly to Johor Bahru, where services like dental and medical care are more affordable.

This trend has raised concerns about the "hollowing out of businesses" in Singapore, especially in light of upcoming transport links to Johor such as the RTS.

Suggests opening SG60 voucher to small businesses

Singh suggested that some of the measures introduced in the Budget should be reviewed.

He recommended expanding the use of the second portion of the SG60 vouchers to include small and medium-sized enterprises (SMEs) beyond just participating supermarkets, allowing them to be used at all small businesses and shops in shopping malls.

"Apart from helping SMEs, this will enlarge choice for Singaporeans," Singh said.

Questioned government's decision to raise GST

Singh questioned the government's decision to raise the Goods and Services Tax (GST) despite an "exceedingly healthy fiscal position".

He noted that 2025 fiscal surplus is projected at S$6.8 billion and 2024 fiscal surplus, originally estimated at $778 million, has been revised to S$6.4 billion.

He pointed out that even with imported inflation contributing to the increase in local prices, there was "no need" for the government to "add fuel to the fire and fan the flames of inflation further with the GST hike."

He added that there was "ample policy space" to delay the second GST hike in 2024 "when the country was in the thick of inflation".

"Why the PAP went headlong and headstrong into raising GST, and thereby turbocharging inflation further, is something only the PAP itself can answer."

He also made the point that a 1 per cent hike in GST does not necessarily mean a 1 per cent rise in expenses like the price of a cup of coffee, due to incremental costs.

While handouts like assurance packages and Community Development Council (CDC) vouchers may cushion the blow from the hikes, they will eventually stop, and the increased GST will remain until "any subsequent increase the PAP government sees fit to impose."

Prime Minister Lawrence Wong said in 2022 that the revenue from the GST hike will fund healthcare needs and care for seniors. He also introduced a GST voucher scheme to cushion the impact of the hike.

For instance, eligible Singaporeans will receive S$450 or S$850 cash in Aug. 2025 under the scheme.

Accountability for public expenditure

Singh claimed the government had shown "poor fiscal marksmanship" in matching Singapore's expenditure needs with revenue.

He quoted economists interviewed by The Straits Times for last year's budget, who said that it is hard to project government revenue due to budgeting accuracy in specific tax collections, which could vary between 17 and 27 per cent.

Singh said such unpredictability would be challenging to support future tax increases or policy moves.

As such, Singaporeans would not be out of place to question why the government needs to collect so much money when the fiscal projections are unpredictable but "somehow always so healthy when elections have to be called."

While such fiscal headroom is "politically attractive", Singh warned of "potential public cynicism" in the future when taxes need to be increased.

Greater public scrutiny for public spending

Singh called for the money set aside for spending to be accounted for in a more "institutionalised fashion with greater public scrutiny."

He brought up the WP's previous proposal of an independent parliamentary budget office, which was rejected.

Singh said that such an office would benefit the government in light of such unpredictable predictions.

He added that accountability for public expenditure and programmes would strengthen Singapore's social compact.

In 2021, former Minister for Finance Heng Swee Keat referred to Singh's call to increase expenditure scrutiny through a parliamentary budget office and said he was "glad" that Singh agreed with the need to be prudent and accountable in spending money.

Heng said it would be "helpful" if WP MPs could state how much their spending proposals cost and how it would be funded. He added:

"Instead, the Workers' Party has called on the government to spend S$20 million to set up an independent parliamentary budget office to do this job for them, even as they call for more scrutiny on government expenditure. We invite them to hold themselves to the same scrutiny."

Singh said then that the office is not meant to help the Opposition in Parliament but rather to help all MPs, which is consistent with the principle of separation of powers.

Long term planning for the future

Singh began his speech speaking of infrastructure developments that will help improve Singapore, such as Changi Airport's Terminal 5 and the Tuas Port expansion.

However, recent geopolitical developments, such as the Trump Administration's moves in the international space and the possibility of conflict with China in Asia, portend a more uncertain world.

In such times, Singh underlined the importance of the Singapore Armed Forces, the Home Team and National Service.

"The security these agencies provide is an important source of strength for Singapore, and all Singaporeans must give our men and women in uniform our full support," he concluded.

Top photos from MDDI