PSP launches GE2025 manifesto, 'urgent' proposals include reducing GST to 7% to tackle cost-of-living

The Progress Singapore Party (PSP) has launched a 78-page manifesto for the upcoming General Election with the slogan "Progress for All".

The manifesto was introduced on Apr. 6, 2025 at their headquarters at Bukit Timah.

The manifesto contains over 60 policy ideas that PSP believes "will help Singapore Progress".

Some of these proposals have been previously presented by Secretary-General Leong Mun Wai and First Vice-Chairperson Hazel Poa Koon Koon, though some are new ideas.

Reducing GST back to seven per cent is one of the most "urgent" proposals

Some of these policy ideas include reducing the Goods and Service Tax (GST) back to seven per cent, which was identified by Poa as one of the most "urgent" proposals, among the measures aimed at reducing the cost of living.

"GST is fundamentally a regressive tax, because the rich and poor pay the same tax in purchasing everyday products and services," the party wrote in its manifesto.

Other "urgent" proposals included having the government pay the Medishield Life and CareShield Life premiums for all Singaporeans, setting the rent of hawker stalls at S$500 or 3 per cent of gross revenue, food discounts for blue CHAS card holders and senior citizens and reducing housing prices by not pricing in the land cost on the first purchase.

How will these proposals be funded?

Based on the party's calculations, reducing the GST to seven per cent will cost the government about S$3 billion to S$4 billion, while paying the premiums will cost about S$2 billion to S$3 billion.

In addition, another party proposal which calls for providing an allowance to caregivers of children below seven years cost will cost another S$2 billion.

This means the total cost will come up to about S$7 billion to S$9 billion, Poa added.

As for how this will be funded, Poa said this will come from savings under the party's Affordable Homes Scheme (AHS), which the party has proposed as a replacement to the existing Build-to-Order (BTO) scheme.

Under the AHS, HDB will no longer pay the land cost used for BTOs into the Past Reserves, according to the party's manifesto.

While this means the rate of increase in the Net Investment Returns Contribution (NIRC) and Past Reserves will increase at a slower rate, this is mitigated by the fact that the government will no longer need to provide a large grant to HDB each year out of the Budget, as HDB will no longer need to provide as many grants to reduce flat prices for buyers or pay land cost into the Past Reserves, the manifesto added.

Poa placed the estimate of the savings under the AHS at S$7 billion.

Another source of funding includes the party's proposal to introduce an Employment Pass levy of S$1,200 per month.

Poa said this would provide about S$2 billion, and in total, would make the manifesto revenue-neutral.

Other party proposals

PSP also proposed a Minimum Living Wage of S$2,250 per month for all resident Singaporean workers, ensuring that all workers will enjoy a take-home salary of S$1,800 per month after CPF contributions.

They also proposed to increase the number of public holidays from 11 to 14, adding that more public holidays would benefit all workers while helping them to maintain a work-life balance.

Commenting on the manifesto, PSP Chairman Tan Cheng Bock said:  "This manifesto is a culmination of almost two years of work led by Mun Wai and Hazel, and I am very proud of the team’s efforts.”

"We will work hard to earn the trust of Singaporeans at the ballot box, so that we can champion these ideas in the next Parliament," Leong said.

You can check out the PSP's manifesto at their website link here.

Top image by Zhangxin Zheng