SINGAPORE – The Community Development Council (CDC) voucher schemes of 2021 and 2022 have supported heartland merchants and hawkers while helping to alleviate the cost-of-living pressures faced by households.
A study published in the latest Economic Survey of Singapore found that the first two tranches of vouchers could generate up to $312.8 million for the Singapore economy over time, after about $237.9 million was claimed by households.
The $312.8 million is equivalent to 0.05 per cent of Singapore’s nominal gross domestic product (GDP), meaning GDP without adjustment for inflation, which stood at $673 billion in 2023.
The study derived the impact of the vouchers on the economy by accounting for multiplier effects and stripping out leakages arising from taxes, imports and savings.
For instance, an increase in spending by households will lead to higher sales for businesses and their suppliers, which will in turn generate income for the business owners and their employees and further spending in the economy.
The study also found that around 80 per cent of participating merchants and hawkers received a boost of more than $1,000 each from both voucher tranches, with about 30 per cent getting over $10,000 each.
CDC vouchers were launched by the Government in December 2021 to thank Singaporeans for their solidarity during the Covid-19 outbreak, and support businesses in Housing Board estates affected by the pandemic.
The second tranche was rolled out in May 2022 to help Singaporeans with their daily expenses amid cost-of-living pressures.
Through these two tranches, every Singaporean household was eligible to get $200 in CDC vouchers.
As at December 2022, around 20,000 heartland merchants and hawkers have joined the CDC vouchers scheme, representing a sizeable proportion of such businesses in Singapore, said the study by Ministry of Trade and Industry senior economists Andrew Chia and Gregory Tham.
Over 96 per cent of the 1.22 million eligible Singaporean households claimed their CDC vouchers from both the 2021 and 2022 tranches, with 96 per cent of the claimed vouchers eventually spent, the study found.
The high utilisation rate shows that the scheme, part of a broader suite of measures that address Singaporeans’ cost-of-living concerns, has helped to alleviate the inflationary pressures faced by households, the study said.
In line with the findings, it noted that Singaporean households, as well as heartland merchants and hawkers, would also benefit from the support provided by subsequent tranches of the CDC vouchers.
From Jan 3, 2024, households can claim $500 worth of vouchers, with the new roll-out providing $200 more help than the last tranche in 2023.
