SINGAPORE – Cost-of-living pressures dominated discussions for seven hours in Parliament on Tuesday, with MPs on both sides agreeing it was a concern, and concurring that aid must be given to those who need it.

But People’s Action Party (PAP) and Workers’ Party (WP) MPs had their differences, with the WP focusing on structural changes such as tiered pricing for utilities rather than one-off fiscal payouts.

The ruling party, meanwhile, emphasised the existing suite of policies for those in need, especially the lower-income groups, and said the Government is open to doing more if needed.

“The Government hears you and understands your worries,” said Acting Transport Minister and Senior Minister of State for Finance Chee Hong Tat.

“That’s why we have been doing more to support Singaporeans to cushion the impact of rising prices. We review our support regularly and step in to enhance it where necessary to provide additional support, especially for lower- and middle- income families.”

This includes means-tested U-Save utility rebates, the GST Voucher scheme and the Assurance Package, meant to offset the goods and services tax (GST) rate increase. The package has been enhanced twice since it was launched in 2022.

The Government will continue to monitor trends closely and is prepared to do more to support Singaporeans should it become necessary, said Mr Chee.

“We will do so in a manner which is fair, effective and sustainable for both current and future generations,” he added.

The discussion in Parliament arose from a motion put forth by Leader of the Opposition and WP chief Pritam Singh and Mr Louis Chua (Sengkang GRC). It called on the Government to review its policies to lower cost-of-living pressures for Singaporeans and their families.

All eight WP MPs spoke during the debate, covering areas such as physical and mental health, transport, utility costs and means-testing in the public healthcare system.

Ms Sylvia Lim (Aljunied GRC) suggested an electricity pricing structure based on time of use to discourage peak-hour consumption.

Mr Dennis Tan (Hougang) proposed that means-testing take into account the specifics of individual financial situations, in particular cash flow, and Ms He Ting Ru (Sengkang GRC) called for more MediSave top-ups for those with low balances to address healthcare inflation.

Kicking off the debate, Mr Singh said the WP had spoken frequently about the issue of cost of living, mentioning it as a major pressure point for low- to middle-income families in his 2022 New Year’s message, and at various points since.

While acknowledging the Government’s one-time relief measures, he said national policies need to be re-examined to remain relevant as “for some Singaporeans this has become a cost-of-living crisis”.

Although headlines state that inflation is stabilising, price rises continue to hit Singaporeans hard, Mr Singh added.

“When income growth cannot match (the) rise in prices, it is perfectly understandable why Singaporeans feel nervous and anxious.”

Progress Singapore Party (PSP) Non-Constituency MPs also supported WP’s motion.

Party secretary-general Leong Mun Wai proposed a cost-of-living relief package that included a GST rate cut from 8 per cent to 7 per cent and a minimum living wage of $1,800 a month.

While PAP MPs agreed that cost of living was a concern, Mr Liang Eng Hwa (Bukit Panjang), who spoke after Mr Singh, proposed amendments to the WP motion – that the House acknowledges cost of living as a global concern, and calls on the Government to continue pursuing policies that together lower cost-of-living pressures on Singaporeans and their families, without undermining fiscal sustainability and burdening future generations of Singaporeans.

He stressed that the high-cost situation around the world could worsen or continue for a prolonged period, and that there was a need to address the current challenges in a sustainable and sound manner.

In his speech, Mr Chee said the Government has cushioned the impact of global inflation on households through efforts to keep the economy competitive to create good jobs and sustain real income growth.

The Monetary Authority of Singapore’s early moves to tighten monetary policy have also substantially strengthened the Singapore dollar.

Acknowledging the decline in median real income in the first half of 2023, Mr Chee said that as long as the economy grows and remains competitive, real income can continue increasing for a broad segment of workers in the long run.

He reiterated that the Government would honour its assurance – provided at Budget 2023 – that it would fully cover the increase in spending by lower-income households in 2023 due to inflation and the GST increase.

It would also substantially cover the increase for middle-income households.

For example, the Government in September announced a $1.1 billion Cost-of-Living Support Package to provide relief for all Singaporean households, with more support for lower- to middle-income families, building on measures announced at Budget 2023.

Mr Chee said he welcomed the WP’s call for a review of policies. “The Government has been renewing our policies, including as part of Forward Singapore,” he added.

Some changes have already been announced, such as the Majulah Package for young seniors and the new housing classification model. New initiatives have also been proposed, such as the re-employment support scheme.

The WP and PSP MPs did not vote in favour of the amended motion at the end of the debate, which saw 20 MPs speak.