SINGAPORE – Prime Minister Lee Hsien Loong sought to reassure Singaporeans on Sunday that his government would continue to take care of their needs, as the country faces mounting global challenges and growing anxiety over jobs, housing and costs of living.

His tone of reassurance ran across all three of his speeches during the National Day Rally at the Institute of Technical Education College Central.

PM Lee lauded Singapore’s efforts in pulling through the Covid-19 pandemic, which he called “the most challenging ordeal for our nation since independence”, and said it is a testament to the country’s indomitable spirit.

But challenges from US-China tensions, the war in Ukraine and global warming have affected the global economic order, disrupted supply chains and food production, and will especially hurt small trading nations such as Singapore, he noted.

These will contribute to anxieties over bread-and-butter concerns. PM Lee warned that Singaporeans should expect higher food prices and more job disruptions in the future. Inflation is at last coming down but “will probably stay higher than what we were used to”.

He promised that the Government will weather this storm together with Singaporeans.

During the rally, which lays out the Government’s priorities and is seen as the most important political speech of the year, PM Lee also unveiled measures to support Singaporeans.

These include a $7 billion Majulah Package that will benefit about 1.4 million older Singaporeans, especially those in their 50s and early 60s.

This is a group PM Lee called “young seniors”, who are in a particularly sandwiched phase of life where they might have to care for both the young and the old in their families.

He said to them: “Beyond the daily cost-of-living pressures, you know that retirement is creeping up on you, and you wonder, ‘Will I have enough to get by? Can I cope?’ But don’t worry, the Government will help you. You will not be left behind.”

The new Majulah Package, to help those born in 1973 or earlier meet their retirement needs, will consist of three components:

– An Earn and Save bonus, where the Government will credit up to $1,000 a year into the Central Provident Fund (CPF) accounts of lower- and middle-income workers.

– A one-time CPF bonus of up to $1,500 for Singaporeans who have not reached the Basic Retirement Sum in their CPF balances.

– A one-time MediSave top-up of $1,000.

More details will be released in 2024, PM Lee said. He added that the Government will also enhance existing retirement and income supplement schemes.

“Taken together, these improvements will help seniors to meet basic retirement needs, especially for lower- and middle-income Singaporeans, so you can have greater peace of mind in your golden years,” he added.

There will also be more support for those who lose their jobs, said PM Lee, adding that a scheme is being developed that will offer temporary financial support to retrenched workers while they upgrade their skills.

This is part of the Forward Singapore exercise driven by the fourth generation of leaders who will share further details soon, he added. Turning to housing, PM Lee assured Singaporeans that the Government will keep Housing Board (HDB) flats affordable, while maintaining a good social mix in every town and ensuring the system is fair for everyone.

Record-high HDB flat prices have fuelled anxieties among Singaporeans in recent months over the cost of home ownership.

In order to ensure HDB flats remain affordable, new Build-To-Order (BTO) projects will be classified as Standard, Plus or Prime – depending on their location.

This will replace HDB’s current classification of projects as mature or non-mature, and kick in from the second half of 2024.

A Prime flat, in the “choicest and most central locations”, will have the most subsidies and tightest restrictions. These subsidies and restrictions scale progressively downwards with Plus and Standard flats.

The idea is to moderate the higher prices of flats in choice locations while imposing stricter sale conditions on these units.

PM Lee gave the example of how Plus flats will receive more subsidies over Standard flats, but also will face more restrictive sale conditions. He cited a 10-year minimum occupation period before any sale, a subsidy-recovery clause to claw back extra discounts upon such a sale, and an income ceiling on resale buyers.

Another change: Singles will be able to buy BTO two-room flexi flats across all three of the new categories – they are currently restricted to BTO units in non-mature estates.

“We will build a good mix of projects within and across regions, to cater to different needs and budgets. And that is how we can fulfil our commitment to keep high-quality HDB flats accessible and affordable to you and to your children for a very long time to come,” PM Lee said.

On the issue of ageing, PM Lee added that the Government will take steps to prepare for what he called a “super-aged society”.

These will include efforts such as investing more resources so seniors can install fittings, including foldable shower seats and wider toilet entrances at home; revamping housing estates so they are more senior-friendly, and building more flats that have senior care and community facilities integrated.

PM Lee, who was delivering his 19th National Day Rally speech, also said his succession plans are back on track after they were disrupted by the pandemic.

He also sought to allay concerns over recent political scandals involving People’s Action Party politicians. Transport Minister S. Iswaran is under investigation for corruption, and Speaker Tan Chuan-Jin and backbench MP Cheng Li Hui resigned in July after their affair was made public.

“Let me assure you: These incidents will not delay my timetable for renewal. We are on track,” PM Lee added.

Future generations of PAP leaders must continue to keep the political system clean and incorruptible, he said, adding that he has every confidence in Deputy Prime Minister Lawrence Wong and his team.

Thanking Singaporeans for their support, he urged them to give DPM Wong and his team their “fullest support, now and after they take over”.

“The Singapore story has been an unlikely one from the start. Our nation is still young, and will always be tiny. We will forever be an unlikely nation, created out of the sheer collective will of our people. Nobody expected us to survive, much less to flourish, but, each time, we beat the odds; each time, we showed the world what Singapore can be,” said PM Lee.

“It has been an exceptional story but I believe the best parts are still to be written.”

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Watch PM Lee’s National Day Rally speech here: