Singapore PM Defends Election Year Handouts After Criticism

Singapore Prime Minister Lawrence Wong defended an election year budget featuring a list of handouts after opposition figures criticised the measures as a short-sighted solution for addressing rising living costs.

Speaking to lawmakers in parliament Friday, Wong said that proposed vouchers totalling in the hundreds of dollars for each eligible Singaporean are just one element of the budget, with far more going into training and education programs designed to empower citizens.

“These are temporary help measures,” he said. “They are not long-term solutions. In fact, they only make up a small part of our overall budget.”

Wong came under fire this week from opposition lawmakers who blamed the government for mishandling the economy, including by raising the goods and services tax rate last year to 9% from 8%, a move they said worsened inflation.

“The numerous vouchers will give us help for a little while, but not for long,” opposition leader Pritam Singh told parliament this week, while also accusing the government of “poor fiscal marksmanship in trying to match Singapore’s expenditure needs with revenue.”

The debate over the budget comes as Singapore prepares for an election that must be held by November but could come sooner. Wong, who is in his first year as prime minister, is seeking a strong mandate for his ruling party at a time when rising living costs are a pressing concern for many voters even though inflation has generally been slowing since late 2022.

The People’s Action Party has ruled Singapore since it gained independence in 1965. The party had its worst-ever showing in 2020 – despite winning 89% of parliamentary seats – owing in part to concerns about the economy.

This month, Wong said the government would spend almost S$124 billion ($92 billion) in the 2025 fiscal year for everything from airport upgrades to vouchers for supermarkets and elder care, according to data released after Wong’s budget speech. He attributed Singapore’s strong fiscal position to its ability to raise revenues.

A survey taken soon after Wong announced the budget showed that a majority of Singapore’s residents viewed his measures as inadequate to helping them cope with the rising costs of living.

“Why is there a need to collect so much money when the government’s fiscal projections are so unpredictable but somehow always so healthy when elections have to be called,” Singh asked earlier this week.

“Look, I know elections are approaching, but this chamber is not an election rally,” Wong said Friday when addressing concerns over the impact of the GST hike on inflation. “Let’s not get carried away by hyperbole and have a debate based on facts.”

https://www.bloomberg.com/news/articles/2025-02-28/singapore-leader-defends-election-year-handouts-after-criticism

Vouchers not a long-term solution, government spending much more on structural programmes: PM Wong

SINGAPORE: Vouchers to help Singaporeans with the rising cost of living are not long-term solutions and only make up a small part of the overall Budget, Prime Minister Lawrence Wong said in parliament on Friday (Feb 28). 

The cost of living measures and the support provided in the SG60 package account for only 5 per cent of Budget 2025, Mr Wong noted in his round-up speech after a three-day debate on the Budget. 

“A much larger part of our spending is in structural programmes, especially to equip and empower Singaporeans through education, skills training, skills upgrading, job training and the significant moves we are making on SkillsFuture,” said Mr Wong, who is also the finance minister.

“All this will ensure Singaporeans do not just receive help, but are able to stand on their own feet and seize better opportunities for themselves and thrive in a rapidly changing world.” 

Mr Wong was responding to comments from opposition Members of Parliament (MPs) on whether more focus should be on longer-term support instead of short-term handouts.

“The Workers' Party and the Progress Singapore Party appear to be unhappy and displeased that the government is providing vouchers to help Singaporeans with the cost of living,” said Mr Wong. 

“They suggest that the government is relying solely on vouchers to help with the cost of living, but we've never said that,” said Mr Wong. 

“These are temporary help measures, they are not long-term solutions.” 

Mr Wong announced in his Budget speech earlier this month that as part of an SG60 package, all Singapore citizens aged 21 and above will receive cash vouchers of up to S$800 (US$600). These vouchers are expected to cost the government S$2.02 billion in this financial year. 

Every Singaporean household will also get S$800 in CDC vouchers to offset rising costs, and this will cost the government S$1.06 billion this financial year.

The Budget was passed unanimously in parliament on Friday.

HIGHER INCOMES THE WAY FORWARD

The “more durable” and more sustainable way to tackle the cost of living is to ensure that Singaporeans enjoy higher real incomes, supported by a strong economy and productivity gains, said Mr Wong. 

“That remains the key thrust of our approach, and objectively speaking, we have done relatively well.”  

Mr Wong said Singaporean households across different income levels have experienced sustained real income growth over the past decade, and what Singapore has achieved has outperformed many other advanced economies. 

Wage increases have to be matched by productivity gains, he noted.

Responding to Associate Professor Jamus Lim (WP-Sengkang), who highlighted that wage increases in recent years have lagged productivity growth and their scope for wages to rise further, Mr Wong said that data should be seen over a longer time frame.

“Over the past decade, real wage growth has been commensurate with productivity growth, and we will continue to push for this, to push for higher productivity as well as higher wages,” he said. 

More at https://www.channelnewsasia.com/singapore/budget-2025-debate-vouchers-not-long-term-solution-lawrence-wong-4967056

Just leeceived this SMS from Cheng Hu:

Singaporeans say Budget not enough to manage rising costs: survey

A MAJORITY of Singapore residents view measures in the latest annual budget as inadequate to help them cope with rising costs of living, according to a new poll.

Among 1,002 adults surveyed by Singapore-based Milieu Insight, 55 per cent said the budget’s nearly S$124 billion in spending that includes shopping vouchers and eldercare subsidies is not enough to cover elevated prices from food to housing. Finance Minister Lawrence Wong delivered the Budget on Feb 18, which forecasts a second year of fiscal surplus.

The findings underscore the challenges for the ruling People’s Action Party as it prepares for a general election this year, a period that is likely to see slower economic growth and renewed tariff wars that threaten open economies like Singapore. Wong, who became prime minister in May 2024, will lead the PAP for the first time into an election due by November. 

The pace of price gains in Singapore has cooled. Core inflation, which excludes housing and private transportation costs, rose 1.8 per cent in December from a year earlier, the slowest pace since 2021. Meanwhile, the city-state expects economic growth to come in at 1 to 3 per cent this year, down from 4.4 per cent in 2024.

Wong acknowledged that locals are still adjusting to “new price realities” and pledged future support. “We will continue to provide support for as long as needed, within our means,” said Wong.

Apart from spending on infrastructure, the government will give households S$800 in vouchers to help cover costs at supermarkets and food outlets, higher than the S$600 announced the previous year. Other measures include tax rebates and support for families with children, low-income people and the elderly.

In 2024, a similar post-budget poll found that 62 per cent of respondents did not find announced measures sufficient to help Singaporeans cope with rising costs, a larger proportion than this year.

When asked whether the 2025 Budget reassures them about managing costs of living, results were split. Overall, 47 per cent responded positively to the budget and 37 per cent said they were neutral. About 16 per cent disagreed.

The poll was carried online by Milieu Insight between Feb 19 and 21. Milieu Insight conducts market research in South-east Asia.

https://www.businesstimes.com.sg/singapore/singaporeans-say-budget-not-enough-manage-rising-costs-survey

I would be worried if he isn't stingy

“I was expecting $2k” – Budget 2025 sparks debate over vouchers vs cash payouts

SINGAPORE: All eyes were on Prime Minister Lawrence Wong as he delivered his first Budget statement since becoming head of government on Tuesday afternoon (Feb 18). The budget included enhanced support for worker upskilling and training programmes, more financial benefits for families who have more children, as well as heavy investments in research and development, infrastructure and incentivizing the stock market.

However, with a general election looming this year, much of the pre-Budget speculation online revolved around whether the Budget would include “election goodies” in the form of direct cash payouts.

Those looking for a larger cash sum were perhaps left disappointed as the majority of the measures aimed at alleviating the cost of living squeeze took the form of credits and vouchers this year.

Mr Wong announced a slew of credits under the ActiveSG, LifeSG, SG Culture Pass and Climate Voucher schemes, alongside Edusave and Medisave top-ups, utilities rebates, and personal income tax rebates.

He also revealed that Singaporeans would receive $600 in SG60 Vouchers, with seniors getting an additional $200. These vouchers can be used wherever Community Development Council (CDC) vouchers are welcome. On top of the SG60 vouchers, all households will receive $800 in CDC vouchers.

The only cash payout component of the budget comes under the GST Voucher scheme. Eligible Singaporeans will receive S$450 or S$850 in cash in August 2025 as part of this year’s budget.

While the range of vouchers aims to address various needs, some Singaporeans online have expressed disappointment online, asserting that they would prefer more direct cash assistance to cope with rising living costs. A number of netizens argued that cash would be more flexible and practical for coping with rising living costs compared to vouchers, which are limited to specific uses and merchants.

One Facebook user, Sky Tan, asked, “Just give cash can anot, why so much pattern…” while Facebook user Kamen Augustine Tan said, “Give money better than more vouchers.”

Another Facebook user added, “For CDC vouchers have to look for the businesses that accept CDC. Why not just give cash? Can use it everywhere.” Yet another netizen, Terrence Mark Pereira, complained, “Why all monies in form of vouchers? No more cash outlay!”

Some also said that they expected a larger sum since this is an election year. Facebook user Ismail Ismael lamented, “I’m expecting 2k…like this amount is peanut n butter… sigh.”

Another netizen, Edward Sim, wrote in a comment: “Election year 就是 election year. No worries, we get the chicken drumsticks this year compared to last time chicken wings, but they will take back the whole chicken farm from us after election.”

The phrase “give chicken drumsticks and take back the whole chicken” is a Singaporean colloquialism that describes situations where a small concession is offered, only for something more valuable to be taken away later. The netizen’s comment reflects his belief that generous pre-election benefits may be followed by post-election increases in taxes or other costs of living.

A number of Facebook commenters agreed that cash is king while some cautioned that vouchers have a higher risk of being wasted than cash. Facebook user Yx Dai said,  “All CDC vouchers… Very hard to use. The one for the supermarket, can only be used for general items, which you probably already have. You can’t even use it to buy a new pair of glasses, which old people probably need to have one with updated eye sight correction.”

He added, “You can’t buy what you really need and those vouchers ended up being wasted by not being used. You can’t even use it to pay bus fares or mrt fares. You can’t use it to pay town council charges.”

Some Singaporeans, however, welcomed the vouchers and defended the government’s approach, asserting that vouchers not only help citizens but also support local businesses.

A number of loyal commenters argued that the Budget reflects a forward-looking strategy aimed at strengthening Singapore’s economic and social fabric, advising critics to consider the long-term benefits rather than focusing solely on immediate cash payouts.

As Singapore heads towards a general election, this Budget has sparked robust public debate, with the spotlight firmly on the balance between immediate relief and long-term national growth. Whether the measures announced will resonate positively with voters remains to be seen as the nation prepares for a decisive year ahead.

https://theindependent.sg/647778/

Waiting for The Toilet Times and SMU's Prof Eugene Tan to sing nauseating praises about Lawrence Wong's maiden budget as PM.....

Mai 冤枉 LW lah, there are two $$$ payouts slated for August and December:

Budget 2025: $600 SG60 vouchers for citizens aged 21 to 59; $800 for those aged 60 and above

SINGAPORE – In July, all Singaporeans aged between 21 and 59 this year will get a one-time $600 handout in the form of SG60 vouchers, while seniors aged 60 and above will get $800.

Announcing this as he laid out a slew of goodies to mark Singapore’s 60th anniversary in his Feb 18 Budget speech, Prime Minister Lawrence Wong said the vouchers are to recognise the contributions of all Singaporeans and share the benefits of the nation’s progress.

In total, some three million adults will get the SG60 vouchers, said the Finance Ministry in a statement. Seniors will be able to claim them first, followed by other adults.

These vouchers are like CDC vouchers, added PM Wong, who is also the Finance Minister. This means people can claim them digitally on RedeemSG via Singpass. 

The vouchers can be used at all businesses that accept CDC vouchers, with half to be spent at participating supermarkets, and the remainder at participating heartland merchants and hawkers.

The SG60 vouchers are estimated to cost the Government a total of $2.02 billion. 

Together with a fresh tranche of $800 in CDC vouchers to be given out to Singaporean households in May 2025 and Jan 2026 – set to cost the Government some $1.06 billion – estimated handouts for individuals and households are expected to exceed $3 billion in the coming financial year.

PM Wong said SG60 vouchers came as Singaporeans across different generations and from all walks of life have “played a vital role in getting us to SG60”.

Noting that the country has made great strides in 60 years – “a short time” for a country – he said Singaporeans have forged a stronger Singaporean identity, built on their shared experiences and memories, as well as their shared hopes and dreams.

“We look out for one another, cheer each other on, and help our fellow citizens succeed together,” he added.

Besides the SG60 vouchers, tax-paying resident individuals will also get a 60 per cent rebate on their personal income tax, capped at $200, for income earned in 2024, PM Wong said. This will mostly benefit middle-income workers.

A third SG60 goodie, the SG60 baby gift for all Singaporean babies born this year, was earlier announced by Second Minister for Finance Indranee Rajah. More details on this will be given when the Prime Minister’s Office debates its budget for the next financial year.

In the SG60 year, PM Wong said the Government will also invest more in strengthening Singapore’s cultural core and community bonds by encouraging Singaporeans to attend local arts and heritage activities.

Every Singaporean aged 18 years and above this year will get $100 in SG Culture Pass credits. These new credits can be used to buy tickets for eligible local performances, exhibitions, and experiences such as learning tours and participatory workshops.

The credits will be made available from Sept 1, 2025 and are valid till end 2028.

In announcing this, PM Wong said other countries’ experiences show how easy it is for trust to be eroded, and for societies to become deeply divided and polarised. 

Calling on Singaporeans to treat unity as a precious asset that must never be taken for granted, he said the country must remain steadfast in nurturing cohesion and unity.

The fifth SG60 goodie is a one-time $600 rental support for each hawker stall in centres managed by government or government-appointed operators. This is to recognise the role that hawker centres and markets play in Singapore’s national identity and heritage.

This would mark the fifth anniversary of the inscription of Singapore’s hawker culture into the UNESCO Representative List of Intangible Cultural Heritage of Humanity, PM Wong said.

It comes on top of the up to $1 billion allocated over the next 20 to 30 years to upgrade ageing hawker centres and to build new centres, he added. More details on this will be given when the Ministry for Sustainability and the Environment debates its Budget in some weeks.

The last SG60 goodie pertains to a one-off $100 top-up in ActiveSG credits for citizens and permanent residents in June 2025. This is to encourage broad-based sports participation across different segments of society.

PM Wong noted that new sports facilities will be built in Toa Payoh, Punggol and Clementi, while existing facilities in Pasir Ris, Queenstown and Hougang would get an upgrade.

“Our solidarity has seen us through many challenges, including our fight against Covid-19. We must continue to help our fellow citizens and ensure that we move forward together, as a people and a nation,” he added.

https://www.straitstimes.com/singapore/budget-2025-600-sg60-vouchers-for-citizens-aged-21-to-59-800-for-those-aged-60-and-above

Nope, still nothing regarding cold hard moolah being given

Why can't the CDC vouchers be disbursed all at once instead of two separate tranches?