Deputy prime minister (DPM) and minister for finance Lawrence Wong, on Oct 14, announced that the government will be giving out a support package worth $1.5 billion to all Singaporean households. This includes a cost-of-living (COL) special payment of up to $500 cash for 2.5 million adult Singaporeans, which will be disbursed in December.
According to the release from the Ministry of Finance (MOF), the package will be funded from the better-than-expected fiscal out-turn in the 1H2022. The package will not be drawing on the country’s past reserves, MOF added in its statement.
The package comes amid a pick-up in global inflation; the Monetary Authority of Singapore (MAS) said that it expects inflation to remain high in most of Singapore’s key trading partners in the near-term on the morning of Oct 14. The central bank adds that the factors that drove the increase in prices from July to August is expected to persist.
In its statement, the MOF reiterated the fact that Singaporeans “must be prepared for inflation to stay elevated for some time”.
The new support package, along with the earlier rounds of support measures in 2022, will fully cover the increase in the cost of living for lower-income households on average. The packages will cover more than half of the increase in the cost of living for middle-income households on average.
Additional CDC vouchers issued with public transport subsidies
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Further to the announcement, MOF announced that every Singaporean household will receive an additional $100 worth of CDC vouchers. The vouchers will be given out in January 2023.
MOF adds that the government will set aside about $200 million in the October COL package to cover the 10.6 percentage point fare increase that will be carried over to future fare review exercises.
On Oct 12, the Public Transport Council announced that bus and train fares in Singapore will increase by 4 to 5 cents from Dec 26 for adults who pay by card.
The fare increases are attributable to the rising energy prices.
Cash fees and fees for monthly passes will remain unchanged.
MOE to increase income eligibility criteria
The Ministry of Education (MOE) will be raising the income eligibility criteria for financial assistance schemes in a bid to help more students with their school expenses.
The raised criteria will be applicable for students in primary, secondary schools, as well as pre-universities. This will take effect from Jan 1, 2023.
The bursary quanta for full-time Institute of Technical Education (ITE) students will also be enhanced from the academic year (AY) 2023. According to the MOF, those from lower-income households benefitting from the highest increase.
