Parliament debates cost of living pressures for over 7 hours; WP asks for review of policies

A motion on the cost of living in Singapore, tabled by Workers' Party (WP), dominated discussions for over seven hours in Parliament on Tuesday (Nov 7), with?People’s Action Party (PAP) and WP MPs debating over how this problem should be dealt with.?

This?motion was put forth by WP chief Pritam Singh and MP Louis Chua (Sengkang GRC), asking?the Government review its policies to lower cost-of-living pressures for Singaporeans and their families.

Kicking off the debate,?Pritam said that the party "acknowledges the one-time reliefs extended to eligible households".

However, the party looked?into "further reducing cost of living pressures by way of policy change".?

"This house must leave no stone unturned, because for some Singaporeans this has become a cost of living crisis," he said.

In his speech, Pritam highlighted the concerns that Singaporeans would have amid rising living costs, also stating that there would be other "knock-on effects" that also include declining mental health.

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He then suggested a restructuring of water tariffs - that households that conserve water ought to receive reduced bills.

This should be coupled with a "graduated'' water conservation tax regime, he added.

He added that the "cost of living crisis has not gone unnoticed by Singapore?businesses", highlighting how Prudential and DBS have both provided means of alleviating the financial pressures of cost of living, whether through employee benefits or wage changes.

"If businesses can adjust their policies beyond one-time support, the government certainly can do more too," he stated.

Bring down electricity costs for consumers

WP's Sylvia Lim then addressed electricity costs, saying that?more can be done to?lower such costs for consumers.?

She suggested that the government implement a tiered-based?system where those?who?utilise?electricity below a certain margin pay?a lower rate, while those who consume?beyond a certain threshold?pay higher.

She also acknowledged efforts by the government to keep electricity costs under control.

For example, a?central gas company has been?scheduled to be set up by the government in 2024 to centralise gas procurement, which "has the potential to bring down the cost of gas for power generation", preventing vulnerability from global fluctuations.

She also mentioned a pilot initiative to offer rebates to consumers who reduce their usage during peak hours.

Wages have not kept up with the cost of goods and services: Leong

In his speech, Progress Singapore Party's Leong Mun Wai?opined that cost of living has been a key issue worrying Singaporeans, as they feel their wages haven't kept up with the cost of goods and services they need to lead a "meaningful" life.

The Non-Constituency MP?then proposed an "integrated cost of living relief package" with five measures.?

This includes reducing GST to seven per cent, increasing the immediate relief package announced in September from $1.1 billion to $5 billion, and setting a minimum living wage of $1,800 for Singaporeans to take home every month.

"We hope the government will make improving the financial wellbeing of Singaporeans the cornerstone of our new social compact," Leong concluded.?

'We understand the pain'

Acting Transport Minister and Senior Minister of State for Finance Chee Hong Tat also shared his thoughts during this seven-hour debate, stating that the government is keeping an eye on the situation and is prepared to do more to help Singaporeans if necessary.

“We understand the pain that our residents are going through and we feel for them and their families,” Chee said.

He added: “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.”

Chee also took the opportunity to reiterate the rationale behind the GST increases.

"We are raising the GST not for immediate funding needs but for our medium-term needs," he said. "This includes rising social spending in areas such as healthcare for our ageing population and more support for vulnerable segments of society."

The GST system is also designed to take care of those with lower income via GST vouchers, which work in tandem with subsidised healthcare and education to achieve an outcome where lower income households face a lower effective GST rate, he added.?

Additionally, the assurance package that was updated in September this year helps to "defer the impact" of the GST hike for a majority of?households by at least five years.

"I ask the opposition to please look at the broader and longer term fiscal threats. We may have had a good year this financial year, but we don't have a structural surplus... we are almost certain to face a funding gap in the coming years if we do nothing about it," Chee said.

The WP's?motion on cost of living in Singapore was eventually passed,?but only after three significant amendments from PAP.

The original motion referring to the "cost of living crisis" stated that "this House?calls on the Government to review its policies so as to lower cost of living pressures on Singaporeans and their families”.?

However, PAP MP and representative of Bukit Panjang SMC Liang Eng Hwa made changes to the motion, which altered it into: "That this House acknowledges that cost of living is 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 our fiscal sustainability and burdening future generations of Singaporeans."

All eight WP MPs and two Progress Singapore Party NCMPs voted against it, while the PAP MPs present in the chamber voted in favour of.?

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khooyihang@asiaone.com