Mr Muhamad Faisal Bin Abdul Manap (Aljunied): Madam, let me begin by acknowledging the considerable thought and effort that must have gone into the formulation of Budget 2025.
The world is growing more complex and the impact of global developments are bound to have a significant impact on Singapore, given our dependence on international trade and investment. I am heartened by the proposal, such as the increased assistance levels under schemes such as ComCare and the increased Government support under the Progressive Wage Credit Scheme. At the same time, I once again urge the Singapore Government to review the need for a statutory minimum wage to be introduced to ensure that the lowest earners in Singapore will be able to cope better.
Madam, Singaporeans are a pragmatic people. They will always worry about bread and butter issues first. The rising cost of living have been felt more keenly by all Singaporeans in the last few years. The Singapore Government itself is cognisant of this; hence, the announcement of measures, such as CDC Vouchers, U-Save rebates and so on.
I note with some interest, however, that Bloomberg reported on 22 February 2025 that a poll conducted among 1,002 Singaporeans by Milieu Insight indicated that 55% of respondents viewed these measures as inadequate in helping them cope with the rising cost of living. I know that a similar poll conducted the year before was even worse, with 62% viewing support measures as inadequate.
Taken together, it is clear that Singaporeans want the Government to look beyond the disbursement of payouts to help Singaporeans cope with the cost of living and consider structural changes to existing schemes towards keeping cost of living affordable for all Singaporeans.
My colleagues in the Workers’ Party (WP) have floated several proposals in this House on previous occasions – most notably, when we table a Motion calling for the Government to review its policies, so as to lower cost of living pressures on Singaporeans and their families.
Madam, today, I wish to draw attention to the plight of the middle class in Singapore; sometimes described as the “sandwich class”, as they are earning too much to qualify for the bulk of social assistance and support, but earning too little to have a significant financial cushion to help them deal with various trials and tribulations, which may derail their journey through life. There is also a particular subset of this group, one defined by their age, that leaves them in an unenviable position of bearing responsibilities of caring and supporting aged parents as well as young children.
Madam, residents in my division of Kaki Bukit and Aljunied GRC have approached me for assistance. For example, one resident needed legal assistance in a matter involving his brother’s insurance claims. He was deemed ineligible for assistance from the Legal Aid Bureau, but the cost of hiring a lawyer was prohibitive for his family and him. Another individual informed me that because his household income did not satisfy the means test threshold, his mother was not qualified for MediFund scheme.
He compared himself to his relative, whose elderly mother lives in a rental flat and receive MediFund assistance, even though his relative is more financially secure than he is. He remarked that by having his mother staying with him and caring for her, he feels that he is being penalised for his filial piety.
In situations like this, Singaporeans in the middle class are like a sandwich without fillings. They are left with choices they find neither savoury nor sweet.
Madam, I understand that we cannot treat the country’s finances as a well of infinite wealth. Trade-offs have to be made and assistance has to be directed to where it is most needed. I also acknowledge that instances such as the ones I have cited may not be representative of the bigger picture. Even so, when such cases do arise, I hope that the relevant agencies will be able to exercise flexibility and review each case more holistically in assessing an applicant’s eligibility for assistance.
Madam, the next issue I wish to raise has to do with jobs. The ability to cope with the cost of living is not just a function of the price of goods and services, but also the ability to afford them. A report published by The Straits Times on 8 February 2025, covered the experiences of several Singaporeans who had faced employment disruptions.
The report noted that residents’ unemployment and long-term unemployment rates remain low and the incidence of discouraged workers was also at a low point. Economists interviewed for the article noted that even so, there were plausible reasons for job insecurity among Singaporeans. News of an retention exercises, the increased prevalence of contract work, disruptions caused by technological changes are some of the factors fueling job insecurity.
Madam, I note that the Prime Minister has announced greater support for reskilling and retraining opportunities under SkillsFuture and Workfare Skills Support schemes respectively. I am not against the notion that our workforce needs to remain attuned to the needs of the job market and adequately trained. However, I believe we need to take a more proactive approach.
In January 2025, the results of a Graduate Employment Survey focusing on graduates from the five local polytechnics were released, indicating an employment rate of 54.6%, down from 60% in 2023 and 59% in 2022. The results of a similar survey focused on university graduates showed a fall in employment rates to 79.5% from 84.1% the previous year. These are worrying statistics and if the downward trend persists in subsequent years, will continue to fuel insecurity among Singaporeans beyond fresh entrance into the workforce.
I call upon the Government to consider offering incentive schemes to companies that employ more Singaporeans than required by dependency ratio. This incentive could include tax breaks, reduction in Government charges, or preferential access to state incentive. On a related note, as the Government invest in making Singapore more attractive to global companies, it should also consider encouraging such companies to play their part in nurturing and developing our local workforce.
Speaking broadly, Madam, my concern is the mental burden borne by the middle class in Singapore. Members of the House would recall the Motion on Mental Health and Well-Being, which was passed in February 2024. The Government has also acknowledged the importance of mental health and well-being and have announced several measures to address the matter. I have today highlighted two issues which adversely affect the middle class in Singapore. I hope that more attention will be paid to their plight, so that we can better understand their worries and take measures to address them.
27 February 2025
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2570
Office of the Leader of the Opposition 