Despite rising median real household income and real household income per member across all deciles, these overall figures do not always translate to a sense of financial security. Anchored to past prices, many Singaporeans feel a loss of purchasing power in their daily expenses. Climate vouchers, previously limited to HDB households, have now been extended to private property dwellers, extending further help to Singaporeans who may be asset-rich but cash-poor.
SUPPORT FOR BOTH CONSUMER AND MERCHANT
The CDC Voucher Scheme commendably covers a wide range of essential goods and services at heartland merchants, ensuring that such injections are spent within a defined local ecosystem, even if some prefer the flexibility of unrestricted cash handouts.
This directed approach ensures that funds are channelled specifically to hawkers and heartland shops, stimulating local spending and generating an economic multiplier effect that supports job creation and competitiveness against larger chains and online platforms.
Utilisation rates have been high, with the government reporting that nearly all eligible households claimed and spent their vouchers in the 2021 and 2022 tranches. Over S$1.3 billion worth of vouchers were spent in the 2023 and 2024 tranches.
Business participation remains robust, with over 20,000 heartland merchants and hawkers onboarded by December 2022, many reporting significant revenue gains through the scheme.
