“We feel the pressures here in Singapore too, especially as a small and open economy. After all, we import almost everything we consume.
“Remember at the beginning of this decade, we were still in the thick of battle, fighting COVID-19,” Mr Wong said, adding that it was a “time of great uncertainty” as they did not know how long the pandemic would last, how the virus would mutate and how many new waves of infections Singapore would face.
He said: “Our finances were stretched; we had gone to the President five times to use past reserves.”
“We were not sure if we would have enough resources to recover from COVID, create jobs for our people, and look after our seniors. We did not know how deep a fiscal hole we would end up with.”
Mr Wong added that at the same time, they knew healthcare spending increased each year, especially with Singapore’s “rapidly ageing population”.
“It was not an easy choice, but we knew we had to act responsibly,” he said.
“That is why when the economy showed signs of stabilising, we decided to proceed with the GST increase.”
But Mr Wong also pointed out that the Assurance Package was also rolled out to “effectively delay the impact of the GST increase” for most Singaporeans, adding that the package was enhanced over the years to “further cushion the impact” on the cost of living.
“In this Budget, we have provided additional measures to further ease cost pressures; including a special SG60 package with more help for every Singaporean,” he said.
“We will keep doing what is necessary to help Singaporeans through these difficult times and for as long as it is needed.”
