SINGAPORE: The rising cost of living is shaping up to be one of the defining issues of the 2025 General Election – and political parties are offering a range of policy ideas in response.
As election campaigning ramps up, CNA takes a look at key proposals to ease Singaporeans’ burden, offered by the five parties contesting the most seats that have also released their manifestos. The People’s Alliance for Reform, which is contesting the joint-fourth-highest number of seats, has not released its manifesto.
PEOPLE’S ACTION PARTY
- Households to receive CDC vouchers, cash payouts and utilities rebates.
- Schemes to support lower-income families and the elderly, such as ComCare and Silver Support, will be reinforced, lower-income families will be supported individually through ComLink+ and higher childcare subsidies for children from disadvantaged families, along with regular pre-school attendance.
- Lower preschool fees for parents and expanded parental leave with enhanced support for larger families.
WORKERS’ PARTY
- Alternative revenue channels to the Goods and Services Tax (GST), such as a net wealth tax on the assets of the country’s top 1 per cent wealth holders, and a minimum corporate tax rate of 15 per cent.
- Essential items, like basic food items, to be exempt from GST to ease the effects of inflation for low-income and middle-income groups.
- A statutory and universal national minimum wage of S$1,600 (US$1,200) for full-time work and prorated for part-time work.
- Lift the cap on MediSave use for those above 60, so that they can use MediSave to pay for all medical expenses not already covered by other schemes at government polyclinics, public specialist outpatient clinics and Community Health Assist Scheme clinics.
RED DOT UNITED
- An “unconditional cash transfer” should be distributed as a “citizen’s dividend” to provide financial stability for Singaporeans.
- Shifting from GDP-focused policies to a “well-being economy” that prioritises fair wages, job security with a “citizens first” approach and sustainable growth for all.
- Access to MediFund support for all Singaporeans, capping out-of-pocket expenses and introducing fairer subsidies.
- Expand MediShield Life’s coverage and redesign MediSave to be a supplementary fund rather than a primary way of paying for medical costs.
PROGRESS SINGAPORE PARTY
- Reduce the GST from 9 per cent back to 7 per cent and exempt essential items like rice, water and milk formula from the tax.
- Set up guidelines on rent increases for commercial properties and phase out socially conscious enterprise hawker centres.
- Set hawker stall rentals at S$500 or 3 per cent of gross revenue, instead of the highest bid by tender. Phase out the social enterprise model for hawker centres that appears to have higher costs.
- Cover basic MediShield Life and CareShield Life premiums and centralise drug procurement to lower costs. New mothers should receive a cash gift to offset confinement expenses.
SINGAPORE DEMOCRATIC PARTY
- Reduce GST from the current 9 per cent and eliminate it for essentials like food and medicine. The party previously asked for the GST to be lowered to “7 per cent or even 5 per cent”.
- Reduce rental costs.
- Address “indirect taxes” like water and utilities that “add to the burden” of small- and medium-sized enterprises and are often passed on to consumers.
