The Ministry of Finance (MOF) said on Tuesday that about 1.5 million Singaporeans will get up to $700 in cash next month as part of a $1.5 billion plan to assist them cope with increasing inflation (July 12).
Last month, Deputy Prime Minister Lawrence Wong stated that the government's Goods and Services Tax Voucher (GSTV) program will be expanded with a new GSTV - Cash Special Payment.
Consequently, qualified Singaporeans will receive two payments: one via the GSTV - Cash and another via the GSTV - Cash Special Payment.
As part of the GSTV program, around 575,000 Singaporeans aged 65 and above will receive up to $450 in their Central Provident Fund MediSave accounts this year.
Those born on or before December 31, 1969, who do not currently receive Pioneer or Merdeka Generation benefits, will have $100 deposited into their MediSave accounts by the end of the following month.
The Ministry of Finance stated that the payments are part of the government's ongoing support for persons from low-income families and the elderly to help offset their GST charges and living expenses.
It was said that eligible Singaporeans have previously received Community Development Council coupons, two GSTV - U-Save and GSTV - service and conservancy (S&CC) refunds, and top-ups to Edusave or Post-Secondary Education Accounts.
Get investing and professional growth advice in a weekly newsletter.
In the following months, they may anticipate cash payments, utility credits, Child Development Account top-ups, and two more installments of U-Save and S&CC refunds, according to the ministry.
Rachel Bong, a 23-year-old recent graduate, stated that the GSTV plan was a welcome addition and an indication that the government recognized the strain that rising inflation would have on the populace.
She said, though, that it was a temporary solution because it "didn't necessarily lighten the strain in the long run."
While she has not yet contributed to household costs, she expressed concern over the growing cost of living.
"Right now, the most obvious cost rise is in food and basic necessities, which I see every time I go out. I feel the pinch while dining al fresco," remarked Ms. Bong.
In the meanwhile, she stated that her family of five mostly saves money by making meals at home.
Mrs. Malika Abdul Rawoof, 51, stated that her family of six eats at home to save their monthly expenditures.
We used to have family dinners out two or three times every month, but we've ceased doing so when costs began to rise.
In lieu of making time-consuming dishes with several components, she stated that her family has since opted for simple dinners that need fewer ingredients, hence reducing their expenses.
However, the company owner noted that while she could reduce expenses at home, she was unable to do so at her Golden Landmark Complex-based fashion store.
"Electricity prices have increased. Additionally, the cost of importing items has increased. My employees must likewise be paid more because they require a livable pay to combat inflation."
She said that her leasing expenses had increased from $1,500 to $1,900 per month, severely reducing her profit margins.
"The GST coupons are certainly beneficial, but most individuals utilize them to balance their regular expenses. So they'll concentrate on tasks such as grocery shopping.
"No one will purchase clothing when they have more urgent requirements," stated Madam Malika.
Comments