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Business Times
5 days ago
- Business
- Business Times
Let financial aid Singaporeans get flow into buying equities and bonds.
[SINGAPORE] The Republic can be an expensive city to live in. However, the government actively addresses cost-of-living issues and Singaporeans receive plenty of financial help. For the nation's 60th birthday, all Singaporean adults received an early hongbao in July. Singapore citizens aged 21 to 59 in 2025 received S$600 in SG60 vouchers, while citizens aged 60 and above in 2025 were given S$800 of such vouchers. Subject to eligibility, there are social transfers under schemes such as the Assurance Package, GST Voucher, Pioneer Generation Package, Merdeka Generation Package, Majulah Package and so forth. In recent years, a popular item with Singaporean households is the Community Development Council (CDC) Vouchers. In 2025, each local household could claim S$300 and S$500 of such vouchers in January and May, respectively. The CDC Vouchers can be used at participating heartland merchants and hawkers, as well as supermarkets. When these vouchers are disbursed, many local merchants can look forward to a bump in sales. Eligible Singapore citizens also receive SkillsFuture Credit and training allowance. Individuals can tap SkillsFuture Credit to pay for a wide range of approved skills-related courses. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up In short, locals receive much help to cope with higher costs, acquire relevant skills and age with grace among others. HDB BTO homes Besides the above schemes, a huge gift for many eligible young local couples is the opportunity to buy a Build-To-Order (BTO) flat from the Housing and Development Board (HDB). Take the flats at Woodlands North Grove in Woodlands that were offered as a Standard project in July's BTO exercise. The four-room 99-year leasehold BTO units were priced at S$388,000 to S$544,000 versus S$660,000 to S$720,000 for comparable resale HDB flats nearby, with remaining land leases of about 93 years. Put simply, a buyer of a subsidised BTO home in the above example might enjoy a mark-to-market gain of possibly S$250,000. Add to that, many eligible buyers receive housing grants. Indeed, the chance to make sizeable financial gains from buying HDB homes may result in over-consumption of housing. Taking a step back, should some of the generous financial assistance that is tied to consumption, investment in training and home buying be diverted to encourage saving and investing for retirement years? Specifically, give more cash disbursements to Singaporeans, which they can use as they like, including to invest in local equities and bonds. Local equities and bonds Many local companies issue Singapore-dollar bonds and equities to fund business operations and expansion. Having thriving local businesses benefits the community via contribution to tax coffers and job creation. At the same time, locals have a pressing need to save and invest in order to achieve financial adequacy when they retire. Given rising life expectancy and inflation, building up passive income is vital. Moreover, each generation may need to look after their own retirement needs instead of relying on the younger generation to support their parents financially when parents are in their silver years. Take a young local couple who are fine living in the home of one set of parents. The couple may still buy an HDB BTO flat because they can get subsidies and grants when doing so. Perhaps, the couple might prefer to channel housing-related financial help from the government to buy equities and bonds in order to generate passive income for retirement instead. Possibly, consider letting eligible young local couples choose between buying an HDB BTO flat and receiving a cash gift from the government of say S$200,000 which can be invested in high-quality stocks and bonds. For one thing, a meaningful retirement nest egg can be built from a portfolio of stocks and bonds through the power of compounding. Might the various credits and vouchers which locals receive for the purchase of goods and services be better given as cash that can be invested? For example, I appreciate having an available balance of S$5,500 of SkillsFuture Credit. There are many courses where I can use my credits. I could pick up cooking or digital skills, or enrol for a personal development course. Nonetheless, I cannot find a compelling course. But at the same time, I feel it is a waste if I do not use my SkillsFuture Credit. Possibly, funds that one can access for training course fees should be made available to purchase local stocks or bonds. Interest rates and inflation Investing in high-quality stocks and bonds is sensible for individuals looking to achieve financial adequacy in retirement years. As it stands, the returns from risk-free instruments such as Singapore dollar fixed deposits and treasury bills have been declining. In such a scenario, a fixed deposit that matures soon may roll over at a lower interest rate. US President Donald Trump's policies could be inflationary and stay the Federal Reserve's hand for now, but there might still be room for the Fed to lower interest rates. Moreover, a retiree here who seeks to live off passive income for two to three decades has to take into account the erosion of his funds' purchasing power due to inflation. Buying equities can hedge against inflation as all else being equal, a company's nominal profits could grow in line with inflation. Also, should a business prosper due to productivity gains arising from using artificial intelligence, stock investors will be richly rewarded. Domestic capital is critical to finance the growth of local enterprises. Hence, getting more individuals to support the local capital markets yields the added benefit of providing local businesses with ample funding at competitive rates. In short, the financial aid that individuals receive from the government, which goes into buying local stocks and bonds, can create a win-win for individuals and businesses. Of course, disbursing cash to individuals comes with the risk that people fritter money on consumption for immediate gratification. Should there be constraints placed on how the cash disbursements are to be used? I hope a light touch prevails should cash be disbursed to individuals. With an increasingly well-educated population, perhaps stepped-up efforts in financial education can help steer people to wisely embrace saving and investing for retirement needs. Let's work towards helping Singaporeans achieve financial adequacy in their retirement years, while supporting the growth of local enterprises by building strong portfolios of domestic equities and bonds.
New Paper
30-06-2025
- Business
- New Paper
Some 950,000 Singaporean households to get U-Save, S&CC rebates in July
Close to a million Singaporean HDB households will receive rebates to their utility and conservancy bills in July, as part of a government scheme to help them with cost of living. Depending on their HDB flat type, eligible households will receive up to $190 in U-Save for their utility bills, and a maximum of a month of rebates for their service and conservancy charges (S&CC), the Ministry of Finance said in a statement on June 30. For example, people living in a four-room flat will get $150 and half a month respectively in rebates for their U-Save and S&CC. Those in one- and two-room flats will get $190 and a month respectively. The utility and S&CC rebates will be automatically credited to the eligible household's accounts with grid operator SP Services and the town councils, respectively. These rebates are part of a permanent GST Voucher scheme and the enhanced Assurance Package to help lower- and middle-income households cope with the increasing cost of living and increase Goods and Services Tax. They are disbursed every three months - in April, July, October and January - each year. In total, eligible Singaporean HDB households will receive up to $760 of U-Save rebates in fiscal year 2025. Meanwhile, eligible households can expect to receive a total of up to 3.5 months of S&CC rebates in fiscal year 2025. To be eligible for the U-Save rebate, there must be at least one Singaporean owner or occupier in the household if the flat is partially rented out or not rented out. If the entire Housing Board flat is rented out, there must be at least one Singaporean tenant. Households with people who own more than one property are not eligible for U-Save rebates, said the Finance Ministry. The following households are not eligible for the S&CC rebate: Those with no Singaporean flat owner or occupier in the flat Those whose flat owners or essential occupiers own or hold interest in a private property Those who have rented out the entire flat To check on their eligibility for S&CC rebates, members of the public can log in to the My HDBPage with their Singpass. In its statement, the ministry also reminded the public that government officials will not ask them to transfer money or disclose banking details over a call.
Online Citizen
30-06-2025
- Business
- Online Citizen
Nearly 1 million HDB households to receive rebates in July as energy tariffs fall
SINGAPORE: Close to a million Singaporean households living in HDB flats will receive rebates for utilities and service charges in July. The disbursement is part of ongoing efforts by the government to address cost-of-living pressures amid rising prices. According to the Ministry of Finance (MOF) on 30 June 2025, the rebates are part of the permanent GST Voucher scheme and the enhanced Assurance Package. Eligible households will receive up to S$190 in U-Save rebates for utility bills and up to one month's worth of service and conservancy charges (S&CC) rebates. The amounts vary according to flat type. Households in one- and two-room flats will receive the maximum of S$190 in U-Save and a full month's S&CC rebate. Those living in four-room flats will receive S$150 in U-Save and a half-month of S&CC rebates. The rebates will be automatically credited. U-Save rebates go to households' SP Services accounts, while S&CC rebates are sent to town council accounts. In total, eligible households can receive up to S$760 in U-Save rebates and up to 3.5 months' worth of S&CC rebates in the 2025 financial year. The rebates are distributed quarterly in April, July, October, and January. Eligibility is based on citizenship status and property ownership. For U-Save rebates, a household must have at least one Singaporean owner or occupier. If the flat is entirely rented out, there must be at least one Singaporean tenant. Households where individuals own more than one property are not eligible for U-Save rebates. To qualify for S&CC rebates, there must be a Singaporean flat owner or occupier, and none of the owners or essential occupiers should own private property. Flats that have been fully rented out are also ineligible. Residents can check their eligibility for S&CC rebates through My HDBPage using their Singpass. The Finance Ministry also issued a reminder that officials will never request money transfers or personal banking information via phone calls. Separately, national grid operator SP Group announced that electricity tariffs will decrease for the quarter from July to September 2025. The fall is attributed to lower energy costs, following steady rates in the previous quarter. Electricity tariffs will drop by 2.3 per cent, equivalent to a reduction of 0.65 cent per kWh before GST. This will bring the new electricity tariff to 27.47 cents per kWh before GST. As a result, families in HDB four-room flats can expect a reduction of about S$2.36 in their average monthly electricity bill, before GST. City Energy, the gas supplier, also announced a decrease in gas tariffs. The rate will drop from 22.72 cents per kWh to 22.28 cents per kWh, also due to lower fuel costs. Both SP Group and City Energy review tariffs quarterly, under guidelines from the Energy Market Authority (EMA). SP Group explained that the energy cost component of electricity tariffs is based on average natural gas prices in the first 2.5 months of the previous quarter. Tariffs are susceptible to fluctuations due to global fuel price volatility, which can be affected by geopolitical events, such as ongoing conflicts in the Middle East. Electricity tariffs consist of four components: energy costs paid to power generation companies, network costs paid to SP Group, market support service fees, and a fee to the Energy Market Company for operating the electricity wholesale market.
Straits Times
30-06-2025
- Business
- Straits Times
Over 950,000 Singaporean households to get U-Save, S&CC rebates in July
Depending on their HDB flat type, eligible households will receive up to $190 in U-Save for their utility bills. ST PHOTO: LIM YAOHUI Over 950,000 Singaporean households to get U-Save, S&CC rebates in July SINGAPORE - Close to a million Singaporean HDB households will receive rebates to their utility and conservancy bills in July , as part of a government scheme to help them with cost of living. Depending on their HDB flat type, eligible households will receive up to $190 in U-Save for their utility bills, and a maximum of a month of rebates for their service and conservancy charges (S&CC), t he Ministry of Finance said in a statement on June 30. For example, people living in a four-room flat will get $150 and half a month respectively in rebates for their U-Save and S&CC. Those in one- and two-room flats will get $190 and a month respectively. The utility and S&CC rebates will be automatically credited to the eligible household's accounts with grid operator SP Services and the town councils, respectively. These rebates are part of a permanent GST Voucher scheme and the enhanced Assurance Package to help lower- and middle-income households cope with the increasing cost of living and increase Goods and Services Tax. They are disbursed every three months - in April, July, October and January - each year. In total, eligible Singaporean HDB households will receive up to $760 of U-Save rebates in fiscal year 2025 . Meanwhile, eligible households can expect to receive a total of up to 3.5 months of S&CC rebates in fiscal year 2025. Join ST's WhatsApp Channel and get the latest news and must-reads.
Yahoo
21-05-2025
- Business
- Yahoo
Singapore's CDC vouchers scheme: How to claim and spend your May 2025 CDC vouchers?
Singaporean households can now claim and use their $500 Community Development Council (CDC) vouchers, announced Prime Minister Lawrence Wong on Tuesday (13 May) at the Nee Soon South Community Club. The CDC vouchers scheme started in June 2020 to help Singaporean lower-income households defray their cost of living, and at the same time, to support hawkers and heartland merchants affected by COVID-19 pandemic. During Budget 2021, former Minister for Finance Heng Swee Keat announced the $130 million CDC Vouchers Scheme that saw each Singaporean household receiving $100 CDC vouchers. The scheme was continued after the pandemic to help alleviate the impact of rising prices on Singaporeans. The May 2025 tranche of CDC vouchers was announced in Budget 2025 as part of the enhancements to the Assurance Package and is meant to help Singaporeans with daily expenses. Each Singaporean household will receive a total of $800 in CDC vouchers for FY2025 and it will be paid out in two tranches — $500 in May and $300 in January 2026. This is in addition to the $300 CDC vouchers Singaporean households received in January 2025 as part of the enhancements to the Assurance Package announced during Budget 2024. As per previous tranches, the May CDC vouchers will be allocated equally — $250 for spending at participating heartland merchants/hawkers and $250 for spending at participating supermarkets. Do note that the CDC vouchers from January 2025 and May 2025 expire on 31 Dec 2025. Claiming your May CDC vouchers is the same if you've claimed your previous tranches of CDC vouchers before. Simply visit and tap on "CDC Vouchers 2025 (May)", then log in with your Singpass account. Only one household member needs to redeem the vouchers on behalf of the entire household. The person will receive an SMS with the voucher link from " and forward the link to the other members of the household. When you want to use your CDC voucher(s), select which type of voucher and the amount you want to use. Then, show the QR code to the participating merchant for them to scan. To identify which are the participating hawker and heartland merchants, look for the teal decal pictured below. To identify participating supermarkets, look for the yellow decal pictured below. You can also check out to search for the nearest participating hawkers and heartland merchants, and participating supermarkets. If you do not have a smartphone or Singpass, or for further enquiries or assistance, visit your nearest Community Centre/Club (CC) or call the PA Contact Centre at 6225 5322. While you could previously donate all unspent CDC vouchers in 2024, donation details for the 2025 CDC Vouchers Scheme have yet to be announced. According to details will be announced at a later date. All Singaporean households are also encouraged to claim and spend their 2025 CDC vouchers.
