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Yahoo
30-04-2025
- Business
- Yahoo
Shanmugam says majority of households will get more money from the Govt than they will pay in GST; WP's Pritam Singh hits back at ‘negative politics' remark: Singapore live news
Law and Home Affairs Minister K. Shanmugam has pushed back on suggestions the Government could have avoided GST hikes in 2023 and 2024 by tapping on investment returns from Singapore's reserves. Shanmugam, speaking at a People's Action Party (PAP) rally at Yishun Stadium on 29 April, also explained that the GST increases have been cushioned by handouts such as the GST Voucher scheme. Pritam Singh has rejected Prime Minister Lawrence Wong's claims his Workers' Party has been engaging in 'negative politics' during the General Election. Singh, who responded to PM Wong's comments at a WP rally on 29 April, said the People's Action Party (PAP) "does not walk the talk when it speaks of a united Singapore." Read more in our live blog below. Law and Home Affairs Minister K. Shanmugam has dismissed suggestions that the Government could tap on investment returns from Singapore's reserves, instead of raising the GST. "When people tell you you can spend without having to pay for something, in a few years, your future, your children's future and the country's future will go down," Shanmugam said at a People's Action Party (PAP) rally for Nee Soon GRC at Yishun Stadium on 29 April. He also reiterated previous remarks made during the General Election campaign that the top 20% of earners and foreigners pay most of the GST. "We take that money and we distribute that to all those people who are less well off," Shanmugam said. Shanmugam explained the GST increase has been cushioned by Government handouts such as the GST Voucher scheme. "The majority of Singaporean households will get more money from the Government than they will pay in GST for five years," he said. "And if you are lower-income, what the Government is giving you will more than pay for 10 years of GST." Singapore's GST was increased from 7% to 9% over two years, in 2023 and 2024. The hike has become a hot topic of debate in GE2025. Workers' Party (WP) Secretary-General Pritam Singh has said that the People's Action Party (PAP) "does not walk the talk when it speaks of a united Singapore." The WP chief was responding to comments made by Prime Minister Lawrence Wong who said the opposition party engages in "negative politics". But Singh, during a WP rally at Bedok Stadium on 29 April, said it was the PAP who needed to look at their own actions to get a clearer picture of 'negative politics' in Singapore. He cited examples of Hougang and Potong Pasir voters being told in the past that they would be last in line for estate upgrades if they voted for the opposition. "My peers and I didn't feel like this was a Singapore we can be proud of. We didn't feel such affinity to a country ruled by people with such small hearts," Singh said. Singh gave more examples of what he considers 'negative politics' by the PAP. He claimed that during the COVID-19 pandemic, the People's Association had not given WP MPs – who wanted to provide care packs – information on on which residents were recovering from the infection. He also asked if elected WP MPs would be allowed to use community clubs for food donation or distribution drives for low-income households. Law and Home Affairs Minister K. Shanmugam has dismissed suggestions that the Government could tap on investment returns from Singapore's reserves, instead of raising the GST. "When people tell you you can spend without having to pay for something, in a few years, your future, your children's future and the country's future will go down," Shanmugam said at a People's Action Party (PAP) rally for Nee Soon GRC at Yishun Stadium on 29 April. He also reiterated previous remarks made during the General Election campaign that the top 20% of earners and foreigners pay most of the GST. "We take that money and we distribute that to all those people who are less well off," Shanmugam said. Shanmugam explained the GST increase has been cushioned by Government handouts such as the GST Voucher scheme. "The majority of Singaporean households will get more money from the Government than they will pay in GST for five years," he said. "And if you are lower-income, what the Government is giving you will more than pay for 10 years of GST." Singapore's GST was increased from 7% to 9% over two years, in 2023 and 2024. The hike has become a hot topic of debate in GE2025. Workers' Party (WP) Secretary-General Pritam Singh has said that the People's Action Party (PAP) "does not walk the talk when it speaks of a united Singapore." The WP chief was responding to comments made by Prime Minister Lawrence Wong who said the opposition party engages in "negative politics". But Singh, during a WP rally at Bedok Stadium on 29 April, said it was the PAP who needed to look at their own actions to get a clearer picture of 'negative politics' in Singapore. He cited examples of Hougang and Potong Pasir voters being told in the past that they would be last in line for estate upgrades if they voted for the opposition. "My peers and I didn't feel like this was a Singapore we can be proud of. We didn't feel such affinity to a country ruled by people with such small hearts," Singh said. Singh gave more examples of what he considers 'negative politics' by the PAP. He claimed that during the COVID-19 pandemic, the People's Association had not given WP MPs – who wanted to provide care packs – information on on which residents were recovering from the infection. He also asked if elected WP MPs would be allowed to use community clubs for food donation or distribution drives for low-income households.
Straits Times
29-04-2025
- Business
- Straits Times
GE2025: ‘We are not beggars', says PPP's Goh Meng Seng on GST support schemes
Follow our live coverage here. SINGAPORE – Singapore is not a nation of beggars, said People's Power Party (PPP) secretary-general Goh Meng Seng on April 29 in reference to support schemes the PAP Government has in place to help Singaporeans cope with the GST hike. At his party's rally at Yio Chu Kang Stadium, Mr Goh, 55, said: 'I'm telling you, the vision of PAP is this, it's not only going to be a nation of fear, it's going to be a nation of beggars. Why? Because GST vouchers are going to be the norm, every year you can expect money from the Government. 'Of course Singaporeans like it, but it is not the value we should have as a nation. We have built this nation with hardworking people that don't expect a free lunch.' Over the years, the Government has rolled out several programmes such as the permanent GST Voucher (GSTV) scheme, introduced in 2012 to help lower-income Singaporeans. Enhanced at Budget 2022, the GSTV scheme now offers continued support for lower- to middle-income households and most retiree households, beyond the transitional period covered by the Assurance Package. The GST rate increase – from 7 per cent to 9 per cent, phased in over 2023 and 2024 – has been a major point of contention in the general election, with several opposition parties proposing a return to 7 per cent or under to provide relief from living expenses. Addressing this at the PAP's lunchtime rally at UOB Plaza's promenade on April 28, Prime Minister Lawrence Wong said that great care was taken in implementing the goods and services tax increase so that Singaporeans who are less well off pay less than the 9 per cent rate. Mr Goh, who is leading a five-member team in a four-cornered fight in Tampines GRC, added: 'It's difficult to tell the truth because if I say I'm against the GST vouchers, people will boo me right? 'But I'm telling everyone this is not right, this is not fiscal discipline. You do not overtax people and return money to other people and expect them to be calling you God, appreciating you for giving them money.' The PPP team running in Tampines GRC will come up against incumbent PAP, the WP and the National Solidarity Party. All 10 of the PPP's candidates spoke at the rally, which was delayed for nearly an hour due to inclement weather. The party is also fielding a five-member team of new faces in Ang Mo Kio GRC, where they will face the PAP, fronted by Senior Minister Lee Hsien Loong, and the Singapore United Party. Throughout the evening, PPP's speakers raised a range of issues, highlighting concerns over MRT breakdowns, the cost of living and the national vaccine programme. Party treasurer William Lim demanded answers to issues such as the SimplyGo roll-out by the Land Transport Authority (LTA), which was eventually reversed after public outcry, and the six-day East-West Line MRT breakdown in September 2024. PPP party treasurer William Lim demanded answers to issues such as the SimplyGo roll-out by the Land Transport Authority. ST PHOTO: SHINTARO TAY Pointing to Transport Minister Chee Hong Tat, Mr Lim said: 'We want to demand the LTA to give all Singaporeans an answer. What has happened? Is there anything SMRT breached in the maintenance schedule?' The party will hold their fourth and final rally on May 1 at the field next to the Tampines Concourse bus interchange. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
29-04-2025
- Business
- Straits Times
GE2025: GST hike necessary to address rising costs but Govt will take care of you, says Shanmugam
Law and Home Affairs Minister K. Shanmugam pointed out that the top 20 per cent of earners and foreigners pay most of the GST. ST PHOTO: ARIFFIN JAMAR GE2025: GST hike necessary to address rising costs but Govt will take care of you, says Shanmugam Follow our live coverage here. SINGAPORE - The goods and services tax (GST) hike was a necessary move to address rising healthcare expenses and an ageing population, said Law and Home Affairs Minister K. Shanmugam on April 29. Speaking at a PAP rally for Nee Soon GRC at Yishun Stadium, Mr Shanmugam pointed out that by 2030, those aged 65 and older would make up a third of the population. He said: 'Healthcare costs are going up. Who is going to pay for them? How are we going to pay for them?' The GST – which was raised from 7 to 9 per cent over two years, in 2023 and 2024 – has been a hot-button issue in the General Election. Opposition parties have been critical of the move, and have sought accountability for the timing and need for its implementation. The WP, PSP and Singapore Democratic Party have called for a reduction of the GST to 7 per cent or less to alleviate cost of living pressures. Mr Shanmugam challenged such rhetoric and suggestions that the Government could tap more of the investment returns from Singapore's reserves, instead of raising taxes. 'When people tell you you can spend without having to pay for something, in a few years your future, your children's future and the country's future will go down,' he said. He pointed out that the top 20 per cent of earners and foreigners pay most of the GST. 'We take that money and we distribute that to all those people who are less well off' he said. Mr Shanmugam added that the GST hike, by design, has been cushioned by the Government's handouts. 'The majority of Singaporean households will get more money from the government than they will pay in GST for five years,' he said. 'And if you are lower income, what the government is giving you will more than pay for 10 years of GST.' He cited the GST Voucher scheme, which helps to permanently defray GST expenses for lower- to middle-income Singaporeans. Acknowledging that many people are concerned about the rising cost of living, he said: 'Never fear... economy, jobs, living expenses; as long as you are prepared to work, the Government will take care of you.' In a wide-ranging address, Mr Shanmugam – who was flanked by the five-member PAP team contesting Nee Soon GRC as well as former MP Lee Bee Wah, who used to helm the Nee Soon South ward, struck a sombre note when he spoke about the global economic climate. He spoke of the uncertainty brought about by the United States' move to impose tariffs, and the unpredictability of the US' actions. 'Maybe after three months, the position will become clearer, but you and I cannot say what's going to happen,' he said, adding that while Singapore cannot control the actions of other countries, it can prepare itself. Mr Shanmugam said: 'We are not a country that waits for trouble. We prepare beforehand.' Despite such uncertainties, he noted how discussions between Deputy Prime Minister Gan Kim Yong, who is also Minister for Trade and Industry, and US Secretary of Commerce Howard Lutnick, have been positive. The discussions include negotiating concessions for critical exports such as pharmaceuticals, as well as facilitating access to high-end AI chips from the American market for companies here. 'I can say, without going into detail, that the discussions have been good, because there is trust – but there's a long road (ahead). Both DPM Gan and Secretary Lutnick agreed that we should try to find a solution,' said Mr Shanmugam. 'If we can find a solution, it saves jobs. It saves businesses. So we can all hope DPM Gan remains in government after May 3,' he added, referring to DPM Gan's role as anchor minister of a four-member PAP team facing off against the WP in the newly-formed Punggol GRC. Acknowledging concerns over the cost of living, Mr Shanmugam said the best way to help Singaporeans is to ensure that they get good jobs, such as by generating investments in the Republic and creating employment for Singaporeans. 'We've already put in a lot of benefits for families, because we knew some things might happen, and if they happen, we better prepare for our people... as the Prime Minister said, we will do more, if necessary.' Besides Mr Shanmugam, the PAP team contesting in Nee Soon GRC comprises four new faces: former civil servant Goh Hanyan, 39; former Nominated Member of Parliament Syed Harun Alhabsyi, 40; cleaning service and pest control company director Jackson Lam, 40; and long-time Nee Soon volunteer Lee Hui Ying, 36. They will face a Red Dot United team comprising party secretary-general Ravi Philemon, 56; RDU chair David Foo, 60; private school teacher Syed Alwi Ahmad, 57; tech start-up business director Pang Heng Chuan, 56; and IT consultant Sharon Lin, 40. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
28-04-2025
- Business
- Straits Times
GE2025: Opposition's plans to put money in people's pockets lack details on funding, says Grace Fu
Minister for Sustainability and the Environment Grace Fu said the proposals by opposition parties stop short of suggesting who will pay for their promises. ST PHOTO: ARIFFIN JAMAR Follow our live coverage here. SINGAPORE - Opposition parties want to put more money in people's pockets by cutting GST rates, but their proposals stop short of suggesting who will pay for their promises, said Minister for Sustainability and the Environment Grace Fu on April 28. Hitting back at Red Dot United (RDU), whose chief Ravi Philemon had, in a televised round-table discussion on April 27, suggested cutting the goods and services tax from 9 per cent to 7 per cent, Ms Fu said: 'It is easy for the opposition to criticise. Our opposition here wants to put more money in everyone's pocket. 'So good, such a lovely idea. But it is hard to pay for. After these nine days, after all the promises that have been made, who in the opposition is here to sign the cheques?' said Ms Fu, who is the anchor minister of the PAP team contesting Jurong East-Bukit Batok GRC. 'Who will pay for their promises? Is it the Government? The Government is only the custodian for Singapore. Ultimately, it is Singaporeans who will pay, either Singaporeans today, like you and me here, or Singaporeans of the future, your children,' she added. The PAP team will face RDU at the May 3 polls. Addressing the crowd at a rally at Jurong East Stadium, Ms Fu – who was one of 12 speakers at the event – said the decision to increase the GST was not an easy one. But the GST allows Singapore to tax tourists, as well as people who have no income here but spend on items like cars and watches, she added. She said the Government understands the pain caused by the GST on people with low or no income, adding that this is why the GST increase is accompanied by a 'permanent' support system, which includes the GST Voucher programme and other rebates to help the lower- and no-income households. 'We may be taking a chicken wing from you, but we are giving you a whole chicken,' she said. The GST was raised from 7 per cent to 9 per cent over two years, in 2023 and 2024. This increase has been a focal point of criticism by many opposition parties on the campaign trail, with the WP, PSP and Singapore Democratic Party calling for a rollback to 7 per cent or less to alleviate cost-of-living pressures. During RDU's first rally on April 26, the party's candidates zeroed in on other bread-and-butter issues, such as public housing affordability and the cost of living. Some candidates also portrayed the ruling party as being out of touch with the issues Singaporeans are facing, and said that opposition voices are needed in Parliament so they can speak up for residents. But Ms Fu said more debates do not give Singaporeans better policies and good governance. She added: 'We see countries with flowery debates, many different colours, many different parties, long debates in Parliament. Do they give you better policies? They give you policies that lead nowhere.' Acknowledging residents' concerns about jobs and the rising cost of living, she assured them that her team knows what the residents in Jurong East-Bukit Batok GRC and Jurong Central SMC are going through. For instance, to alleviate the cost of living for residents in Yuhua, where she was the MP for 20 years, Ms Fu said initiatives such as vouchers, financial assistance, as well as food rescue programmes were rolled out. The Yuhua single seat is now part of Jurong East-Bukit Batok GRC. 'These initiatives give immediate help, practical help; even in the smallest of gestures, they can make a difference in addressing cost-of-living concerns,' Ms Fu said. She also outlined the PAP's plans for those who worry about employment, which include matching residents to jobs in the community, creating micro-jobs like sewing for stay-at-home residents and holding job fairs for middle-aged workers. Ms Fu likened the community in Jurong East-Bukit Batok and Jurong Central to a kampung where residents in the community step in to help one another. 'Over the past five years, we have lived through a turbulent time – we had the pandemic, the rise in inflation, and we watched the world become uncertain,' she said. She also said in Mandarin that the world may be roiled in much uncertainty, but the ruling party has extensive experience in international negotiations. The PAP also brought the country through the Covid-19 pandemic and has the ability to stabilise the economy, she added. 'Our single-minded focus is to look after and serve you. Not just to get a ticket to Parliament ,' she said. 'And we want to build a Singapore where your hard work matters, where dignity is protected, where no one is left behind.' During the rally, Ms Fu was joined by her teammates contesting Jurong East-Bukit Batok GRC. They include Minister of State for Law and Transport Murali Pillai, Minister of State for Health and Digital Development and Information Rahayu Mahzam, political newcomer David Hoe, and Mr Lee Hong Chuang, who contested the Hougang single seat in the 2015 and 2020 elections. The PAP's candidate for Jurong Central SMC, Mr Xie Yao Quan, who had served the ward since 2020 as a Jurong GRC MP, also made a pitch to residents at the rally, which kicked off with speeches from party volunteers who drummed up support for the PAP's slate. RDU is fielding a team which has two candidates with political experience in Jurong East-Bukit Batok GRC. They include entrepreneur and author Liyana Dhamirah, who was an RDU candidate for Jurong GRC in 2020, and waste management company director Osman Sulaiman, who was a Singapore People's Party candidate in 2020. The RDU team is rounded out by contemporary artist Benjamin Puah, marketing agency director Marcus Neo and principal software engineer Harish Mohanadas. Join ST's WhatsApp Channel and get the latest news and must-reads.
AsiaOne
25-04-2025
- Business
- AsiaOne
PAP's Desmond Lee responds to opposition's calls for GST exemption, says 'we want to make it progressive', Singapore News
National Development Minister Desmond Lee has refuted proposals set forward by several opposition parties to lower the GST rate and provide exemptions on basic necessities, saying that GST needs to remain a progressive tax. Other examples of progressive taxes include income tax and stamp duty. Speaking at a doorstop interview at the People's Action Party (PAP) Boon Lay branch on Friday (April 25), Lee fielded a question regarding cost-of-living concerns and recent criticisms from opposition parties. Lee is anchoring the PAP team contesting West Coast-Jurong West GRC, and they're up against a Progress Singapore Party (PSP) team helmed by chairman Dr Tan Cheng Bock. At their first rally on Thursday (April 24), Singapore Democratic Party (SDP) party chief Chee Soon Juan criticised the Government's practice of handing out cost-of-living vouchers while simultaneously raising the GST rate, likening it to "an arsonist setting your house on fire and giving you a cup of water to put it out". Dr Tan and PSP's chief Leong Mun Wai also said at PSP's rally on Thursday that the PAP has "lost its way", and called for a GST rollback to seven per cent in addition to exemptions on essential items like rice, water and milk formula from GST. "GST is collected from everybody who spends and we want to make it progressive by making sure that we support lower and middle income households, and this is done most effectively through targeted measures," argued Lee. The targeted measures in particular, include Budget 2025 initiatives such as the GST Voucher scheme, and Project 100=50 scheme, which provides half-priced grocery shopping for Boon Lay and Jurong Spring residents. "If you try to waive GST on essentials, then that means people who are much better off, people who come from overseas here to consume these resources, or who buy in larger quantities, even from detailed options, then GST will not be collected from them," Lee added. He also elaborated on collecting taxes from "enterprises, especially large enterprises, from tourists and foreigners as well as from better off individuals", which would bring in the necessary revenue to "push ahead with the additional support that we need for Singaporeans". Lee also said that universal measures, such as subsidies and tax waivers, have been implemented in neighbouring countries but "have disproportionately benefited the better off and the lower income don't get as much support". "Our spending by the PAP party on Singaporeans through the social side of spending exceeds economic spending," he said, reinforcing the need for revenue from GST collection. "It's important for us to be objective about the impact of the programmes. No scheme, no policy, is perfect, and our responsibility as a proactive PAP government is to ensure that our policies continue to reflect the needs of people on the ground." Responding to claims of groupthink Speaking at a PSP rally on Thursday night, Dr Tan made a comment regarding PAP candidates coming "from the civil come service organisations", which would eventually lead to "group thinking" and a lack of diversity in ideas. On this, Lee countered that these candidates are diverse in terms of age, gender, background, and that the party also has candidates from the private sector, including doctors and lawyers. "We have people who are working in the social sector, people who are from NGOs, people who have also taken the path less travelled," countered Lee. With such a variety of professionals within the PAP, there is a "diversity of thinking on the ground", he added. Rematch against PSP Lee's team will be up against the PSP's A-team comprising Dr Tan, Leong, Hazel Poa, Sani Ismail and Sumarleki Amjah in a rematch for West-Coast Jurong West GRC on May 3. It is likely to be a close match again this year, with the PAP's West Coast team emerging victorious with 51.69 per cent of votes — the slimmest margin for GE2020. For our GE2025 microsite, visit here. [[nid:717180]]
