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Sitecore Context Id: d57c741a-42bf-4b7d-84f2-8d504556da84;
Mr Speaker, Sir, as Singapore braces itself for GST increments in 2023 and 2024, many Singaporeans are already starting to feel the pressure with the rising cost of living. For those who have seen the award-winning film, Parasite, we would be familiar with the basement apartments in South Korea. When the floodwaters rush in, people living in these humble dwellings get their homes destroyed, and worse, lose their lives. Thankfully, the South Korean government has recently vowed to move people out of these homes.
What rising floodwaters are to subterranean South Korean homes, the rising costs of living are to Singaporeans at the bottom of the socioeconomic ladder. When it hits, the lives and livelihoods of those at the bottom are the first to be put to the sword – all the way up to the middle of the ladder we have Singaporeans up to their necks with surging prices on living necessities. Of course, I could have spared the analogy, for this is basic economic theory. Yes, basic, but for many of us, it merely remains in theory. For lower to middle income working Singaporeans, rising GST rates will be felt in the flesh.
Mr Speaker, relief measures like the $1.5 billion inflation-relief package announced by the Ministry of Finance including special payments, CDC vouchers, U-Save Vouchers and other assistance are very much welcomed by Singaporeans. These measures will tide Singaporeans over fiscal challenges as they navigate the rising cost of living in the near-term, and the Union brothers and sisters I have spoken with are grateful for this support on behalf of our Singaporean workers. However, while such assistance provides relief, we must continue to look to policies that imbue resilience. Rising costs are undoubtedly a perennial issue – every generation reminisces the prices of kopi, a bowl of noodles back in their day. We can choose to look on and rue rising prices like sitting ducks or match the rising cost of living with increased productivity and fortified wages undergirded by the equitable and sustainable gains sharing.
Supporting lower-wage workers through the Progressive Wage Model and Progressive Wage Credit Scheme
This is exactly why the Union has thrown its weight behind the rollout and expansion of the Progressive Wage Model - deepening its reach in the cleaning, security and landscape sectors, as well as being newly implemented in the retail sector in September this year with the Food Services sector following closely in six months and more sectors to come in the months ahead. We are encouraged by the Government’s commitment to resilience-building on top of mere relief-provision as seen in the Progressive Wage Credit Scheme (PWCS) introduced during Budget 2022. The PWCS served to encourage salary increments for lower-wage workers despite the poor macroeconomic climate, incentivising, therefore, lower-wage workers’ investment in the development of their craft. As costs of living rises, we are confident that Singaporeans will be well-resourced to match its demands for greater productivity in a sustainable gain-sharing ecosystem.
Continued support needed for older workers
Mr Speaker, even as we recognise the surging benefits for lower-wage workers through the PWM, the Union is aware that for older workers in the sunset lap of their productive years, the returns on investments in self-development for productivity gains are dampened. These concerns are exacerbated especially after their productive years with fears arising of nest eggs being eroded by the rising costs of living, and indeed, the aftermath of COVID19. Therefore, I call on the Government to strengthen and continue support for our older workers through grants and other funding support.
Indeed, the Labour Movement will continue to play its part to help seniors and other Singaporeans to ‘stretch their dollar’ through its social enterprises. This includes special discounts on basic necessities such as groceries at our FairPrice Outlets, tailored insurance policies with NTUC Income and meals at Kopitiam. I note that there are now $3 options nestled at most Kopitiam stores in my Division, and there are food items enjoyed by many, such as Cai Png, Carrot Cake, Fishball Noodles, Mee Goreng and Chicken Macaroni Soup.
Impact of rising GST rates on business owners and self-employed persons
Aside from wage workers, there is a slice of business owners and the self- employed who may be adversely impacted by the rising rates of GST. While established corporations have elaborate pricing models to capture profits amidst the volatile economic climate, small business owners in Singapore feel a special affinity for their customer base and have an often-overlooked obligation to their regulars to keep prices down. It is not uncommon to hear residents name their favourite food after their associated prices – think, the “$2.50 chicken rice” or “$1 banana leaf nasi lemak” just has that special ring to it. In our communities, small business owners who have fought to keep their prices down to keep serving their loyal customers are celebrated as community stalwarts and treasure this trust more than just gouging profits. Many of these small businesses, Mr Speaker, also happen to not be GST-registered, meaning they’re unable to charge GST and claim GST costs. As their suppliers pass the increasing costs of goods down these small business owners in light of the rising GST rates, small business owners can, at best, apologetically raise their prices, or, at worst, absorb these costs out of their pockets to their personal detriment. This dilemma is one unique to small business owners in Singapore and need not be one we put them through if we pull the right policy levers.
In the same vein, our self-employed persons in Singapore, including taxi drivers, private hire drivers, who are generally unable to set their own prices, are also not GST-registered. Our drivers from the National Taxi Association and National Private Hire Vehicles Association, have told me that they are worried about the impending GST increments and this affecting their daily takings and livelihoods. The costs of doing business would go up, from larger dollar items such as fuel, car rentals, insurance, to the smallest of purchases essential to their business such as masks and even sanitation wipes. Our drivers being price takers, and individually not earning enough to be GST registered - what more can we do to cushion the impact of rising costs handed down to them from upstream stakeholders? While short term measures such as support vouchers are welcomed, what other policy levers can we pull for the longer term?
Mr Speaker, would it be worthwhile then to examine the impact of allowing non- GST registered SMEs and the self-employed, perhaps, an annual allowance for the purchase of goods necessary for their businesses? Perhaps this allowance can be extended to a basket of low-value goods below $400 and be considered and reset on an annual basis. This discernment on the application of GST will go a long way to supporting SMEs and the self-employed who might feel cornered by the GST increase.
In Mandarin please, Mr Speaker.
相信各位民众都有感受到近期物价调整的影响。面对循序渐进的生活费，每一 个家家户户将会面对不对等的压力、低收入户想必而然的会面临更严重的收缩。同样的，中小型企业收支会比大型企业更难平衡。
想当然耳，面对最大挑战的业主应该就是自雇人士，也就是我们德士和私招车安哥安迪等人的饭碗。这些年迈体弱但仍然刻苦耐劳的司机大哥大姐们并没有商品及服务税登记号的保障，但同时与大企业一样只身抵抗通货膨胀的压力。
因为物价上涨，相信你我搭乘德士的次数及经济能力都有所下降。这对我们而 言可能仅仅带来些许的不便，但对德士司机们而言这一切的代价是他们的伙食 费，医药费，房租等等。无法提高价钱的商家就得掏自己的腰包吸收这些费用。这就是每一个年近花甲的德士司机们必须面对的现实。
税金会提高不就是为了让整体社会共享富裕吗？保障我们自雇人士和小型企业的饭碗不知是我们的职责，更是我们的义务。
Conclusion
Ensuring a fair system of raising revenue to meet our society’s needs is a responsible way of easing the burden of our younger generation of workers who have to support a larger population of older residents in the years to come. The Labour Movement continues to be committed to working with the Government to ensure that making this investment into our common Singaporean future does not disproportionately aggrieve overlooked slices of Singaporeans as I have outlined. These concerns notwithstanding, I support the Bill.
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