SINGAPORE: In response to Prime Minister Lawrence Wong’s video titled “Tackling Cost of Living Concern,” uploaded on 2 October, netizens expressed that the Singapore government should address fundamental issues like transport and rental costs, rather than relying on measures such as distributing Community Development Council (CDC) vouchers.

In the six-minute video, PM Wong acknowledged that although inflation has moderated, the cost of living remains a significant issue for many Singaporeans.

PM Wong assured Singaporeans that his team is committed to helping them through this challenging period.

He emphasised that while inflation is expected to decline further in 2024, prices will still rise from time to time.

He explained that delaying price adjustments would only worsen the situation in the future, but the government will work on mitigating the impact of any necessary increases.

The prime minister outlined that the long-term solution to managing living costs is to ensure Singaporeans have access to good jobs with better wages.

He added that higher wages should outpace inflation, allowing citizens to improve their living standards in real terms.

PM Wong also provided an economic outlook for 2024, predicting higher growth and lower inflation, which could lead to increases in real incomes for workers.

He noted that the government is closely monitoring economic conditions for 2025 and will reveal more of its plans in the upcoming Budget.

Recapping earlier initiatives, PM Wong said the government has allocated over $10 billion through the Assurance Package to help Singaporeans cope with rising living costs, including enhancements to the package.

He highlighted that this year, every household has received S$800 in CDC vouchers, alongside utility rebates and cash payouts.

PM Wong also touched on global inflation trends, explaining how disruptions from the pandemic and global conflicts affected prices.

He assured Singaporeans that the government has taken measures, such as strengthening the Singapore dollar, to shield them from the worst of these effects.

Netizens criticise government’s approach to rising cost of living

Hundreds of netizens have voiced their concerns under a Facebook post by The Straits Times on PM Wong’s video, criticising the government’s approach to addressing cost-of-living issues.

Many users expressed frustration, noting that despite the government’s repeated reassurances about helping Singaporeans, there has been a lack of action to address the ongoing increases in utility and transport fares.

Others echoed similar sentiments, with one user blaming the increase in GST to 9% as a major factor contributing to the rising cost of living. As Finance Minister, PM Wong was the key advocate of the GST hike and defended it when the opposition called for a deferment.

One netizen criticised the government’s actions as being counterproductive.  They pointed out that while the government raises prices in several areas, it simultaneously claims to be providing help, which they view as contradictory.

Netizens call for action on rising rental costs, criticise reliance on CDC vouchers

Many commenters also criticised the distribution of CDC vouchers as insufficient, urging the government to tackle root issues such as high rental and housing costs.

One netizen argued that CDC vouchers provide little relief, and reducing rental, medical, and food costs would be a more effective solution.

Another user called for standardised rental prices for hawker stalls and suggested that the government should fine landlords who raise rents excessively.

Other commenters focused on the need for more substantial measures, such as controlling hawker stall and coffee shop leases.

They argued that skyrocketing rental prices directly affect consumers through higher food costs.

One user proposed reducing government officials’ salaries and reforming other key policies such as lowering the GST and making housing more affordable as real solutions.

Additionally, some netizens highlighted the need to address transport and rental costs, noting that higher transport and raw material costs will continue to drive up consumer prices.

They urged the government to reduce rent for commercial shops and food stalls.

Netizens call for concrete measures in addressing cost of living

Some netizens expressed doubts about the government’s efforts to address the cost of living, calling for more transparency and concrete actions.

Many have called for clear metrics, such as housing prices, Certificate of Entitlement (COE) prices, transportation costs, and population growth, to be presented as proof of the government’s commitment to tackling these issues.

Other commenters urged the government to avoid short-term solutions such as payouts, which could ultimately lead to higher taxpayer costs.

They suggested more long-term measures, including lowering CPF contribution rates, which they view as a financial burden on lower-income earners.

Former Singaporean banker Chris Kuan has raised important questions about the extent of Singapore’s dependency on foreign labour in a recent Facebook post.

His analysis, which critiques how official statistics are compiled, refers to the data released from the latest Population in Brief report published by the National Population and Talent Division (NPTD) of the Prime Minister’s Office.

According to the report, which was highlighted by Channel News Asia on 24 September 2024, Singapore’s total population exceeded six million for the first time, largely driven by growth in the non-resident population.

Of the 6.04 million people residing in Singapore as of June 2024, 1.86 million were non-residents, including foreign workers, domestic helpers, dependents, and international students.

Kuan focuses on this breakdown, which revealed that the non-resident population grew by 5% in the past year, with work permit holders and foreign domestic workers making up a significant share.

Work permit holders alone accounted for 44% of the non-resident population, while foreign domestic workers made up 15%.

These figures, he argues, illustrate the nation’s increasing reliance on foreign labour, which is often overlooked when discussing economic data.

In his analysis, Kuan estimates that over 2 million jobs in Singapore are held by foreigners, including Foreign Domestic Workers (FDWs).

According to the Department of Statistics, the number of employed persons is 3.8 million, with 2.4 million being resident workers. However, there is no breakdown of the resident workers into Singaporeans and Permanent Residents who are foreigners—even when asked in Parliament.

He noted that this number represents approximately 51% of the total workforce. When excluding FDWs from the calculation, foreign workers still account for 44% of the country’s jobs.

According to Kuan, this figure underscores how heavily the nation depends on non-resident workers, with more than half of these foreign jobs being in the Work Permit and FDW categories.

Kuan also critiqued the way Singapore’s official statistics are compiled, particularly by the Singapore Department of Statistics (SingStat).

He pointed out that economic measures such as the Gini coefficient, which tracks income inequality, as well as median household income and salaries, are typically calculated based on the resident population alone. This exclusion of nearly 30% of the population, which includes 1.1 million work permit holders and FDWs, creates a skewed perception of the nation’s economic reality.

The CNA report similarly notes that the non-resident population is subject to fluctuations based on Singapore’s social and economic needs, with sectors such as construction and marine shipyard work seeing the largest growth.

The Population in Brief report also highlights that the country’s resident employment has grown in sectors such as financial services, information technology, and professional services, which are predominantly filled by local workers.

Kuan argued that this selective focus on residents when reporting statistics results in an overly positive picture of Singapore’s wealth and economic performance.

He illustrated this point by referencing an online comment made in a Facebook group for Malaysians and Singaporeans living in Japan.

The commenter had falsely claimed that cleaners in Singapore earned S$3,000 per month, higher than the starting salary of fresh graduates in Japan.

Kuan debunked this claim, explaining that the actual salary for a cleaner in Singapore is closer to S$1,500, while fresh graduates in Japan typically earn around S$2,500 or more. He suggested that such misrepresentations stem from the limited perspective offered by focusing only on residents in economic data.

In his post, Kuan expressed concern that many Singaporeans have been “brainwashed” by these incomplete statistics, which exclude the foreign workforce that contributes substantially to the country’s GDP.

He emphasised that much of Singapore’s success in terms of wealth and GDP growth cannot be fully understood without acknowledging the role of non-residents, including Employment Pass holders, S Pass holders, Work Permit holders, and FDWs, as well as foreign students and dependents.

Kuan’s critique has added fuel to the ongoing debate about Singapore’s demographic and labour policies.

As the country continues to rely on foreign workers to support economic growth, the balancing act between resident and non-resident employment remains a central issue.

The CNA report noted that the Singapore government has consistently maintained that the foreign workforce is crucial to complementing the local workforce and allowing businesses to access a broader range of skills from the global talent pool.

However, Kuan’s post raises the question of whether the full economic impact of this dependency is being adequately reflected in public discourse and official statistics.