Singapore’s finance ministry has allocated an additional SGD 1.1 billion (USD 802 million) to address households grappling with rising living costs. This package includes an extra payment of up to SGD 200 for approximately 2.5 million adult Singaporeans, predominantly targeting those in the lower and middle income brackets. This aid is slated to be disbursed in December and follows a previous announcement of SGD1.5 billion in support in June.
Even though inflation has moderated from its earlier peak of 5.5% over January-February to 3.4% in August, households are still facing the heat of the price increases across varied areas.
Singapore’s economy is facing challenges, with sluggish growth and uncertainties related to global food and energy supplies. The Ministry has adjusted its GDP growth forecast to a range of 0.5% to 1.5% for the current year, down from the previous range of 0.5% to 2.5%. Despite these headwinds, the government doesn’t anticipate a recession in 2023. Monetary policy is expected to remain unchanged in the upcoming review, reflecting the weak growth outlook and moderating but still-elevated inflation. In response to ongoing economic challenges and to alleviate the impact of rising living costs, Singapore’s finance ministry has introduced measures to support households, with a focus on those in lower and middle-income groups.