Government Announces $1.5 Billion Support Package Amidst Rising Costs and Inflation

Deputy Prime Minister and Minister for Finance Lawrence Wong has announced a $1.5 billion support package that will provide immediate and targeted relief for lower-income and vulnerable groups on 21 June 2022.

The package will also extend more help for local companies in their enterprise and workforce transformation.

Mr Wong said: “The support measures in this package are tilted towards helping our lower-income and vulnerable groups because they are the ones who are disproportionately impacted by the effects of inflation.”

Mr Wong said that the package will be funded by the better-than-expected fiscal outturn in FY2021 and will not draw on past reserves.

Support for Households and Individuals

Households

As part of the support package, eligible households will be receiving a GSTV – Cash Special Payment of up to $300.

The special payment will be on top of the regular GSTV – Cash that households will be receiving.

The criteria are the same as the GSTV – Cash, which includes Singaporeans who are aged 21 and above in 2022, whose assessable income for 2021 is not more than $34,000, whose home’s annual value is not more than $21,000, and who does not own more than one property.

More details on the GSTV will be made in July 2022.

Additionally, every Singaporean household will be receiving a one-off $100 utilities credit by September 2022.

Individuals on ComCare

For one-person household on ComCare Long-Term Assistance, they will receive a higher cash assistance of $640 per month - $40 more than the existing $600 per month.

The rates will be raised from 1 August 2022, and households with more members will receive higher assistance.

Individuals who can apply for the assistance either via SupportGoWhere or in person at a social service office.

Support for Self-Employed Drivers and Riders

There will be a one-off relief of $150 for eligible taxi main hirers and private hire drivers in August 2022.

Additionally, association members will be able get up to $300 in cash from the NTUC Freelancer and Self-Employed Unit (U FSE) Relief Scheme.

The relief scheme is specially designed for combi bus and limousine drivers, as well as delivery drivers and riders who are National Private Hire Vehicles Association (NPHVA) or National Delivery Champions Association (NDCA) members.

More details will be announced in August 2022.

Support for Lower-Wage Workers and JobSeekers

The Government will increase its co-funding share of eligible wage increases under the Progressive Wage Credit Scheme announced in Budget 2022.

It will increase its share of eligible wage increases to 75 per cent from 50 50 per cent for all resident employees with gross monthly wages of $2,500 and above to $3,000.

The Jobs Growth Incentive (JGI) – which aims to provide support to employers taking on mature jobseekers who have not been working for at least six months, as well as those with disabilities or who are ex-offenders – will be extended to March 2023.

Currently slated to end in September 2022, the Ministry of Manpower will provide more details of the extension at a later date.

Mr Wong said that the package was designed specifically for those who will be most impacted by rising costs, and it is one that will minimally affect the current inflationary pressures being experienced by our local economy.

He added that we should draw confidence from the fact that Singapore is tackling these cost challenges and moving forward from a position of strength.

“Our economy is still doing well. We have moved earlier than most central banks when it comes to tackling inflation and monetary policy, and we have the fiscal resources to help Singaporeans tide through higher prices as well as any potential crisis that may emerge down the road,” he said.