Survey: 6 in 10 Singaporeans believe Budget falls short in easing living costs

SINGAPORE: A recent survey indicates that six out of ten Singaporeans believe that the government’s latest budget measures fall short in addressing the challenges posed by the increasing cost of living.

Conducted by Milieu Insight from 17 to 19 February, the survey included 1,002 respondents, with 62% expressing dissatisfaction with the proposed initiatives.

Notably, individuals in the 35 to 44 age group were particularly adamant that the measures announced on February 16 did not adequately address their concerns.

Last Friday (16 Feb), Deputy Prime Minister and Finance Minister Lawrence Wong delivered the Budget 2024 Statement in Parliament, where he outlined plans for further cost-of-living relief measures for Singaporeans and detailed steps to implement the objectives in the Forward Singapore roadmap.

These objectives encompass economic growth, the creation of higher-quality jobs, and increased support for families and seniors.

Concerns persist as only 35% find reassurance in social aid allocations in Budget 2024

Milieu, a Singapore-based Southeast Asia consumer research company, conducted the survey, revealing that only 35% of respondents were reassured by the social aid introduced in the budget for the upcoming fiscal year starting in April.

Meanwhile, 44% reported feeling neutral.

Overall, 55% of respondents viewed the budget somewhat positively, and 27% remained neutral.

Examining the impact of the announced measures, the S$600 (US$445) worth of vouchers for groceries and hawker centres was widely considered the most significant by Milieu’s respondents.

Following closely, the S$200 to S$400 cost-of-living cash top-up for eligible Singaporeans ranked as the second most impactful measure.

Furthermore, among respondents aged 40 and above, 54% expressed a likelihood of upskilling with the SkillsFuture S$4,000 Top-Up Incentive.

In response to the challenging labour market landscape, 64% of this demographic are considering or have already taken steps to upskill for on-demand roles in AI or cybersecurity.

According to Bloomberg, the budget revealed a more conservative approach than anticipated, with the Finance Ministry aiming to mitigate the risks of economic overheating, as highlighted by Kai Wei Ang, an economist at Bank of America.

The analyst said the budget address emphasized “heightened concerns” regarding inflation and cost-of-living issues, closely monitored by the Monetary Authority of Singapore (MAS).

Opposition leaders mock DPM Wong’s 2024 Budget as “Election Budget”

Earlier, when interviewed by Singapore media, Hazel Poa, Non-Constituency Member of Parliament (NCMP) from the Progress Singapore Party (PSP), characterized Budget 2024 as resembling an “election budget” with the absence of additional taxes.

While acknowledging the S$1.9 billion Assurance Package aimed at assisting Singaporeans in managing the cost of living, Ms Poa cautioned that these measures are short-term.

She expressed the hope that the government’s focus would shift towards implementing fundamental changes, enabling Singaporeans to enhance their real wages and reducing reliance on handouts for a significant portion of the population.

Meanwhile, Lim Tean, leader of the Peoples Voice party, criticized Budget 2024 as a mere “band-aid,” asserting its failure to address root concerns.

He argued that the cash handouts offered by the government are not enough to alleviate the cost of living crisis, which he attributes to the People’s Action Party’s (PAP) unfair policies.

He insinuated that with elections approaching, DPM Wong is akin to “playing Santa Claus,” attempting to appease Singaporeans with cash handouts.

Despite DPM Wong’s reassurances regarding the government’s commitment to providing increased support to households, many Singaporeans find it challenging not to view this year’s Budget announcement through the lens of an “Election Budget.”

Speculation about an early poll in 2024 adds a layer of significance to the budgetary decisions made.

On 20 August 2023, PM Lee revealed intentions to step down in favour of Deputy Prime Minister Lawrence Wong, potentially around the PAP’s 70th anniversary on 21 November 2024, although an exact timeline was not disclosed.

Previously expressing his wish “to step down before his 70th birthday in February 2022,” the unexpected challenges of the pandemic disrupted Lee’s plans.

Despite the absence of a clear timeline, PM Lee’s announcement suggests a likelihood of the General Election occurring next year, possibly before the party’s anniversary in November.

In response to the PAP’s dominant 2/3 majority in Parliament, Singapore’s political landscape has witnessed increased manoeuvring,  intensifying grassroots outreach efforts, and witnessing alternative parties forming political alliances — both formal and informal — to contest in the upcoming GE.