SINGAPORE: The cost-of-living proposals put forth by the Progress Singapore Party (PSP) in its manifesto reflect “valid” and “pressing” concerns of the community, but the People’s Action Party (PAP) has to be “objective” about its programmes and policies, National Development Minister Desmond Lee said on Friday (Apr 25).
“No scheme, no policy, is perfect. Our responsibility as a proactive PAP government is to ensure that our policies continue to reflect the needs of people on the ground and respond to different demographic challenges that we encounter,” said Mr Lee.
He was responding to a reporter's question about his response to the PSP's critique of the PAP’s schemes related to cost-of-living and jobs.
During the opposition party’s rally on Thursday, PSP chief Leong Mun Wai said the policies by the fourth-generation PAP government lacked compassion.
To this, Mr Lee said that during hustings, every party wants to win support and votes by tapping into the sentiments they believe are running through the community.
“They are certainly valid concerns. They are pressing concerns of cost of living and job security, but it's important for us to be objective about the impact of the programmes,” he said.
Mr Lee is the anchor minister for the PAP team at West Coast-Jurong West GRC. He was speaking to the media at the party's branch office in Boon Lay, and was joined by his teammates, Senior Parliamentary Secretary Shawn Huang and Dr Hamid Razak.
Mr Ang Wei Neng and Ms Cassandra Lee, the two other candidates in the five-member team, were not present.
PAP’s Desmond Lee addressing jobs and cost of living concerns at a press conference at PAP’s Boon Lay office on Apr 25, 2025. (Photo: CNA/Lauren Chian)
In the PSP’s manifesto, the party called for the Goods and Services Tax (GST) to be cut from 9 per cent to what it was at 7 per cent, as well as exempting essential items like rice, water and formula milk from the tax.
Mr Lee said in response that waiving GST on essential goods would disproportionately benefit wealthier individuals and well-off expatriates, rather than the lower-income groups the proposal aims to support.
“If you try to waive GST on essentials, it means people who are much better off, overseas visitors, or those who buy in large quantities, GST will not be collected from them,” he said.
He added that even among essential items, the wide range of brands and price points - some more expensive, others frequently discounted - would make implementing a GST waiver tedious and difficult to administer fairly.
“What do we do? Shop by shop, brand by brand, item by item within every brand. How do we determine which is collected and which is not collected?” said Mr Lee.
He added that the government has explained “many times” in parliament that subsidies and waivers for essential items do not reap the benefits that most people think they will.
Mr Lee said the government has also considered all the factors in increasing GST by conducting case studies on other countries, while also considering the loopholes that benefit lower- to middle-income families.
Expanding on what Prime Minister Lawrence Wong said about housing options for singles, Mr Lee said there are already schemes that prioritise these groups.
He added that the government has also reduced the non-selection rate among home buyers from about 40 per cent to 20 per cent, by penalising applicants who repeatedly decline to book a flat when invited.
Furthermore, there has been greater support for singles who can purchase Prime and Plus flats as well as standard two-room flats across the island, he noted. This is on top of other upcoming schemes to prioritise singles.
Mr Lee said there is a “determination” to support different groups of Singaporeans, but noted that limitations in land and housing supply remain significant constraints.
“We need to be upfront with Singaporeans about the supply that we have, about the land that we have, and when and how we'll be able to address needs over time,” said Mr Lee.
The National Development Minister said that Singaporeans need to be understanding as each demographic, such as singles, lower-income and families, has had to make compromises on access to public housing, and those who need housing more urgently would be prioritised.
In time, Mr Lee hopes that the government will be able to “reimagine” the future of public housing for a new generation of Singaporeans, even as the government continues to support families and seniors.
“There's no point in making a promise. There's no point in changing the policy, but then not being able to deliver on the ground. That's why we've been making steps in the right direction,” he said.
Continue reading...
“No scheme, no policy, is perfect. Our responsibility as a proactive PAP government is to ensure that our policies continue to reflect the needs of people on the ground and respond to different demographic challenges that we encounter,” said Mr Lee.
He was responding to a reporter's question about his response to the PSP's critique of the PAP’s schemes related to cost-of-living and jobs.
During the opposition party’s rally on Thursday, PSP chief Leong Mun Wai said the policies by the fourth-generation PAP government lacked compassion.
To this, Mr Lee said that during hustings, every party wants to win support and votes by tapping into the sentiments they believe are running through the community.
“They are certainly valid concerns. They are pressing concerns of cost of living and job security, but it's important for us to be objective about the impact of the programmes,” he said.
Mr Lee is the anchor minister for the PAP team at West Coast-Jurong West GRC. He was speaking to the media at the party's branch office in Boon Lay, and was joined by his teammates, Senior Parliamentary Secretary Shawn Huang and Dr Hamid Razak.
Mr Ang Wei Neng and Ms Cassandra Lee, the two other candidates in the five-member team, were not present.
PAP’s Desmond Lee addressing jobs and cost of living concerns at a press conference at PAP’s Boon Lay office on Apr 25, 2025. (Photo: CNA/Lauren Chian)
GST EXEMPTION ON ESSENTIAL GOODS
In the PSP’s manifesto, the party called for the Goods and Services Tax (GST) to be cut from 9 per cent to what it was at 7 per cent, as well as exempting essential items like rice, water and formula milk from the tax.
Mr Lee said in response that waiving GST on essential goods would disproportionately benefit wealthier individuals and well-off expatriates, rather than the lower-income groups the proposal aims to support.
“If you try to waive GST on essentials, it means people who are much better off, overseas visitors, or those who buy in large quantities, GST will not be collected from them,” he said.
He added that even among essential items, the wide range of brands and price points - some more expensive, others frequently discounted - would make implementing a GST waiver tedious and difficult to administer fairly.
“What do we do? Shop by shop, brand by brand, item by item within every brand. How do we determine which is collected and which is not collected?” said Mr Lee.
He added that the government has explained “many times” in parliament that subsidies and waivers for essential items do not reap the benefits that most people think they will.
Mr Lee said the government has also considered all the factors in increasing GST by conducting case studies on other countries, while also considering the loopholes that benefit lower- to middle-income families.
Related:
HOUSING ACCESS
Expanding on what Prime Minister Lawrence Wong said about housing options for singles, Mr Lee said there are already schemes that prioritise these groups.
He added that the government has also reduced the non-selection rate among home buyers from about 40 per cent to 20 per cent, by penalising applicants who repeatedly decline to book a flat when invited.
Furthermore, there has been greater support for singles who can purchase Prime and Plus flats as well as standard two-room flats across the island, he noted. This is on top of other upcoming schemes to prioritise singles.
Mr Lee said there is a “determination” to support different groups of Singaporeans, but noted that limitations in land and housing supply remain significant constraints.
“We need to be upfront with Singaporeans about the supply that we have, about the land that we have, and when and how we'll be able to address needs over time,” said Mr Lee.
The National Development Minister said that Singaporeans need to be understanding as each demographic, such as singles, lower-income and families, has had to make compromises on access to public housing, and those who need housing more urgently would be prioritised.
In time, Mr Lee hopes that the government will be able to “reimagine” the future of public housing for a new generation of Singaporeans, even as the government continues to support families and seniors.
“There's no point in making a promise. There's no point in changing the policy, but then not being able to deliver on the ground. That's why we've been making steps in the right direction,” he said.
Related:
Continue reading...