Singapore to raise Assurance Package by $1.4b

This is due to the inflation situation in the market.

Deputy Prime Minister Lawrence Wong said the government will add $1.4b to the Assurance Package, bringing the total to $8b to aid households amidst inflation.

In a speech, Wong said the higher inflation this year and in the coming years, household expenditures and additional goods and services tax (GST) are also expected to increase.

“The size of the Assurance Package would therefore need to be correspondingly increased to meet our committed levels of offsets,” he said.

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Wong added that the additional $1.4b will “offset additional GST expenses for the majority of Singaporean households for at least five years, with around ten years offset for lower-income households.”

The details of the topped-up assurance package will be disclosed in the Budget Statement next year.

The government is planning to increase the GST rate from 7% to 8% starting 1 January 2023 and to 9% effective 1 January 2024. Wong said the rate increase is vital to provide additional sources for the expanding healthcare expenditures and to take better care of the senior citizens.