Efforts to keep cost of living stable to continue amid expected rise in wages this year: PM Wong

SINGAPORE: Even as wages are expected to rise this year with higher economic growth, efforts are still being made to keep the cost of living here stable, said Prime Minister Lawrence Wong in his maiden National Day Message on Thursday (Aug 8).

Support will be enhanced for families under the Forward Singapore initiative and to help Singaporeans bounce back stronger from employment setbacks.

He said he will share some ideas to achieve these aims at the National Day Rally on Aug 18.

Mr Wong, who is also Finance Minister, noted that inflation is a major concern for Singapore and many other countries, and that rising prices impact the daily expenses of Singaporeans.

“We cannot control global prices. But we can and have shielded Singaporeans from the worst effects of global inflation by keeping the Singapore dollar strong,” said Mr Wong, on the eve of the nation’s 59th birthday.

The message was recorded at Sri Temasek on the Istana grounds, where Mr Wong’s office is temporarily located due to ongoing renovation in the main Istana building.

Sri Temasek was where founding Prime Minister Lee Kuan Yew and his family spent the night on Aug 8, 1965, due to security concerns, after Mr Lee returned to Singapore that morning with the Separation Agreement.

In his message, Mr Wong said that while wages are expected to climb, lower and middle-income Singaporeans will still receive support measures like the Community Development Council (CDC) vouchers, cash payouts and utilities rebates.

“In the long term, the key to managing the cost of living is to foster innovation and enhance productivity across our economy,” he said.

“Then we can expect wages to increase by more than inflation, and improve the overall quality of life for all Singaporeans.”

Mr Wong, who took office as Singapore’s fourth Prime Minister on May 15, also spoke about housing affordability in his message.

He noted that additional cooling measures and the increased supply of new Housing and Development Board (HDB) flats have helped stabilise the property market.

“In October, HDB will launch the first batch of flats under the new Standard, Plus and Prime framework,” said Mr Wong.

The new housing classification was first announced by Mr Wong’s predecessor, current Senior Minister Lee Hsien Loong, at last year’s National Day Rally.

“These innovations in our housing policies reflect our commitment always to be a nation of homeowners. We are determined to keep public housing in Singapore accessible, affordable and fair for all,” he said.

SOCIAL SAFETY NETS

The government will invest more to strengthen the country’s system of social support, said Mr Wong.

Some people may find it tougher to keep up in a new, volatile and rapidly changing environment, while a fast ageing population will also require more healthcare services and social support, he said.

“More of us will feel sandwiched, having to look after children as well as elderly parents.”

In the last two Budgets, steps were taken to uplift lower-wage workers, support vulnerable families and boost retirement adequacy, he said.

“We have also embarked on nationwide initiatives like Healthier SG and Age Well SG to take better care of our seniors.”

The government intends to do more, said Mr Wong.

FORGING NEW OPPORTUNITIES

As a developed economy, Singapore cannot expect to grow as rapidly as before, said Mr Wong.

“But we must still pursue economic growth and upgrading, through innovation and productivity,” he said.

To forge new opportunities for Singaporeans, the government has been investing in research and development and new technologies, like robotics and artificial intelligence, he said.

Massive infrastructure projects, such as Changi Airport Terminal 5 and the Tuas Port, are also underway to sharpen Singapore’s competitive edge as a global logistics hub.

“These strategies are working,” Mr Wong said.

He said the chief executive officers of multinational firms have in recent weeks expressed confidence in Singapore, in his meetings with them.

“In a fractured and troubled world, they see Singapore as a stable, trusted and reliable base to expand and grow their operations in Asia,” he said.

He also noted the many multinational companies that have opened new facilities here in the past year, including Pfizer, Hyundai, GlobalFoundries and Maersk. BioNTech will also open an mRNA manufacturing facility in Singapore soon, its first in the Asia Pacific.

“All these investments will propel our economy forward and create new jobs for Singaporeans,” said Mr Wong.

“But these will be different jobs from what our workers are used to, and they demand new capabilities.”

As such, the workforce must be prepared to seize these opportunities, said Mr Wong.

SkillsFuture helps every Singaporean acquire new capabilities throughout their careers, ensuring that education does not stop at schools, he said.

The government will also work closely with the National Trades Union Congress (NTUC) and employers to equip every worker for the future economy, added Mr Wong.

CHALLENGES AHEAD

As the world is changing dramatically, new challenges lie ahead for Singapore. The conflicts in Europe and the Middle East show no signs of abating, he said.

“Tensions between the US and China continue to rise. For now, they don't want to collide. But they are engaged in a strategic rivalry that can undermine peace and stability, especially in this region.” 

Populism, economic nationalism and protectionism are growing across the world too, he said.

“Politics in many countries has taken a vicious turn, making it even harder for all of us to wrestle with urgent existential crises, especially climate change,” he said.

In the face of such powerful forces shaping the country’s operating environment, Singapore has to “act with agility, foresight and gumption”, said Mr Wong.

CONFIDENCE IN THE FUTURE

Even as the government does more, individual and community efforts still matter, according to Mr Wong.

“We encourage each person to work hard, make full use of the support available, and strive their utmost to excel in their jobs and uplift their families,” he said.

“Those who do well for themselves should pay it forward, and give others a hand. That's how we keep our society cohesive, resilient and strong.”

The challenges ahead in this new world are “formidable”, and there are no quick and easy solutions, or model answers to refer to.

“But the bigger the problems, the greater is our resolve to tackle them head-on, and to turn vulnerabilities into strengths.” 

In 59 years, Singapore has gone from a third-world nation with paltry means to earn a living or to defend itself, to becoming one of the world's busiest sea and airports, and among the most liveable cities with the most educated populations, Mr Wong said.

“We may be a young nation. But we have overcome much together. So we have good reasons to be confident about our future. Despite the challenges, we will take Singapore onwards and upwards.”