Budget 2024 Debate Highlights: Support for Workers, CPF Adjustments, and Cost-of-Living Aid Take Center Stage

On the first day of the Budget 2024 debate, MPs raised prominent issues regarding the government’s proposed “handouts” to address cost-of-living concerns, adjustments to the Central Provident Fund (CPF) system, and support measures for workers across career stages. The session, held on Feb. 26, included contributions from over 20 officeholders and spanned seven hours.

Key Topics of Debate:

1. Cost-of-Living Assistance Measures Deputy Prime Minister Lawrence Wong announced special payments ranging from $200 to $400 to help citizens manage rising costs, plus additional Community Development Council (CDC) vouchers and U-Save rebates. MPs like Foo Mee Har (West Coast GRC) cautioned that while these payments offer relief, over-reliance on short-term aid could prolong inflationary pressures. NCMP Hazel Poa (Progress Singapore Party) urged a focus on long-term solutions, advocating for exemptions on essential goods from the Goods and Services Tax (GST) rather than temporary handouts.

2. CPF Adjustments Spark Concerns Several MPs voiced constituent worries regarding changes to the CPF system, particularly the planned 2025 closure of CPF Special Accounts (SA) for members aged 55 and older, which will affect retirement planning. MP Louis Chua (Sengkang GRC) called the SA closure a “step backward” for retirement adequacy, while others, like Yip Hon Weng (Yio Chu Kang SMC), emphasized the need for flexibility in withdrawals for affected members.

3. Supporting Workers through Upskilling and Financial Aid Budget 2024’s enhanced SkillsFuture credits and new schemes to support retrenched workers were positively received, though MPs highlighted areas for improvement. MP Wan Rizal (Jalan Besar GRC) lauded the SkillsFuture top-up as a “visionary” initiative but noted a need for program guidance to match career goals. Denise Phua (Jalan Besar GRC) raised questions on the accessibility of targeted ITE Progression Awards for graduates, while Henry Kwek (Kebun Baru SMC) suggested offering options to alleviate cash flow concerns, such as temporary relief on housing loans for retrenched individuals.

The debate, set to continue throughout the week, will further examine these policies to balance immediate relief with sustainable long-term support for all Singaporeans.