Short-Term Relief, Long-Term Challenges: Opposition Leader Criticises Budget 2025 Measures

“Opposition Leader Pritam Singh has raised concerns over Budget 2025, arguing that while the government’s voucher schemes offer short-term relief, they fail to address long-term economic challenges faced by Singaporeans.

During the Budget debate in Parliament on Wednesday (Feb 26), Singh pointed out that the value of Community Development Council (CDC) vouchers has risen significantly, from $100 in 2021 to $800 in 2025. However, he emphasised that these temporary measures do not tackle deeper issues such as rising costs, job security, and housing affordability.

Beyond the increase in CDC vouchers, Singh noted that People’s Action Party (PAP) MPs showed enthusiasm when the Finance Minister announced that $400 climate vouchers would be extended to private homeowners, a relatively affluent group that makes up around 15% of the population. He called this response “ironic and revealing” in light of the ongoing cost-of-living crisis.

While official data indicates economic growth and rising median incomes, Singh argued that these statistics do not reflect the struggles many Singaporeans face in daily life. “Concerns about jobs, prices, and housing persist across households,” he said. “The vouchers provide some relief, but they are not a long-term solution. No GST offset scheme lasts indefinitely.”

He also expressed reservations about the planned recruitment of foreign personnel for the Singapore Civil Defence Force and auxiliary police roles. While acknowledging the necessity of foreign manpower, he warned that such policies could increase competition for jobs traditionally held by Singaporeans.

“Rootedness and integration remain key issues, and no amount of financial aid can instil a stronger sense of belonging,” he stated. He also criticised the government for barring opposition MPs from participating in new citizenship ceremonies, calling it a politically motivated move.

On the issue of rising consumer prices, Singh noted that more Singaporeans are crossing into Malaysia for daily essentials. To support local businesses, he proposed allowing SG60 vouchers—worth $600 for all Singaporeans aged 21 and above and $800 for seniors—to be redeemed at all small retailers and shopping centres instead of being limited to hawkers and CDC-affiliated businesses.

“This would benefit SMEs while expanding choices for consumers,” he suggested.

Singh also revisited the Goods and Services Tax (GST) hike, which increased from 8% in 2023 to 9% in 2024. Criticising the government’s fiscal approach, he argued that the country’s strong financial position did not justify the timing of the tax increase.

“With inflation already putting pressure on households, the government should not have added further strain by raising GST,” he said. “Even if the 2023 increase was deemed necessary, the second hike could have been postponed to ease financial pressures.”

He warned that poor fiscal planning could make future tax hikes harder to justify, particularly when additional charges on electric vehicle owners were introduced in this Budget.

Despite his criticisms, Singh confirmed that the Workers’ Party supports Budget 2025 overall.”