PSP: If war prolongs inflation, gov’t should not rely solely on CDC vouchers, Cost-of-Living payments

SINGAPORE: On Monday (March 16), the Progress Singapore Party issued the latest edition of its newsletter, The Palm, where it addressed how the government can help Singaporeans amid the effects of the war in the Middle East, as well as how MediSave flexibility can be increased, and lowering the age of eligibility for singles to buy Build-To-Order (BTO) flats.

PSP expressed concerns over the wider economic consequences of a prolonged conflict in the region, saying that if there are disruptions to shipping and aviation, along with higher energy prices, this could set off a round of inflation, just as Russia’s invasion of Ukraine caused prices to rise all over the world.

“If the crisis results in prolonged inflation, we hope the Government will not rely solely on CDC vouchers and cost-of-living payments to cushion the impact. Structural measures to reduce business costs should also be considered, such as national guidelines on rent increases,” PSP wrote.

The party added that other steps to lessen energy demand for houses may also be considered, including work-from-home arrangements and shorter work weeks, which have been adopted in other Southeast Asian countries such as Thailand and the Philippines.

Medisave Flexibility

As for Medisave, PSP welcomed the announcement from Health Minister Ong Ye Kung that withdrawal limits under the MediSave will be increased starting from January 2027, something that the party had previously called for.

It suggested, however, that more treatments to be covered by MediSave, as well as for maternity fees to be fully claimable from MediShield Life without limit, which would help Singaporeans deal with rising healthcare costs.

BTO age of eligibility 

PSP referred to National Development Minister Chee Hong Tat as recently having said that the ministry would study ways to better support housing options for singles, though he did not give a timeline for lowering the eligibility age for singles to purchase BTO flats.

The party urged the Government to commit to a timeline for reducing the eligibility age to 28 and increasing the BTO flat supply to meet the demand from this age group.

The Palm may be read in full here.

What Singaporeans are saying

When a local Reddit user shared PSP’s statement on the platform, many commenters agreed with its suggestion for saving energy.

“If oil prices went up, WFH is by far the cheaper option,” one wrote.

“A bit more home electricity consumption vs commuting time and cost,” another added.

“WFH would basically minimize the requirement of driving or transport to the bare minimum/essentials,” a third shared.

Others, however, said that the need for air-conditioning at home would increase energy needs, as commercial air-conditioning is more efficient.

Another, however, argued, “Even if you switch on the aircon full day when WFH, the utility increase will still be cheaper than two-way public transport to the office.”

“WFH also means I can eat more at the hawker centre near my home, as opposed to the expensive (fare) served at the CBD,” a commenter chimed in. /TISG

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