May 14, 2025
SINGAPORE – CDC vouchers are not a one-off exercise to help Singaporeans cope with cost-of-living issues, said Prime Minister Lawrence Wong, who gave the assurance that the Government would provide help for as long as needed.
“Some Singaporeans say, all this is very good… but, they ask, is this just one-time and is this only a temporary assistance?” said PM Wong, who was speaking on May 13 at the launch of the seventh tranche of the CDC voucher scheme at Nee Soon South Community Club.
“I assure all of you that this is not a one-off exercise, and the Government will provide the help for as long as it is needed.”
All Singaporean households will each receive $500 in CDC vouchers from May 13 to help them with their daily expenses.
PM Wong noted that the vouchers are part of a comprehensive package of support measures that were announced in Budget 2025, with another $300 in CDC vouchers to be issued in January 2026.
Other forms of help include LifeSG credits, Edusave top-ups for children and U-Save rebates.
Singaporeans will also be given one-off SG60 vouchers to celebrate Singapore’s 60th year of independence. Those aged 21 to 59 will receive $600, while those aged 60 and above will receive $800.
Beyond providing rebates and vouchers, PM Wong said: “We have been and we will continue to review, update and strengthen our social system across different areas, be it housing, healthcare, education or retirement.
“All these updates, changes, improvements to policies will help to provide Singaporeans with greater assurance through every life stage.”
He also addressed the sustainability of the voucher programme, and why the goods and services tax (GST) had to be increased.
GRAPHICS: THE STRAITS TIMES
PM Wong said maintaining fiscal responsibility has always been the Government’s approach.
“We want to make sure that when we spend more, we are doing it for the benefit of Singaporeans, but the spending is sustainable over the medium to longer term,” he said.
He noted that the decision to increase taxes earlier in the decade was made to cover a funding gap in public finances, where Singapore’s finance expenditure was going to increase but revenues were not sufficient to cover the spending.
The GST was raised from 7 per cent to 9 per cent over two years, in 2023 and 2024.
“It was a difficult decision to make, it was certainly not popular, but it was the right thing to do, and it was a responsible thing to do,” PM Wong said.
“Because we did that, today, we are in a healthy and sound fiscal position, and we have the resources we need to protect Singaporeans, to shield you from cost-of-living increases.
“We have the resources to steer Singapore through the economic storms that we see coming ahead of us. That is precisely what good and responsible government is, and we will continue with this.”
He also praised the efforts of Singaporeans that include donating their CDC vouchers and implementing community initiatives like $1 deals.
He noted that merchants, hawkers and supermarkets have come up with special SG60 deals to help Singaporeans make the most of their vouchers.
“All of you did your part, including fellow Singaporeans, stepping forward to look out for one another and lifting one another up. Thank you all for your contributions,” he said.
This is the spirit that will take Singapore forward for the next 60 years and beyond, he added.
He also called on Singaporeans to “close ranks” now that the 2025 General Election has concluded.
The GST increase was a focal point of criticism by many opposition parties before and during the polls, with several calling for a rollback to 7 per cent or less to alleviate cost-of-living pressures.
“Let us stand together as one united people, because it is only by doing so that we can solve our problems, tackle our challenges and fulfil our aspirations together,” said PM Wong.
“Let us find new solutions to take Singapore forward and let us secure a brighter future for ourselves, for our families, and for Singapore.”