http://straitstimes.asia1.com.sg/Breaking+News/Singapore/Story/STIStory_269628.html
50% more Growth Dividends, rebates
Extra grants to help public cope with inflation and uncertain economy
By Goh Chin Lian
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The extra grants by the Government are to help Singaporeans cope with the higher-than-expected inflation and uncertain economic outlook, PM Lee said. -- ST PHOTO: DESMOND WEE
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SINGAPOREANS will receive 50 per cent more in Growth Dividends cash in October.
In addition, families living in HDB flats will get 50 per cent more in utility rebates in November.
The extra grants by the Government are to help Singaporeans cope with the higher-than-expected inflation and uncertain economic outlook, said Prime Minister Lee Hsien Loong when he gave his English speech at the National Day Rally.
His announcements were greeted by loud applause from the 1,700 grassroots leaders, politicians and other guests attending the Sunday rally at the University Cultural Centre.
In all, they will cost the Government $256 million, he added.
This new move, Mr Lee indicated, is yet another assurance to low- and middle-income families that the Government is aware that they are feeling the pinch of costlier food, fuel and electricity.
It had spotted the signs late last year and came up with a $3 billion aid package earlier this year. The package includes the Growth Dividends produced from this year's huge Budget surplus and the Utilities-Save (U-Save) rebates, which were introduced last year for annual distribution over five years.
With the latest additions, a Finance Ministry statement yesterday said a low-income family with elderly members living in a three-room flat will get $500 more, bringing their total benefits from the Government to over $5,400 this year.
A middle-income family living in a five-room flat will get $200 more, or about $3,880 altogether.
The extra help is timely, said community leaders like Mr Koh Poh Kwang, chairman of the citizen's consultative committee in Whampoa. He said some residents in three-room and rental flats have trouble making ends meet.
'They will come with their town council letters or Singapore Power bills, showing they are many months in arrears. With their big families, they find it difficult to live on a monthly income of $1,000-plus,' Mr Koh said.
In the lead-up to the announcements, PM Lee set out the state of the economy, saying conditions are more difficult this year largely because of the high food and fuel prices.
The economic turmoil in the United States and Europe has begun to drag down Singapore. Its exports have declined, tourist arrivals slipped and restaurant takings dipped.
But, he was quick to add: 'I'm not predicting a crisis', noting that investors still want to come here. Also, the pipeline of projects Singapore attracted in the good years earlier will keep the economy humming, Mr Lee added, citing the F1 Grand Prix and the Integrated Resorts.
Although he reiterated that Singapore can expect to grow by 4 to 5 per cent this year, he urged the people to be psychologically ready in case of trouble.
'But we also must be on our marks, so when the global economy recovers, we can bounce right back,' he added.
For now, the hot-button issue is the cost of living, he said, as he sought to explain what is within the control of the Government - and what is not.
Inflation is not. It is a worldwide problem. To make his point, he flashed a series of slides showing people in France, Spain, Indonesia, Pakistan and the Philippines agitating against their governments over higher prices and rice shortages.
In contrast, Mr Lee flashed a slide showing Senior Minister of State (Trade and Industry) S. Iswaran inspecting a stockpile of rice. Smiling broadly, he said: 'Fortunately in Singapore, we have plenty of rice. So you don't see riots.'
Appealing to Singaporeans to 'react rationally' to this emotive issue, he said: 'We can't prevent prices from rising in Singapore.'
He used the example of fuel prices. First, Singapore imports all its fuel. So world prices dictate Singapore prices. Put simply, he said, oil producers such as the Russians and the Arabs get richer while oil consumers like Singapore get poorer.
Second, the Government here cannot go the way of other governments that hand out fuel subsidies. Even oil producers such as Malaysia, Indonesia and China cannot sustain these costly measures.
What the Government can do is to help Singaporeans directly through measures like the utility rebates which, for families in small flats, can pay for three to six months of their power bills.
Mr Lee also dwelt on the complaints of middle-income Singaporeans, assuring them that they had not been forgotten.
He ticked off the many benefits they have received, including the Growth Dividends, polytechnic and university bursaries as well as top-ups to the post-secondary education accounts for their children's studies here.
'But overall, our most important strategy to help the middle-income group is to keep our taxes low,' he said.
Their tax rate is lower than in most countries. On top of that, they got a 20 per cent rebate this year, he added.
But there is a limit to all these help measures, he cautioned, saying that the best way forward is to keep the economy competitive and raise people's standard of living.
[email protected]
'Dark clouds have gathered around us in the external environment. The US faces very serious problems...It's affecting the rest of the world as has to be expected.
Europe, the major economies, have gone into negative growth, and we must expect impact on Asia also. These global economic problems will continue at least into next year. And some experts think it may last even longer.
'This year I think we can get 4 to 5 per cent growth. It's not bad. Next year we expect slow growth and more uncertainties. I'm not predicting a crisis. We're competitive. Investors still want to come to Singapore. And we have a strong pipeline (of projects).
'But we have to be vigilant and we have to be psychologically ready in case of trouble. But we also must be on our marks, so when the global economy recovers, we can bounce right back.'
PM Lee, on Singapore's economic prospects
'I know that many Singaporeans who are not so poor but also not so well off feel that they are pressured. Middle-income Singaporeans. They feel that they're the sandwiched class, stuck in the middle. But when you ask who's the sandwiched class, it's all the way from quite low down to quite high up - it's a very fat sandwich. But they feel sandwiched, and we haven't forgotten them.'
PM Lee, on Growth Dividends being extended to the middle class
50% more Growth Dividends, rebates
Extra grants to help public cope with inflation and uncertain economy
By Goh Chin Lian
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
The extra grants by the Government are to help Singaporeans cope with the higher-than-expected inflation and uncertain economic outlook, PM Lee said. -- ST PHOTO: DESMOND WEE
</TD></TR></TBODY></TABLE>
SINGAPOREANS will receive 50 per cent more in Growth Dividends cash in October.
In addition, families living in HDB flats will get 50 per cent more in utility rebates in November.
The extra grants by the Government are to help Singaporeans cope with the higher-than-expected inflation and uncertain economic outlook, said Prime Minister Lee Hsien Loong when he gave his English speech at the National Day Rally.
His announcements were greeted by loud applause from the 1,700 grassroots leaders, politicians and other guests attending the Sunday rally at the University Cultural Centre.
In all, they will cost the Government $256 million, he added.
This new move, Mr Lee indicated, is yet another assurance to low- and middle-income families that the Government is aware that they are feeling the pinch of costlier food, fuel and electricity.
It had spotted the signs late last year and came up with a $3 billion aid package earlier this year. The package includes the Growth Dividends produced from this year's huge Budget surplus and the Utilities-Save (U-Save) rebates, which were introduced last year for annual distribution over five years.
With the latest additions, a Finance Ministry statement yesterday said a low-income family with elderly members living in a three-room flat will get $500 more, bringing their total benefits from the Government to over $5,400 this year.
A middle-income family living in a five-room flat will get $200 more, or about $3,880 altogether.
The extra help is timely, said community leaders like Mr Koh Poh Kwang, chairman of the citizen's consultative committee in Whampoa. He said some residents in three-room and rental flats have trouble making ends meet.
'They will come with their town council letters or Singapore Power bills, showing they are many months in arrears. With their big families, they find it difficult to live on a monthly income of $1,000-plus,' Mr Koh said.
In the lead-up to the announcements, PM Lee set out the state of the economy, saying conditions are more difficult this year largely because of the high food and fuel prices.
The economic turmoil in the United States and Europe has begun to drag down Singapore. Its exports have declined, tourist arrivals slipped and restaurant takings dipped.
But, he was quick to add: 'I'm not predicting a crisis', noting that investors still want to come here. Also, the pipeline of projects Singapore attracted in the good years earlier will keep the economy humming, Mr Lee added, citing the F1 Grand Prix and the Integrated Resorts.
Although he reiterated that Singapore can expect to grow by 4 to 5 per cent this year, he urged the people to be psychologically ready in case of trouble.
'But we also must be on our marks, so when the global economy recovers, we can bounce right back,' he added.
For now, the hot-button issue is the cost of living, he said, as he sought to explain what is within the control of the Government - and what is not.
Inflation is not. It is a worldwide problem. To make his point, he flashed a series of slides showing people in France, Spain, Indonesia, Pakistan and the Philippines agitating against their governments over higher prices and rice shortages.
In contrast, Mr Lee flashed a slide showing Senior Minister of State (Trade and Industry) S. Iswaran inspecting a stockpile of rice. Smiling broadly, he said: 'Fortunately in Singapore, we have plenty of rice. So you don't see riots.'
Appealing to Singaporeans to 'react rationally' to this emotive issue, he said: 'We can't prevent prices from rising in Singapore.'
He used the example of fuel prices. First, Singapore imports all its fuel. So world prices dictate Singapore prices. Put simply, he said, oil producers such as the Russians and the Arabs get richer while oil consumers like Singapore get poorer.
Second, the Government here cannot go the way of other governments that hand out fuel subsidies. Even oil producers such as Malaysia, Indonesia and China cannot sustain these costly measures.
What the Government can do is to help Singaporeans directly through measures like the utility rebates which, for families in small flats, can pay for three to six months of their power bills.
Mr Lee also dwelt on the complaints of middle-income Singaporeans, assuring them that they had not been forgotten.
He ticked off the many benefits they have received, including the Growth Dividends, polytechnic and university bursaries as well as top-ups to the post-secondary education accounts for their children's studies here.
'But overall, our most important strategy to help the middle-income group is to keep our taxes low,' he said.
Their tax rate is lower than in most countries. On top of that, they got a 20 per cent rebate this year, he added.
But there is a limit to all these help measures, he cautioned, saying that the best way forward is to keep the economy competitive and raise people's standard of living.
[email protected]
'Dark clouds have gathered around us in the external environment. The US faces very serious problems...It's affecting the rest of the world as has to be expected.
Europe, the major economies, have gone into negative growth, and we must expect impact on Asia also. These global economic problems will continue at least into next year. And some experts think it may last even longer.
'This year I think we can get 4 to 5 per cent growth. It's not bad. Next year we expect slow growth and more uncertainties. I'm not predicting a crisis. We're competitive. Investors still want to come to Singapore. And we have a strong pipeline (of projects).
'But we have to be vigilant and we have to be psychologically ready in case of trouble. But we also must be on our marks, so when the global economy recovers, we can bounce right back.'
PM Lee, on Singapore's economic prospects
'I know that many Singaporeans who are not so poor but also not so well off feel that they are pressured. Middle-income Singaporeans. They feel that they're the sandwiched class, stuck in the middle. But when you ask who's the sandwiched class, it's all the way from quite low down to quite high up - it's a very fat sandwich. But they feel sandwiched, and we haven't forgotten them.'
PM Lee, on Growth Dividends being extended to the middle class
