The Government will continue to support Singaporeans through subsidies on education, health, housing, and other assistance, and absorb GST on publicly-subsidised education and healthcare.

To address the 2%-pt increase in GST (1%-pt in 2023 and 2024 respectively), the Government rolled out the Assurance Package (AP) to ensure that majority of the households will not feel the impact of the additional GST for at least 5 years. This cushions the impact of the GST increase on top of the permanent GST Voucher scheme which targets support for the lower- and middle-income groups.

The impact of the GST increase on inflation was transitory. CPI inflation was 6.1% in 2022, prior to the 2%-pt increase in GST. It moderated to 4.8% in 2023, and further to 2.4% in 2024. Nonetheless, the Government recognises that prices have increased primarily due to the impact of global factors such as geo-political changes and supply chain disruptions, and Singaporeans are still adjusting to these new price realities.

The Government provided additional cost-of-living support to cushion the impact of inflation including the GST rate increase, through several enhancements to the AP over 2022 to 2025. The support includes additional cash payments, U-Save, S&CC Rebate, and CDC Vouchers.

In the long run, the most effective way to help Singaporeans cope with inflation is to improve productivity and grow real wages over time. The Government strives to achieve this by growing the economy, creating good jobs and supporting Singaporeans to take on these jobs through continued education and training.

For more information on the support you are eligible for, you may check out the Support for You Calculator.