GE2025: Desmond Lee refutes PSP proposal for return to 7% GST, cites Singapore’s ageing population
He adds that the GST system has to be ‘easy to operationalise’
[SINGAPORE] National Development Minister Desmond Lee refuted calls by the opposition to revert the Goods and Services Tax (GST) to 7 per cent, citing the need for sufficient government revenue to support an ageing population.
“We all want to be able to spend more to support our seniors as they age... but we must also be able to fund these programmes responsibly and sustainably,” said Lee, who spoke to reporters at the People’s Action Party’s (PAP) Boon Lay branch after a walkabout.
He was responding to a question about the opposition Progress Singapore Party’s (PSP) proposal to undo the two-percentage-point hike made to the GST rate over 2023 and 2024.
“That revenue, I’m not sure we (would) want to forgo,” added Lee, who is the PAP’s assistant secretary-general and helms the party’s team contesting in the newly formed West Coast-Jurong West GRC.
Sufficient resources are also needed to support Singaporeans through a “changing global order”, he noted.
Measures such as the GST voucher scheme are in place to support Singaporeans, while ensuring that revenue can still be collected from large enterprises, tourists and better-off individuals, said Lee.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
His team faces a slate from PSP led by chairman Tan Cheng Bock, secretary-general Leong Mun Wai and vice-chair Hazel Poa.
Asked about suggestions to waive GST for certain essentials, Lee said the GST system has to be “easy to operationalise”. He added that “targeted measures” are the more effective way to support lower and middle-income households.
Better housing access
On housing affordability, he cited the PAP manifesto’s promise to ensure a sustainable market and noted that the government has committed to roll out even more supply – not just to meet the needs of seniors, but also for singles and higher-income individuals.
“In the next term of government, we should expect more enhancements to our schemes, more reviews and implementation of changes to our housing policy,” he said.
Asked whether the housing market could be rocked by moves to broaden access, such as a higher income ceiling, Lee said demand- and supply-side measures would help ensure market stability.
“When we can do that, and we can roll out more supply, we should be able to responsibly make changes to housing access parameters,” he said.
The government will have to be upfront about the timeline for changes. “There’s no point changing the policy, but then not being able to deliver it on the ground.”
Constructive criticism
Overall, Lee acknowledged that job security and cost of living are the big concerns on the ground, with inflation being imported into Singapore and putting pressure on families.
When he visited Jurong West Hawker Centre on Thursday, many residents he spoke to cited job security as a concern, adding that they were worried about hiring freezes and the risk of retrenchment.
“They see that things are slowing down, they see orders being cancelled,” he said, noting that many companies are worried about the impact of the global trade war – especially those that serve US or China value chains.
He noted that Prime Minister Lawrence Wong has emphasised continuing support to help Singaporeans cope with the cost of living.
Lee described the government support measures unveiled thus far, such as the Assurance Package, being neither “piecemeal” nor “small scale”.
If elected at the May 3 polls, his team will speak up on policies related to these economic concerns and provide “constructive criticism”.
Asked about the PSP’s call to debate Lee’s team, he said that there are platforms during the election, including televised ones, for policy discussions.
“There are also manifestos which we all can scrutinise, as well as local plans which all parties should have put out or be putting out,” he said.
Measures on the ground
Senior Parliamentary Secretary Shawn Huang, one of the other four PAP candidates on the West Coast-Jurong West GRC team, elaborated on the plans to aid residents.
He noted that rising costs have made daily essentials more expensive, and that his team wants to help those of the “sandwiched” generation, saddled with care for both young and aged family members.
They also want to work with corporate partners and job-search companies and coaches to help residents with employment opportunities.
Community support for seniors is another key focus, said Huang. One effort is to identify “micro jobs” that they can do for a few hours daily, while spending time with their families and hobbies the rest of the day.
The PAP team also wants to focus more on skills-building for people with special needs, and working with companies to redesign jobs.
For more election coverage, visit our GE2025 microsite
Copyright SPH Media. All rights reserved.
