00:00Our key priority is to tackle cost of living concerns and we started this work earlier.
00:09I had announced a comprehensive package in this year's budget.
00:14The measures all of you are familiar with will be rolled out in the coming months.
00:20The opposition says all these cost pressures.
00:24Blame the government.
00:26Blame the GST.
00:28But look, inflation here was largely important.
00:33It's due to conflicts and wars overseas, due to global supply chain disruptions.
00:39And you can look around you, countries everywhere are experiencing this too.
00:45It's not a Singapore phenomenon.
00:48We've dealt with this important inflation through sound monetary policies.
00:54And it's working because inflation here has been coming down faster than in many other places.
01:05The GST was not easy.
01:08It was a very difficult decision to make.
01:10We thought very hard about it.
01:14But we did it because we needed the revenues to take care of all our seniors and the number of seniors are growing very quickly.
01:24At the same time, we took great care in the implementation of the GST increase.
01:29Because the GST increase was accompanied by enhancements.
01:34Enhancements to permanent GST vouchers which we give out to lower and middle income households.
01:41Because of these vouchers, lower and middle income households pay less than the headline rate of 9% GST.
01:52Who pays the full rate?
01:57Three groups.
01:58Foreigners, tourists and higher income families.
02:04The opposition wants them, these three groups, to pay a lower rate.
02:10Would you?
02:12I wouldn't.
02:14I think it's fair and right for them to pay the full rate.
02:19But for lower and middle income Singaporeans, we protect you, we shield you, we give you permanent GST vouchers in cash.
02:27And that means you pay an effectively lower GST rate.
02:32That's how our GST system works.
02:41And by doing this, overall we ensure a fair and progressive system.
02:47Today, our public finances would be weaker.
02:52We would have a funding gap.
02:54That means insufficient resources to take care of all our seniors.
02:59That means insufficient resources to support you even as we enter into this economic storm.
03:07You know, I've said that the support package in the budget is not a one-off thing.
03:13That we will continue the help for as long as it is needed.
03:17That if conditions worsen, we will be even prepared to do more and we have drawer plans ready to be activated.
03:23Why is it that I can give you this assurance now?
03:32It's only because we made the tough and responsible decisions earlier to ensure that we have sound public finances.
03:43And that's why today, we can confront the challenges ahead with confidence.
03:49We have the resources to support you.
03:52We have the resources to steer Singapore safely through this crisis.
03:56There is one other point I will make on cost of living treasures.
04:00For many businesses, all of you running businesses, you will know, a key cost driver is local wages.
04:10You look at all the opposition manifestos, or certainly most of them, many propose a minimum wage across the board by law.
04:19Now, we want to uplift lower wage workers, don't get me wrong, the PAP wants to do it.
04:26We have put in place good systems to do so.
04:29We have workfare, additional income for lower wage workers to boost their incomes.
04:35We have progressive wage models, sector by sector, which we have implemented, which are showing results.
04:42They have been working well.
04:44But the opposition party says this is insufficient.
04:48They want a minimum wage across the board by law.
04:52One proposal says set the minimum wage at $2,250 a month.
04:59It sounds good on paper.
05:01I would like to lift wages up too.
05:03But you know what will happen if we implement this?
05:06By law.
05:08Companies will have to pay more for their workers.
05:12Their costs will go up.
05:14How do they recover the costs?
05:16They can only recover it by raising prices on the goods and services they sell to Singaporeans.
05:25How does this solve cost of living pressures?
05:28It will only make things worse.
05:34In fact, the companies will not only raise prices, they may even cut back on hiring lower wage workers,
05:41because lower wage workers are now more expensive, and that can mean fewer jobs, more unemployment,
05:48among those who are least able to cope with this.
05:54These are things the opposition will never acknowledge, of course.
05:59The manifestos have many details.
06:01A long wish list.
06:04But are they feasible?
06:06Are they viable?
06:08Are they sustainable?
06:10Will there be negative outcomes?
06:13Please think about it.
06:15For all of you working here in the Business and Financial District of Singapore,
06:21you know, if something sounds too good to be true,
06:26it probably is too good to be true.
06:29There is no such thing as a free lunch.
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