On November 22, 2023, Prime Minister Lee Hsien Loong addressed the pressing issue of rising prices for essential services during his speech at the National Trades Union Congress’ national delegates’ conference. He emphasized that while the government aims to keep overall costs low, it is unavoidable to raise prices for some essential public services, particularly in a context of slow economic growth and high inflation.

Key Points from PM Lee’s Address
Inevitability of Price Increases: Prime Minister Lee pointed out that certain price increases, like the upcoming 7% rise in public transport fares scheduled for December 23, cannot be postponed indefinitely. The government plans to absorb two-thirds of this fare increase, which will amount to S$300 million this year.

Support for Vulnerable Households: To alleviate the financial burden on families, the Assurance Package has been enhanced multiple times this year. This initiative aims to provide additional vouchers, rebates, and special payments to those in need, ensuring that households receive extra help according to their specific circumstances.

Sustainability and Fairness: PM Lee explained that the government’s strategy is to implement necessary price hikes while simultaneously providing targeted support to vulnerable households. This approach maintains the financial sustainability of public services and ensures that the burden of cost increases is shared fairly among all citizens.

Broader Economic Context
In his address, PM Lee highlighted the government’s commitment to being both “pro-growth” and “pro-worker.” He noted that Singapore’s unique model of tripartism has created a “Singapore premium,” wherein companies and investors are willing to pay more for the benefits of the country’s harmonious industrial relations and business-friendly environment.

Moderating Cost Pressures: Despite rising living standards, PM Lee acknowledged that many Singaporeans still feel the pressures of the cost of living. He assured that the government is doing its utmost to mitigate these pressures by ensuring efficient management of essential public services such as transport, water, electricity, and healthcare.

Efficient Government Operations: By maintaining low government spending and taxes, PM Lee stated that workers can enjoy the fruits of their labor directly. He explained that the government seeks to avoid placing the entire burden of public services on taxpayers, requiring only “reasonable charges” for the use of services.

Incentivizing Efficiency
The Prime Minister also addressed the perspective that public service operators should not aim for profit. He argued that allowing operators to earn a reasonable profit encourages them to run services efficiently and reinvest in improvements. He believes this model leads to overall cost savings for Singaporeans.

Targeted Assistance: For households still in need, PM Lee reaffirmed the government’s commitment to provide direct assistance, such as cash or vouchers. He contrasted this with across-the-board subsidies, which tend to benefit those who use the most resources the most, leading to inefficient usage and increased costs for taxpayers.
NTUC’s Update
During the conference, NTUC Secretary-General Ng Chee Meng provided an update on the union’s progress, focusing on three key areas:

Innovating Union Structure: Ensuring that trade unions effectively protect and advance workers’ interests, particularly in wage negotiations and job security.

Refreshing Membership Models: Adapting to meet the evolving needs of its members, with total membership reaching a record high of 1,189,547 as of September.

Innovating Training Models: Focusing on helping workers enhance their employment prospects and employability in a changing job market.

In summary, while price hikes for essential services are unavoidable, the government has implemented measures to support needy households through targeted financial assistance, ensuring that the impact of rising costs is shared fairly across the population.