The sandwich dilemma
Mdm, let me begin by acknowledging the considerable thought and effort that must have gone into the formulation of Budget 2025. The world is growing more complex, and the impact of global developments is bound to have a significant impact on Singapore given our dependence on international trade and investment.
I am heartened by proposals such as the increased assistance levels under schemes like ComCare and the increased government support under the Progressive Wage Credit Scheme. At the same time, I once again urge the Singapore Government to review the need for a statutory minimum wage to ensure that the lowest earners in Singapore can cope better.
Singaporeans are a pragmatic people. They will always worry about bread-and-butter issues first. The rising costs of living have been felt more keenly by all Singaporeans in the last few years. The Singapore Government itself is cognisant of this, hence the announcement of measures such as CDC vouchers and U-Save rebates. However, I note with some interest that Bloomberg reported on 22 February 2025 that a poll conducted among 1,002 Singaporeans by Milieu Insight indicated that 55% of respondents viewed these measures as inadequate in helping them cope with rising costs. A similar poll conducted the year before was even worse, with 62% viewing support measures as inadequate. Taken together, it is clear that Singaporeans want the Government to look beyond disbursing payouts and consider structural changes to existing schemes to keep costs of living affordable.
Mdm, today I wish to draw attention to the plight of the middle class in Singapore, sometimes described as the ‘sandwiched’ class, as they earn too much to qualify for most social assistance but too little to have a significant financial cushion. There is also a particular subset of this group—one defined by their age—who bear responsibilities for both aged parents and young children.
Residents in my division of Kaki Bukit in Aljunied GRC have approached me for assistance. For example, one resident needed legal help for his brother’s insurance claims. He was deemed ineligible for assistance from the Legal Aid Bureau, but the cost of hiring a lawyer was prohibitive. Another individual informed me that his household income did not satisfy the means-testing threshold, so his mother was not eligible for the Medifund scheme. He compared himself to his relative, whose elderly mother lives in a rental flat and received Medifund assistance, even though his relative is more financially secure. He remarked that by having his mother stay with him and caring for her, he feels “penalised” for his filial piety.
In situations like these, Singaporeans in the middle class are like a sandwich without fillings. They are left with choices they find neither savoury nor sweet.
Mdm, I understand that we cannot treat the country’s finances as a well of infinite wealth. Trade-offs must be made, and assistance must be directed where it is most needed. I also acknowledge that instances such as those I cited may not represent the bigger picture. Even so, when such cases arise, I hope relevant agencies will exercise flexibility and assess applications more holistically.
Employment concerns
The ability to cope with the cost of living is not just a function of the price of goods and services but also the ability to afford them. A Straits Times report published on 8 February 2025 covered the experiences of several Singaporeans facing employment disruptions. It noted that resident unemployment and long-term unemployment rates remained low, and the incidence of discouraged workers was also low. Even so, economists interviewed noted plausible reasons for job insecurity, including retrenchments, the increased prevalence of contract work, and technological disruptions.
Mdm, I note that the Prime Minister has announced greater support for reskilling and retraining under SkillsFuture and the Workfare Skills Support Schemes. I am not against the notion that our workforce needs to remain attuned to market needs. However, I believe we need a more proactive approach. In January 2025, a graduate employment survey focusing on graduates from the five local polytechnics indicated an employment rate of 54.6%, down from 60% in 2023 and 59% in 2022. A similar survey on university graduates showed a decline in employment rates to 79.5% from 84.1% the previous year. These are worrying statistics, and if this downward trend persists, job insecurity among Singaporeans will only grow.
I call upon the Government to consider offering incentives to companies that employ more Singaporeans than required by dependency ratios. These incentives could include tax breaks, reductions in government charges, or preferential access to state incentives. As the Government invests in making Singapore more attractive to global companies, it should also encourage these companies to play their part in nurturing and developing our local workforce.
Mental burden on the middle class
Speaking broadly, Mdm, my concern is the mental burden borne by the middle class in Singapore. Members of this House would recall the motion on mental health and well-being passed in February 2024. The Government has acknowledged the importance of mental health and has announced several measures to address it.
I have highlighted two issues today that adversely affect the middle class in Singapore. I hope that more attention will be paid to their plight so that we can better understand their worries and take measures to address them.
