More resources to be invested into building caring, resilient society

SINGAPORE – More resources will be pumped into building a caring and resilient society, particularly to support the young, low-income families and those with special needs, said Finance Minister Heng Swee Keat in his Budget statement in Parliament on Thursday (March 24).

“We want a Singapore which is a great place to raise a family and where we bring out the best in every Singaporean; a society that takes care of those who have special needs, who are less well-off or who have fallen on hard times; a society where our seniors age with energy and dignity,” said Mr Heng.

SUPPORT FOR THE YOUNG

For families with young children, parents will automatically receive S$3,000 in their children’s Child Development Account (CDA) – a co-savings scheme with the Government – under a new CDA First Step grant. All babies born today onwards will be eligible for this grant. Money in this account can be used for the children’s healthcare, educational and childcare needs.

But parents should wait till July 1 before putting their savings into the CDA. What they save in the account after that date will be matched dollar-for-dollar by the Government, up to the contribution caps (S$6,000 for first and second child; S$12,000 for third and fourth child; S$18,000 for the fifth child onwards).

With immediate effect, the Medisave withdrawal limit for a mother’s pre-delivery medical expenses will also be doubled from S$450 to S$900.

Despite enhancing development programmes through preschools and primary schools, Mr Heng noted that a “small group” of parents who may need more support to give their children a good start in life. To this end, the Government will start a new pilot initiative – targetting some 1,000 young children aged six and below – which will tap on government and community resources to ensure these children receive appropriate learning, developmental and health support.

More help will be given to families with children living in rental housing through the Fresh Start Housing Scheme, which will provide a grant up to S$35,000 to help these families own a two-room flat. These parents will, however, need to demonstrate effort to stay employed and make sure their children attend school, among other things.

MEASURES TO HELP THE LOW-INCOME

For low-wage workers, the qualifying income ceiling for the Workfare Income Supplement (WIS) scheme – which encourages workers aged 35 and above to join the workforce by supplementing their income and CPF savings – will be raised from S$1,900 to S$2,000 a month.

While the WIS will continue to help the bottom 20 per cent of workers, some support will also be given to those in the 30th income percentile.

WIS payouts will also be increased, depending on their age and income. The scheme’s qualifying criteria will also be simplified so that workers will receive WIS payments more quickly – monthly rather than quarterly.

To help low-income households, they will receive a higher basic monthly cash allowance through the Public Assistance scheme. For instance, a two-person household who are both on public assistance will get an additional S$80 a month, and receive a total of S$870 cash assistance in each month.

Government pensioners who are drawing lower pensions will also have their Singapore Allowance and monthly pension ceiling raised by S$20 each month to S$300 and S$1,230 respectively to benefit some 10,000 pensioners.

Amid current economic conditions, a one-off GST Voucher of up to S$200 will be given out on top of the regular GST Vouchers, noted Mr Heng. Households will also receive Service & Conservancy Charges rebate of between one and three months, depending on their flat type.

HELP FOR PWD

Lastly, to provide more work opportunities for persons with disabilities, those earning low wages and are under 35 years old will now be eligible for the Workfare Training Support scheme to help them in their learning. The Public Service will also play its part in expanding job opportunities through SGEnable, added Mr Heng.