The Economist Intelligence Unit (EIU) has, perhaps not surprisingly, named Singapore the most expensive city in the world. But rather than just lash out at the PAP Government for this dubious achievement, the SDP will propose constructive measures to lower the cost of living for Singaporeans.
First, housing is extremely expensive in Singapore because of of high HDB prices. Young couples nowadays have to borrow huge amounts of money to pay off their housing loans, usually for 25 to 30 years using their CPF funds. This, of course, deprives us of our retirement income.
High property prices affect not only flat owners. Asset inflation means that workers have to be paid more so that they can make ends meet while at the same time increase commercial property prices, leading to higher office and shop rentals. Business owners also want to take home bigger profits to meet their housing expenses. All these increased costs are passed on to the consumer, jacking up living expenses for the people.
The SDP has proposed the Non-Open Market (NOM) scheme in our housing policy paper in which Singaporeans buy HDB flats at cost (minus the cost of land) which will substantially reduce the costs of flats ($120,000 for a 4-room flat as compared to twice that amount under current prices). In return, owners can only sell the flat back to the Government without profit.
Such a measure not only lets the people retain their CPF savings but will also control asset inflation with the ripple effect lowering rental for retail space. This will, ultimately, lower costs on goods.
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Second, much of the dramatic rise in living expenses can be traced to the massive influx of foreigners. With more people, the demand for housing and cars (COEs) escalate. At the same time, wages are depressed especially for lower-income workers.
To solve this problem. we propose in our population plan that the number of foreign workers allowed into Singapore be checked. This can be done through the Talent Track Scheme where we rigorously assess the skills and competencies of foreigners wanting to work here, and allow in only those who are genuinely qualified.
Employers can then hire from this pool but only after they demonstrate that they have tried to employ a Singaporean but are unable to find one who has the required skills/qualifications.
In this way, we don't deprive our businesses of genuine foreign talent while ensuring that we keep our population to a manageable and sustainable level. This, as a consequence, lower living expenses.
The third item that makes Singapore so expensive for our citizens is healthcare costs. The SDP has proposed in our National Healthcare Plan that the government pays the bulk of the premiums in a national insurance scheme called the National Health Investment Fund (NHIF).
Singaporeans also pay into the pool but at a much reduced rate than we do with the current Medisave scheme. Upon hospitalisation, we pay only 10 percent of the bill up to a maximum of $2,00 per year, the NHIF pays the remaining 90 percent.
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Being the most expensive city in the world is not only a burden for Singaporeans, the financial pressure is also putting a tremendous amount of strain on our social lives and relationships – and ultimately our lives.
The SDP will offer our alternative ideas to Singaporeans at the next elections. Our vision is to make Singapore the most livable city in the world, not the most expensive.
Singapore Democrats
Source: YourSDP.org