The timing of recently announced price and fee hikes was called into question by Non-Constituency MP Leong Mun Wai in Parliament yesterday.
Speaking during the debate on the Government's Covid-19 strategy, the Progress Singapore Party NCMP said it is contradictory for the Government to be raising costs while pledging support measures, and questioned if the national coffers were truly overstretched.
He cited a recent two-week period when cost increases were announced. On Sept 29, it was announced that MediShield Life premiums will increase between 11.5 per cent and 35.4 per cent from early next year. That means an increase in the annual premium from $1,000 to $1,350, said Mr Leong. The increased coverage that comes alongside the premium hike is of "scant comfort to Singaporeans who are still struggling with the financial woes of Covid-19", he added.
On Sept 30, SP Group announced a 9.3 per cent electricity tariff hike for October to December. Mr Leong said while the increase is due to the higher costs borne by power-generating firms, "SP Group could have easily absorbed the increase from the past profits it has earned instead of passing the increased cost on to consumers".
He added: "The Government does not inspire confidence by hastily increasing taxes and fees while at the same time pledging Covid-19 support measures. Our population could view this act as 'giving with one hand and taking with the other'."
He also noted last week's announcement that Electronic Road Pricing (ERP) rates at six gantries on the Central Expressway were to increase by $1 from Monday to ease peak-period congestion.
These moves add hundreds of dollars to the household expenditures of average Singaporeans, and raise concerns such as whether the goods and services tax will be increased soon after next year, he said.
"Can these hikes not be shelved till later? Can SP Group not absorb the tariff increases with their past profits? Can't ERP increases wait? Can't premium increases be deferred for a period of one to two years, as the current insurance claims are still way below the collected premiums after all?" he asked.
He also said that while the Government does not want to disclose the size of the national reserves for security reasons, it has published detailed annual financial information on Singapore's assets and liabilities. "In its latest Government Financial Statements as at end March 2020, it was reported that we own a total of $1.35 trillion in financial assets," he noted. Taking into account the Net Investment Returns Contribution, he said the decrease in Singapore's financial assets is $14.8 billion. "We have used up only 1.1 per cent of our total financial assets to fight Covid-19 in 2020. It appears there is no need for the tax and fee hikes to take place so soon."
He also called for a review of safety net policies such as MediShield Life and HDB flat leases, to build Singaporeans' confidence in facing economic challenges and develop creativity, innovation and entrepreneurship.
