Nearly 2.1 million S'poreans to receive GST Voucher

SINGAPORE: Close to 2.1 million adult Singaporeans will receive letters from the government from Monday to inform them of the amount that they will receive this year under the GST Voucher (GSTV) scheme.

The Finance Ministry says the GSTV is a permanent scheme introduced in Budget 2012 to help lower- and middle-income households offset their GST expenses.

About S$440 million in GST Voucher -- Cash and Medisave -- will be given out on 1 August.

Most Singaporeans will not have to take any action to receive their GST Voucher.

However, a small number of eligible Singaporeans who have not signed up for a previous government payout, such as the 2011 Growth Dividend or 2007-2010 GST Credits, will have to sign up by 18 July to receive their payout on 1 August.

They can do so via the following channels:
(a) Online: www.gstvoucher.gov.sg (sign up by 18 July); or
(b) Physical sign-up form: Available at any community centre, Community Development Council or CPF Service Centre (sign up by 16 July).

Those who sign up after 18 July will receive their payout after 1 August. They have up to 31 December 2012 to sign up for their 2012 GSTV payout.

In addition, about S$180 million in GSTV - U-Save will be credited to the utilities accounts of 800,000 HDB households in July.

This will be the first payment of a half-yearly U-Save payout under the GSTV scheme.

The GSTV - U-Save will be paid out in January and July each year. There is no need to sign up for the GSTV - U-Save.

Poll shows Singaporeans' support of Budget 2012 initiatives

SINGAPOREANS are strongly supportive of Budget 2012 policies aimed at helping lower-income families, the elderly population and those with disabilities, but less so towards initiatives like reducing the inflow of foreign workers.

This is shown in the results of a telephone poll released on Sunday by the government feedback unit, Reach. The poll was conducted via random phone calls to 868 respondents aged 18 and above, from Feb 22 to March 2.

Amongst the Budget policies unveiled on Feb 17, three stood out as the most well received, with over 90 per cent of respondents saying they agreed or strongly agreed with them:

- 91.9 per cent were in favour of enhancing pre-school subsidies by raising the monthly household income ceiling for the Ministry of Education's (MOE) Financial Assistance Scheme and Student Care Fee Assistance Scheme.

- 91.7 per cent were supportive of increasing the number of places in centres for children who need intensive early intervention and a new programme "Development Support Programme".

- 91.1 per cent were also in favour of increasing subsidies for Intermediate and Long-Term Care (ILTC) services will help to make healthcare more affordable and accessible to Singaporeans.

However, there were also three Budget policies which were less well received:

- With regard to the $20,000 Silver Housing Bonus and the enhanced Lease Buyback Scheme, which will help older Singaporeans free up money for their retirement, only 68.1 per cent indicated they agreed or strongly agreed with it.

- 68.1 per cent were in favour of reducing the inflow of foreign workers, to spur productivity and encourage companies to upgrade and design better jobs.

- Fewer than seven out of 10 respondents, or 69.4 per cent, supported the introduction of a calibrated reduction in Dependency Ratio Ceilings (DRCs) in the manufacturing and services sectors to contain our dependence on foreign workers.

On the whole, an overwhelming majority of 93.1 per cent showed support of the Budget's theme of "A Fair and Inclusive Society", with its initiatives aimed at uplifting lower-income families, helping our seniors live long and well, and supporting Singaporeans with disabilities.

More than 85 per cent of respondents also agreed that Budget 2012 marked a step-up in support of these three groups of Singaporeans.

Budget 2012: Innovating to cope with labour constraints

PTS Technologies boss Albert Loh has big plans to expand its business of creating radio frequency identification tags, but the tight labour market is restricting his ability to do so.

The firm, which employs six foreigners among its 25 staff, has seen its per unit cost of labour rise by some 16 per cent since 2010, largely due to higher foreign worker levies and more expensive local workers.

And now that the Government has tightened foreign worker quotas, Mr Loh expects costs to escalate further, as local workers raise their salary expectations as they will be in even higher demand.

PTS is in the process of expanding and hiring more staff, and it is struggling to find locals willing to take on the vacant roles.

He added that it is difficult for PTS to hire more local workers at high salaries as the company cannot pass on the cost to its customers, given the highly competitive market it is in.

'Thankfully I haven't hit my foreign worker quota yet, but I expect I will reach that level soon,' he said.

For now, the company is trying to change the way its does business, so as to squeeze the most value out of its current operations.

One way the company has tried to resolve its labour challenges is by hiring older workers. There are now three at PTS, but this has its limitations, he said.

'They are excellent workers. But they are not as dexterous as younger workers, and so they are limited to certain jobs,' said Mr Loh.

PTS has also been exploring various long-term strategies to overcome its labour constraints, including relocating some operations overseas, forming alliances or joint ventures with foreign partners, and automating some processes.

The firm also recently acquired a licence to produce medical devices. Entry into this high-value market will give it another source of revenue, Mr Loh said.

'Over the past two years, this is what we have been doing to deal with the increasing costs - innovating, finding creative ways to expand our customer base and enter new markets.

'We have also tapped on a number of government schemes to improve productivity. We'll continue to do all these things as we try to survive.'

She's sick but hasn't seen doctor in 10 years

People like housewife Tan Miu Muay could well be who Deputy Prime Minister Tharman Shanmugaratnam had in mind when he spoke about the Government's emphasis on a fair and inclusive society.

She's poor. She's sick. She has five school-going children.

And because she hasn't seen a doctor in 10 years - she fears she cannot pay her medical bills - she has only a vague idea of what ails her.

The 41-year-old is a needy Singaporean who hasn't been forgotten in this year's Budget, which was announced yesterday.

She will benefit from a new GST voucher scheme, a permanent system of offsets to help lower-income Singaporean households.

Her children will also benefit indirectly from top-ups to various funds which help with education and social support.

Madam Tan has been living in a two-room rental flat on Lorong Lew Lian for the last 10 years.

She has five sons, aged seven to 17. Her husband, Mr Chua Chue Po, 40, is a Malaysian who is a permanent resident here. He earns $1,200 a month moulding cornices.

Their monthly rent is under $200.

Madam Tan, who left school after Primary 6 and can't read or write, has been having trouble with her liver since she was 28.

She said: "The last time I went to see a doctor 10 years ago he said that there were some levels in my liver which were very high."

Liver operation 

She said she had an operation on her liver in 1998, and was in and out of hospital for three years after that.

She eventually discharged herself even though she needed further treatment because she was afraid of incurring further medical costs.

"I had help from a medical social worker. But I was afraid that I could not pay if I continued to seek treatment.

"So now I just tong ('endure' in Hokkien)."

Since then, Madam Tan has foregone medication. She often breaks into cold sweat and feels cold even when the room temperature is normal.

She suspects she also has low blood pressure because she often feels weak and tired, and cannot stand for more than 30 minutes at a stretch.

"I thought of getting a job, but all the jobs I qualify for are strenuous and I cannot do them."

Her days are spent doing household chores - mostly while she is seated - and looking after her children.

Yesterday, the new measures brought some relief. She was especially pleased with the Government's moves to make health care more affordable.

"I hope health care will be cheaper, so I can find out what is wrong with me.

"Right now, the thought of hospitals and clinics scares me. I don't know who can help me."

What are the health care changes under Budget 2012?

By 2020...

>> Number of beds in acute-care hospitals to increase by 1,900 – or about 30 per cent.
>>  Number of beds in community hospitals to increase by 1,800 – more than 100 per cent.
>>  Two more community hospitals in Outram and Seng Kang.

Enhanced subsidies
>> In community hospitals, low-income patients will receive 75 per cent government subsidy. Patients above the median income to receive 20 to 50 per cent subsidy. They did not qualify for subsidies previously.
>>  Subsidies for nursing homes, day care and rehabilitation facilities, and home-based care packages will be raised. About 80 per cent of elderly will qualify.
GST will be fully absorbed for subsidised patients under long-term care.

Enhanced Medishield
>> Coverage extended from age 85 to 90.
>>  One-off Medisave top-up to meet increase in premiums. Those aged under 40 will receive $50; aged 41 to 50, $100; aged 51 to 60, $200; aged 61 to 75, $300; and those aged above 76 will receive $400.

Help for Mrs Tan

New moves to offset GST

1. Cash component
Given to Singaporeans whose incomes fall within the bottom 40 per cent, and who live in HDB flats, or the bottom 15 per cent of private properties, based on assessable income and the annual value of their homes. They can expect to receive this from August.

2. MEDISAVE Top-up

Up to $450. This will go to about 85 per cent of Singaporeans aged 65 and above from August.

3. U-SAVE
Between $180 and $260 for all HDB households to help directly offset their monthly utilities bills. To be given out in January and July each year, from July this year. Those who qualify for this scheme will receive a letter in July.

How Madam Tan's family will benefit from the GST VOUCHERS

Estimated GST they pay in a year: $810

But Madam Tan will get:
Cash: $250
Medisave: $0
U-Save: $260

Effect: The GST voucher scheme will offset more than half of the GST incurred by her family in a year.

Other ways she may benefit:
>> More affordable health care
>>  More affordability in long-term care
>>  Top-ups to Medifund, an endowment fund set up by the Government to help needy Singaporeans who can’t pay for their medical expenses.

Help for Madam Tan's children

More support for children from low-income families:

>> Pre-school subsidies will be extended. A family of five, with three children, will now pay $20 for each child in child care compared to $110 previously.

>>  More students will benefit from the Education Ministry’s financial assistance scheme. The qualifying household income ceiling will be raised to $2,500 a month from $1,500.

>>  About 40,000 more students will be subsidised for school fees, uniforms and textbooks, and receive a 75 per cent subsidy on their exam fees.

Top-ups for school advisory and management committees:

>> To help them introduce new schemes in school, like transport assistance for students.

Enhanced student-care fee assistance scheme:

>> Subsidies for student care will be extended to families with up to $3,500 in monthly household income. Currently, only families earning $2,500 or less qualify. A family under this scheme will typically see the amount they pay for student care reduced from $200 to $80 per month.

Top-ups:

>> $200 million to EduSave Endowment Fund to let children enjoy meaningful enrichment programmes.

>>  $200 million to ComCare Endowment Fund to support needy families.

>>  $5 million to self-help groups and $5 million the CCC ComCare Fund.

Ministry of Finance wants public feedback on Budget 2012 website

The Ministry of Finance (MOF) launched the Budget 2012 website on Thursday with a Feedback Exercise to get feedback on issues and suggestions relating to taxes and public spending for Budget 2012.

In partnership with Reach, MOF welcomes suggestions on issues which the public feels are relevant for Budget 2012. The channels made available include new media platforms such as Facebook, Twitter, as well as discussion forums on Reach's budget microsite (www.reach.gov.sg/budgetsg) among others. From Dec 6-7, the public may share views at the Reach roving exhibition at the National Library Building (Victoria Street).

The MOF will also organise the online Budget Quiz and Budget Challenge 2012. The Budget Quiz will be held every Wednesday on the Budget 2012 website (www.singaporebudget.gov.sg) starting from Jan 4, 2012. Participants can win prizes each week if they answer all the questions correctly.

The Budget Challenge 2012 will be open to university, polytechnic and junior college students, and those from Millennia Institute and in the last two years of their integrated programmes. Prizes will be awarded to the top three teams.