28-04-2025, 10:08 PM
Quote:Rally review: The PAP Fullerton one.https://www.facebook.com/share/p/1Aavy8J7eF/
I was glad that Lawrence was sparing with his weather metaphors. I was glad he did not add to the temperatures raised by his predecessor about foreign interference and religious issues. I was also glad to hear him give the best explanation of how the GST hike was implemented to cushion the impact on the lower and middle income. Note that the word is “implemented’’ rather than the whys, when and wherefores.
I agree that there was much thought placed into how to calibrate the impact of the hike on different groups. The problem, as always, was the way those buffers in the form of “permanent GST vouchers’’ were put across to the people. I bet some people even think that those CDC vouchers are part of these vouchers. They are not. It’s actually a hotch-potch of a lot of things, U-save rebates, waivers of service and conservancy charges and some cash that should presumably make up for whatever the rise in spending households would incur because of that 2 per cent jump to 9 per cent.
This is the problem when we have so many measures going by names that aren’t intuitively grasped. Permanent, enhanced and one-off are terms that civil servants use and remember - and they don’t go with “voucher’’ either. Because vouchers have expiry dates and can be used up. They are never permanent.
PM Wong tried to put it in terms of ‘effective’’ tax that people would be paying. The high income would pay the full 9 per cent but those lower down the line would be paying less AFTER factoring the buffers.
Sometimes, this is put across as delaying the tax. So it’s only, say, after five or 10 years later, that the low to middle income really, really start paying GST. (My unsolicited advice to G: Stick to just one way of explaining this and don’t simply say that the higher income pay more GST without explaining how the regressiveness of the tax is blunted by the buffer policy)
But there are two facets of the GST hike he did not address:
- The timing of the second stage of the hike and why it could not be delayed given that we were already in throes of inflation.
- The buffer might account for 2 per cent of the hike, but prices do NOT go up by 2 per cent.
Another point that should be countered is how the opposition keeps suggesting that budget surpluses and cuts in G expenditure could make up some of the tax shortfall. No one is asking to use the reserves. They are suggesting a tweak of the 50 per cent ratio on Net Investment Returns Contribution to the budget. Is this the same as a reserves raid?
I said earlier that it would be hard for the PAP to win the argument on the GST hike. But if more thought had been given to communicating the implementation of the tax to different groups, it wouldn’t have grated so much on the people.
Other matters:
Strong Government
He got specific on the need for “strong government’’. No, he didn’t talk about number of seats or share of popular votes, he was referring to his team of ministers now scattered across the island with their fates in voters’ hands. Losing even one would be a big deal, he said, given that four have retired this GE. Twice, he mentioned his deputy Gan Kim Yong, his right-hand man in charge of the very thing that Singapore is concerned about - staying resilient in a tarrified and changing world.
Frankly, if Gan was not returned to office, PM Wong would only have himself to blame. After all, he swung Gan from the safety of Chua Chu Kang GRC to Punggol GRC to be challenged by a formidable WP team. If his strategy was to keep his ministers around, then he could have pooled them together. Then he would be able to, as he said, meet foreign big wigs and deal with them from a position of strength in a storm (my word) that is not likely to abate. Instead, he is using the ministers as GRC umbrellas for newbies in the electoral storm in tiny Singapore that would be over on May 3.
NCMPs as “diverse voices’’
Finally, the four letter word was uttered in the GE. PAP’s Indranee Rajah said it was NOT true that a totally PAP dominated Parliament means the absence of diverse voices. My heart actually leapt to think that the PAP would be more generous in letting its MPs speak - and even vote - more freely. Or that some new channels would be opened for policy debate. Instead she talked about how the Constitution had guaranteed the maximum of 12 NCMPs, who have the same voting power as elected MPs. Put another way, there are actually 97 plus 12 seats in Parliament. And this is not even counting the nine NMPs provided in the Constitution…speaking of which…
Ex-NMP Syed Harun Alhabsyi, standing in Nee Soon GRC spoke as well. I have never caught his speeches in Parliament although I gather that he had proposed four adjournment motions. What a nice clear voice he has, I thought. If only his words were rather less gushing about the PAP. Then I, for one, might forgive him for forsaking his NMP position to join the PAP to stand for election. Because it can’t be so easy to change from non-partisan to partisan. Or is it?
Talk, talk, talk
David Neo, former army chief, talked about action. Or rather talked about how the Opposition is all about talk and no action. Last night, SM Lee Hsien Loong and former DPM Heng Swee Keat went on the same tack. And I am pretty sure other PAP candidates have done so too.
What action are they looking for, I wonder. Opposition political parties are not the government. They propose and the governing party can always dispose. Voters know that it would be too much to expect the governing party to credit the opposition for anything - even as the opposition blames the Government for everything.
For heavens’ sake, people are not bodoh even if they buat bodoh.