2023 was one heck of a ride sprinkled with spicy TikTok memes, seedy scam tactics that evolve quicker than the Coronavirus, and several policy changes that will change a Singaporean’s life forever. Amidst all the uncertainty we’ve learned to live with, this is my personal take on 2023’s key takeaways, and how these events may affect our lives in 2024.
1. The government disburses Assurance Package support to help Singaporeans cope with higher inflation and the GST rate increase
In a nutshell: I’ve been dreading the day my daily kopi peng costs an all-time high of S$2 and it feels like this nightmare will soon become a reality as the GST rate in Singapore goes up to 9% from 1 January 2024. Don’t even get me started on economic mixed rice.
To help, the government has given every Singaporean adult S$200 to S$800 through the Assurance Package. You’ll be happy to know that full payments made for all goods and services will be subject to 8% GST, even if they’re fulfilled in 2024.
Looking ahead: Pay off any big-ticket purchases this year to save on taxes. Also, here are some smart ways to manage your budget amidst rising food prices.
2. The rise and fall of Certificate of Entitlement (COE) prices
In a nutshell: 2023’s COE peaked at S$150,001 and S$158,004 for Category B and Category E respectively, compared to S$115,388 and S$116,577 in 2022’s peak – signifying a 30% increase since then. With the government introducing more COE quotas as a cooling measure and private-hire companies sharing the bidding pool with retail consumers, the future of car ownership seems uncertain, especially since we’re transitioning to electric vehicles.
Looking ahead: With enough supply, COE prices may stabilise. Call me an optimist, but I still hope to own a car one day for my picnics and supper runs. If you’re already a proud owner of an electric vehicle, here’s how you can forge an everlasting relationship with your electric vehicle batteries.
3. Recent inflation rates trend upwards
In a nutshell: We can’t escape inflation – it affects everything from the cost of daily necessities like food, clothing and transport to big ticket items like education and housing. According to the CPI (Consumer Price Index) Inflation calculator by MAS (Monetary Authority of Singapore), food costs have risen by 24% from 2012 to 2022 – this means that food that cost S$1 in 2012 would cost S$1.24 in 2022.
As a (relatively) young working adult, I sometimes wonder whether our wages will scale with inflation in the future, or whether our costs of living will outpace our future earning power. Some days I still dream of retiring by 45.
Thankfully, we get to analyse the rates of inflation of goods and services and how wages will increase, all with MAS’ calculator. Using this tool might give you a gauge of where you’re at and help you decide if you need to adjust your lifestyle.
Looking ahead: If you’re an average Singaporean like me, you’ll want to suss out your recurring expenses and check your bills as inflation creeps up.
4. Hike in public transport fees
In a nutshell: Whether you’re a fan of public or private-hire transportation, prices will always be on the rise to keep up with the price hikes within the manufacturing, oil and energy industries.
In 2023’s Fare Review Exercise, the PTC (Public Transport Council) announced a 7% fare increase, about one-third of the 22.6% maximum quantum, while imposing a lower increase for vulnerable commuters to cushion the impact of the fare adjustment to them.
Looking ahead: Well, public transport costs aren’t within our control and will only continue to rise, and the same goes for private transport. Come 2024, private transportation will be a luxury for me. You’ll catch me living by these 20 financial habits.
5. Change in BTO requirements
In a nutshell: Cooling measures and changes in eligibility to the existing build-to-order (BTO) scheme were announced during the 2023 National Day Rally to keep home ownership affordable and to ensure fairness of the public housing system. The Housing Development Board (HDB) will do away with the existing classifications (mature/non-mature estates), and classify HDB units as Standard, Plus and Prime – and the latter two flat types will have 10-year minimum occupation periods (MOP) to deter homeowners from rushing to flip prime units and treating the BTO process as a lottery.
Looking ahead: Eligible first-timer singles (aged 35 and above) can also apply for two-room flexi BTO units across all three flat types, and the government will work towards expanding its suite of offerings under HDB’s Enhancement for Active Seniors (Ease) programme while upgrading neighbourhoods with more senior-friendly amenities. You’ll want home insurance when you become a proud homeowner as well.
6. Increase in postage rates
In a nutshell: SingPost announced an increase in postage prices to adjust for inflationary costs, which they have absorbed since 2014. Domestic postage rates have increased by 64.5% to 51 cents, up from 31 cents previously, to accommodate higher labour costs and declining postal volumes – this price adjustment probably has more impact on businesses than individuals.
Looking ahead: If you’re a fan of sending snail mail, you’d have been pleased when Singpost issued a booklet of 10 local stamps to each household. Snail mail might slowly become a thing of the past, but gifting never does. Here are some unique gift ideas for your kids if you ever find yourself stuck between a rock and a hard place.
7. Digital scams on the rise
In a nutshell: The total number of scam and cybercrime cases rose by almost 70% in 2023, from 14,481 cases in the first half of 2022 to 24,525 cases in the same period in 2023.
The top five scam types so far are:
- Job scams
- E-commerce scams
- Fake friend call scams
- Phishing scams
- Investment scams
The top scam type resulting in the highest average amount lost was impersonation of a government official – victims of such scams lost an average of S$116,000.
Looking ahead: I’m not here to host an awards ceremony for scams, but it’s good to be wary and understand how scams unfold, especially since phishing sites look almost identical to the real thing. You can also find more information and learn how to protect yourself and your loved ones on scamalert.sg.
8. Shanti Pereira brings home the gold
In a nutshell: Singaporean sprinter Shanti Pereira claimed the women’s 200m title at the Asian Games in Hangzhou, ending Singapore’s 49-year wait for a gold medal in athletics. Meanwhile, swimmer Letitia Sim came in fourth in both her races at the games.
Looking ahead: As more local athletes step up to the plate to give their global counterparts a run for their money, I’m eager to see our homegrown heroes receive more support in their pursuit for greatness.
9. Mental health services will now be more accessible
In a nutshell: As of 5 October 2023, more hospitals, polyclinics and general practitioners (GPs) will offer mental health services as part of a national mental health and well-being strategy. By 2030, all new polyclinics are also expected to provide mental health services and more GPs will be trained to provide mental health assessments and treatments.
Looking ahead: The Institute of Mental Health (IMH) is also piloting a crisis response team to support police officers in managing suicidal cases and psychosocial stressors and triggers. As we gradually normalise conversations surrounding mental health, I’d say this is a step in the right direction. Here’s 10 unusual tips to love yourself and improve your overall wellbeing.
10. Flexible work arrangements – yay or nay?
In a nutshell: The harrowing days of COVID-19 are past us, and more employers have enacted their RTO (return to office) plan, but the future of work arrangements remains to be seen. The spectrum is wide – I have friends who must show up in the office five days a week while some are still working remotely and will continue doing so.
Some local politicians also call for the government to enact laws that give employees the right to flexible work arrangements. This will help support families and persons with disabilities, but pushing for legislation is no simple task. Firms will have to adapt their businesses to suit this new way of working.
Looking ahead: With that said, the government will introduce tripartite guidelines in 2024, but we’ll have to wait to see what that entails. I love working from home, please don’t take it away.
11. Unemployment rates can be unpredictable
In a nutshell: According to a Labour Market Report published by the Ministry of Manpower (MOM), unemployment rates have been on the decline since the comedown of the pandemic, but this only lasted until the first half of 2023.
Retrenchments have been on the rise in the third quarter of 2023. Some of my friends in the tech industry experienced layoffs as well, even those at the junior level. Many variables can affect the labour market – economic outlook, bad business decisions, failed expansions, cost-cutting etc. It’s also not unheard of to see businesses perform cost-cutting and layoffs even during good years, as this directly contributes to their profit.
Looking ahead: Well, the labour market is mostly just a supply-and-demand game anyway. Besides, our next generation is beginning to embrace funemployment, so not having work isn’t all doom and gloom. Either way, it’s a good practice to stash away an emergency fund equivalent to six months' salary to help tide through unemployment.
12. Annual average temperate increases
In a nutshell: Global warming is intensifying. Climate trends published by Weather.gov.sg reveals that eight of the 10 warmest years on record in Singapore have occurred in the 21st century, and the average temperature is trending upwards.
Looking ahead: The government launched the Singapore Green Plan 2030, pledging to achieve net zero emissions by 2050. Singapore must explore practical solutions to realise this vision. For starters, you could adopt some eco-friendly ways to keep your home cool.
13. Record number of marriages, decline in birth rate
In a nutshell: Fancy a puzzle? Here’s a paradox. In 2022, there were a record number of 24,767 citizen marriages – but the number of babies born fell by 4%. Our fast-ageing population adds to the problem: we aren’t replacing ourselves.
Looking ahead: For someone approaching his 30s like me, these trends do fuel a sense of financial unease. As the cost of starting a family increases exponentially, fear is a very real emotion for budding parents.
Congratulations if you already have a young one on the way, and here’s the truth if you’re wondering whether you need maternity insurance.
14. Real median income fell 4.5% in 2023’s first half
In a nutshell: Inflation doesn’t discriminate, and this affects all Singaporeans across all sectors. From 2017 to 2022, real median income, which is adjusted for inflation, grew by a total of 9.4%.
2023’s economic outlook wasn’t quite as prosperous though, with nominal wage growth expected to ease as labour demand cools. Median income is an accurate summary of income, as it represents the true midpoint of the incomes of all Singaporeans and Permanent Residents and is less likely to be skewed by larger numbers.
Looking ahead: Rather than hit the panic button, I’m using this as a good reminder of the effects on inflation on our income. After all, the previous years were good. Of course, higher salaries and bonuses are always welcome.
15. Singapore ramps up anti-vaping efforts
In a nutshell: Fines, a marketing campaign and most recently, a booth for people to surrender their vape devices for a S$30 gift voucher. Serving as the pilot launch of the Macpherson Youth Network’s “Drop it, Stop it!” anti-vape campaign, this anti-vaping booth shows our nation’s commitment to curb vaping.
Before this campaign, those caught buying, using, or owning a vaporiser can were fined up to S$2,000 per offence. However, it seems our government is opting to take a softer stance on this, offering compassion and support to vape users – with the Health Sciences Authority (HSA) and Health Promotion Board (HPB) promising no penalties for those who surrender their devices through this programme.
Looking ahead: Don’t vape. Lung cancer is the third most common cancer in males and females in Singapore. As a young adult, I don’t deny that I feel immortal at times, but seeing other young adults living with cancer scares me.
Dear reader, no matter what happens in the year ahead, remember to enjoy life as you go along. Don’t miss the forest for the trees and keep living your best life.
