It will ensure businesses will not use the Goods and Services Tax (GST) hikes as an excuse to raise prices, and will focus on daily items commonly used or consumed by households in Singapore.

The committee was first set up in 1994 alongside the introduction of GST in Singapore. It was also reconvened during the previous rounds of GST increases in 2003 and 2007.

SUPPORTING BUSINESSES, ATTRACTING INVESTMENTS

Mr Wong also responded to a question about why there was no support rolled out for businesses in the additional package of measures announced on Thursday. 

If business costs have gone up, then it is not sustainable for the businesses to run on a deficit and they will have to make themselves viable, which will ultimately reflect in inflation, he said. 

“That’s why we focus on inflation, we focus on the impact on consumers. And our focus has been to look at the impact, particularly on lower- and middle-income consumers, families and do our best to support them,” said Mr Wong, adding that this is Singapore’s “main strategy” for coping with inflation. 

The “most important thing” for businesses is that the government cannot permanently subsidise businesses. They must be self-sustaining, profitable and viable, he said. 

“What’s important for business is to continue to restructure, continue to focus on moving up the value chain, be more efficient, be more productive, and all the schemes we have in the Budget so far have been supporting this direction,” said Mr Wong. 

In the coming Budget, the government will think of ways to “help businesses along this path, not so much to prop up unviable businesses”, but to help them become more productive and more efficient, he added.