Deputy Prime Minister Tharman Shanmugaratnam illustrated how initiatives of the last five years, along with the measures in this year’s Budget, significantly help lower- and middle-income Singaporeans. For a typical low-income couple at the 10th percentile of the income ladder, this would mean:

First, the couple buys a home. They receive S$60,000 in housing grants for a Build-to-Order (BTO) two-room flat, with payments only from their CPF. Later on, if they upgrade to a new three-room flat, they receive a Step-Up CPF Housing Grant of S$15,000.

Every step of their children’s education is heavily subsidised. Childcare fees will typically be just S$3 a month. Then, through their children’s school years and if they go on to polytechnic, for example, financial assistance will cover 75 per cent of their total fees. If they go on to university, they get further support.

Workfare tops up their pay by up to 30 per cent. And if they face setbacks along the way, such as losing their job, ComCare will help.

As the couple gets older, healthcare needs become more important. They will get subsidies of 70 to 80 per cent, whether for inpatient or outpatient treatment, and for long-term care. And if they still have difficulty with their healthcare bills, Medifund will help.