Fiscal largesse to help Singapore's "sandwiched" class cope with rising costs of living

Expect CPF, S&C rebates, and more top-ups.

The middle class has always been caught between the push and pull of the economy.

According to a forecast by OCBC, Singapore's fiscal largesse could materialize in CPF and other top-ups, S&C rebates, more help for the “sandwiched” class to cope with education, medical costs and other costs of living, enhancements to the SRS scheme (by lifting the contribution cap), and possibly even personal income tax rebates and additional child relief.

Any opportunities to partake in higher returns to domestic savings, whether through CPF or SRS, would also be a sweetener, by allowing Singaporeans to participate in the fruits of growth, says OCBC.

The social security system is expected to be continually strengthened over time, and government transfers and subsidies will likely play an increasingly important role in stabilizing the GINI coefficient for Singapore.

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