9 in 10 Singaporeans believed that the upcoming GST hike will impact them greatly

9 in 10 Singaporeans are expecting that the goods and services tax (GST) would have the highest impact on them, according to Milieu Insights’ Feb survey of 1000 respondents. 48 percent are worried while 46 percent are stressed about the GST hike; this is especially so for respondents from lower-income households. Nearly half of the respondents also felt that the GST hike should take place after the pandemic ends. 40 percent of Singaporeans said that property tax would affect them greatly other than the GST increase. Specifically, 44 percents are parents or parents-to-be while 36 percent are non-parents. Before the release of budget 2022, 45 percent were not seeking to upskill in the immediate future. 48 percent of respondents also said more government aid is still not sufficient to assist mature Singaporeans in their employability. The GST hike will start from 1 Jan 2023 to 8 percent and subsequently increase to 9 percent in 2024.

Businesses are confident about weathering GST increase and global interest rate

In DBS’s Pulse Check Survey of 250 SMEs across multiple industries, all SMEs surveyed reported being confident in weathering the impact of the GST increase, with 8 in 10 micro and small businesses also concurring with positive sentiments as well. More than 9 in 10 medium-sized businesses shared an upbeat outlook in terms of the global interest rate environment while 75 percent of micro and small businesses echoed the same sentiments. 8 in 10 medium-sized businesses showed signs of staying resilient despite inflationary pressures while 7 in 10 micro and small businesses remained strong against the inflation.

The Group head of SME banking remarked,“ Business owners are taking a prudent approach by placing a strong emphasis on their cash flow. It is also heartening to know that SMEs feel more confident about tackling cost challenges, which point to the more resilient position that the business community is in today as compared to a year ago at the height of the pandemic…Our survey has revealed that micro and small businesses are generally more worried about coping with rising costs. ” 

Is your business well-positioned to weather through the impending GST hike and inflationary pressures around the globe? What measures have you taken to keep your business costs low and adapt to the changes in the economic environment?