SINGAPORE: People’s Action Party (PAP) member Grace Fu has come under fire from netizens following her remarks on the Goods and Services Tax (GST) during her rally speech on 28 April.
Speaking at a PAP rally for Jurong Central Single Member Constituency (SMC), the Minister for Sustainability and the Environment defended the GST system and the associated support measures.
Fu stated that schemes such as GST vouchers and U-Save rebates form part of a “permanent support system” designed to assist Singaporeans, particularly those on lower incomes.
“Decisions like GST are never easy. We know the pain on the low- and no-income people. And this is why it came with a permanent system, a permanent support system—not one-time, not transitional, as the opposition would tell you,” she said.
Fu elaborated that GST vouchers include $850 in cash payouts, $450 in Medisave top-ups, $380 in U-Save rebates, and Service and Conservancy Charges (S&CC) rebates, which together help offset the recent 2% GST hike.
She also argued that GST “allows us to tax tourists and those who do not pay income tax in Singapore but spend on items like cars and watches.”
Using an analogy that sparked particular ire, Fu said, “We may be taking a chicken wing from you, but we are giving you a whole chicken.”
Public Backlash Over “Chicken Wing” Analogy
Under a CNA Facebook post covering her comments, Fu’s speech quickly drew backlash, with over 1,200 comments—many of which were critical of her statements.
A significant number of netizens took issue with her “chicken wing” analogy.
Many argued that it was the opposite of what she claimed: that the government was actually taking a “whole chicken” from citizens while offering only a “chicken wing” in return.
One user quipped, “Last time, you gave us a chicken wing and took back a whole chicke. Now you’ve given us a whole chicken, I’m afraid you might come back and take the entire farm!”
Another user remarked that although the PAP claimed to understand the people’s hardship, it still chose to impose greater burdens.
“Your decision has little regard for those in the lower- and middle-income groups,” the user said, adding that there was no justification for raising the GST, given Singapore’s reported surplus in Financial Year 2024—even without the 2% hike.
Delivering the Budget 2025 speech in Parliament on 18 February, Prime Minister and Finance Minister Lawrence Wong announced that Singapore recorded a S$6.4 billion Budget surplus for FY2024, bolstered by a 6.5% increase in corporate tax revenue to S$30.9 billion.
Criticism Over Claims of “Permanent” Support
Several users also questioned Fu’s assertion that the support measures are “permanent”, noting that the vouchers are not distributed monthly and are issued per household, not per individual.
One commenter highlighted that while CDC vouchers were originally introduced as a temporary measure, they have now effectively become a long-term necessity as many Singaporeans struggle to afford basic living expenses.
They also pointed out that essential items such as diapers and baby formula remain subject to GST, despite Singapore’s declining birth rate.
The country’s total fertility rate (TFR) remained at 0.97 in 2024, unchanged from the record low in 2023—marking the second consecutive year below 1.
One user lamented, “I don’t feel proud living in a first-world country but needing handouts to survive.”
Another expressed disbelief that “one of the richest countries in the world has basically become a welfare state where citizens need vouchers to get by.”
Doubts Over GST Impact on Tourists and Price Increases
Other users expressed scepticism over Fu’s claim that GST enables taxation of tourists, noting that much of the GST paid on shopping is refunded when tourists leave Singapore.
They pointed out that only GST on food, drinks, and accommodation is non-refundable, suggesting that the tax’s impact on high-value items like luxury bags and watches is minimal.
Under the Tourist Refund Scheme (TRS), administered by Singapore Customs on behalf of the Inland Revenue Authority of Singapore (IRAS), tourists can claim a refund of the GST paid on goods purchased from participating retailers, provided the goods are brought out of Singapore via Changi International Airport or Seletar Airport.
Separately, some netizens observed that the 2% GST increase did not translate into just a 2% rise in prices.
Instead, they claimed that businesses significantly raised prices beyond the GST hike, adding more pressure on consumers.
One user suggested that the PAP had become tone-deaf, questioning whether they had not heard people repeatedly saying that prices have increased by significantly more than just 2%.
“Handouts Are Unsustainable” – Netizens Address Growing Inequality
One user commented that giving handouts repeatedly is not a sustainable solution, as it highlights a deeper social and economic issue—growing income and wealth inequality, which they said is already evident in Singapore today.
Fu will lead the People’s Action Party (PAP) team contesting in the newly formed Jurong East–Bukit Batok Group Representation Constituency (GRC).
Her team comprises Murali Pillai, Rahayu Mahzam, Lee Hong Chuang, and David Hoe.
They will face off against Red Dot United’s team, made up of Liyana Dhamirah, Marcus Neo, Osman Sulaiman, and Ben Puah.
Pritam Singh: GST Hike Was Unnecessary and Poorly Timed
That same night at Yusof Ishak Secondary School, Workers’ Party chief Pritam Singh delivered a sharp critique of the PAP government’s decision to raise the Goods and Services Tax (GST) during a period of global inflation.
Singh described the GST hikes as having “turbocharged” inflation, worsening the cost-of-living crisis already faced by Singaporeans.
The GST increase, announced in Budget 2022, involved a two-stage hike from 7% to 9%, with the first increase to 8% on 1 January 2023 and the second to 9% on 1 January 2024.
He argued the decision was poorly timed, avoidable, and unique globally, noting few governments raised consumption taxes amid rising prices.
While acknowledging the PAP’s justification of preparing for ageing population and healthcare costs, Singh maintained the hike could have been delayed.
He referenced a statement from the Monetary Authority of Singapore (MAS), under the Prime Minister’s Office, which indicated the GST hike could increase inflation by up to 40%.
“Isn’t that turbocharging?” he asked.
Singh also noted that the government recorded a fiscal surplus of over S$14 billion in the last term, showing the hike was not fiscally necessary.
He highlighted rising costs in daily essentials, election campaign expenses, and the lack of inflation protection for retirees relying on CPF payouts.
Criticising a PAP MP’s earlier comment that “a little pain” keeps people “alert”, Singh called the remark insensitive, especially when many are already struggling.
He concluded by urging voters to back the Workers’ Party to ensure greater scrutiny and pressure on PAP policy decisions.
The post “We take a chicken wing, but give a whole chicken”—Grace Fu defends GST increase at PAP rally, draws backlash appeared first on The Online Citizen.
