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Bitter medicine, but GST hike works

The goods and services tax (GST) was introduced in Singapore in 1994, and over the years, it has been progressively increased.

The goods and services tax (GST) was introduced in Singapore in 1994, and over the years, it has been progressively increased. GST hikes were and will always be painful and unpopular. Yet, most people acquiesced, knowing we can trust the Government to make a difficult but necessary decision. It brings to mind the Chinese idiom , referring to how good medicine tastes bitter. Each time the decision is made to raise the GST, naysayers often use unsubstantiated rhetoric to argue against the efficacy of doing so and turn it into a political issue. As a practical person, I don’t see the need to change a prudent and proven policy tool that has sustained our economic and social well-being. Nearly one in five Singapore citizens is aged 65 and above. I am one of them. By 2030, that figure will be around one in four. Singapore will need a tried and tested strategy to overcome the financial and social challenges of an ageing society. Recently, I was hospitalised at Sengkang General Hospital. The total hospital bill was $890, but with a 60 per cent government subsidy, I paid $340 through my MediSave.