SDA News Page

Dear friends,

The SDA wishes you and all loved ones a joyous and peaceful Vesak Day.

We hope you catch a moment to slow down and be reminded of the simple yet important things in life — kindness, patience, and care for the people around us.

And may all of us continue to build a society where these virtues are felt by everyone, especially those who have fallen on hard times and need a helping hand.

Happy Vesak Day!

SDA MAY DAY MESSAGE 2026
Jobs, Homes, Families

Dear Friends,

For decades, Singaporeans were sold a story:

Work hard, play by the rules, the government will take care of you, and you will lead a comfortable life.

Today, many are asking if this is still true. Because the reality on the ground feels different.

Wages are rising, but cannot keep up with price increases. Our youth are increasingly spending large portions of their savings trying to keep up with inflated public housing costs.

Opportunities exist, but opportunities for who? We read about job growth, but even young graduates increasingly struggle to find good jobs.

And dignity for who? Because our local PMETs increasingly face underemployment - cloaked euphemistically as "involuntary overqualification".

Singaporeans are not unreasonable. Many workers are simply asking for a fair chance, a decent quality of life, and respect for their labour - their role in building our nation.

In our 2025 manifesto, the SDA called for labour policy changes that will encourage firms to prioritise hiring Singaporeans and grooming them for leadership positions.

We called for the increase in NSF allowance to the Local Qualifying Salary, so that young Singaporeans can build a financial buffer as they transit to the workforce.

We called for a Family Care Account, to support our squeezed middle-class workers so they can better care for their children and aging parents.

We called for public housing to be built ahead with simpler features, and not "on-demand" with unnecessary wastage, so that there will be less financial strain on families starting out.

We believe that holistically, these practical changes will make families more financially secure, and give Singaporeans more opportunities for success in life.

With a secure home and dignified jobs, they will be more confident in having children.

The Singapore Miracle was built on the back of our Common Singaporean workers. And the future should belong to them and their children. This can only happen with practical change.

This is what the SDA believes.

To every hardworking Common Singaporean worker - the nurse who toils through the night, the delivery rider who goes on despite the rain, the technician who fixes problems before they get out of hand - we respect your hard work.

Thank you for doing your part to build a better nation for all of us.

We wish all Common Singaporean workers a Happy Labour Day.

Desmond Lim
Chairman
Singapore Democratic Alliance



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Selamat Hari Raya Aidilfitri to all our Muslim brothers and sisters.

As we celebrate with family and friends, let’s also share the Raya spirit of kindness, forgiveness, and looking out for one another.

From all of us at SDA, wishing you a joyful Hari Raya filled with warmth, good food, and great company!

Stop Hiding Behind Cheap Statements, Compensate Our NSFs Fairly

Dear friends,

In this week’s Budget debate, the Workers’ Party proposed that NSFs should receive a minimum monthly allowance pegged to the Local Qualifying Salary (LQS).

That is a step in the right direction.

It was already one of the SDA’s key proposals in our 2025 Manifesto.

We proposed this because the current system is plainly unfair - almost to the point of hypocrisy.

Today, many NSFs receive less each month than a factory cleaner or even a fast-food service worker.

And when a son serves National Service, it is not only he who carries the financial burden - his family carries it too.

That is why we proposed the increase in NSF monthly compensation to the LQS, with any combat allowance paid on top as an additional recognition of tougher duties.

We also proposed free local university education for those who qualify.

Together, these measures would give Common Singaporean families a stronger financial cushion.

It would also give our young men more room to take bold steps in life after service — whether in further studies, work, or building something of their own.

This can be funded through the revenue collected from our proposed staggered levy on Employment Pass-holders.

Unlike the President, ministers and MPs, NSFs are not allowed to take on side appointments during service.

So the government must be fair to our NSFs.

Stop hiding behind cheap phrases like “we must not conflate duty with transaction” or “service cannot be measured in dollars and cents”.

Nobody is saying duty should be reduced to money.

But if the government expects our boys to take care of the nation, then the government must do what is right and take care of them too.

Desmond Lim
Chairman
Singapore Democratic Alliance



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Tax Hikes and Growing Surpluses: Singaporeans Deserve Answers

Dear friends,

There is a growing need for greater accountability in how the government spends public funds.

This concern was rightly raised by Mr Pritam Singh in Parliament this week.

In our 2025 Manifesto, the SDA called for the establishment of an independent agency to scrutinise major government expenditure and report directly to Parliament.

Such an institution would strengthen fiscal oversight and reinforce public trust.

This is important for two key reasons.

First, when taxes are raised, Singaporeans deserve clarity on whether this money is put to good use.

The GST was increased in 2023 and 2024 at a time when families and businesses were already grappling with rising living costs.

The stated objective of the hike was to raise an additional $2–3 billion annually to fund growing expenditure needs.

Yet from FY2023 onwards, the Government has recorded sizeable budget surpluses — approximately $6 billion to $8 billion each year.

This means the government accumulated much more than it needs for spending.

So, was there a need to increase GST and worsen the daily strain on Common Singaporean families?

Second, transparency in spending is essential to government accountability.

As Mr Singh observed in reference to the S$40 billion Forward Singapore package announced in 2024:

“To my knowledge, there has been no well-publicised tracking of cumulative spending since then.”

Major national packages should be accompanied by clear, accessible reporting.

In this way, MPs and the public can assess how funds are used and whether objectives are met.

Greater transparency is not obstruction. Rather, it is good governance.

Singaporeans have a right to know if:

• tax increases are truly necessary,
• funds are being accumulated beyond operational needs,
• public monies are delivering meaningful improvements in citizens’ lives.

The SDA therefore renews our call for stronger scrutiny and fuller disclosure of government expenditure.

At a time when many families — especially the sandwiched middle class — continue to feel squeezed, the Government must do more than accumulate surpluses.

It must deploy resources decisively to ease pressures and strengthen social support.

This includes serious consideration of proposals such as the Family Care Account proposed by the SDA, which would provide targeted relief for households managing both elderly parents and young children.

The figures show that the Government has the financial capacity.

What Singaporeans now seek is the political will.

Desmond Lim
Chairman
Singapore Democratic Alliance

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Dear friends,

May the year ahead bring better health, steadier livelihoods, and stronger family bonds. Happy Chinese New Year!

亲爱的朋友,

新的一年，愿大家身体健康、生活安稳、家和万事兴。新年快乐，恭喜发财！

Budget 2026: Where’s the Support for the Sandwiched Middle Class?

Dear friends,

Budget 2026 promises more support for low-wage workers. That is a step in the right direction.

But many Singaporeans are asking a simple question: what about the sandwiched middle class?

These are everyday families working hard and paying taxes, while raising children and caring for their parents.

Yet they are quietly being stretched from both ends by higher bills while prices rise more than wages.

And after long work hours, they’re told to upgrade skills, spend quality time with family, and still manage caregiving.

There are only 24 hours in a day.

Many families we have spoken to are simply enduring. This is not how life should be.

SDA believes Singapore must do more for these families.

That’s why we proposed in 2025 a Family Care Account (FCA).

This is a simple, practical support system for sandwiched households.

Under the FCA:

-families receive monthly government support, scaled to household needs

-the funds can be used for caregiving and basic healthcare support

-it works alongside the existing Child Development Account, so support covers both the young and the old

This is not a one-off voucher. It is steady, reliable help — the kind that families can plan their finance around.

It also helps Singapore face a reality we can’t avoid: more elderly, more caregiving, more strain on families. And with proper support, families and seniors can transition into eldercare with dignity.

The government can spend billions on big-ticket priorities, and even mull increasing high defence spending.

Surely it can spend a fraction of that to improve the daily lives of Common Singaporean families who are holding up this country.

Give our sandwiched middle-class a fair chance by delivering real help that reaches the ground.

Desmond Lim
Chairman
Singapore Democratic Alliance



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Closing the Gap from Growth to Good Jobs

Dear friends,

Deputy Prime Minister Gan Kim Yong has finally stated plainly what many Singaporeans have felt for years: economic growth does not automatically translate into more good jobs for Singaporeans.

We have seen this anxiety before. As far back as 2011, Singaporeans turned up in large numbers at Hong Lim Park to voice concern that rapid inflows of foreign labour were coinciding with job insecurity and wage pressure for locals.

Today, the situation is still not reassuring for many young people entering the workforce. Recent graduate employment outcomes—especially full-time, permanent outcomes—have remained a source of worry. If we want to be honest about the problem, we must stop treating it as a temporary blip or blaming “AI” as the convenient explanation. The cracks have been visible for well over a decade.

There are structural issues at play. One is whether Singaporeans are competing on an even playing field against foreign PMETs.

In the past, foreign PMETs were often justified as a way to transfer skills and groom Singaporeans to lead industries. But today, many Singaporeans feel the competition has become uneven—particularly when employers can fill roles with foreigners without facing the same cost structure that comes with hiring and retaining locals.

Unlike Work Permit and S Pass holders, Employment Pass holders are not governed by fixed sector quotas, and employers do not pay levies in the same way. At the same time, hiring a local typically comes with additional employer CPF contributions. Over time, these incentives can skew employer decisions—especially for fresh graduates and mid-career Singaporeans who are already facing intense competition.

Let us be clear: it is understandable that foreigners seek better opportunities here, and Singapore does need top global talent to grow our industries. But this cannot come at the expense of Singaporeans, especially young graduates and mid-career workers trying to keep their footing.

That is why the SDA, in our 2025 Manifesto, has called for a tiered levy on Employment Pass holders, calibrated by salary band and sector needs. The objective is simple: to nudge companies to hire and train Singaporeans into high-skilled and leadership roles, and to level the playing field for mid-career locals who are too often seen as “expensive” to hire.

Jobs pressure has multiple causes. But why not fix what we can fix - especially when it is within the government’s ability to do so? In the end, this is about political will. We urge the government to design a system with Singaporeans at heart.

Desmond Lim
Chairman
Singapore Democratic Alliance



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