To address the rising cost of living, Singapore is introducing a $490 financial relief initiative beginning April 30, 2025.
Part of a broader support package under Budget 2025, this measure is aimed at easing economic pressure on households by distributing Community Development Council (CDC) vouchers and other targeted assistance throughout the year.
This initiative reflects Singapore’s proactive strategy to support citizens amid global inflation and increased daily expenses.
The rollout of the $490 aid package is a key part of a larger S$800 voucher scheme available to all eligible Singaporean households.
What Is Included in the $490 Support?
The $490 support refers to the first portion of the total S$800 in CDC vouchers that every Singaporean household is set to receive in 2025. These vouchers are split into two phases:
- S$500 disbursed in May 2025
- S$300 disbursed in January 2026
By April 30, 2025, citizens can expect to receive updates regarding the first $490 tranche, which will soon follow in May.
The CDC vouchers are usable at hawker stalls, local businesses, and supermarkets that are part of the participating merchant network. The primary goal is to help households manage essential living costs.
Who Is Eligible for the $490 Cost-of-Living Support?
Eligibility for the CDC vouchers is broad and inclusive, ensuring maximum reach across the nation. The main criteria are:
- Citizenship: Only Singaporean households are eligible.
- Household Definition: A household is considered as individuals living at the same residential address and sharing expenses.
There are no income thresholds or property ownership restrictions, allowing widespread access to support regardless of socioeconomic background.
Additional Government Support in 2025
In addition to the $490 voucher initiative, the Singaporean government is introducing multiple layers of financial relief:
- U-Save Rebates: HDB households will receive rebates ranging from S$440 to S$760, aimed at reducing utility bills. These will be distributed in April and October 2025.
- Commemorative Vouchers: Celebrating Singapore’s 60th year of independence, citizens aged 21 and above will receive S$600 in July 2025, while seniors aged 60 and above will get S$800.
- Tax Rebates: A 60% personal income tax rebate, capped at S$200, has been introduced for the 2025 assessment year to ease individual tax burdens.
These multi-pronged efforts are strategically designed to reduce the pressure of rising expenses for households across different age groups and housing situations.
How to Access the $490 Support
The government has ensured a smooth and inclusive distribution process:
- Automatic Disbursement: Eligible households will be automatically informed and do not need to apply.
- Digital Redemption: Vouchers can be accessed via the LifeSG mobile app for ease of use and convenience.
- Non-Digital Assistance: Physical voucher collection and support for those unfamiliar with digital tools will be made available through community centers and assistance programs.
Tackling Singapore’s Rising Cost of Living
With inflation and global supply chain disruptions influencing everyday expenses, households are feeling the strain. The average monthly cost of living includes:
- Rental: S$2,500 to S$4,000 for city apartments; S$1,500 to S$2,500 in suburban areas.
- Utilities: Around S$150 monthly for basic services.
- Groceries: Ranges between S$500 and S$1,000 depending on household size.
- Transport: A public transport pass costs S$100 to S$120 per person monthly.
The $490 cost-of-living support, coupled with rebates and tax relief, is expected to offset a portion of these costs and provide meaningful aid to citizens.
The $490 cost-of-living support launching on April 30, 2025, is a vital step by the Singaporean government to help citizens manage rising expenses.
Combined with rebates and tax relief, this initiative ensures broad-based assistance, easing financial burdens and reinforcing the country’s commitment to inclusive economic support for all households.
FAQs
When will the $490 support be available?
The initial $490 will be disbursed starting in May 2025, with households notified by April 30.
Do Singaporeans need to apply for the CDC vouchers?
No application is required. Eligible households will receive the vouchers automatically.
Can the CDC vouchers be used at any store?
Vouchers can only be used at participating hawker stalls, supermarkets, and merchants listed under the CDC scheme.