This latest round of support measures comes after the Government announced in June a S$1.5 billion support package for households and businesses to help mitigate increased living costs from inflation and rising energy prices.
This aid was similarly aimed at the lower-income and more vulnerable groups, and was also not funded by past reserves.
“This new S$1.5 billion support package, together with earlier rounds of support measures rolled out this year, will fully cover the increase in cost of living for lower-income households on average, and more than half of the increase in cost of living for middle-income households on average this year,” MOF said.
Earlier on Friday, Singapore’s central bank tightened monetary policy as expected, for the fifth time in a year.
On top of its regular adjustments in April and October, the Monetary Authority of Singapore made two surprise moves in January and July, in bids to strengthen the Singapore dollar and dampen inflation.
Singapore’s core inflation has been steadily rising and August’s figure of 5.1 per cent was just shy of a 14-year high of 5.5 per cent reported in November 2008.
“While supply chain frictions have eased slightly, the ongoing conflict in Ukraine continues to put pressure on commodity prices,” MOF said.
“As a small, open economy, Singapore is particularly susceptible to blur to imported price pressures, through channels such as food energy.
“Domestically, a tight labour market continues to support strong wage growth. As such, we must be prepared for inflation to stay elevated for some time.”