Gerald Giam Suggests Higher NSF Allowance Due To Inflation, MINDEF Says Food & Lodging Already Covered

Gerald Giam Asks If MINDEF Has Considered Increasing NSF Allowance

As with all issues concerning pay and reimbursement, the topic of full-time national servicemen (NSF) allowance can be just as contentious.

Speaking in Parliament on Wednesday (22 Feb), Workers’ Party MP Gerald Giam asked the defence ministry if they’ve considered bumping the allowance in light of the ongoing inflationary climate.

In response, Senior Minister of State for Defence Heng Chee How stated that National Service (NS) allowances are meant to support servicemen’s personal upkeep.

But since most NSFs stay in camps, their lodging, food, clothing, and medical care are already provided.

Gerald Giam suggests raising NSF allowance due to surging inflation & rising cost of living

During the Parliamentary session on Wednesday (22 Feb), Aljunied MP Gerald Giam asked if the Ministry of Defence (MINDEF) has considered raising NS allowance in light of inflationary pressures and an increase in the cost of living.

Responding to the question, Senior Minister of State for Defence Heng Chee How said NSFs receive an allowance to support their basic personal upkeep.

However, since most NSFs are stay-in personnel, the allowance takes into account that basic needs like lodging, food, clothing, and medical care are already provided for.

Nonetheless, Mr Heng said MINDEF regularly reviews and makes adjustments to the allowance.

In fact, it has made three adjustments over the past decade, with the most recent in March 2020.

Mr Heng said MINDEF would continue conducting such periodic reviews and make adjustments where necessary.

Heng Chee How says lodging, food & clothing already covered for most NSFs

Mr Giam, however, pointed out that the cost of basic upkeep has increased significantly since March 2020 due to surging inflation.

In light of this, the Workers’ Party MP asked if it was possible to peg NS allowance to significant increases in the consumer price index (CPI) or the Monetary Authority of Singapore’s measure of core inflation.

In Mr Giam’s view, this will minimise the “lag” between the cost of living increases and NS allowance adjustments.

He ended his Supplementary Question by asking when MINDEF will next review NS allowance and if it’s possible to bring this forward in light of the current inflationary climate.

To this, Mr Heng said MINDEF monitors the overall price levels whenever they recalibrate the NS allowance.

However, Mr Heng reemphasised that lodging, food, clothing, and medical care are already provided for in the case of most NSFs — these items would otherwise count towards the overall cost of living.

As such, NSFs are, in a way, ‘immune’ to the general cost of living others in the country are subjected to.

Calvin Cheng suggests funding NSF allowance increase by taxing those who do not serve NS

Former Nominated MP Calvin Cheng has also weighed in on the issue with an interesting suggestion on how to fund the increase in NS allowance.

In a Facebook post on Wednesday (22 Feb) night, Mr Cheng said he fully supports raising NS allowance.

He argued that food and lodging shouldn’t be factored in since NS is compulsory and that “nobody would choose to stay in barracks and eat in a cookhouse”.

However, Mr Cheng said increases to NS allowance cannot be funded by general taxpayers.

Describing NS as a contribution of time and effort, Mr Cheng pointed out that residents who do not serve NS are getting a “free ride” on others who do.

As such, he proposed a special tax to be imposed on the following groups:

• Female Singaporeans
• Female Permanent Residents
• Male citizens and PRs who did not serve NS

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Featured image adapted from MCI Singapore on YouTube and MINDEF on Facebook.