In the midst of an uneven economic recovery and persistent high inflation, DBS/POSB is taking proactive steps to address the financial challenges faced by Singaporeans and residents. A substantial commitment of SGD 40 million has been earmarked this year to intensify efforts aimed at easing the burden of living costs.
These measures, progressively rolled out since February, encompass a range of initiatives designed to alleviate everyday expenses, provide relief on mortgage payments, and fortify savings. These efforts build upon the bank’s initiatives introduced in the previous year to help customers safeguard their finances against inflation.
Targeted Support for Vulnerable Communities
DBS/POSB’s initiatives include focused assistance for vulnerable and low-income communities, particularly those grappling with acute financial stress. A recent study by DBS revealed that individuals earning less than SGD 2,500 are disproportionately affected. Their expenses have outpaced income growth by 1.2 times, leading to compounded cashflow challenges due to insufficient savings. Shockingly, their savings can sustain them for less than 1.5 months, well below the recommended range of three to six months.
Unveiling of Cost-of-Living Measures
Throughout the course of this year, DBS/POSB has introduced several impactful cost-of-living measures to address these pressing concerns. Notable highlights include:
Monthly Transport Rebate: DBS/POSB is offering a monthly transport rebate of up to SGD 20 to the first 100,000 individuals who enroll in the scheme and utilize their DBS/POSB debit cards for public transport, groceries, and shopping. For those earning below SGD 2,500 per month, spending just SGD 80 monthly can offset their public transport costs.
Enhanced POSB HDB Home Loan Package: This package, designed for borrowers with a monthly income of SGD 2,500 and below, offers an all-in interest rate of 2.6% p.a. Similar to the existing HDB concessionary home loan, this package is available to new homeowners and those seeking to refinance their HDB mortgages. Successful applicants will also receive a complimentary one-year fire mortgage insurance in collaboration with Chubb Insurance.
Enhanced DBS Multiplier High-Yield Savings Program: Designed to benefit low-income and gig workers, this program enables the tripling of interest rates to 1.8% p.a. on higher balances, making savings growth more accessible.
Student Allowance Subsidy: A SGD 2 weekly allowance subsidy is offered to students using POSB Smart Buddy for transactions, providing relief to students and their families. This initiative aims to reduce the financial burden on households.
5 Million Hawker Meals Scheme: DBS/POSB has launched a program to subsidize five million hawker meals, offering SGD 3 cashback to the first 100,000 diners using DBS PayLah! for payments at SG-QR enabled hawker stalls every Friday. This initiative not only reduces expenses but also supports local hawkers by boosting their weekly earnings.
A Future-Focused Commitment
In a recent announcement, DBS unveiled plans to commit up to SGD 1 billion over the next 10 years to uplift the lives and livelihoods of the low-income and underprivileged. Starting from 2024, an annual allocation of SGD 100 million will be directed towards programs supporting vulnerable segments in Singapore and other key markets. Additionally, DBS employees will contribute over 1.5 million volunteering hours to amplify social impact.
A Legacy of Giving Back
DBS/POSB has a longstanding commitment to community welfare through its banking solutions and community outreach endeavors. With a pledge of SGD 150 million towards the work of DBS Foundation (DBSF) and other philanthropic initiatives, the bank has actively supported digital and financial literacy among Singaporeans and residents. Collaborating with the Infocomm Media Development Authority (IMDA), DBS has facilitated digital literacy workshops benefiting more than 16,000 individuals so far.
Empowering Singaporeans Through Challenging Times
In an era marked by economic uncertainties, DBS/POSB’s commitment to addressing cost-of-living pressures demonstrates its unwavering dedication to uplifting the lives of Singaporeans and residents. With a comprehensive array of measures designed to empower individuals and families, DBS/POSB stands as a beacon of support, ensuring a more secure and resilient future for all.
