Cost of living in Singapore

[LITTLEREDDOT]

Forum: Average Singaporean should have a decent chance of owning a car​

Apr 25, 2023

In the light of record-high certificate of entitlement prices (Soaring COE prices: What’s driving the insanity and when will it end?, April 24), I wonder if we are allocating a scarce resource efficiently. Even small cars are now beyond the reach of the average Singaporean.
Moreover, the high COE costs would have a trickle-down effect and be passed on in other ways such as taxi fares, the cost of rental cars and other forms of transportation, and business costs. This would contribute to the financial woes of Singaporeans.
I know of one resident in my estate who owns nine cars. The rich will continue buying more cars and leave them idle at home.
Is that the best use of a scarce resource? These resources could be put to better use by those who really need them, such as those who have to ferry children or the disabled.
There have been calls for measures to curb ownership of cars beyond the first car by making those with multiple cars pay more. These are worth considering, to come up with a system that can address the problem of average Singaporeans getting priced out of the market and the inflationary pressures from runaway COE prices.
The average Singaporean should have a decent chance of owning a car. I urge the Government to do something fast about the current COE system.

Charlie Tan

 

[LITTLEREDDOT]

How about cutting the salaries of the town mayors to keep costs down?

Service and conservancy charges for HDB residents likely to go up​

Singapore's town councils are currently evaluating their finances to determine an appropriate increase in S&CC. ST PHOTO: ALPHONSUS CHERN
Amelia Teng

Apr 30, 2023

SINGAPORE – Service and conservancy charges (S&CC) are likely to go up soon for Housing Board residents, but the Government will provide temporary support to cushion the impact on households.
Town councils here are currently evaluating their finances to determine an appropriate increase in S&CC, and more details will be provided after these deliberations are completed, coordinating chairman for PAP town councils Lim Biow Chuan told The Straits Times.
S&CC was last raised in 2017, with the hike of between $1 and $17 per month phased over two years. Such fees go towards estate cleaning, landscaping, refuse collection, pest control and maintenance of mechanical and electrical fixtures such as lifts and lights.
When the rates are adjusted, “time-limited, special funding support” will be given to help residents deal with the higher fees, Minister for National Development Desmond Lee said in a written reply to a parliamentary question by Bukit Batok MP Murali Pillai on April 21.
Responding to queries from ST, Mr Lim said town councils have been facing increasing cost pressures over energy prices, maintenance costs and manpower costs. Some of these increases have been particularly sharp, such as for energy prices, which have risen by 23 per cent between 2018 and 2023, he said.
Lift maintenance costs have also increased due to higher labour costs for lift technicians and higher materials costs.
“With the implementation of the Progressive Wage Model to uplift low-wage workers, the town councils’ operational costs have also gone up due to increase in tender prices for conservancy cleaning contracts and horticulture contracts,” Mr Lim said.

“This increase in costs cannot be avoided if we want to support the lower-wage workers.”
Mr Lim, who is also MP for Mountbatten, stressed that PAP town councils have been careful in managing expenditure and constantly seek productivity improvements and cost savings.
“Town councils are grateful to the Ministry of National Development (MND) for providing regular grants for our operations, which help us maintain S&CC at a lower level than we otherwise would need to,” he added. Some $240 million in grants are provided to town councils each year to offset maintenance costs so that they do not fully fall on residents.
Mr Murali said a key concern is that maintenance costs for mature HDB estates will rise faster than for newer estates.
Based on the latest financial statements, he told ST that town councils that manage a substantial number of mature flats tend to “run operational deficits before accounting for government grants, which are admittedly quite substantial”.
“In mature estates, there are simply more things to maintain,” he said. “For example, it is not uncommon to see perimeter drains that have become misaligned or damaged due to soil subsidence or natural deterioration.”

ST contacted nearly all 17 town councils, run by either the People’s Action Party or the Workers’ Party, but they declined to comment or did not respond.
Observers such as National University of Singapore (NUS) business school professor Lawrence Loh said the confluence of global factors such as inflation and geopolitical tensions having raised the cost of materials and services meant a price alignment is necessary.
But it is critical to ensure that lower-income households are not hit hard by the fee adjustments, he said.
“Financial support and rebates should remain a mainstay of assistance schemes. Yet, we have to consider carefully if any changes should be locked in permanently so as not to affect long-term financial sustainability,” said Prof Loh, who is director of the Centre for Governance and Sustainability at NUS.
“It may be prudent to introduce time-bound or one-off additional measures initially while the picture of overall economic recovery and cost stabilisation becomes clearer.”
Manpower costs are likely to be a strong driver behind the impending hike, said Singapore Management University’s associate professor of law Eugene Tan. He noted that wages have been rising after little to no wage adjustment during the pandemic years of 2020 to 2022.
Even so, there is always a question over whether S&CC hikes can be deferred or be smaller, given that town councils have operational surpluses, he said. “Furthermore, some residents are of the view that standards of estate maintenance have not improved, and so the hike in charges is less acceptable.”
Given additional funding from MND, some residents may also find the higher charges puzzling, Prof Tan added.
In its April parliamentary reply, MND said the Government had provided additional funding to town councils in May 2022 to help them manage steep cost increases caused by factors such as the pandemic, the Russia-Ukraine conflict and the global supply crunch.
The money would go towards projects under the Neighbourhood Renewal Programme and the Community Improvement Projects Committee (CIPC). CIPC funds are typically used for facilities such as covered walkways, footpaths, cycling tracks and playgrounds.
The Government gives out rebates in its annual Budget to offset the S&CC. Depending on flat type, Singaporean households will receive between 1½ and 3½ months of rebates in 2023.

 

[LITTLEREDDOT]

With zero car-growth and rising incomes, COE prices will trend upwards: Iswaran​

Singapore will prioritise pedestrians, cyclists and public transport users, and reduce the need for private cars, says Transport Minister S Iswaran.

Transport Minister S Iswaran speaks in parliament on May 8, 2023.

Chew Hui Min​

@ChewHuiMinCNA
08 May 2023

SINGAPORE: With Singapore’s policy of zero-growth in the car population and as household incomes rise, Certificates of Entitlement (COE) premiums are expected to trend upwards, said Transport Minister S Iswaran in parliament on Monday (May 8).
“Fundamentally, the COE prices reflect demand for a limited and falling supply of COEs,” Mr Iswaran said in a ministerial statement responding to parliamentary questions on the COE system.
He noted that demand for vehicles has remained "resilient", especially as the economy recovers after COVID-19. Incomes have also been rising over the long term, and the ratio of COE price to median monthly household income has fallen.
“As household incomes continue to rise in the coming years, coupled with our policy of zero-growth in the car population, we must expect the long-term trajectory for COE prices to be upwards,” said Mr Iswaran.
Even as he announced new measures to raise the COE quota for cars in categories A and B over the next few quarters, Mr Iswaran stressed that mass public transport is at the core of Singapore’s transport strategy and the country is moving towards a “car-lite” future.
“As we seek to improve the efficiency of the COE system with these measures that we have already undertaken over the years, we should not lose sight of our goal of becoming a car-lite society with accessible and inclusive transport for all Singaporeans,” he concluded.

Ten Members of Parliament had asked more than 20 questions about rising COE premiums, which have hit record highs in recent bidding exercises. Category A premiums for smaller cars, for instance, surpassed the S$100,000 mark in April.
A number of MPs asked about the reasons behind the rise in COE prices and the impact of demand from private hire companies. MPs asked if a cap can be imposed on the number of private hire cars, and if foreigners or households with multiple vehicles have driven up demand for cars.
MPs were also concerned that those who need cars, such as households with children and the elderly, as well as people who rely on cars for their livelihood, will be priced out.

CAR-LITE FUTURE​

Mr Iswaran set the context by pointing out that Singapore has two key constraints when it comes to land transport - land and carbon emissions.
Roads occupy 12 per cent of land area for 7 million journeys a day, while the rail network, taking up less than 1 per cent of land surface, serves around 3 million journeys a day, he said.
The land transport system also accounts for 15 per cent of Singapore’s total domestic carbon emissions, and it must be reduced if Singapore is to achieve net-zero emissions by 2050.
Mr Iswaran said Singapore will prioritise pedestrians, cyclists and public transport users, and reduce the need for private cars.
“This is the ‘car-lite’ future that we envisage as we plan and redevelop our precincts,” said Mr Iswaran

​

Responding to the questions on COEs for private hire cars, Mr Iswaran said that for the last four years, the number of private hire cars has remained at about 10 per cent of the total car population and has averaged around 70,000 since 2019.
“While COE prices have been rising over the past several quarters, demand from PHC companies has in fact been moderating,” said Mr Iswaran.
The minister added that shared transport, including car-sharing services, allows for more efficient and inclusive use of roads, as compared with individually owned private cars. He thus cautioned against imposing any “arbitrary cap” on the private hire car population.
“That said, PHCs are a relatively new development ... and COVID-19 has caused some disruption in the market. We are studying this further to ascertain the effect of PHCs, if there is any impact, on the market,” Mr Iswaran said.

SMOOTHENING COE SUPPLY​

Addressing questions on improving the COE system for both cars and motorcycles, Mr Iswaran pointed to how the system has been adjusted over time.
"On the whole, the system continues to serve our policy objective of efficiently allocating the limited supply of COEs," he said.
In response to questions from two MPs, Mr Iswaran said that the proportion of car COEs secured by foreigners remains low - at less than 3 per cent - and has not changed significantly over the years.
He also gave statistics about households that own multiple cars, saying that over the past decade, the proportion has been steadily declining from about 19 per cent of households in 2012 to less than 15 per cent today.

He said last November that of the 471,000 households that own cars, 12 per cent own two cars and less than 3 per cent own three or more cars.

​

Mr Iswaran explained that as COE supply is determined by car de-registrations in preceding quarters, which has been low of late, the Transport Ministry decided to introduce measures to reduce volatility in the quota.
Instead of considering just the preceding quarter, the ministry now uses the moving average of de-registrations in the four preceding quarters to compute COE quotas.
While he expects the COE supply to start increasing in the coming months as more cars reach the 10-year mark when owners consider de-registering their vehicles, LTA will also take steps to re-distribute the supply from five-year COEs due to expire in the next projected supply peak, to further reduce volatility.
“There will still be a degree of supply fluctuation due to historical factors and broader market conditions,” Mr Iswaran said.
“Second, the long term upward trend of COE prices due to rising incomes and zero vehicle population growth will not abate.”

 

[LITTLEREDDOT]

Singapore private homes now priciest to own and rent in Asia-Pacific in absolute terms: Report​

In absolute terms, the median price of Singapore’s private homes have overtaken those of Hong Kong. PHOTO: ST FILE
Bryan Kow

May 30, 2023

SINGAPORE - Private residential property in Singapore is now the most expensive in the Asia-Pacific in terms of absolute prices, overtaking Hong Kong in 2022, according to a report released by the Urban Land Institute (ULI) on Tuesday.
ULI said the median price of Singapore’s private homes now stands at US$1.2 million (S$1.6 million), compared with Hong Kong at US$1.16 million. In the next highest market, Sydney single-family homes were a median US$980,000.
Singapore’s median private home prices rose about 8 per cent in 2022 whereas those in Hong Kong fell almost 9 per cent amid strict Covid-19 curbs, the report found.
On a per square metre (psm) basis though, Hong Kong is still the most costly private housing market in the region by far.
In 2022, the average psm price for a private home in Hong Kong was US$19,768, equivalent to US$1,836 per square foot (S$2,485 psf) - more than twice the median figures for cities such as Singapore, Tokyo Ku, Shenzhen, Beijing, and Shanghai.
In general, home ownership in Singapore is high at 90 per cent and is accessible due to the large supply of public housing, ULI noted.
“In contrast, other gateway cities such as Hong Kong, Shanghai, Tokyo, and Seoul have relatively low homeownership rates, reflecting high home prices and the more migratory nature of the populations in gateway cities,” it said.

But the affordability ratio of Singapore private homes now stands at 13.7, placing them in the unaffordable range, said ULI.
Homeownership is considered unaffordable when the ratio of the median home price to median annual household income exceeds 5. Across the cities tracked by ULI, median annual household income was highest in Singapore at US$87,900.
Shenzhen homes ranked least affordable with a ratio of about 35, while Hong Kong’s ratio fell to 26.5.

Data compiled by ULI showed also that the median price of a resale Housing and Development Board (HDB) flat rose 7.9 per cent from US$379,000 to US$409,000 (S$554,000) in 2022. With that, the affordability ratio of HDB resale flats has also crept up from 4.5 to 4.7.
Still, including public housing, Singapore housing is ranked “most attainable” in ULI’s 2023 Asia Pacific Home Attainability Index, with the median price of HDB resale flats at 4.7 times the median annual income.
“Meanwhile, home attainability is severely challenged in Tier 1 and leading Tier 2 cities in mainland China, Hong Kong, Metro Manila, Metro Cebu, Ho Chi Minh City, and Danang with median home prices at approximately 20 to 35 times median household income,” ULI said.

In rentals, Singapore’s private homes chalked up a median monthly rent of US$2,596, which is 53 per cent higher than Hong Kong’s median monthly rent of US$1,686 and overtaking other high cost-of-living cities like Tokyo (US$602) and Seoul (US$689).
This comes after Singapore’s median monthly rents increased by 29.7 per cent in 2022.
Factors such as construction delays, a sudden surge in the number of migrants and a relatively limited stock of institutionally or individually owned rental properties contributed to the rising market, said ULI.
The median monthly rent for private homes in Singapore represents 35 per cent of the overall median household income.
“However, as most renters of private-sector homes (in Singapore) have higher than median income, the monthly rent amount should be a significantly smaller percentage of the renter’s monthly income,” ULI noted. THE BUSINESS TIMES

 

[LITTLEREDDOT]

PAP town councils to raise service and conservancy charges from July 1​

The town councils have been facing greater cost pressures due to higher energy prices, maintenance and manpower costs. ST PHOTO: LIM YAOHUI

Ang Qing

June 1, 2023

SINGAPORE - Service and conservancy charges (S&CC) will be raised twice over the next two years for Housing Board residents, shops, offices, markets and food stalls under PAP town councils due to rising costs.
The first increase, which takes effect from July 1, will have monthly fees rising by between $0.70 and $7.90 for HDB flats. Commercial property owners and tenants will also see an increase ranging from $0.01 to $0.40 per sq m. Market and food stalls will have their fees hiked between $2.20 and $31.50.
The next hike will come into effect on July 1, 2024, and will have fees for HDB residents raised between $1 to $9.10. Commercial property owners and tenants will see an increase ranging from $0.02 to $0.41 per sq m. The increase for market and food stalls will be between $2.20 and $36.40.
Announcing this on Thursday, the Marine Parade Town Council (MPTC) said the fee hikes are smaller than they would have been, because PAP town councils are receiving special funding support from the Government to cushion the impact of rising maintenance costs.
If not for this funding, S&CC increases required originally ranged between $3 and $21.90 per month for HDB residents, depending on the property type, said MPTC in a statement.
The town councils have been facing greater cost pressures due to higher energy prices, maintenance and manpower costs, said MPTC, citing high tender rates for cleaning, pest control and landscaping services.
It added that the fee hikes will allow town councils to maintain sufficient funds over the next five years for estate maintenance and upgrading.

Coordinating chairman for PAP town councils Lim Biow Chuan said most PAP Town Councils had expected to run a deficit for the financial year from 2023 to 2024 if S&CC rates remain unchanged.
Mr Lim, whose Mountbatten constituency comes under MPTC, added that this would mean the town councils would have to tap on accumulated surpluses from recent years, which would otherwise be used for topping up their sinking funds - used for longer term maintenance works.
“While the special funding support from Government will cushion the impact on residents, we will continue to focus on improving cost savings and productivity wherever possible, and keep up contributions to the sinking fund and lift replacement fund,” he said.
The Straits Times had reported in April that town councils have been facing a sharp increase in costs. For instance, energy prices have risen by 23 per cent between 2018 and 2023.
S&CC rates will differ between towns depending on the age and profile of estates, residents’ needs and operating expenditures. The fees pay for cleaning, landscaping, refuse collection, pest control and maintenance of mechanical and electrical fixtures such as lifts and lights.
Residents will be notified of the new rates by their town councils, said MPTC.
S&CC fees were last raised in June 2018, with the hike of between $1 and $17 per month for HDB residents phased over two years.
Most town councils are run by PAP except for those in the constituencies of Sengkang, Aljunied and Hougang, which are under the Workers’ Party (WP).
The Straits Times has asked the WP about whether their town councils will hike their S&CC fees.

 

[k1976]

Fish cake = Fish Price in SG Cai Png store

 

[LITTLEREDDOT]

Service and conservancy charges for 27 markets, hawker centres to increase from Jan 2024​

Amoy Street Food Centre is among the markets and hawker centres where service and conservancy charges will be increased in 2024. PHOTO: LIANHE ZAOBAO FILE

Chin Hui Shan

June 3, 2023

SINGAPORE – Service and conservancy charges (S&CC) will be raised twice in 2024 for 27 markets and hawker centres owned by the Ministry of Sustainability and the Environment (MSE).
This comes two days after an announcement that S&CC charges for Housing Board residents, shops, offices, markets and food stalls under PAP town councils will be raised due to rising costs.
In a statement on Saturday, the National Environment Agency (NEA) said that the rise in charges for MSE-owned markets and hawker centres comes after a review conducted with the ministry, and will take place twice in 2024. It noted that the current rates have been unchanged since 2005.
The first increase, which takes effect next January, will see monthly fees rise between $4 and $15 for each stall in the affected markets and hawker centres.
Stalls selling cooked food will have their rates increased by $15, from $140 to $155, while those selling piece and sundry goods will see an increase by $8 to $87. Stalls selling market produce will have their fees hiked by either $4 or $6, depending on the produce.


The second hike will come into effect in July, and will see rates increased further, from a range of $6 to $20.
Stalls selling cooked food will face a $20 increase, while those selling piece and sundry goods will have fees hiked to $99. Stalls selling market produce will have rates increased by either $6 or $9, depending on the produce.

NEA said that the charges collected are used to cover regular operating costs of the markets and hawker centres, such as general cleaning, utilities and maintenance.
“While the cost of cleaning and maintaining the markets and hawker centres has increased significantly over the years, the current S&CC rates have remained unchanged since 2005,” said NEA, adding that the adjustment is comparable to the recently announced S&CC increase to most HDB-owned markets and hawker centres.
Mr Anthony Low, vice-president of the Federation of Merchants’ Associations Singapore and the chairman for its hawkers division, said the increase in fees is “unavoidable” due to increasing manpower and living costs.
Although the amount may seem steep at first, he acknowledged that the increase in fees does not happen often.
Mr Low, who owns a cooked food stall in Taman Jurong Food Centre, said he feels the increase is acceptable and will not be passing on any cost to his customers.
“This will unlikely result in hawkers exiting the market, but we hope NEA will ensure that the equivalent incremental value can translate back to improved services and quality to benefit the hawkers,” he added.

List of 27 markets and hawker centres:​

• Adam Food Centre
• Amoy Street Food Centre
• Bedok Food Centre
• Beo Crescent Market
• Berseh Food Centre
• Bukit Timah Market
• Chomp Chomp Food Centre
• Commonwealth Crescent Market
• Dunman Food Centre
• East Coast Lagoon Food Village
• Geylang Serai Market
• Golden Mile Food Centre
• Holland Village Market & Food Centre
• Kallang Estate Market
• Margaret Drive Hawker Centre
• Market Street Hawker Centre
• Marsiling Mall Hawker Centre
• Maxwell Food Centre
• Newton Food Centre
• North Bridge Road Market & Food Centre
• Pasir Panjang Food Centre
• Sembawang Hills Food Centre
• Serangoon Garden Market
• Taman Jurong Market & Food Centre
• Tanglin Halt Market
• Tiong Bahru Market
• Zion Riverside Food Centre

 

[LITTLEREDDOT]

ComfortDelGro to charge 70-cent platform fee from July 1 for rides booked via its app​

ComfortDelGro said the new platform fee will also apply to limousine transfers made through its app, but not for rides booked via phone calls or text messages, or for street hails. ST PHOTO: KUA CHEE SIONG

Kok Yufeng
Transport Correspondent

June 20, 2023

SINGAPORE - Passengers will pay 70 cents more for taxi and private-hire car rides booked via ComfortDelGro’s CDG Zig app from July 1 – one of several fare-related announcements taxi and ride-hailing companies made on Monday.
ComfortDelGro said this new platform fee will also apply to limousine transfers made through its app, but not for rides booked via phone calls or text messages, or for street hails.
It is introducing the platform fee for app bookings so that it can continue to improve the quality of its point-to-point transport services, the home-grown transport giant said in a Facebook post on Monday.
It said it has been regularly improving the CDG Zig app by introducing features and services like merchant deals, restaurant reservation and private bus charter.
During the company’s annual general meeting in April, shareholders were also told that the next version of the app would come with new and improved user features and services.
Ride-hailing firms Grab, Gojek, Tada and Ryde all charge platform fees of varying amounts, with such fees going to the companies themselves. The stated purpose is usually to maintain, improve and develop app and product features.
ComfortDelGro, Singapore’s largest taxi operator, had a fleet of 8,840 cabs as at April, or about 63 per cent of Singapore’s taxi population. It also owns about 600 private-hire cars and has around 4,000 private-hire drivers on the CDG Zig platform.


Separately, Gojek on Monday announced that it will replace its fixed 70-cent platform fee for each trip made using its app with a tiered fee based on factors such as the duration of a trip and the distance travelled.
This will take effect on July 3, and fares may be up to 10 cents cheaper or up to 30 cents more expensive as a result of the change.
“We believe this structure more accurately reflects the range of trips people take on our platform, and helps to ensure prices remain fair and competitive,” Gojek said in a notice to customers and drivers.

The company will also be raising the starting fares for its Premium, XL and XL Kids services – a move that it said is aimed at compensating drivers more fairly.
From July 3, the starting fares for Gojek Premium, which are rides taken in higher-end vehicle models like the Toyota Vellfire and Mercedes-Benz E Class, will increase by $6.45 between midnight and 5.59am. At all other times of the day, such rides will cost 45 cents more.
Gojek said this is to create more parity with other industry players who levy similar surcharges.
Starting fares for Gojek’s XL and XL Kids services, which allow passengers to book rides that can accommodate up to six people, will go up by 30 cents come July 3.

Meanwhile, what were supposed to be one-off increases to distance and waiting-time fares for taxi rides have been extended by another year until June 30, 2024.
This applies to all five taxi companies here: ComfortDelGro, Trans-Cab, Strides, Premier and Prime.
This temporary taxi fare hike was introduced in April 2022 on the back of soaring pump prices at the time.
With the extension, passengers taking regular taxis will continue to be charged 25 cents for every 400m travelled up to 10km, and every 350m thereafter, as well as for every 45 seconds or less of waiting time – up from 24 cents previously.
For limousine and premium cabs, passengers will continue to pay a higher fare of between 34 cents and 36 cents for every 400m travelled up to 10km, every 350m travelled after 10km, and every 45 seconds or less of waiting time, depending on the taxi operator.
Temporary increases to taxi location surcharges that were introduced in 2022 have also been extended by a year until June 30, 2024.
Those taking a cab from Changi Airport will continue to pay an additional $8 between 5pm and 11.59pm and an additional $6 at all other times – an increase of $3 from the usual fee.
A $3 surcharge for taxi rides originating from the Singapore Zoo, Night Safari and River Wonders will be extended to the newly opened Bird Paradise in Mandai from July, and the surcharge will be applied from 1pm to 11.59pm daily, compared with 4pm to 11.59pm previously.
Also being extended until June 30, 2024, are temporary fees that Gojek and Tada have imposed on passengers since 2022 to help drivers cope with higher fuel costs and other expenses.
Gojek’s “driver fee” is 50 cents for trips less than 10km, and 80 cents for trips that go beyond 10km. Tada charges a driver fee of 50 cents for rides with fares $18 and below, and 80 cents for rides that cost $18.10 and above.
Both platforms have said that the full fee will go directly to its drivers.

 

[SBFNews]

ComfortDelGro to charge 70-cent platform fee from July 1 for rides booked via its app​

ComfortDelGro said the new platform fee will also apply to limousine transfers made through its app, but not for rides booked via phone calls or text messages, or for street hails. ST PHOTO: KUA CHEE SIONG

Kok Yufeng
Transport Correspondent

June 20, 2023

SINGAPORE - Passengers will pay 70 cents more for taxi and private-hire car rides booked via ComfortDelGro’s CDG Zig app from July 1 – one of several fare-related announcements taxi and ride-hailing companies made on Monday.
ComfortDelGro said this new platform fee will also apply to limousine transfers made through its app, but not for rides booked via phone calls or text messages, or for street hails.
It is introducing the platform fee for app bookings so that it can continue to improve the quality of its point-to-point transport services, the home-grown transport giant said in a Facebook post on Monday.
It said it has been regularly improving the CDG Zig app by introducing features and services like merchant deals, restaurant reservation and private bus charter.
During the company’s annual general meeting in April, shareholders were also told that the next version of the app would come with new and improved user features and services.
Ride-hailing firms Grab, Gojek, Tada and Ryde all charge platform fees of varying amounts, with such fees going to the companies themselves. The stated purpose is usually to maintain, improve and develop app and product features.
ComfortDelGro, Singapore’s largest taxi operator, had a fleet of 8,840 cabs as at April, or about 63 per cent of Singapore’s taxi population. It also owns about 600 private-hire cars and has around 4,000 private-hire drivers on the CDG Zig platform.


Separately, Gojek on Monday announced that it will replace its fixed 70-cent platform fee for each trip made using its app with a tiered fee based on factors such as the duration of a trip and the distance travelled.
This will take effect on July 3, and fares may be up to 10 cents cheaper or up to 30 cents more expensive as a result of the change.
“We believe this structure more accurately reflects the range of trips people take on our platform, and helps to ensure prices remain fair and competitive,” Gojek said in a notice to customers and drivers.

The company will also be raising the starting fares for its Premium, XL and XL Kids services – a move that it said is aimed at compensating drivers more fairly.
From July 3, the starting fares for Gojek Premium, which are rides taken in higher-end vehicle models like the Toyota Vellfire and Mercedes-Benz E Class, will increase by $6.45 between midnight and 5.59am. At all other times of the day, such rides will cost 45 cents more.
Gojek said this is to create more parity with other industry players who levy similar surcharges.
Starting fares for Gojek’s XL and XL Kids services, which allow passengers to book rides that can accommodate up to six people, will go up by 30 cents come July 3.

Meanwhile, what were supposed to be one-off increases to distance and waiting-time fares for taxi rides have been extended by another year until June 30, 2024.
This applies to all five taxi companies here: ComfortDelGro, Trans-Cab, Strides, Premier and Prime.
This temporary taxi fare hike was introduced in April 2022 on the back of soaring pump prices at the time.
With the extension, passengers taking regular taxis will continue to be charged 25 cents for every 400m travelled up to 10km, and every 350m thereafter, as well as for every 45 seconds or less of waiting time – up from 24 cents previously.
For limousine and premium cabs, passengers will continue to pay a higher fare of between 34 cents and 36 cents for every 400m travelled up to 10km, every 350m travelled after 10km, and every 45 seconds or less of waiting time, depending on the taxi operator.
Temporary increases to taxi location surcharges that were introduced in 2022 have also been extended by a year until June 30, 2024.
Those taking a cab from Changi Airport will continue to pay an additional $8 between 5pm and 11.59pm and an additional $6 at all other times – an increase of $3 from the usual fee.
A $3 surcharge for taxi rides originating from the Singapore Zoo, Night Safari and River Wonders will be extended to the newly opened Bird Paradise in Mandai from July, and the surcharge will be applied from 1pm to 11.59pm daily, compared with 4pm to 11.59pm previously.
Also being extended until June 30, 2024, are temporary fees that Gojek and Tada have imposed on passengers since 2022 to help drivers cope with higher fuel costs and other expenses.
Gojek’s “driver fee” is 50 cents for trips less than 10km, and 80 cents for trips that go beyond 10km. Tada charges a driver fee of 50 cents for rides with fares $18 and below, and 80 cents for rides that cost $18.10 and above.
Both platforms have said that the full fee will go directly to its drivers.

Cannot afford COE so got to be at mercy of these transport companies. Blame PAP. Overcrowding a small island with foreigners resulting in super increase in Cost of Living. Fuck PAP

 

[LITTLEREDDOT]

Singapore is most expensive city for high-net-worth individuals to live well: report​

Tan Nai Lun​

Jun 20, 2023

According to the Julius Baer report, Asia remains the costliest region for HNWIs to live well for the fourth year in a row, with Singapore, Shanghai and Hong Kong ranking top three in the Lifestyle Index.


SINGAPORE has, for the first time, become the most expensive city for high-net-worth individuals (HNWIs) to live well, said a report by Swiss private bank Julius Baer on Tuesday (Jun 20).
In its Global Wealth and Lifestyle Report 2023, Asia remains the costliest region for HNWIs to live well for the fourth year in a row. Shanghai, the most expensive city in the ranking last year, took second place, while Hong Kong rose a spot to take third place in the Lifestyle Index ranking of 25 cities.
The Lifestyle Index is based on a basket of 12 consumer goods and eight services that represent discretionary purchases by HNWIs. The data was collected between November 2022 and March 2023.

Singapore’s ranking is likely due to the strong demand for accommodation, school places and a generally significant cost of living.
At a media roundtable, Julius Baer head of Asia-Pacific research Mark Matthews said Singapore’s rise to become the most expensive city may be a reflection of rising property prices as well as the high cost of owning cars in the country.
He noted that residential property has the biggest weightage in the index, followed by cars.

Speaking on the outlook for high-end property in Singapore, Chua Jen-Ai, a research analyst at Julius Baer, expects the latest round of property cooling measures will keep demand muted among wealthy foreigners.
While wealthy foreigners are likely able to afford an additional 60 per cent in Additional Buyer’s Stamp Duty (ABSD), Chua said the measures represent a signal from the government that it might not want to see much more demand in the high-end property sector in the short term.
She noted that the market is “pretty segmented”, however, and the mass market is largely unaffected by the 60 per cent increase in ABSD and remains relatively stable.
In Singapore, more than half of the items in the Lifestyle Index ranked among the top three most expensive regionally, although Singapore prices have not risen the most in the region on average, the report found.

Overall, 2023 has had the most balanced ranking in terms of regional diversity for the top 10 most expensive cities – comprising four cities from Asia, three from Europe and the Middle East, and three from the Americas.
Globally, wine and whisky saw the sharpest rise in prices, followed by hotels, flights and cars. With travel restrictions no longer an issue, travel for both leisure and work is rising and respondents are increasingly spending on flights, particularly in the Asia-Pacific region.
But Matthews noted that the overall price changes are more rational compared to the bigger price swings in 2022.
The report also found that fine dining and hotels are the biggest products and services that the HNWIs have spent more money on in the past 12 months.
In the Asia-Pacific region alone, 63 per cent of those surveyed said they spent more on fine dining, and 56 per cent said they spent more on hotels.
Matthews drew a comparison between the post-pandemic increase in spending on luxury consumables, to the decade of indulgence in the 1920s following the 1918 flu.
“There’s a bit of Great Gatsby in the air, just like the 1920s were full of revelry after the 1918 flu,” he said. “Maybe there’s something like that happening today: people realise that life’s too short or just want to enjoy themselves.”
The Lifestyle Survey also found that fitness and well-being practices, health insurance, education and family and financial resilience are top priorities for the HNWIs, to help prepare for future disruptions.
In particular, 54 per cent of respondents in the Asia-Pacific region said they spent more on health insurance in the past 12 months, likely because they are looking into their future more than they did before the pandemic, Matthews said.

 

[LITTLEREDDOT]

Up to 40% hike in meal plan prices for NUS students living on campus​

Students staying in halls, residential colleges and the NUS College are required to subscribe to meal plans, and are not allowed to opt out. PHOTOS: SAMANTHA LAI, ST READER

Chin Hui Shan

June 23, 2023

SINGAPORE – Some National University of Singapore (NUS) undergraduates living on campus in the upcoming semesters starting August will soon have to fork out up to 40 per cent more for their meals in hostels.
Students staying in halls, residential colleges and the NUS College are required to subscribe to meal plans, which cater breakfast and dinner for six days a week. They are not allowed to opt out.
There are no such plans in other universities like Nanyang Technological University which also has hostels.
For those staying in halls of residence, including Sheares Hall and Raffles Hall, students have to pay $664.85 for the meal plan in the first semester of the upcoming academic year starting in August, with meals provided for 108 days.
This is about $200, or more than 40 per cent, higher than the previous price. In documents seen by The Straits Times, a student staying in Raffles Hall paid $462.24 for the first semester of the academic year starting in August 2021. The price did not change in 2022.
The other halls of residence are Eusoff Hall, Kent Ridge Hall, King Edward VII Hall and Temasek Hall.
A typical dinner usually consists of carbs like rice, a choice of meat and vegetables, along with soup, fruits or desserts.

For residential colleges such as Tembusu College as well as NUS College residences, which include Cinnamon Wing and West Wing, students will have to pay $1,137.24 for the meal plan when the semester starts.
This is about $219, or 23 per cent, more than the last academic year’s price of $918, posted on Tembusu College’s website.
In response to queries, an NUS spokesman said the price of meal plans for halls of residence have not changed since 2019, while those for residential colleges have remained the same since 2017.

Other residential colleges are the College of Alice & Peter Tan, Residential College 4 and Ridge View Residential College.
In an e-mail to hall residents in May, NUS said that global supply chain disruptions, the war in Ukraine and climate change have driven food prices up across the world, making it “necessary” to review and adjust the meal plan rates.
“Whilst the price increase under the current climate is inevitable, rest assured that the University will work diligently with the appointed caterers to push out the plans for more dining improvements in the best interest of our residents,” the e-mail said.
Some NUS undergraduates told ST that they felt the price increase is too steep, and would have preferred a more gradual increment.
A soon-to-be second year student, who wanted to be known only as Ms Goh, said that the new rates are “quite a big jump” from last year.
“But if the food provided in the upcoming school year improves in terms of quality and variety, the rise in price may still be considered reasonable,” said Ms Goh, 20, who will be staying in Temasek Hall in the upcoming semester.
“If the quality of the meals remains the same, I can’t help but feel slightly cheated for paying the hike,” she said.

Instead of making them mandatory, some students think that meal plans should be optional.
Another student, who wanted to be known only as Ms Tan, 20, said there are other food options available, which may be cheaper.
She will be a second year student come August, and will be staying in Sheares Hall.
“Many of my friends prefer cooking their own meals or eating out,” said Ms Tan. “Some of my friends also frequently go home for meals.”
Ms Tan added that she personally cooks most of her own meals to reduce costs and only eats the meals provided not more than three times a week.
Ms Samantha Lai, 20, who will be staying in Cinnamon Wing for her second year of studies, said although she tries to eat most meals provided, some of her friends have no choice but to eat out due to external commitments while some do not have the habit of eating breakfast.
“The price that they end up paying for what they actually eat in the dining hall becomes unreasonable from that point of view,” she said.

Despite the price hike, some students think the benefits of staying in hostels outweigh the financial costs.
Mr Sng Peng Jing, 21, an incoming freshman who will be staying in Tembusu College, said while the increase can be daunting for students who fund their own university fees like himself, it is not enough to deter him from wanting to experience staying on campus.
“I believe that staying in a residential college can increase my chances of making friends. Since the increase in meal plan prices is still financially viable to me, I would continue to stay,” he said.
To ensure that students have the “full NUS experience regardless of their financial circumstances”, NUS said it has doubled its financial aid for students since 2022.
“Students from low-income households will continue to receive financial assistance from the NUS Enhanced Financial Aid Scheme which helps to fully fund their tuition fees, and defray living expenses, on-campus stay including meal plans, and overseas exposure programmes,” said its spokesman.

 

[LITTLEREDDOT]

Higher electricity bills from July to September as tariff increases by 1.2%​

The average monthly electricity bill for families living in Housing Board four-room flats will increase by $1.14 before GST. PHOTO: ST FILE

Gabrielle Chan

June 30, 2023

SINGAPORE - Consumers in Singapore will pay more for electricity in the July-September quarter, with the tariff increasing by an average of 1.2 per cent from the previous quarter.
For households, the electricity tariff before goods and services tax (GST) will increase from 27.43 cents to 27.74 cents per kilowatt-hour (kWh) from Saturday to Sept 30, said grid operator SP Group on Friday.
Taking into account the GST rate of 8 per cent since Jan 1, the new tariff will be 29.96 cents, up from 29.62 cents between April and June.
This means the average monthly electricity bill for families living in Housing Board four-room flats will increase by $1.14 before GST.
The electricity bill now for a four-room HDB flat is $100.62 before GST, for an average monthly consumption of 366.84 kWh. It will be $101.76 for the same usage from July.
This is the first quarter that the electricity tariff has risen, after three consecutive quarters of decreasing tariffs. The tariff had been decreasing since Oct 2022.
The increase is due to higher energy costs, SP said, adding that its energy costs have increased by 0.31 cents per kWh, while other costs have remained the same.

These costs, which are paid to power generation companies, are adjusted quarterly to reflect changes in the costs of fuel and power generation.
Energy cost accounts for 75.7 per cent of the tariff, while the remainder comprises the expense of transporting electricity through the power grid, and operations.
Meanwhile, City Energy, the producer and retailer of piped gas, also announced on Friday that the gas tariff for households before GST will increase by 0.23 cent per kWh, from 21.68 cents per kWh to 21.91 cents per kWh for the period from Saturday to Sept 30.
The revised tariff after GST is 23.66 cents per kWh.
It attributed the increase in gas tariff to higher fuel costs as compared to the previous quarter.

PHOTO: SP GROUP

 

[k1976]

Keep calm, keep huat la huat la

W have No Recession de

 

[k1976]

China Uktra High Net Worth will come to our rescue De woh

 

[k1976]

All stars are aligned to auspicious sign for 2H strong robust recovery.... Please open your wallet to continue huat la huat la, dun miss the boat

https://www.straitstimes.com/busine...e-rising-inflation-and-higher-costs-of-living

 

[k1976]

Overseas property markets are tanking, rich atas bug shot sirs will flood into SG for safe haven de woh...

https://www.reuters.com/markets/asi...-kong-apacs-most-expensive-survey-2023-05-30/


https://www.google.com.sg/amp/s/amp...rs-cool-property-market-makes-no-sense?espv=1

 

[batman1]

So more CDC Vouchers will be given to sinkees soon ?

 

[LITTLEREDDOT]

COLUMNS​

Singapore Inflation Rate: Here’s How Much Prices Of Everyday Goods And Services Have Increased From 20 Years Ago​

Inflationary pressures are not abating.
by Angela TengSeptember 13, 2023

The rising cost of living is a topic of the town, due to inflationary pressures that are not abating. In 2022, Singapore’s Consumer Price Index (CPI) increased by 6.1%, rising almost three times that of 2021’s 2.3%.
This could mean that our expenses on consumer items cost more than before. If we rewind to 20 years ago and explore deeper. How would meat prices, clothes and transport costs differ then?

What Items Cost The Most In 2022​

In 2022, the top three expenditure groups were housing and utilities, food, and transport. Housing and utilities took up 24.8% of expenditures, while food was 21.1% and transport at 17.1%. The higher costs of the three groups were moderated by communication costs which eased 1.2%.

Image Credit: Singstat
To compare 2022’s full-year figures with 20 years ago, which will be 2002, we will need to check against the CPI data over the years. The current CPI base year is 2019.
The base year is defined as the period with which all the other periods are compared and is the indicator to check against if the prices of a certain basket of goods rose or fell.
Taking into consideration the adjusted base year, I will then tabulate the price changes of individual prices of the following:

• Food;
• Clothing & Footwear;
• Accommodation;
• Utilities And Other Fuel;
• Household Durables & Services;
• Health Care;
• Transport;
• Recreation & Culture; and
• Education;

#1 Prices Of Food Rose 58.9% Compared With 20 Years Ago​

Food prices in Singapore gained 58.9% in 2022, compared with 2002. This means that in general, your bowl of $2.50 fishball noodles in 2002 would cost $3.97 today.
Based on available data from the Department of Statistics Singapore (Singstat), it showed that the prices of all food items rose, including bread and cereals, meat, fish and seafood, milk cheese and eggs, fruits, vegetables, confectionary and non-alcoholic beverages.
Meat, milk, cheese and eggs prices almost doubled the price (86.7% to 90.9%) it cost to buy them 20 years ago. It is also interesting to note that food items like confectionary (e.g., sugar, ice cream) and non-alcoholic beverages (e.g., coffee, tea, soft drinks) had a slower increase in prices, of around 48% to 50%.

#2 Prices Of Clothing And Footwear Only Edged Up 1.1% Over 20 Years​

Clothing and footwear prices moderated from the 2019 base year to 2022, perhaps due to the Covid-19 situation which led to fewer social outings and a decline in shopping for these items.
This helped bring the prices down for clothing and footwear items to match the prices of the same items 20 years ago.

#3 Accommodation Costs Up 39.7% Since 2002​

Under the Housing and Utilities category of the CPI, accommodation costs comprise “rented and owner-occupied accommodation” as well as “housing maintenance and repairs”.
The changes in the CPI-imputed rentals on owner-occupied accommodation have no direct impact on Singaporeans who already own their homes.

#4 Utilities And Other Fuel Costs Grew 51.3% Since 2002​

Utilities and other fuel prices increased over the last two decades, to 51.3%.
There was no available CPI data in 2002 for some items that belong to the same group under the housing and utilities CPI basket. This includes items like water supply, refuse collection, electricity and gas prices.
The earliest data available for items like water supply, refuse collection, electricity and gas prices was from 2014. Since the base year 2019, water supply prices have been consistent year-on-year while refuse collection prices, which were cheaper in 2014, cost much more now.

#5 Household Durables & Services Items Rose 25.3% In Prices​

Your prices of furniture, furnishings, other household textiles, household appliances, and utensils costs – under the sub-category Household Durables CPI basket – gained 5.7% in the last two decades.
This group of items are actually one of the slowest in price growth. This can be perhaps due to our neighbouring countries who have plenty of furniture and household textiles available for importing, keeping prices at a slow pace of increase even after 20 years.

#6 Health Care Costs Up 53.6% Over 2 Decades​

Health care fees include medicines and health products like medicines and vitamins and medical products. Outpatient services are also included in this category, which comprises fees at polyclinics, fees at general practitioners, specialist outpatient clinics, dental services and paramedical services.
Lastly, hospital services and health insurance also belong to this CPI basket.
It is expected for health care costs to rise since the services in the healthcare industry are heavily manpower reliant. Some CPI data that stood out was that hospital services rose incrementally (77.8%) over the last 20 years while outpatient services rose at a slower pace (54.9%).

#7 Transport Costs Up By 67.2% Since 2002​

Private transport costs contributed largely to the increase in overall transport costs, with the prices of cars and motorcycles as well as petrol pump prices increasing in the last two decades.
As for public transport, rates rose slower, at 39.9% compared to rates in 2002. Public transport costs comprise bus and train fares, point-to-point transport services, and other public transport.
There was no CPI data for airfares in 2002, which meant that there was no data to compute the price changes, compared to 2022.

#8 Recreation And Culture Items Gained 17.8%​

Under Recreation And Culture is the sub-category Recreational and Cultural Services and it includes sports services and other fees, cinema tickets, and charges to places of interest. In general, prices of items and services in the category rose slower (23.4%) compared with most other CPI goods from other categories over the two decades.
Another detail to note is that prices of holiday expenses (which include package tours and hotels and other expenses) rose 36.7% compared to 2002.

#9 Education Costs Up 75.7% Since 2002​

Tuition fees rose three-quarter times in prices (76.4%) compared to 20 years ago. This includes tuition fees for primary and secondary education, and enrichment and supplementary courses.
It is cheaper to self-study, as prices of textbooks and study guides rose by 43.0%.

Overall CPI All-Items Up 44.7% Since 2002​

Prices of items in Singapore increased in general, over time. This is interrelated to the job prospects of a country and wages as prices of goods and services tend to rise generally due to positive economic growth.
An increase in jobs and higher wages raise household incomes, causing consumer spending to rise. This leads to more demand and the opportunity for businesses to increase the prices of their goods and services because consumers can afford them.
When this happens across a large number of businesses and sectors, this contributes to an increase in inflation. Inflation can also be imported, for example, if suppliers raise the prices of their products due to the supply and demand situation in their home country (e.g., the Ukraine war) or in their produce (e.g., natural disasters lead to shortage).
However, when prices of goods and services rise faster than wages, this will lead to the ability to buy fewer goods and services than before.

 

[LITTLEREDDOT]

Bus, train fares to rise by up to 11 cents for adults; new $96 concession pass for low-wage workers​

The overall cost of bus and train rides will go up by 7 per cent. ST PHOTO: JASON QUAH
Kenneth Cheng and Lee Nian Tjoe

Sep 18, 2023

SINGAPORE - From Dec 23, public transport fares for adults who pay by card will climb by up to 11 cents, as the overall cost of bus and train rides goes up by 7 per cent.
Adult card fares will increase by 10 cents for journeys of up to 4.2km and 11 cents for rides beyond 4.2km, the Public Transport Council (PTC) said on Monday after it concluded its yearly fare review exercise.
For example, the adult card fare for an MRT ride from Simei to Tanjong Pagar, which costs $1.85 now, will rise to $1.96.
Concessionary fares for seniors, students, people with disabilities and low-wage workers who pay by card will go up by four cents for journeys of up to 4.2km and five cents for longer rides. About two million commuters, or half of Singaporeans, are in this group.
This year’s increase is the steepest since the hike in 2019, when fares also rose by 7 per cent. The 11-cent hike is also the highest on record.
The PTC said fares could have gone up by 22.6 per cent in 2023 – the highest allowable increase since 1998, when the council began using formulas to set a cap on fare changes.
This comprises a 12 per cent increase derived from a new fare formula introduced for the 2023 exercise, as well as a 10.6 per cent hike rolled over from the 2022 exercise, said the PTC.

The 2023 adjustment was spurred largely by a 62.3 per cent rise in energy prices in 2022, as well as growth in core inflation and wages, said the council.
Transport operators SBS Transit and SMRT Trains had applied for the full 22.6 per cent hike in 2023, citing reasons such as higher energy prices, a competitive labour market, as well as a slow and uncertain recovery in ridership.
Public transport ridership remains at about 90 per cent of pre-Covid-19 levels.


PTC said it decided against granting the full increase, to keep fares affordable in the present “higher-cost environment”.
The remaining increase of 15.6 per cent will be postponed to future fare review exercises.
PTC said this deferment was possible because the Government is providing an extra $300 million in public transport subsidies in 2024, on top of the more than $2 billion in subsidies it already shells out every year to keep services running.
“The additional government subsidy will help to moderate the level of fare increase needed to keep pace with the higher cost of providing public transport, while keeping fares affordable for commuters,” the council added.

The Ministry of Transport said operators will “have to manage their costs tightly, do more with less, and continue to pay fair wages to their workers”.
At a press conference on Monday to announce the fare changes, PTC chairwoman Janet Ang said it would take time for the deferred fare increase to come down gradually.
If economic conditions improve and wages continue rising, and energy prices and core inflation ease, the hope is that this roll-over would decrease over time, she added.
Fares rose by 2.9 per cent in 2022 and 2.2 per cent in 2021. In 2020, there was a freeze on fares to help commuters cope with the economic impact of Covid-19.
The PTC said on Monday that adults paying cash for bus rides will have to fork out 20 cents more, while concessionary cash fares for students, seniors and people with disabilities will rise by 10 cents.
Less than 1 per cent of commuters pay cash for bus rides.

New monthly concession pass for low-wage workers​

Meanwhile, the Government will introduce a monthly hybrid – or bus and train – concession travel pass for low-wage workers costing $96 from Dec 23. This is $32 off the price of adult monthly travel passes, which will stay unchanged at $128.
The cost of monthly hybrid travel passes for other concessionary groups – including seniors, national servicemen and students – will come down by up to 10 per cent, or between $4.50 and $9.50.
The cost of a monthly concession pass for those with disabilities will also be reduced from $64 to $58 – the same as that for seniors.
These passes allow unlimited travel on all modes of public transport except express buses.


About 60,000 people are expected to benefit from these moves. These include existing holders of monthly passes as well as those expected to buy them, said the PTC.
To help Singaporeans cope with the fare increase, the Government will provide public transport vouchers worth $50 each to resident households with a monthly income of up to $1,600 per person.
These vouchers can be used to top up fare cards or buy monthly passes. In 2022, it made available 600,000 public transport vouchers worth $30 each.
In line with the steeper fare hike in 2023, PTC said it would require SBS Transit and SMRT Trains to make larger contributions to the Public Transport Fund, which helps households cope with fare increases.
SBS Transit will have to contribute 15 per cent of its expected revenue increase, or $3.14 million, and SMRT Trains will have to dish out 30 per cent of the same, or $12.71 million.
PTC said its data shows that fares remain affordable.
On average, households in the 21st to 40th percentile – the average public transport user – spent 1.7 per cent of their monthly income on public transport in 2022, compared with 1.8 per cent in 2021.
Lower-income households in the 11th to 20th percentile spent about 2.4 per cent of their income on public transport in 2022 – down from 2.5 per cent in 2021.
After accounting for fare and wage increases in 2023, households are expected to spend roughly the same proportion of their income on public transport as they did in 2022, said PTC.
Communications manager Amanda Poh, 32, said the fare hike was bound to happen “sooner or later”, given how costs have been rising all around.
While the increase per journey is bearable, she said the expenses do add up.
On the Government stepping in with subsidies to bridge the shortfall between public transport revenues and the cost of running services, transport economist Walter Theseira said the long-term sustainability of this approach would hinge on the Government’s finances.
Higher operating costs cannot be avoided to maintain the level of service commuters expect, added Associate Professor Theseira, who is with the Singapore University of Social Sciences.

 

[LITTLEREDDOT]

SingPost to raise local postage rates by 20 cents from Oct 9​

To manage increase in costs, SingPost will issue a 1st Local stamp booklet of 10 stamps to each household from the end of October. PHOTO: ST FILE

Amanda Lee
Correspondent

Sep 19, 2023

SINGAPORE - From Oct 9, the cost of local standard regular mail will increase by 20 cents, said SingPost on Tuesday.
The rate will be increased to 51 cents, up from 31 cents currently, to “reflect the escalating costs of maintaining the postal service”, it said.
To manage increase in costs, SingPost will issue a 1st Local stamp booklet of 10 stamps to each household from the end of October.
The last significant rate increment was in 2014, when postage costs increased from 22 cents to 30 cents.
“The global structural decline in postal volumes over the last decade brought about by digital disruption has impacted the commercial viability of postal firms globally,” said SingPost.
Between FY2018/19 and FY2022/23, mail volumes declined by more than 40 per cent, it said.
SingPost said that the rate adjustment will help address the loss caused by the persistent decline in postal volumes. This is coupled with costlier labour, utilities, fuel, and higher conveyance expenses.

“This rate increment is necessary for SingPost to continue serving its obligations as Singapore’s public postal licensee while allowing further exploration of a more sustainable postal business model in the long term, balancing the need to remain viable while safeguarding the interests of its shareholders,” it said.
SingPost will also introduce upcoming changes to simplify the domestic postage rate structure, including eliminating the weight criteria to make postal services more user-friendly.
Since 2014, SingPost has been absorbing inflationary costs and essentially kept its postage rates constant, said Ms Neo Su Yin, chief executive officer Singapore of SingPost.
“With the intensifying cost pressures and challenging business landscape, it is inevitable that we raise our prices to remain commercially sustainable so that we can continue providing the essential postal service for the nation,” she said.
Ms Neo also said that SingPost is focused on pursuing its strategic transformation towards eCommerce and logistics to mitigate the persistent decline in postal volumes and explore business growth opportunities.
The statement added that SingPost is working closely with the Infocomm Media Development Authority to conduct a structural review of the postal business and formulate a longer-term strategy to attain commercial sustainability.