I am thinking macro.
Can you explain to me how increasing wages will not result in higher inflation please?
This shows that a FUCKTARD like u know shit about economics in S'pore. U talk like u are some fucking FT or foreigner never spend any time in S'pore. In a heavily govt. control and directed economy like singapore, 90% of the inflation is caused by the govt.'s need to generate profits and make money for itself, as well as from inefficiencies inherent in all oligopolies and monopoly setups.
In 1980, the most expensive HDB property u can buy was a 2 storey maisonette, sold for $125K. Today, the most expensive BTOs are something like $700K. The increase in price here is solely caused by the govt. There are no other significant inflationary inputs. The cost of land is the same for them as they obtained it years ago thru expropriation. Labour is almost the same. In those days the cheap labour was from Thailand, now its from Bangladesh. Building materials have gone up, maybe 100%, but still does not account for this sort of price increase. The HDB is still using poor quality materials. The financing costs is still low, the money they borrowed from CPF is still at a low rate. The major reason for this price increase is "govt. induced inflation" aka greed.
In 1980, a Toyota Corolla in the US cost about USD$4000, in S'pore about $30,000 (after all the taxes). Today, a Toyota Corolla cost about USD$15,000 in the US, (an increase of about $11000), but in SIngapore its around the low $110,000, an increase of $80000. This is before COE. Why? Because alot of it is new govt. taxes, new policies like COE, etc.
Everywhere in SIngapore, every month there is MRT ticket increase, water price increase, electricity increase, malls increase their rents (many malls owned by GLCs), hawker stall rents and coffee shop rents increase (all owned by govt.), etc. I can guarantee you that even before low wage FTs were allowed to come into Singapore, the inflation was no where as bad as this. The large and fast influx of FTs coming in, with the failure to build adequate infrastruture, housing etc. means these FTs are competing for housing, food, etc. This is where your inflation comes in. The 2 fold evils of govt. greed and large numbers of newcomers is what is causing our inflation.
In SIngapore, if you send home all the low wage FTs, and attract higher end industries that pay singaporean higher wages, you will not get inflation. Instead, u will get deflation. Many flats will be empty hence forcing the rents to lower, hawkers and food sellers compete and have to lower prices because their FT customers have gone home, etc. U better go back to school if u don't understand this, u fucking retard