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Higher cost of living for S'poreans: Living costs to be monitored
http://news.asiaone.com/News/AsiaOne+News/Singapore/Story/A1Story20110111-257472.html
Living costs to be monitored
Tue, Jan 11, 2011
my paper
By Reico Wong
THE Government will keep a watchful eye on the ability of low-income and elderly Singaporeans to cope with rising prices of staples - such as wheat, soya beans and sugar - and oil-related items as commodity prices spike across the region, Finance Minister Tharman Shanmugaratnam said in Parliament yesterday.
He acknowledged that foodprice inflation is a concern for Singapore amid high demand from China and supply disruptions caused by adverse weather, and promised that the Budget next month will shed more light on measures to minimise the impact of inflation on households that are not earning any income.
"The Government is mindful of the problems these households face, and has provided them with significant assistance over the past year - in fact exceeding the increase in costs of living they have faced," said Mr Tharman.
"This approach will continue in the upcoming Budget."
Given the external factors that will continue to affect the country, Singaporeans need to be prepared for further rises in the cost of living till at least the first quarter of this year before moderating, he said.
The consumer price index, which helps measure inflation, rose 3.8 per cent in November from a year ago - the highest inflation rate since January 2009.
Economists, such as Mr Irvin Seah of DBS Bank, are expecting inflation for the first half this year to rise above 4 per cent, before easing in the second half of the year to 3.2 per cent for the full year.
Mr Tharman said yesterday that the best way to help Singaporeans manage increases in the cost of living is to "grow the local economy in a sustainable way and raise our skills, so as to help wages grow".
That, he emphasised, remains the Government's central strategy.
Mr S. Iswaran, Senior Minister of State for Trade and Industry, said separately in Parliament that concentrated efforts will be made to enhance the productivity of Singapore's workforce and the capabilities of business corporations.
He added that Singapore's economy is expected to grow between 4 and 6 per cent this year, well below last year's 15 per cent. Still, the projected growth is above the country's mediumterm growth potential of around 3 to 5 per cent.
The healthy rate of growth will support job creation and wage increase in both the manufacturing and service industries, he said.
Mr Iswaran added: "There is no need for stimulus measures.
"If anything, we need to be watchful of over-heating risks and rising inflationary pressures as the labour market tightens and capacity constraints become more binding."
Mr Tharman urged Singaporeans who do not have significant savings to keep their investments simple and conservative.
He added that Singapore Government Securities will start trading on the Singapore Exchange by the middle of this year.
This will give investors easier access to an investment tool that is not just safe, but also provides higher yields compared to bank deposits.
For more my paper stories click here.
http://news.asiaone.com/News/AsiaOne+News/Singapore/Story/A1Story20110111-257472.html
Living costs to be monitored
Tue, Jan 11, 2011
my paper
By Reico Wong
THE Government will keep a watchful eye on the ability of low-income and elderly Singaporeans to cope with rising prices of staples - such as wheat, soya beans and sugar - and oil-related items as commodity prices spike across the region, Finance Minister Tharman Shanmugaratnam said in Parliament yesterday.
He acknowledged that foodprice inflation is a concern for Singapore amid high demand from China and supply disruptions caused by adverse weather, and promised that the Budget next month will shed more light on measures to minimise the impact of inflation on households that are not earning any income.
"The Government is mindful of the problems these households face, and has provided them with significant assistance over the past year - in fact exceeding the increase in costs of living they have faced," said Mr Tharman.
"This approach will continue in the upcoming Budget."
Given the external factors that will continue to affect the country, Singaporeans need to be prepared for further rises in the cost of living till at least the first quarter of this year before moderating, he said.
The consumer price index, which helps measure inflation, rose 3.8 per cent in November from a year ago - the highest inflation rate since January 2009.
Economists, such as Mr Irvin Seah of DBS Bank, are expecting inflation for the first half this year to rise above 4 per cent, before easing in the second half of the year to 3.2 per cent for the full year.
Mr Tharman said yesterday that the best way to help Singaporeans manage increases in the cost of living is to "grow the local economy in a sustainable way and raise our skills, so as to help wages grow".
That, he emphasised, remains the Government's central strategy.
Mr S. Iswaran, Senior Minister of State for Trade and Industry, said separately in Parliament that concentrated efforts will be made to enhance the productivity of Singapore's workforce and the capabilities of business corporations.
He added that Singapore's economy is expected to grow between 4 and 6 per cent this year, well below last year's 15 per cent. Still, the projected growth is above the country's mediumterm growth potential of around 3 to 5 per cent.
The healthy rate of growth will support job creation and wage increase in both the manufacturing and service industries, he said.
Mr Iswaran added: "There is no need for stimulus measures.
"If anything, we need to be watchful of over-heating risks and rising inflationary pressures as the labour market tightens and capacity constraints become more binding."
Mr Tharman urged Singaporeans who do not have significant savings to keep their investments simple and conservative.
He added that Singapore Government Securities will start trading on the Singapore Exchange by the middle of this year.
This will give investors easier access to an investment tool that is not just safe, but also provides higher yields compared to bank deposits.
For more my paper stories click here.
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