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SINGAPORE: Prime Minister Lee Hsien Loong has assured Singaporeans that the government will help mitigate the rising costs of food.
Speaking at the Teck Ghee Lunar New Year celebrations, Mr Lee said revenues have been strong and the government will be distributing help – especially to the poor and elderly – in the upcoming Budget debate.
But Singaporeans must also make necessary adjustments.
Mr Lee said: "I expect the inflation to be higher this year than last year, especially in the first half of this year. Last year, the inflation was about 2 percent. This year, it may be 5 percent, it may be even more."
Singapore is not the only country experiencing rising food prices. Prices in China and India are also going up, due to affluence and more consumption demand.
Adverse weather conditions in Australia and China are also sending food prices upwards.
Some measures that the government will undertake to ease the situation are to diversify the country's food sources and encourage consumers to switch to house brands, which are cheaper and give better value.
Lower income families can expect relief in the form of the government's Workfare Scheme, which paid out S$150 million last month, benefiting some 290,000 workers.
The Public Assistance Scheme is also being reviewed.
Mr Lee said: "Most importantly, we need to grow the economy so that incomes will go up. Last year we had a good year, so wages, bonuses went up. And NTUC did a survey and found that last year, the bonuses which workers were getting were the highest bonuses in any year since 1990 - which means nearly in 20 years, we have not had such good bonuses.
"Lots of people are working, unemployment has come right down. We had 230,000 more jobs last year and unemployment has gone down to 1.6 percent."
The prime minister added that being an open economy that imports all its food, Singapore cannot simply control the prices of food essentials as this will hurt the retailers and suppliers, resulting in shortages and queues.
And if the government subsidises these essentials, it will be costly and ineffective as the subsidies would also go to those who are not poor.
Mr Lee said while the government will help, Singaporeans must also do their part to work together to keep the country strong and competitive.
- CNA/so
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