Chee Hong Tat on cost of living crisis
The Government will be responsive to the concerns of Singaporeans and will continue to do its best to mitigate cost pressures for businesses and families, said Senior Minister of State for Finance Chee Hong Tat. He said the Government will do this in a way that is “responsible and right for Singaporeans”. Speaking in Parliament on Tuesday (Nov 7), Mr Chee noted that cost of living is a major concern around the world, and inflation has affected all Singaporeans. Inflation has peaked and is on a broad moderating path. Core inflation fell from the peak of 5.5 per cent in January this year to three per cent in September. It is expected to edge down further to between 2.5 per cent and three per cent in December. The Monetary Authority of Singapore expects the moderation to continue for 2024, with core inflation forecast at 1.5 per cent to 2.5 per cent. Including the impact of the GST rate increase in January, core inflation for 2024 is projected at between 2.5 per cent and 3.5 per cent. Mr Chee said the impact of the GST increase is one-off and should not cause an ongoing increase in the Consumer Price Index. He said these are “positive signs” but the Government remains cautious because the global situation is uncertain and there are dark clouds on the horizon. “But what is clear is this - the Government understands the concerns of Singaporeans and we stand ready to support Singaporeans where needed,” he said. “The reality is that global inflation will remain elevated for some time to come. We cannot fully insulate ourselves from these global forces. Prices of goods and services will rise to reflect higher costs. If we do what is politically convenient and prevent prices from rising, I am afraid we will create more problems,” he said. Mr Chee warned that giving more subsidies will benefit certain groups at the expense of others and end up helping the rich more than the poor. Singapore would lose fiscal discipline and erode self-responsibility, he said. “The fiscal deficit that gets created cannot be wished away and the burden will fall on future generations of Singaporeans. And in the long run, it will hurt Singapore and Singaporeans,” he said. Mr Chee said that overall, the Government has moderated considerably the impact of inflation on Singaporeans, especially for the lower- and middle-income segments. It has done this on a sustainable basis, spending within its means and helping as many people as possible. “We will continue to monitor the need for more targeted support if inflation or the economic outlook worsens. We will do so while maintaining discipline in ensuring that our interventions are fair, sustainable, and effective,” he said. Mr Chee added that he welcomes the call by Leader of the Opposition Pritam Singh for a review to make sure that Singapore’s policies are fit for purpose.
The Government will be responsive to the concerns of Singaporeans and will continue to do its best to mitigate cost pressures for businesses and families, said Senior Minister of State for Finance Chee Hong Tat. He said the Government will do this in a way that is “responsible and right for Singaporeans”. Speaking in Parliament on Tuesday (Nov 7), Mr Chee noted that cost of living is a major concern around the world, and inflation has affected all Singaporeans. Inflation has peaked and is on a broad moderating path. Core inflation fell from the peak of 5.5 per cent in January this year to three per cent in September. It is expected to edge down further to between 2.5 per cent and three per cent in December. The Monetary Authority of Singapore expects the moderation to continue for 2024, with core inflation forecast at 1.5 per cent to 2.5 per cent. Including the impact of the GST rate increase in January, core inflation for 2024 is projected at between 2.5 per cent and 3.5 per cent. Mr Chee said the impact of the GST increase is one-off and should not cause an ongoing increase in the Consumer Price Index. He said these are “positive signs” but the Government remains cautious because the global situation is uncertain and there are dark clouds on the horizon. “But what is clear is this - the Government understands the concerns of Singaporeans and we stand ready to support Singaporeans where needed,” he said. “The reality is that global inflation will remain elevated for some time to come. We cannot fully insulate ourselves from these global forces. Prices of goods and services will rise to reflect higher costs. If we do what is politically convenient and prevent prices from rising, I am afraid we will create more problems,” he said. Mr Chee warned that giving more subsidies will benefit certain groups at the expense of others and end up helping the rich more than the poor. Singapore would lose fiscal discipline and erode self-responsibility, he said. “The fiscal deficit that gets created cannot be wished away and the burden will fall on future generations of Singaporeans. And in the long run, it will hurt Singapore and Singaporeans,” he said. Mr Chee said that overall, the Government has moderated considerably the impact of inflation on Singaporeans, especially for the lower- and middle-income segments. It has done this on a sustainable basis, spending within its means and helping as many people as possible. “We will continue to monitor the need for more targeted support if inflation or the economic outlook worsens. We will do so while maintaining discipline in ensuring that our interventions are fair, sustainable, and effective,” he said. Mr Chee added that he welcomes the call by Leader of the Opposition Pritam Singh for a review to make sure that Singapore’s policies are fit for purpose.
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