Hazel Poa on cost of living crisis

Post-pandemic inflation in Singapore has been much higher than it used to be, said NCMP Hazel Poa. Speaking in Parliament on Tuesday (Nov 7), she highlighted the need to help Singaporeans cope with higher prices in areas such as transport, water and utilities, and accommodation. She pointed out that the aid packages rolled out by the Government are for a limited time while the cost increases are “here to stay”. Ms Poa said rising costs are also affecting businesses. Turning to property, she pointed out that the cost is not captured in the Consumer Price Index and this is why the Progress Singapore Party has proposed a scheme to exclude land cost from the price of HDB flats. As for rising rentals, she suggested that the Fair Tenancy Industry Committee issue guidelines on annual rent increases, similar to the way the National Wages Council issues guidelines on wage increases. This would help to stabilise the property market and pre-empt excessive rent increases. It would also give tenants an alternative source of information on what constitutes a reasonable rent increase. Turning to transport costs, she urged the Government to consider allowing Certificates of Entitlement to grow at a rate similar to that of commercial vehicles. She also proposed a points-based system which looks at the bidding price, as well as factors like needs. She also suggested imposing additional levies on multiple vehicle purchases, similar to the Additional Buyer's Stamp Duty for residential property purchases. Ms Poa raised concerns that Singapore’s total fertility rate (TFR) has fallen to half the replacement rate and said there is good reason to review the approach on the reserves and how much more Singapore has to accumulate. “The number of our children and our children's children is halving with every generation," she said. “If our TFR falls further from cost pressures, who are we accumulating the reserves for?”