Tackling Inflation: Singapore S$1.5 Billion Aid Package
Global inflation has been on the rise especially due to rising energy prices and food prices because of the ongoing Russian and Ukraine war and the global supply chain disruptions. Inflation is expected to stay higher for longer given that most of the factors are due to supply factors of inflation.
Singapore Consumer Price Index (CPI) All Items rose by 5.4% in April according to data from Singapore Department of Statistics. Singapore’s May CPI will be announced today and is expected to trend higher for the next few months, given the import dependence of Singapore due to the lack of natural resources and as a result disrupted supply chain.
Targeted aid for lower-income and vulnerable. Singapore has introduced a carefully designed S$1.5 billion support package that is tilted to help lower-income and vulnerable groups that have been worse off due to rising prices. Household utilities credit of S$100 for every Singaporean household and 1.5m Singaporean to receive GST Voucher- Cash Special Pay of up to S$300 is expected to be disbursed in August 2022. Other measures were also announced target at taxi main hire and private hire drivers due to rising fuel prices.
GST Hike to Continue. Individuals will likely be disappointed for those that are expectant for the scheduled 1% Goods and Service tax hike to 8% that is scheduled for 2023 to be delayed amid the rising cost of living; during the press conference, the Deputy Prime Minister has confirmed that it is expected to proceed as planned. This is given the longer-term spending requirements of Singapore’s revenue needs due to rising health care spending and the aging population. An offset package that has been implemented may cushion the impact on lower-middle-income households to cushion the impact of the GST increase.
Strengthening SGD. Holidaymakers would have found that the Singapore dollar is one of the best performing Southeast Asia currencies this year, relative to many other regional currencies despite the strengthening USD. USD/SGD is presently at 1.39, with SGD depreciated by merely 2.8% year to date to USD. The Monetary Association of Singapore has been early in tackling inflation from the use of its exchange rate policies early in recentering the S$NEER and adjusting the policy band of SGD in April. It is likely that MAS will continue to intervene in its tightening stance even before its October scheduled meeting. A stronger currency is expected to mitigate to some extent the import dependent cost push inflation.
Longer-Term Self Sustainable. Singapore imports around 90% of food supplies and is vulnerable to the concentration of imports from some countries. For instance, a third of chicken imports were affected recently after a chicken export ban from its neighboring country. Better food security over the long run must be tackled with supply side investments for greater sustainability. Singapore’s government is looking in achieve its “30 by 30” goal to produce 30% of nutritional needs by the year 2030. Whilst it is not likely that independence will be achieved it will be a way to diversify our supply chains to mitigate supply and price shocks.
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- Lsjlsjlsj·2022-06-24dont see any inflation in sg yet. everything still normal price. food still cheap.5Report
- LJRJ87·2022-06-25Gst going increase that why got package4Report
- Mccoy·2022-06-25At my personal level, I reduce my expenses. My economical rice, I go for 2 dishes instead of 3. Also, no meat. try to cook at home as much as possible3Report
- TheCrazyOne·2022-06-24we all know the story of giving a chicken wing and taking back a whole chicken.5Report
- CY Tan·2022-06-25GST hike will overtake the aid for general public especially the poor and needy.4Report
- Elky·2022-06-25Hope the measures does help, especially for lower income parties4Report
- Hauptmann·2022-06-24our government moves like a snail, don't count of them for assistance3Report
- GCL08·2022-06-25Its certainly not easy for SG to tackle all the challenges but at least this is a good start 💪1Report
- Ace021·2022-06-25give more lah.....2Report
- ChernTiong·2022-06-25just a small measure to help a bit3Report
- deInvestor·2022-06-25thanks for sharing2Report
- Karma Rider·2022-06-25從來都沒有看過那麼厲害的PO文!3Report
- 羊坑·2022-06-25Spend less3Report
- KenixBoon88·2022-06-26noted with thanks1Report
- Aceit·2022-06-26Amazong article !1Report
- ThaiGirl·2022-06-25Any aid by government is always a fraction of the amount requiredLikeReport
- Pepermintpat·2022-06-25For the needy a little goes a long way No complaintsLikeReport
- one piece·2022-06-29这篇文章不错,转发给大家看LikeReport
- yfong·2022-06-26Lol no effect one la. Sg mkt is deadLikeReport
- Chillpadi·2022-06-26Electicity & petrol 💡🛢🪫1Report