NTUC chief urges Singaporeans to be prepared to live with higher fuel, food prices

This article belongs to the Singapore inflation watch story arc.

channelnewsasia.com :

Coping with higher food prices is a global phenomenon, and NTUC Chief Lim Swee Say has called on Singaporeans to be prepared for this new reality. The best way to meet this challenge is for Singapore to focus on economic development, and according to Mr Lim, this is the most sustainable strategy. "Because the day we lose our economic competitiveness, then the problem is no longer about inflation. The problem is much worse than that because there will be no jobs. There will be a softening of the labour market and there will be lower pay," said the NTUC Secretary-General.

That is why Singapore's strategy is simple - job creation to ensure that the labour market remains tight. This will then ensure that workers can enjoy higher salaries and better bonuses. "There's no running away from higher energy costs, higher food prices because this is a global phenomenon. But what we can do in Singapore is to make sure our workers are able cope with this better that any other workers in any other countries. This means, give them good jobs, good skills, a good living environment and good working environment."

- As I have remarked to some friends, this inflation thing looks like it is becoming a political issue. It has become serious enough to be addressed by the Prime Minister in the 2008 New Year message :

... Mr Lee expects the Singapore economy to grow by 4.5 percent to 6.5 percent in 2008. He however noted that inflation has picked up in recent months and this has caused concern to Singaporeans. PM Lee said: "There are several reasons for this. First, the GST rate went up to 7 percent in July ... second, IRAS has revised up the Annual Values of HDB flats ... third, prices of food and energy have increased worldwide. This affects us directly, because we are a small and open economy, which imports all our food and fuel. But we are doing what we can to lessen the burden on Singaporeans, for example, by encouraging NTUC FairPrice and other supermarkets to find new sources of supply and offer house brands of basic essential items, and helping low-income families through U-Save and other rebates."

Michael Palmer, MP - Pasir Ris-Punggol GRC, said: "From the ground we are already hearing people talking about the cost of living going up, food especially, basic necessities like rice, milk, bread. These people feel the pinch everyday. PM mentions, in his message, about the shoppers at Orchard Road. That may not be totally representative about the way people are feeling. It may be year-end bonus but when you look at the year forward and the rising cost of living, they have to deal with their monthly salaries and less that their money can buy."

- Please excuse me while I fall out of my chair after reading the second paragraph above from Michael Palmer. It isn't quite very characteristic for members of the ruling party to contradict umm, other members. It looks like people are really starting to complain about the ongoing rising inflation to their MP's who represent them.

And then there's the SDP who's starting to yell about it in their usual fashion :

At its New Year gathering yesterday, the SDP told friends and supporters that it was gearing up for a campaign in 2008 against the PAP's politics of greed and exploitation. Noting how the price for everyday commodities have risen beyond the means of working Singaporeans, party secretary-general Dr Chee served notice that the Singapore Democrats would not take the matter lying down.

Such an exploitative posture taken by the ruling party must be resisted, he said, and the people must not adopt the mindset that they are powerless to do anything about it ... Dr Chee also said that there was little to celebrate in the coming New Year as the future of many Singaporeans looked uncertain and economically more burdensome. A few attendees voiced their concerns about the continuing state of economic affairs in Singapore and suggested ways of countering the Government's policies ...

- In addition to that, a source tells me that the Worker's Party will be tabling some questions on this issue during the budget debate. So let me add a line to what I was saying earlier :

1. Inflation is taking off and going exponential.
2. Inflation is becoming a political issue.