Singapore will not impose price controls on essential food items

Minister of State for Trade and Industry S Iswaran said Singapore will not impose price controls on essential food items. He was responding to calls for price controls following recent price hikes for items like rice and flour. Noting this is a global trend which has also hit Singapore, he however reassured Singaporeans there is an adequate supply of rice, and Singapore's rice sources are diverse.

- The Singapore government does not believe in subsidies or price controls, and that's the official stance communicated to me when I wrote in to the Feedback Channel back in 2004 asking about their response to peak oil. On that point I'll have to agree. Price subsidies usually lead to demand-supply inbalances in the market, and price controls typically result in outright shortages.

What I'll have to disagree on is the second point. There is an Asian rice crisis going on right now with rice prices increasing dramatically. The top rice producing countries are already starting to restrict their exports. The only thing that Singapore can count on now is the relative strength of our currency and our present ability to out-bid others. So if you are in Singapore you should not be complaining that rice prices are going up. It is only your ability to pay that is keeping the rice coming in. Think about this point carefully before you get all worked up about food price inflation.

Comments:

Hi-I have a question for you about your blog. Would you drop me a line at mark@socialmediatoday.com

Posted by mark on April 04, 2008 at 03:25 AM SGT #

Counting on the SGD is not good enough. We need to increase local food production, halt population growth, and adopt a new set of economic beliefs if we are going to survive. Thailand or Vietnam will not be selling any rice to us if there is a crop failure due to peak oil or climate change. Unfortunately, the changes needed are too drastic and no one will act in a timely manner.

http://www.steadystate.org/CASSEFAQs.html

http://www.sciam.com/article.cfm?id=the-economist-has-no-clothes

Posted by dieoff.org on April 04, 2008 at 02:54 PM SGT #

Well I did say "now", i.e. at this point in time. I'm a peakoiler, remember? I know the score.

Thailand officials are already trying to assure people that they have enough rice. But official pronouncements like these tend to make me very nervous instead. We'll see how this plays out.

Posted by lowem on April 04, 2008 at 04:33 PM SGT #

The problem "now" is that the Singapore government believes that economic growth, the strength of our economy and the Singapore dollar will solve our ecological and sustainability problems. Until we (and the world) address the following issues: 1.Overpopulation, 2.Relocalization of energy and food, and 3.UNeconomic growth, a dieoff is inevitable. The time to act on these three issues is "now".

Posted by dieoff.org on April 04, 2008 at 05:05 PM SGT #