Economic growth key to dealing with rising costs: Singapore PM
He says incomes must rise more than inflation, and growth means more income
By Zakir Hussain
OPEN HOUSE: President S R Nathan (left) greeting visitors who thronged the Istana, which was opened to the public from 8.30am to 6pm yesterday, as is customary during Chinese New Year. — ST PHOTO: SHAHRIYA YAHAYA
PRIME Minister Lee Hsien Loong reiterated that while measures can be taken to deal with rising living costs, the way to deal with the issue was by growing the economy so that real incomes rise more than inflation.
He said on Thursday that when the economy grew by 7.5 per cent last year, incomes did not just rise at the top end, but across the board.
‘Even (at) the bottom, the middle, everybody’s real income went up. I think that is the right way to overcome these problems,’ he said, when asked by reporters about rising costs.
Manpower Minister Ng Eng Hen said last Sunday that strong economic growth last year saw a general rise in wages by some 8 per cent. This was also on the back of a record 237,000 jobs created and unemployment at a 10-year low.
Still, Mr Lee on Thursday suggested another way for Singaporeans to adjust to rising food prices.
They could buy frozen food instead of more expensive fresh food, he noted, just days after he also suggested that people could opt for house brand goods, which cost less than others.
The Government is expected to announce measures to help ease the burden of rising costs, especially for those most in need, when the Budget is presented on Friday.
Mr Lee declined to hint at what help might come their way, saying ‘we have to wait and see what the Finance Minister comes up with’.
He was speaking to reporters after visiting those working on the first day of the Chinese New Year, something he has done regularly.
This year, he was at Changi Airport’s Terminal 3 and handed out mandarin oranges and hongbao.
Accompanied by labour chief Lim Swee Say, Transport Minister Raymond Lim and union leaders, the Prime Minister spent two hours offering new year wishes to some 160 workers - from toilet cleaners to baggage handlers. He thanked them for working when most people had the day off to celebrate with family and friends.
‘We all owe them something, because while the rest of us are celebrating Chinese New Year, they are keeping Singapore ticking and running, whether it’s the airport or the port, or the trains or the hospitals, or the incinerator plants, or the police and security people who are keeping us safe,’ he said.
‘I think it’s something important that Singapore is always on the alert…switched on and going.’
Among the workers greeted by Mr Lee was Mr Ong Ang Jee, 67, who retrieves baggage trolleys. He told the Prime Minister that he was glad for the chance to exercise by working.
Terminal 3 opened last month and Mr Lee was happy to see that it was operating smoothly.
On rising food prices, he noted that the trend was global and said the Government had helped Singaporeans in a number of ways, including the Goods and Services Tax offset package and Workfare Income Supplement for low-wage workers.
‘These are very substantial amounts, and substantial measures. At the same time, of course people have to make adjustments. Because if food becomes expensive it’s a worldwide thing, there’s no way we can make it cheaper in Singapore.’
‘But what you can do is to adjust, go for house brands, maybe go for frozen food instead of fresh food.’
The Trade and Industry Ministry has pointed out that a recent survey showed that compared to many other countries, Singapore has one of the lowest rates of inflation when it comes to food
Source : Straits Times - 09 Feb 2008
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