With Singapore importing more than 90 percent of its food, the government has been diversifying food import sources to reduce vulnerability to large price fluctuations globally and ensure that food supply prices remain competitive. (Photo: CNA) Singapore (VNA) – In the context of inflation being at its highest level inalmost a decade, the Singaporean government has devised a multi-pronged strategy tominimise inflationary pressures on businesses and consumers.
Addressing theparliament on January 11, Minister of State for Trade and Industry Low Yen Lingsaid the government has set forth policies to keep the Singapore economycompetitive so that it can continue to create good jobs to bring sustainablewage growth for Singaporeans.
Earlier, the Monetary Authority ofSingapore (MAS) last October tightened monetary policy. This measure strengthens the Singapore dollar, which in turn helps reduce the cost of imports and shieldSingaporeans from some external cost pressures.
The government also carefullymanaged domestic supply-side constraints, such as the supply of industrial andcommercial space, to help rein in business rental costs that may translate tohigher consumer prices. Policy measures such as the Jobs Support Scheme havealso alleviated labour costs, she added.
Lowpointed out that Singapore's diversification of food import sources helps toensure that prices of food supplies remain competitive and reduces itsvulnerability to large price fluctuations globally.
Singaporeauthorities work closely with industry partners to ensure that the prices ofdaily necessities and food items are competitive and affordable. TheSingapore government also supports companies with human resources costs,helping them better cope with supply chain disruptions.
Singapore'soverall inflation rose to 3.8 percent in November last year while core inflation - which excludes accommodationand private road transport cost – came in at 1.6 percent the same month.
Given these factors, the MAS and the Ministry ofTrade and Industry (MTI) have raised their overall inflation forecast forSingapore in 2021 to 2.3 percent. The inflation is projected to average 1.5percent to -2.5 percent this year. Singapore’s core inflation is expected toaverage 0.9 percent in 2021 and to rise from 1 percent to 2 percent in 2022./.
