Cost of living — Topics

1 Aug 2022

Energy Supply Situation in Singapore Given Global Competition for Liquefied Natural Gas Supply

Gan Kim Yong addressed concerns about Singapore’s energy supply, noting that volatile global LNG prices due to the Ukraine conflict and seasonal demand have impacted electricity costs, with Singapore relying on imported natural gas for 95% of its electricity.
Measures such as the Standby LNG Facility, fuel stockpiling, and the Temporary Electricity Contracting Support Scheme have stabilized energy prices and ensured supply resilience, with these measures extended until March 2023.
The government is providing financial support to households and businesses, including doubled GST Voucher-U-Save rebates, a $100 Household Utilities Credit, and energy efficiency grants for SMEs, to help manage higher electricity costs.

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1 Aug 2022

Comparing Inflation for Essential Items in Singapore with That in Other Developed Countries

Shawn Huang asked for a comparative table of essential item inflation in Singapore versus other developed countries over the past three years.
Gan Kim Yong explained that essential items differ by household and country, citing that food inflation was higher in the US, Eurozone, and South Korea than in Singapore between 2019 and 2022.
Healthcare price increases were also faster in the US, Eurozone, and South Korea compared to Singapore during the same period.
The government acknowledged concerns about rising inflation and noted providing targeted relief to lower-income households while continuing to monitor prices.

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1 Aug 2022

Difference in Rates of Increase in Consumer Price Index and in Cost of Living

Hazel Poa questioned whether the rate of increase in the Consumer Price Index (CPI) differs from the rate of increase in the cost of living, and if so, why.
The Ministry of Trade and Industry explained that CPI measures average price changes for a basket of goods and services, while cost of living is influenced by both price and non-price factors like lifestyle and household preferences.
The government noted that CPI and core inflation are widely used metrics, but they cannot fully capture the multi-faceted and individualized nature of the cost of living experienced by Singaporeans.

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5 Jul 2022

Guidelines and Measures Against Unjustified Price Increases in Food and Private Hire Transport Fares

The Committee Against Profiteering (CAP) investigates feedback on unjustified price increases of essential goods and services but does not directly set prices or interfere with business pricing decisions.
The government is collaborating with industry partners, including major retailers, to ensure competitive and affordable prices for daily necessities and food items.
Initiatives like the Price Kaki price comparison app are being promoted to enhance price transparency and introduce competitive pressures in the market.
Measures are focused on addressing inflationary pressures from global supply disruptions while encouraging businesses to be transparent and not misrepresent reasons for price increases.

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5 Jul 2022

Evaluations by Committee Against Profiteering for Legitimacy of Prices Set by Businesses

Mr Edward Chia asked how the Committee Against Profiteering evaluates the legitimacy of business prices and the details businesses must submit.
The Committee reviews feedback on unjustified price rises of essential items using the GST increase as an excuse, collaborating with agencies like CCCS, CASE, and the People’s Association.
If profiteering is suspected, the Committee engages businesses to understand price increase reasons and assesses their transparency.
Businesses are expected to be transparent about prices and not misrepresent increases, while the process balances consumer feedback ease with minimal regulatory burden on businesses.

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5 Jul 2022

Threshold for Price Increases on Food Items before Government Intervention

Ms Ng Ling Ling asked whether the Ministry has a specific threshold for cost increases on food items before considering government intervention to stabilize prices.
Minister Gan Kim Yong explained that global supply disruptions from the pandemic and the Ukraine conflict have led to significant price rises, but direct price controls could cause shortages.
The government uses three measures to mitigate impacts: a strong Singapore dollar to moderate inflation, diversification of food sources to reduce exposure to regional disruptions, and support packages for lower-income Singaporeans.
Singapore's food inflation has been more moderate than global levels, with a 4.5% increase in May 2022 compared to the FAO index's 22.8% rise.
The government will monitor the situation and encourages consumers to use the Price Kaki app to compare prices and stretch their dollars.

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5 Jul 2022

Ensuring Affordability of Food Prices Despite Higher Sale Transaction Prices of Coffee Shops

Foo Mee Har raised concerns about high transaction prices for coffee shops and rising stall rentals in suburban areas, asking how the government will ensure affordable food and drinks for residents.
Desmond Lee noted that HDB manages over 770 coffee shops, some privately owned and others rented out, and highlighted measures like maintaining a good supply for competition, running some via social enterprises, and building new coffee shops and hawker centres to increase options.
Since 1998, HDB has only rented out coffee shops and introduced Price-Quality tenders in 2018 to prioritize quality and affordability, with budget meals priced around $3 and lower rentals to support sustainable operations.
The government regularly monitors resale markets and food prices to review policies and address affordability concerns, ensuring coffee shops serve as community hubs while providing accessible food options.

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5 Jul 2022

Location of Commercial and Coffee Shop Space within HDB Estates and Efforts to Keep Food Prices Affordable Given Recent High Transacted Sale Prices of Coffee Shops

HDB plans the location of coffee shops and commercial spaces in both mature and new housing estates based on household density, resident accessibility, and the availability of nearby amenities, aiming for most residents to reach a coffee shop within a 10-minute walk.
To address high transacted prices of privately owned coffee shops, the government promotes competition by ensuring a good supply of coffee shops in each town, supports social enterprise operators, and has shifted since 1998 to renting rather than selling HDB coffee shops, with price-quality tenders to encourage affordable food options.
HDB monitors resale and rental markets for coffee shops and food prices, has built 34 new coffee shops in the last four years with 30 more planned, and is expanding hawker centres to provide additional affordable cooked food choices for residents.

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5 Jul 2022

Adequacy of CPF Basic Retirement Sum to Provide for Minimum Retirement Needs of Seniors and Ensure Decent Quality of Life

Mr. Gan Thiam Poh questioned whether studies assess if the CPF Basic Retirement Sum (BRS) meets minimum retirement needs and if the government has defined adequacy goals or long-term plans for seniors.
Mr. Chua Kheng Wee Louis asked how the 3.5% annual BRS increase from 2023 to 2027 is determined, what caused the rise from 3%, and what long-term inflation assumptions are used.
Minister Tan See Leng explained that the BRS is based on lower-middle retiree household expenses, long-term inflation, and living standards, with the 3.5% increase reflecting strong past economic growth and higher monthly payouts projected for future cohorts.
The minister noted that CPF is one of several retirement funding sources, with BRS attainment seen as an adequacy indicator, and measures like the Matched Retirement Savings Scheme and Silver Support provide additional support for seniors.
The government plans to continue enhancing retirement adequacy through policies like raising retirement ages and CPF contribution rates for older workers, with ongoing reviews to meet seniors' needs.

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5 Jul 2022

Tackling the Macro Picture in Rising Cost of Living Challenges

Assoc Prof Jamus Lim highlighted Singapore’s rising cost of living, with food, energy, and transport prices surging, and argued that macroeconomic tools—like strengthening the Singapore dollar, quantitative tightening, and targeted fiscal support—could help curb inflation and cushion households, especially fixed-income groups.
The Minister of State for Trade and Industry emphasized the government’s long-term macro approach, citing the effectiveness of exchange-rate policy in mitigating imported inflation, ongoing trade diversification, and recent fiscal packages providing immediate relief to vulnerable groups.
The debate concluded with a call for proactive, balanced policy combining monetary and fiscal measures, while cautioning against wage indexation and stressing the need for timely, targeted support amid global inflationary pressures.

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5 Jul 2022

Proposal to Regulate Petrol and Diesel Pump Prices Given Recent Increases

Two Members of Parliament raised concerns about rising petrol and diesel prices, suggesting a cooperative model for fuel supply and government price regulation.
The Minister of State explained that global oil price increases are driven by demand and supply constraints, and that price regulation would distort the market and benefit high-consuming car owners.
The government prefers to maintain a competitive fuel retail market, with the Competition and Consumer Commission monitoring for anti-competitive practices and encouraging consumers to use the Fuel Kaki website for price comparisons.
Targeted financial relief has been announced for self-employed persons and drivers hardest hit by fuel costs, and the government is reviewing the fuel retail market to consider further measures.
The government emphasised its commitment to market competition, price transparency, and readiness to provide more assistance if needed.

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4 Jul 2022

Support for Stallholders Facing Steep Rental Hikes in Heartland Coffee Shops and Policy Measures to Manage Rising Valuations and Rental Rates

Nadia Ahmad Samdin and Liang Eng Hwa raised concerns about steep rental hikes for stallholders in heartland coffee shops following high transaction prices and asked about support measures, rent control, and policy interventions to manage valuations and rental rates.
Desmond Lee responded that HDB ensures affordable cooked food by maintaining a good supply of coffee shops for healthy competition, including running some by social enterprises, and has built new facilities while planning more.
HDB stopped selling coffee shops since 1998 and now rents them out, introducing Price-Quality tenders in 2018 to prioritize quality and budget meals, which result in more sustainable rentals and food options around $3.
The government is cautious about rent control, as it may discourage owners from investing in improvements, and HDB regularly monitors resale markets and food prices to review policies for affordability.

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4 Jul 2022

Proportion of ComCare Short-to-Medium-Term Assistance Applicants Rejected in Last Three Months and Adjustment of Threshold Eligibility Criteria

Sylvia Lim asked about the proportion of ComCare Short-to-Medium-Term Assistance applicants rejected in the last three months and whether eligibility criteria would be adjusted for rising living costs.
The rejection rate for the most recent three months was about 35%, similar to the 34% rate in 2021.
ComCare eligibility is based on income assessed holistically by Social Service Offices, with regular reviews of criteria, including one planned later this year.
The government is addressing cost-of-living pressures through the Household Support Package, including CDC Vouchers and additional GST Voucher-U-Save rebates.

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4 Jul 2022

Number of Households with GST Voucher-U-Save Net Balances of More Than $20 by HDB Flat Type

About 6% of HDB households, or 60,673, had GST Voucher-U-Save balances exceeding $20 as at 31 March 2022.
A higher proportion of 1- and 2-room HDB households have balances above $20 due to receiving larger rebates and lower utilities bills.
The $20 threshold represents roughly a quarter of the average monthly utilities bill for these households.
Households can continue using their U-Save balances to offset future utilities expenses.
A detailed breakdown by HDB flat type is provided in Table 1 of the Minister's response.

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4 Jul 2022

Annual Amount Disbursed from One-off Baby Support Grant and Proposal for Further Support Given Rising Cost of Living

He Ting Ru inquired about the annual disbursement of the $3,000 one-off Baby Support Grant and whether further support would be provided for families amid rising living costs.
Indranee Rajah stated the grant disbursed $92 million in its first year and $69 million in its second, noting it was a one-off COVID-19 measure complemented by broader family support packages.
The government has introduced comprehensive measures including CDC vouchers, U-Save rebates, and a $200 top-up for children’s accounts to alleviate cost-of-living pressures.
A recent $1.5 billion Support Package offers additional targeted aid, such as GST Voucher cash payments and utility credits, with ongoing monitoring to assess further needs.
The government reaffirmed its commitment to supporting Singaporeans in marriage and parenthood through continuous review of family-oriented policies.

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4 Jul 2022

Rent Control Measures on Coffee Shop Stalls in HDB Estates to Prevent Transfer of Cost Increases to Consumers

Ms. Carrie Tan asked if rent control measures would be implemented on coffee shop stalls in HDB estates to prevent high rental costs from being passed to consumers.
Desmond Lee highlighted the government’s efforts to ensure affordable food through new coffeeshop developments, competition, and price-quality tenders that prioritize budget meals and sustainable rentals.
The minister cautioned against rent control, noting it could reduce incentives for owners to invest in improving coffee shops, and emphasized ongoing monitoring of resale markets and food prices to address affordability.

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4 Jul 2022

Impact of Rising Inflation on Planned GST Increase and Related Financial Offset Measures

The government will proceed with the planned GST increase in January 2023, stating that postponing it would create a structural funding gap for healthcare and social spending, but has allocated a $6.6 billion Assurance Package to offset household impacts for five to ten years.
A $1.5 billion support package was introduced to provide targeted relief for lower-income and vulnerable groups, including cash payouts, utilities rebates, and enhanced wage support for lower-wage workers, while monetary policy continues to curb imported inflation.
Officials emphasized fiscal responsibility, noting that one-off revenue gains from property and vehicle transactions cannot fund long-term needs, and committed to monitoring inflation closely and enhancing support measures if the situation worsens.

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4 Jul 2022

Singapore's Economic Outlook Given Rising Inflation and Government's Plans to Assist Businesses and Singaporeans

The Minister of State highlighted that global supply disruptions and the Russia-Ukraine conflict have driven significant inflation in Singapore, with core and headline inflation expected to average 2.5-3.5% and 4.5-5.5% respectively in 2022, but to moderate by year-end, while affirming that the economy is not expected to face a recession or stagflation in 2023 despite global risks.
The government is addressing the challenging environment through three key measures: maintaining a stable macroeconomic environment with a tighter monetary policy, providing immediate relief via a $1.5 billion support package for lower-income and vulnerable groups, and continuing to attract investments and create jobs to combat inflation.
Economic growth remains resilient with GDP expanding 3.7% year-on-year in the first quarter of 2022, and the economy is operating slightly above potential with a mild positive output gap, though labour shortages and cost pressures persist but are expected to ease as non-resident worker inflows resume.
The Ministry is confident in achieving its 3-5% GDP growth forecast for 2022, with above-trend growth expected to continue, while closely monitoring external risks and implementing measures to support businesses and households in managing borrowing costs and cost-of-living challenges.

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9 May 2022

Assessed Impact of COVID-19 Lockdown in Chinese Cities on Supply Chains and Measures to Ensure Accessibility of Essential Goods and Services

The Minister of State for Trade and Industry confirmed that lockdowns in Chinese cities, including Shanghai, have caused supply chain disruptions and shipping delays, which may worsen global inflation, though most Singaporean firms have managed thus far by using contingency plans and inventory buffers.
Industries reliant on imports from China, such as electronics and machinery, are affected, but essential food and healthcare supplies are expected to remain stable due to low reliance on China and diversification efforts.
The government is supporting businesses with extended loan schemes and assisting lower-income households through enhanced ComCare assistance to cope with rising costs, while continuing to monitor the situation closely.

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5 Apr 2022

Singapore's Petroleum Reserves and Evidence of Anti-competitive Behaviour among Fuel Retailers

Mr. Gerald Giam posed questions to the Minister for Trade and Industry about potential anti-competitive behavior by fuel retailers, the actions the Government would take, and the possibility of using petroleum reserves to mitigate price increases.
He also inquired about the Committee Against Profiteering's role in preventing unjustified price hikes, its scope for essential items, and the powers available to tackle profiteering.
Mr. Gan Kim Yong responded that the matters raised were already addressed in the Joint Ministerial Statement on Inflation and Business Costs delivered on 4 April 2022.

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