The cost of living, driven partly by higher food prices, is expected to soar further in the first three months of this year before moderating, said Finance Minister Tharman Shanmugaratnam in Parliament on Monday.
But he assured the House that the Budget, which is coming next month, will contain measures to help shield Singaporeans from the quickening inflation, reported The Straits Times.
“The Government will take into account the impact of inflation and the needs of low-income and retiree households when considering further transfers,” said Mr Shanmugaratnam. He also hinted that current assistance schemes such as the ComCare Fund may be enhanced.
Inflation in Singapore hit 3.8 per cent in November from a year ago, the largest jump since January 2009.
Meanwhile, Senior Minister of State for Trade and Industry S Iswaran also cautioned that Singapore will have to watch for over-heating and inflationary pressures as the labour market tightens and capacity constraints become more binding.
He said Singapore does not need stimulus measures this year, reported Channel NewsAsia.
Terming last year’s near-15 per cent GDP growth as “exceptional”, Mr Iswaran said the expected four to six per cent growth this year is still above the government’s medium-term growth potential estimate. The estimate is about three to five per cent per annum.
The emphasis going forward with the economy at “full employment”, will be on raising workforce productivity and increasing economic competitiveness over the medium term, he said.
