Oral reply to PQs on Measures to Mitigate Impact of Rising Costs on Households and Businesses

Questions

Ms Joan Pereira: To ask the Minister for Trade and Industry in view of rising global food prices and export controls imposed on rice and its substitutes, what measures will the Ministry implement to mitigate the impact and assist the lower and middle-income groups.

Mr Liang Eng Hwa: To ask the Minister for Trade and Industry (a) what is the upcoming inflationary outlook in view of the latest rising food and energy prices; and (b) what are the further measures to mitigate the impact to households and businesses.

Oral Answer (to be attributed to Minister of State for Trade and Industry Alvin Tan)

1. Mr Speaker, may I have your permission to answer PQs 18 and 19 of today’s Order Paper together as they pertain to inflation as well as support for households and businesses?

2. Inflation in Singapore has eased in recent months. CPI-All Items inflation fell to 4.1% on a year-on-year basis in July, from 6.6% in January. Similarly, MAS Core Inflation eased from 5.5% to 3.8% over the same period. For the rest of 2023, inflation should slow further as import costs are likely to remain lower relative to a year ago. For the full year, MTI expects CPI-All Items inflation to average 4.5% to 5.5%, while MAS Core Inflation is projected to be 3.5% to 4.5%. Nonetheless, upside risks remain, including from further shocks to global commodity prices and supply chains.

3. The Government has taken a multi-pronged approach to help households and businesses cope with inflation.

4. The Government has introduced measures to help lower- and middle-income households manage the higher cost of living. For example, the Assurance Package in Budget 2023 provided a Cost-of-Living Special Payment of between $200 and $400 and additional CDC Vouchers for eligible Singaporean households.

5. The Government is also helping businesses manage rising costs. For instance, we enhanced the Enterprise Financing Scheme in Budget 2023 to reduce businesses’ borrowing costs. To mitigate higher energy prices, Government schemes such as the Energy Efficiency Grant and the Resource Efficiency Grant for Emissions help businesses become more energy efficient.

6. The Monetary Authority of Singapore will continue to keep the Singapore Dollar strong, which dampens imported inflation.

7. Finally, to help consumers make informed purchasing decisions, the Government worked with the Consumers Association of Singapore to onboard more retailers onto its Price Kaki app. Price Kaki promotes price transparency by providing easy and timely comparisons of grocery and hawker food prices.

8. The Government will continue to monitor trends in inflation and do even more to help businesses and households if necessary.