The S'pore approach to
battle rising cost of living
Straits Times, The
(Singapore)
Prime News
November 12, 2007
Author: Peh Shing Huei
THE cost of living is rising and the Government is helping
Singaporeans cope with it, said Prime Minister Lee Hsien Loong
yesterday.
While many people would look to their governments to keep prices
low, Singapore's approach is different and he believed that it is
one that works.
It aims to get the basics right - housing, jobs and affordable
necessities.
'We help, we do a lot, but we don't help by keeping the prices
individually controlled,' he said at a dialogue at the People's
Action Party annual convention.
'We help by making sure that the low income are able to pay for
their necessities, able to earn a living, able to have a house over
their heads.'
While Singapore has gone through years with stable cost of living
and very low inflation, he acknowledged that it might be tough to
maintain such stability going forward.
Prices of flour, food, energy and even chicken are going up, and
people are understandably worried, he said.
Following a jump in flour prices, bread prices here went up by up
to 20 per cent and noodles increased by 20 to 30 cents per
kg.
While there are calls on the Government to control prices, he
added, Singapore will not head the way of countries like Malaysia,
China and India by keeping prices of oil and electricity
down.
Instead, the Government helps the people through the Housing Board
flats, education, the Workfare Income Supplement scheme and
periodic top-ups when there are Budget surpluses.
'So with the house, the HDB flat which we help you to buy...nearly
everybody has a home which is a big relief. So when rentals go up,
you are not affected because you have your house and you have
something for your old age to retire by,' he said in response to a
concern raised by a party activist on the rising cost of
living.
There is also Workfare, he added, which sees the Government topping
up the wages of low-income workers.
For example, those who earn $1,000 a month would get $1,000 plus of
'hongbao' from the Government a year in cash, CPF and Medisave, and
this goes on continually.
But while these policies are important and helpful to the people,
he believed the Government can do a better job in explaining them
to Singaporeans.
He said that while the fine print of policies can be complicated,
the principle behind them is not.
'The principle is to help yourself - you work, the Government will
help you. But you must make the effort, and that is how Singapore
will succeed. That is how you will succeed,' he said.
'And I think that is an approach that has worked for the economy,
for the country, and we must keep that.'
Mr Lee was on a nine-member panel in the 90-minute dialogue at the
meeting for cadres to speak on issues and challenges the party has
to tackle.
Flanked by PAP chairman Lim Boon Heng, five MPs and a pair of
activists, the PM tackled concerns that centred on the convention's
catchy theme, 'Young and old, high and low', which refers to
Singapore's ageing society and the growing income gap.
Mr Lee noted that Singapore's approach to battle the wealth divide
has attracted the attention of other countries.
Referring to his recent interview with Chosun Ilbo, he said the
South Korean top daily printed almost everything he said and
displayed it over two pages.
Major newspapers and magazines in the West such as the Economist
have also written about Singapore's changes, he said.
Urging the party to continue to serve Singaporeans so that it can
win their support, he said: 'You are wearing white because it is a
symbol that you care...and you are not just sitting there and
letting somebody else take charge of the train.'
[email protected]
Copyright, 2007, Singapore Press Holdings Limited
-------------------------------------------------------------------------------------------
AFFORDING THE BASICS
'We help, we do a lot, but we don't help by keeping the prices
individually controlled. We help by making sure that the low income
are able to pay for their necessities, able to earn a living, able
to have a house over their heads.' PM LEE
