External
Factor
a) Rising demand for oil and minerals from China and India
b) Consolidation of major industries such as steel, mining
and oil
c) Forming of cartels and natural monopolies which control
supply and jacking up prices.
d) Too much liquidity in the market, which cause property and
stock prices around the world to sky rocket.
e) Creation of biofuel, which causes shortage of food supply
f) War in Iraq and on going middle east conflict
g) The world is overly reliant on oil
h) Rising cost of China as they are now exporting
inflation, instead of deflation.
i) Rising world trade activities which cause an increase in
shipping cost.
Internal
Factor
a) Rising residential property prices due to IRs
b) GST hike
c) Rising commerical and retail rental
d) Transportation cost hike
The external factors affect other equivalent economies as well,
it's doesn't solely affect only Singapore.
Taking into account the external factors, our inflation rate is
far higher than other comparable countries.
Then we have to look at the internal factors.
Who has a direct hand in managing the internal factors?
Rising housing prices due to increase immigrants, GST increases,
rising rentals, rising electricity rates, rising medical cost and
rising transportation cost.
