Singapore says it will raise electricity and gas prices for the last quarter of this year, days after announcing a hike in water tariffs from next April. Public transport costs are also expected to go up, adding to the burden of residents already grappling with inflation and a hike in taxes. CGTN's Miro Lu has more.
Skyrocketing rents, soaring food prices, and now, hikes in public transport fares and utility bills. In Singapore, residents are feeling the pinch of rising costs.
SUDHIR ARYA Singapore Resident "You buy a few things and all general, milk, your noodle packet, your vegetables all are going up."
SARAH LEE Singapore Resident "Even for holidays we are also reconsidering locations that we go to, duration of time."
Experts note that these hikes are unavoidable. Post pandemic the global supply chain has faced significant disruptions.
XU LE Lecturer, Department of Strategy and Policy, National University of Singapore Business School "Once the energy price is pushed up, then that is going to affect their production cost as well. According to last year's data, the average nominal wage of the labour here has already increased by 6.5%, which was the largest increase in the past decade."
Singapore's working class however was unable to benefit from this salary hike. Held back by inflation, real wage growth saw a mere 0.4% increase - the smallest rise since 2012.
MIRO LU Singapore "Experts say thanks to higher than expected taxes collected from stamp duty and GST, the government has decided to give back and help Singaporeans cushion the impact of rising costs. The city state has recently announced a support package of 1.1 billion Singapore dollars or about 800 million US dollars. Together with previous measures, all eligible Singaporeans will receive about 600 US dollars in cash by the end of the year."
Whether more such payouts and rebates would be needed in the future remains an open question. But in the meantime, another major concern for Singapore is how high prices will impact its attractiveness as a tourist and events hub.
SONG SENG WUN Singapore Economic Advisor, CGS-CIMB Securities Singapore "Do you say, let's go Bangkok, because it's far more cheaper. It's really then a consideration that everyone looks at carefully. So, its pitch always has been Singapore, whether you're living or working here, Singapore will never, ever be the cheapest place. But we want to ensure when you come, you have this experience."
High cost of living isn't unique to Singapore, but its reliance on imports makes it vulnerable to external disruptions. Analysts remain confident that the city-state's reputation as a safe, politically stable destination and the government's ability to step in and help locals financially, should hold it in good stead in the near future.
Miro Lu, CGTN, Singapore.
