While most sectors in Singapore, including tourism and aviation, have recovered from the COVID-19 pandemic, the war in Ukraine “clouds our outlook,” Lee said.
The pandemic disrupted supply chains and required massive spending packages in developed countries, which caused inflation. War also exacerbated this.
The cut in oil and gas supplies from Russia has pushed up energy prices. Grain prices have also surged as supplies from her two main exporting countries, Russia and Ukraine, have been unable to ship.
To deal with the rising cost of living in Singapore brought on by these challenges, the government is “doing everything necessary to help Singaporeans, especially the lower and middle-income groups,” Lee said. Stated.
To illustrate this, the Prime Minister expects an additional S$2,200 in assistance this year for middle-income families with two young children staying in a four-room Housing Board (HDB) apartment. I said I could.
On the other hand, low-income families staying in a three-room HDB flat can expect around S$3,700 in support.
“While this will not fully cover all the increased costs, it will help ease the burden on Singaporean households,” Lee said.
“And if things get worse, we stand ready to do more.”
Lee said the Monetary Authority of Singapore has also tightened the country’s exchange rate policy, making international travel more affordable and lowering the price of imported goods in Singapore dollars.
While some economic problems can be attributed to the pandemic and war, Lee said the situation has also “fundamentally changed.”
He described several trends that are pushing up costs and pushing up inflation, including in Singapore. Among them are: China’s growth and export slowdown. Countries that raise tariffs on each other. Countries reviewing their supply chains.
“We don’t have a lot of influence over this global inflation situation,” Lee said.
“But what we can do is increase productivity and competitiveness.”
To do this, Singapore “needs to push forward with its economic uplift and restructuring; redouble its commitment to transformation; added Mr.
Read full here: Government ready to do more if cost of living rises further, Lee says