THE TEMASEK TIMES

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DPM Tharman: Most Singaporeans will not feel the effect of high inflation rate

Posted by temasektimes on April 30, 2012

Despite the shocking high inflation rate of 5.2 percent in the first quarter of the year, Deputy Prime Minister and Minister for Finance and Manpower Tharman Shanmugaratnam said most Singaporeans will not be affected by it as more than half of the headline inflation rate of 5.2 per cent came from higher COEs for cars and the effect of higher market rent on houses.

He added the increase in prices of daily necessities and essential services such as food and clothing have actually been much more moderate at three per cent or lower.

Speaking at the May Day Dinner, Mr Tharman said:

“The vast majority of Singaporeans, who already own their homes and are not buying a new car, will not feel the effects of these sharp increases. The increase in prices of daily necessities and essential services, such as food, clothing & footwear and education, has actually been much more moderate, at three per cent or lower. The inflation in actual household expenditures for most Singaporeans is hence lower than five per cent.”

Mr Tharman reassured Singaporeans that the government is monitoring the situation closely and the Monetary Authority of Singapore (MAS) has been strengthening the value of our dollar to reduce the impact of imported inflation.

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38 Responses to “DPM Tharman: Most Singaporeans will not feel the effect of high inflation rate”

  1. CKMPD said

    With such lies, the pap will soon believe their own lies and further alienate itself from Singaporeans

  2. denzuko1 said

    Most people do not feel the pinch mainly because they already cannot afford to buy anything already, either that, the most people that Tharman referring to are his colleagues in white.

  3. Badass Ed said

    I just received my utilities bill posting a 30% increase.

    Yes, I am not feeling the effect of the inflation.

    I am switching off everything except the computer to post my concurrence that we are not feeling the effect of the inflation.

    Hoho.

  4. jaded said

    this really makes my blood boil. this is the typical pappy reply that is designed to brush people off.

    so what is he saying? that since it only affects the minority, it is ok to leave it as it is? COE and housing prices have been artificially inflated by the govt and I place the blame squarely on the PAP.

  5. Sam Gunner said

    Bullshit.
    Rental prices are coming down cause there’s lesser demand.
    Most landlords are having a harder time finding tenants.
    And prices are going down.
    More people paying for stamp duties means that agents are doing their jobs, to get tenants to pay stamp duty.
    Nobody used to bother paying stamp duty in the past few years.

    The Gov just look at numbers on a computer and think they know everything.

  6. anakin said

    Hello Mr Tharman, I don’t have a car and have a HDB flat but my boss wants to buy new car but squeeze my salary saying no increment and bonus for me due to increase in “biz cost”. So please expalin how it does not affect me. Things are still going up but not my salary.

  7. arnold Lum said

    Singaporeans are guilty themselves of fuelling this inflation.

    If Singaporeans want to stop skyrocketing inflation here, go to JB to do your shopping and dinning.

    • lj said

      How practical

    • imma said

      eh ur knowledge of economics really cmi. we dont buy things in singapore, demand falls price increase. this is basic. u should go back to school

      • CAB said

        Demand falls, price falls.

      • Narcissist said

        “Demand falls price increase”. Lol lol. I think your knowledge economics even more CMI. Even Keynes will be laughing in his sleep.

      • Watermelon said

        when demand falls, prices should fall if there is an over-supply. When almost everything is imported from other places to SIngapore, do you think a lower demand locally will make the prices lower? maybe. But a more likely scenario is that shop owners and business owners will either sell less at higher cost to cover rentals and essentials, or stock up and continue to sell at usual price.

        with most groceries or fresh produce which have the highest traffic, this might not be the case. Then again, to regional suppliers such as malaysia farms, Singapore is still the country which offers the highest price compared to their local markets and they would already have tried to sell as much to the Singapore market as possible to maximise their earnings. Should a lower demand ensues, they will still try to export them elsewhere to maximise profit and will not lower too much of their offerings. but then again, this is dependent on providence of heaven. so u cant really equate it into the picture. most likely, if there is an over supply, they will convert their products to other forms which can be sold at a later date still at premium prices.

        daily essentials are never going to fall in prices. when eggs, rice and flour became expensive, the price stayed even with more sources of imports. The truth of the matter is: the trade organisations protects the trade to earn money, the government fails to protect the people who needs to buy cheaper goods all for the sake of a “good” economy (which they claim benifits more singaporeans). there will be cases of inflation and deflation within an economy for various reasons and products over periods of time. However, there was NEVER a downward revision of price even when the supply increased.

        Take for example, the electricity bills. The rate should be pegged to the prices of gas which is the main generator fuel for plants in Singapore. When prices dropped, do your tarriffs decrease? no. they stay constant. Yet, the moment the prices for gas increase, a review of prices immediately is in the pipelines. the rationality behind this? once you get use to a certain price, there is no need to do a review. over time, people will just accept it as a way of life.

        Should this be the way of life here? when your lives are at stake, your future is at stake and yet you have no stakes in the land your ID says u are a citizen of, not naturalised or imported.

  8. ryan said

    april fool not yet over?

  9. PMET said

    so he is saying that businesses that need to get new vehicles will not transfer the higher cost to consumers?

  10. cephas said

    they’ve lost the plot

  11. js said

    FU&&CCKK YOU THARMAN!!!!
    I’m normally civilized and all but his comments just smack of irresponsibility and stupidity of the highest magnitude.

    Fact: We are not buying car because of the damn inflation not because we don’t want to!!
    Fact: There are still a lot of young Singaporeans who need to buy their own homes and it doesn’t help that prices of new HDB is fu##cking pegged to market prices!!! Check your damn facts you stupid idiot!!!!!

  12. Snowman said

    Citizen: Dear T, there’s a fire in my backyard…
    T: Is it in your house yet?
    Citizen: Not yet.. … …
    Citizen: But there’s smoke!!!
    T: Is your house burning yet?
    Citizen.. But Sir… with due respect, the fire is inches from our bedroom and children are suffocating….
    T: So it is true that your house is not on fire yet?
    Citizen: Yes Sir… But… … …
    T: Ok since you are worried, Y dun you stag your house up with a walls of newspaper so that your family will not worry if they do not see the smoke & fire?

  13. Dylan Lee said

    what do you mean by most, that is to say alot is still feeling the pinch

  14. Blood suckers said

    Who are you fucking kidding, Mr botak?

    I am smack in the middle heat of the inflation. With $200, my groceries can last one month. Now only fucking two weeks!

  15. Jenny said

    He is living in his own world.

  16. fxxkyoualltwice@gmail.com said

    is he guessing the numbers? we just paid millions to him and his department of scholars so that they could guess? omg. should they wait till the inflation hit 10% then will they move their sorry ass to do anything? 5% is a bad number already judging from the fact that living standard in singapore is getting higher everyday.

    if he is in hk, by saying this, will cause a major public backlash and he will be kick out of office today!!! but look at the current situation, he is still being paid thousand per day.

    60% because of you all, 40% are fxxked. Thank you very much. Enjoy the damn inflation you bunch of fxxking idiots.

  17. Crap said

    dear Tharman Shanmugaratnam,

    Please get this into the thick skull of yours:

    Higher COE prices and higher housing rentals indirectly affect the cost of living. Businesses need vehicles to transport goods and services. Businesses need to rent commercial space.

    So stop the bullshit about excluding COE and rentals from inflation statistics. You might as well carve out many other items and proclaim that we have deflation!!!

  18. Hsien Liao La said

    f-up speech from this botak piece of junk. even idiots know that at 5% inflation, the interest rate becomes way way negative. what will happen to the value of our savings???!!! Tell me!

    And how about those who want to buy a flat or a car? Are we supposed to swallow the ridiculous prices to enjoy what other people in other cities take for granted?

    Hey, don’t worry: soon i’m outta here completely. together with many of my smart and skilled singaporeans.

  19. it's so typical.. said

    I can’t take it..Blood boiling.. everyday at least one of these MIWs will say such nonsense and expect us to believe. What is wrong with them?? Is your Ivory Tower so freaking high that you can’t see people struggling to get by everyday?? The problems Singaporeans face do not disappear just because you refuse to admit it.

  20. black cat said

    Is the ‘botak’ referring to himself and his fellow million dollars colleagues in white?
    the 39.9% of Singaporean know, papigs greatest talent is “lying”! Never, never believe papigs!

    Lies, lies, lies! When lies become comfortable, it became A WAY OF LIVE OF papigs!!!

  21. Bengy said

    Is he using his butt to think & talk at the same time??????

  22. Observer said

    Are you kidding? If the COE goes up to 100k and stays there and my car is 8 years old. Do you not think that in 2 years time, I will have to pay that 100k if I need a car? the COE inflation maynot hit me now but it will when I need to change my car. Then it will not be 5.2%. It will be maybe 100%.

    What about HDB? When my kids have to buy one, don’t you think they will (and teh family will need to chip in to help) have to cough up the huge property inflation that PAP has screwed up on?

    What a dumbass!

  23. No Thanks said

    I am going to buy more property in Batam. K thanks and Bye….

  24. ngpy said

    Honorable Minister Shanmugartnam, and also DPM I really hope you realised what you are really thinking and talking about. Why not come clean on whether SINGAPORE CITIZENS are affected by the high inflation rate now and is still climbing. Please don’t kid yourself to say sSingaporeans are not affected by the inflations. I hope you are not joking with your own CITIZENS, MINISTER

  25. i think said

    didn’t the newspaper said that 5.2% is not inclusive of COE? therefore, if we factor in the COE the REAL inflation is actually higher.

  26. Freemakan said

    he is right…;life not affected..because he pay million of salary….

    poor because poorer, rich become richer

  27. Snoopy Says said

    oh really? ….. F U!

  28. Francis Chew said

    i cannot understand why the government PAP for the past 10 to 20 years calling for Singaporeans to support and having cuts in salaries etc. but their departments or their PUB, Public Tpt, COE, HDB, ERP and their Salary has been going up while the rest of Singapore Citizen has to bare with it???? WHY CAN’T THEY JUST HALT THEIR INCREAMENT LIKE US too??? is this for the minority or for the majority???

    • Francis Chew said

      PUB bills – Majority
      Public Tpt – Majority
      COE – minority
      HDB – Majority
      ERP – Majority

      do have a thought for all of Singapore and let us have a break without taxing us with small amounts….. its easy to increase but i wonder when will it ever decrease.

  29. Why don’t you try collecting a paycheck of $1000 a month for 3 years, Mr Tharman? Use $1000 to pay your bills, monthly contribution to CPF, purchase groceries and better still, stay in hospital for a week. Nothing was mentioned about help for Singaporeans struggling for a living. Now that I know my DPM more, I know who to vote for in future.

  30. Local said

    MP, so u think we cannot feel it? Hmm, how about we swap your salary with my wages? Since both of us will not feel anything. <3

  31. 90s local said

    With such wise and strong words spoken by our favorite government our parent’s generation have been supporting, teens of the 90s know who to vote for in the future. So as to not feel the pinch no more, literally. Fk you :)

  32. A said

    Here’s something I read in another blog. The argument here is that rises in COE prices are affecting small businesses that need to use cars.

    http://atans1.wordpress.com/2012/05/08/tharman-has-a-point/

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