REACH 369 - What are some of your concerns on the impact from increasing cost of living? What can we do to continue supporting people and businesses to cope with inflation? 

(SK)

04 Jul 2022 (10am - 7pm)

REACH

[10:16 am, 04/07/2022] +REACH: Dear Contributors,

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[10:20 am, 04/07/2022] +REACH: 📢 Topic 📢

Disruptions to supply chain, among other factors, pushed May's core inflation to 3.6 per cent - the highest rate that Singapore has faced since December 2008, when it hit 4.2 per cent.

From a tighter monetary policy to longer-term electricity contracts, Singapore has introduced several measures to blunt the impact of rising prices on households and businesses here.

To help Singaporeans overcome the tide of rising food prices, the $100 worth of Community Development Council vouchers for 2022, which were announced in this year's Budget, were given out to households in May.

💬 What are some of your concerns on the impact from increasing cost of living? What can we do to continue supporting people and businesses to cope with inflation? 

About 950,000 Singaporean households living in Housing Board (HDB) flats will receive their second quarterly Goods and Services Tax Voucher (GSTV) – U-Save and GSTV – service and conservancy charges (S&CC) rebates in July.

These rebates are part of the enhanced permanent GSTV scheme and Household Support Package announced during the 2022 Budget in February.

They will provide "continuing help" to defray the GST and other living expenses of lower- to middle-income Singaporean households, said the Ministry of Finance (MOF) on Friday (Jul 1).

👉🏼https://www.straitstimes.com/singapore/13-year-high-core-inflation-how-singapore-is-coping-with-rising-prices

👉🏼https://www.channelnewsasia.com/singapore/950000-hdb-households-gst-vouchers-second-tranche-2784791

👉🏼https://www.straitstimes.com/business/economy/singapore-core-inflation-jumps-to-13-year-high-in-may-amid-rising-food-prices

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[10:24 am, 04/07/2022] +Uncle Law: We do understand that biz need to adjust their pricing to meet the increasing cost price of their raw materials.

However some biz may take this opportunity to raise beyond what they should raise.

I recently bought an ice cream from those pushcart. Selling at $1.80 from the old price of $1/1.20.

I asked uncle how come raise so much, he said other raise price so I follow.

[10:27 am, 04/07/2022] +BL: It's important that essential goods and services don't rise much beyond wage increases. How to protect families from those increases? The money needs to go to the people, to help with price increases, rather than the businesses to keep costs low (because they won't). The vouchers are a good idea because they keep money in the economy and can target the spend (so people don't spend on luxuries)

[10:27 am, 04/07/2022] +Uncle Law: CDC $100 voucher is only a small relief towards the high cost of food.

[10:27 am, 04/07/2022] +BL: Yes, the principle is good, although should only go to those who need it and could be a monthly benefit.

[10:39 am, 04/07/2022] +Elena Woo: But with the inflation so high, even mid class income now also crunched.

[10:48 am, 04/07/2022] +Andrew Ang: It would be better if all staple foods be kept at a reasonable price and will not be affected by inflation / external factors. All will be benefited.

[10:59 am, 04/07/2022] +Frankie Wee: https://www.cnbc.com/2022/06/21/singapore-imports-90percent-of-its-food-how-is-it-coping-with-inflation.html

[11:26 am, 04/07/2022] +Smiley face: The worst is yet to come. The longer the war drags on, the more global food security and social stability are threatened.

[11:31 am, 04/07/2022] +Frankie Wee: Buy why UAE wanted to rising fuel price sell to USA then Feb hike interest rate soar inflation affected global.

Sri Lanka is debt and 50% of them are bankrupt over shortage foods and oil.

[11:32 am, 04/07/2022] +Frankie Wee: UAE is larger oil and top nowadays UAE become richest.

[11:42 am, 04/07/2022] +Poh S Lim: Some help is better than no help, no?

[11:43 am, 04/07/2022] +Uncle Law: I didn't say it doesn't help

[11:44 am, 04/07/2022] +Poh S Lim: Sorry, I hope it didn’t come up as offensive… just off the cuff remark

[11:45 am, 04/07/2022] +Frankie Wee: Finish few days to 1 weeks at $100 CDC

[11:46 am, 04/07/2022] +Poh S Lim: Russia is dragging the world down with its continued belligerence

[0:00 pm, 04/07/2022] +Uncle Law: 👍🏻

[1:05 pm, 04/07/2022] +REACH: Dear Contributors,

We want to HEAR MORE from YOU!

We have had good feedback from this group, and we hope that we can keep the discussion robust and active!

Megan 😊

[1:13 pm, 04/07/2022] ☸️  Danny 心: https://www.thestar.com.my/aseanplus/aseanplus-news/2022/07/02/asian-insider---electricity-and-petrol-prices-in-singapore-to-keep-rising-as-global-supply-outlook-worsens#openShareModal

Asian Insider - Electricity and petrol prices in Singapore to keep rising as global supply outlook worsens.

[1:13 pm, 04/07/2022] +Ken Loh: This is gonna hurt the cost… hopefully don’t affect jobs

[1:13 pm, 04/07/2022] ☸️  Danny 心: 

Tampines Kopitiam Buyer Reportedly Buys Another Nearby For S$16.8M, Most Stalls Moving Out.

https://mustsharenews.com/tampines-kopitiam-another-nearby/amp/

[1:17 pm, 04/07/2022] +Ken Loh: The price increase what can we do to buffer? 

How long we expect this to last.  Over rely on import. But we can’t grow them cheaply. 

Many countries having issue with food not just Singapore. We are still rich can survive but for how long. 

Russia is one of the main exporter of grain… which also use for chicken feed. With Russia out of the supply. More demand for non Russian grain. 

Overall cost will continue to rise

[1:33 pm, 04/07/2022] ☸️  Danny 心: 

Some observation

1. The CDC voucher of $100 - does provide some relief to cushion the rising food prices.

2. The U-save will also provide some relief to cushion the big rise in energy bill.

3. Come July GSTV will also be given - which I guess will also again provide some relief to the high food prices.

4. Notice that less people are patronizing the usually crowded weekend coffeeshops - in the last few weeks.

Notably, there are groups of retiree who will usually crowd around for coffee or tea or beer - are missing - as drink stalls increase the coffee/tea and soft drink prices, and most stalls increase their food prices.

This is especially so when CDC vouchers have been used up.

[1:48 pm, 04/07/2022] +Ken Loh: I really do think that government should make electricity back to being government owned. At least they can hedge for future not for profit. With current situation.

[1:51 pm, 04/07/2022] +Caleb: +1

[1:58 pm, 04/07/2022] ☸️  Danny 心: 

How different population groups are affected

1. Notice that working population have been receiving their year end bonus and also salary increment.

This group of working population is less affected by the increasing food prices.

2. Retirees are most notably impacted by the increase food prices - as price increases are phenonmenal - as food, drinks price increases are very steep and coffeeshops prices, hawker food - are catching up the price of the air-con food courts.

Notably coffeeshops and hawker food -- are usually patronize by residents who live around the neighbourhood make up of many retirees.

Such high inflation - will inevitably impact the spending power of these retirees - as they depend on their savings to spend on food.

I believe this is the same for low income earners.

3. Overall, the high food prices will impact the breadwinners who are providing money for their household - be it their children, themselves and elderly to spend.

4. Let us hope that the current high food prices that we seen across the board - in coffeeshops, hawker centres and food courts - that affect the people - is a one-off thing.

That is, when the factors such as supply disruption, energy prices, war, pandemic, much less global climate - that affect the food and drink prices --- tie over --- the coffeeshops, hawker centres and food courts will adjust their prices downward and not get entrenched by the current prices.

But does f&b stall ever adjust food and drink prices downward - even if the disruption tie over - and not entrenched?

My fear is that, food and drink prices once raise will not adjust downwards - and will be entrenched.

This will have a long term impact on the residents, especially retirees and low income earners -- as their spending power will be greatly reduced not only in the current situation --- but in the long run.

The entrenched high food prices - can be a cause of concern - as it impact how people live.

[2:09 pm, 04/07/2022] ☸️  Danny 心: 

Energy prices versus Food prices

1. High energy bill unlike food prices - are temporal as it fluctuates based on demand supply, geopolitical situation that disrupt oil prices.

2. If the oil situation improve, energy prices will go down - and energy bill will come down --- it is unlike food prices when entrenched will stick and stay.

3. Hence even though the high energy bill do bother us - it is not entrenched unlike food price.

Hence I am more concern about the entrenched high food and drink prices - as opposed to high energy bill.

4. As Singapore diversify our energy sources - eg. pulling solar cable from Australia, energy grid from Laos, installing solar panel, exploring other energy generating alternatives like hydrogen gas, nuclear fusion tech, geothermal energy etc ----- in medium and long term - I believe we can keep our energy price down - and less dependant on fuel or natural gas energyy.

5. Wonder will Government do a major exercise to bring down food prices across the board - like encouraging coffeeshops, hawker centres and food courts to reduce their prices - to pre-pandemic level ---- when the current food disruption, pandemic, war tie over ..........               - so that the social fabric of the residents, retirees and low income earners are keep intact .....🤔

[2:17 pm, 04/07/2022] ☸️  Danny 心: 

6. One way to do so is to through social enterprise food stall - implanted into the various neighborhood - offering tasty at affordable prices at pre-pandemic level - when pandemic disruption tie over.

Affordable coffee/tea/soft drinks should also be in the offerings - to bring back retirees to gather and help them to past times.

7. This will provide a competitive landscape to the current stallholders that have increases their food and drink prices dramatically.

8. The CDC vouchers and GSTV scheme is good for now to cushion the current high food prices.

But it is not sustainable - once the current high food and drink prices are entrenched.

9. Hence a more long-term solution will need to look into - such as the proposed social entrepreneur food prices to bring the high food and drink prices back to pre-pandemic level - once all the current disruption tie over.

This is a more sustainable - non-fiscal approach to tackle the high food and drink price problem - without hurting our National coffers.

[2:29 pm, 04/07/2022] +REACH: S'pore does not expect recession or stagflation next year but significant risks remain: Alvin Tan

The global economic environment has become very challenging and the risk of further deterioration is high, but for now Singapore is likely to avoid a major downturn or runaway inflation, said Minister of State for Trade and Industry Alvin Tan.

More: https://www.straitstimes.com/singapore/politics/spore-does-not-expect-recession-or-stagflation-next-year-but-significant-risks-remain-alvin-tan

[2:54 pm, 04/07/2022] +Smiley face: Assurance Package for S'pore households will be enhanced if need arises: Lawrence Wong

https://www.straitstimes.com/singapore/politics/assurance-package-for-spore-households-will-be-enhanced-if-need-arises-lawrence-wong

[3:17 pm, 04/07/2022] ☸️  Danny 心: 

1. U save bill to tie over the current spike in high energy price - is the right scheme - as the energy shock is temporarily - and will come down once the shock is over. 

Energy price is not entrenched.

2. As the energy shock is quite unprecedented - and impact all strata of the population - suggest one off u-save be granted to all type of housing including condo and landed properties.

3. As for high food and drink prices that will likely to be entrenched - the current CDC voucher and gstv voucher will temporarily provide a relief - but will be unsustainable in the long run.

Hence suggest a non-fiscal approach to bring down the food and drink prices to pre-pandemic level once the current inflation shock tie over.

[3:30 pm, 04/07/2022] +Elena Woo: Currently solar energy costs more than fuel / gas energy prices.

[3:32 pm, 04/07/2022] +REACH: GST hike should not be pushed back any further, Government prepared to do more if situation ‘worsens significantly’: DPM Wong

Responding to parliamentary questions on Monday (Jul 4) about whether the Government will consider further delaying the impending 2023 GST hike, Mr Wong said: “Crucially, we must always ensure that we have sufficient resources to tackle our longer-term challenges, and do so in a fiscally responsible and sustainable manner. 

More: https://www.channelnewsasia.com/singapore/gst-hike-more-measures-if-situation-worsens-lawrence-wong-2788261

[3:44 pm, 04/07/2022] ☸️  Danny 心: 

Or the best is to organise a post-pandemic social enterprise food and drink price programme after the current price shock is over.

Then invite current food stall holders to join.

Those who are members of this programme will have a sticker or big label - where food price and drink price are bring down.

This will ensure the current high food prices and drink prices are not entrenched.

[3:44 pm, 04/07/2022] ☸️  Danny 心: 

Agree that the planned gst hike should proceed as planned.

[3:47 pm, 04/07/2022] +BL: Agreed. Can't delay.alreqsy have provisions in place to mitigate this

[3:51 pm, 04/07/2022] +Joseph: How did a country (Ukraine) with a Millitary force of only slightly over 200k, decide they can provoke (by insisting on joining NATO, and hence distabilising the balance of power in the region) and win a war against a neighbouring country with a Millitary that is more than 4x larger, better equipped and more well trained?

Did Russia not make it very clear to Ukraine that insisting on moving towards NATO membership risks war?

Ultimately, who benefits from the war? Is this conflict about Ukraine? Or is Ukraine just a proxy for the West(US, Europe)?

Judging from recent conflicts - Korea, Vietnam, Iraq, Afghanistan - who were the beneficiaries (economically) post-war? Think reconstruction and financing. 

If The West is “successful” with Ukraine, what message will China take away re Taiwan? 

Replace Russia with China and Ukraine with Taiwan. Would the the outcome - resulting in war/conflict - have been any different?

If you and I can “see” this from a mile away, is it possible that the American/European “experts” did not?  And if they did, what does it say about them, to encourage and “support” this (proxy) war (at the expense of the Ukrainians)? 

Who is dragging whom down?

Oh by the way, anyone else noticing how the Western Central Banks are falling over themselves claiming they had successfully engineered inflation with their zero-interest-rate policy and QE-infinity… which actually only happened due to the supply chain disruptions brought about by first, CV19 shutdowns, and now, exacerbated by sanctions and no-fly zones due to the war?

[3:58 pm, 04/07/2022] +Smiley face: Govt's approach to help is to provide short-term relief and support longer-term restructuring: DPM Lawrence Wong

https://www.straitstimes.com/singapore/politics/govts-approach-to-help-is-to-provide-short-term-relief-and-support-longer-term-restructuring-dpm-lawrence-wong

[4:13 pm, 04/07/2022] ☸️  Danny 心: 

Note:-

1. Increasing gst by 2% will not derail the social enterprise effort to lower food and drink prices because:-

Eg. $4 noodle + 2% increase in gst = $4.08 cents.

I think consumer can accept a price increases of $4.10 for a bowl of noodles.

2. Now $4 increase to $4.50 cents which is 12.5% increase in food prices - ridiculous hike.

3. So even if gst hike by 2% by 2040, government can still organise a social enterprise food reduction - to bring food and drink prices back to pre-pandemic level eg. $4 + 10 cents increase to cover the gst hike.

So for this example, a bowl of noodles should be $4.10 post pandemic and not now $4.50 + gst hike - a ridiculous impact on consumers.

4. Thus I support the planned gst hike but put in social safeguard come post pandemic - to bring food and drink prices back to pre-pandemic+ gst increase through the social enterprise effort.

5. By bringing a social effort into the neighborhood will help to depress runaway food and drink prices.

[4:14 pm, 04/07/2022] ☸️  Danny 心: 

3. I mean 2024 not 2040.

[4:19 pm, 04/07/2022] ☸️  Danny 心: 

This effort will neutralise the blame pin on gst hike - for the food price hike - which I am sure will be levy on the government by oppositions or consumers badly affected by the food hike.

Also those willing food stalls that participate in the social enterprise programme will be rewarded with high patronage.

I observed that those stalls that didn't increase in price for their food see longer queues.

While those stalls that increase prices - see regular customers shunning them and looking for lower price food and drink.

[4:30 pm, 04/07/2022] ☸️  Danny 心: 

One of the most ridiculous drink prices increases is the soft drinks.

Pre pandemic $1.50 per can.

Now $1.80 per can.

A whopping 20% increase in price.

Many retirees that often patronise this coffeshop - don't gather over the weekend for their drinks and chit-chat anymore.

Social fabric tear apart.

[4:32 pm, 04/07/2022] +BL: Yes, there is a danger that people will hi jack the price increase problem and use if for political gain.

[4:32 pm, 04/07/2022] +BL: Many taxi drivers complaining now and many of those blame the Gov.

[4:32 pm, 04/07/2022] +BL: We have one of the most considerate and caring governments in the world, but people who have not lived overseas find it hard to see this.

[4:33 pm, 04/07/2022] +BL: Some of the older generation wish back to Singapore boom days, and some of the younger generation just want change for change sake. Both are dangerous for Singapore's future.

[4:36 pm, 04/07/2022] +RH: +1

[4:38 pm, 04/07/2022] +BL: Yes, I never understood the point of privatising the account management of our electricity. Whatever private sector can do, would be cheaper doing ourselves. We save instantly on marketing costs at least!

[4:48 pm, 04/07/2022] +RH: Can someone pls tell me wat is the point of installing solar panels on our HDB rooftops if it is not being shared w us , the general popn ?

Several blocks in my area hv solar panels installed on their roof tops. Who owns them?

How do we tap into using them for our respective blocks wher they lie ?

If it's bn privatised, then does tt mean I hv to ditch my energy plan w my curr service provider in order to gobw the one who installed the solar panels on top of my block ? 

How is this called serving the needs of the nation ?

🤔

Can someone pls explain.

Tq.

[4:48 pm, 04/07/2022] +Joseph: otherwise how the new owners recoup their multi-million dollar investments? 😂

Govt.. please do something about it.

[4:54 pm, 04/07/2022] +BL: All solar goes back into the general grid, the panels doesn't supply a particular block with electricity. You can buy electricity from a provider that offers 'green/solar' packages.

[6:45 pm, 04/07/2022] +REACH: Dear Contributors,

⏰ We will be closing the chat in 15 minutes ⏰

Thank you very much for being part of our WhatsApp chat and participating actively.

Goodnight!

Megan 😊

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