Singapore must prepare for economic challenges, Government doing 'all it can' to cushion impact: PM Lee
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Amid the war in Ukraine and rising cost of living, Singaporeans must be prepared for more economic challenges, but the Government is “doing all it can to cushion the impact on Singaporeans and alleviate the cost-of-living pressures”,…see more
Grace Yeoh
01 May 2022 11:16AM (Updated: 01 May 2022 11:13PM)
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SINGAPORE: Amid the war in Ukraine and rising cost of living, Singaporeans must be prepared for more economic challenges, but the Government is “doing all it can to cushion the impact on Singaporeans and alleviate the cost-of-living pressures”, said Prime Minister Lee Hsien Loong on Sunday (May 1).
Speaking at the May Day Rally, Mr Lee shared several measures that the Government rolled out during this year’s Budget.
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“This year’s Budget ... (contained) many direct measures to help households. U-Save rebates, CDC vouchers, and S&CC rebates; these will reduce out-of-pocket living expenses for nearly all households. Lower- and middle-income households who need more help will get more,” he said.
“(The Monetary Authority of Singapore) has tightened our monetary policy to reduce imported inflation. That is why the Singapore dollar has appreciated.”
Singapore is also “taking steps to secure our food and energy supplies, just in case supplies are disrupted by the ongoing war”, added Mr Lee.
Despite the Government’s assistance, “inflation will remain high; central banks in the developed countries are tightening their monetary policies, raising interest rates; global growth will be weaker, and there may be a recession within the next two years”, he said.
Mr Lee added: “We have to face up to these realities. Singapore is tightly integrated into the global economy. Given our small size, we will always be a price taker in world markets
. We have very little bargaining power. If the prices go up, our prices go up. If supplies are short, we are squeezed.
