Cost of living in Singapore

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Higher surcharges for taxi rides from Changi Airport, Mandai attractions to be made permanent​

Passengers taking a taxi from Changi Airport will continue to pay an additional $8 between 5pm and 11.59pm, or an additional $6 during other times. ST PHOTO: JASON QUAH

Kok Yufeng
Transport Correspondent

Jun 25, 2024

SINGAPORE – Location surcharge hikes introduced on a temporary basis in 2022 for taxi rides starting from Changi Airport, as well as attractions at Mandai Wildlife Reserve, will be made permanent from July 1.
This means that passengers taking a taxi from Changi Airport, Changi Airfreight Centre, Airport Police Station and the Airport Logistics Park of Singapore will continue to pay an additional $8 between 5pm and 11.59pm, or an additional $6 during other times.
For taxi rides starting from the Singapore Zoo, Night Safari, River Wonders and Bird Paradise, passengers will still pay a surcharge if they are picked up between 1pm and 11.59pm, and the cost has been increased to $5.
Currently, passengers pay a $3 surcharge for pickup at the Mandai Wildlife Reserve attractions during those hours.
The permanent fare hikes were announced on June 24 on Facebook by Singapore’s largest taxi operator, ComfortDelGro, and taxi firm Strides Premier. The other two taxi operators, Trans-Cab and Prime, announced the changes in notices published in the Business Times on June 24.
In response to queries, a ComfortDelGro spokesperson said taxi location surcharges are determined in consultation with premise owners, and taxi operators lodge the surcharges or changes with the Public Transport Council and the Land Transport Authority upon receiving the requests. “This mechanism aims to increase the supply of taxis at underserved areas by incentivising drivers,” the spokesperson added.

The Straits Times has contacted Changi Airport Group for comment.


Mandai Wildlife Group said the average waiting time for taxis at Mandai Wildlife Reserve remains at 30 to 60 minutes. This is even after the initial temporary $3 location surcharge was introduced in August 2022.
“With the latest revision, we hope to encourage more taxi drivers to keep the Mandai Wildlife Reserve top of mind as a preferred pickup destination, and reduce waiting times for our guests,” said a spokeswoman.
“There are no plans in the near future to further revise the surcharge rate,” she added, noting that there are other transport options for guests, including public bus service 138 to and from Springleaf MRT station and a $3 loop shuttle service that goes to Khatib station.

Introduced in May 2022, the increase in the location surcharge for taxi rides from Changi Airport came amid reluctance from cabbies to go to the airport to pick up passengers.
This was despite a revival in international air travel post-pandemic.
Before the fare hike, the surcharge was $5 on Fridays, Saturdays and Sundays from 5pm to 11.59pm, and $3 at other times.
At the time, taxi drivers said more money could be made in the Central Business District and at night, and with the high fuel costs then, they found no reason to go all the way to the airport, where they risked long periods of waiting with their taxi engines switched on.
The hope was that by raising the location surcharge by $3, it would attract more cabbies to go to Changi.

Initially, the increase in the surcharge was supposed to last for only six weeks.
However, this temporary hike was extended multiple times, with the latest extension slated to end on June 30.
Separately, on the ride-hailing front, a temporary fee introduced by Grab, Gojek and Tada in 2022 to help private-hire drivers cope with rising costs will remain in place for another six months until Dec 31.
This temporary “driver fee” was set to end on June 30, before the latest extension on June 24.
Grab will continue to charge passengers a temporary fee of 50 cents per trip, which applies to all of its transportation services except the standard taxi service.
Similarly, Gojek will continue to impose a temporary fee of 50 cents for trips less than 10km, and 80 cents for trips 10km and above.
For Tada, the fee is 50 cents for rides with fares $18 and below, and 80 cents for rides that cost $18.10 and above.

The three ride-hailing platforms have said the money will go directly to drivers. In Grab and Gojek’s case, it will not be subject to commission. Tada does not charge a commission on fares.
Grab said fuel costs remain high, and the fee will help drivers manage this.
Similarly, Gojek said the fee is part of its efforts to help drivers cope with the rising cost of living and higher operational costs.
“We will monitor the situation closely and will continue to review the driver fee on an ongoing basis,” Gojek added.
Tada said easing inflation has not translated to a significant decrease in cost for drivers.
“Pump prices remain at levels similar to when this fee was first implemented,” it added.
Fuel prices here reached new highs in 2022, with a litre of the most popular 95-octane petrol priced at around $3 in March that year, before going up to around $3.40 in late June.
Since then, prices have eased, with a litre of 95-octane fuel now costing between $2.86 and $2.90.
In a joint statement on June 24, the Land Transport Authority (LTA) and Public Transport Council (PTC) said they do not intervene in the setting of taxi and ride-hail fares.
They said operators here must state and publish all fares clearly, including any additional charges, and operators must provide commuters with at least seven days’ notice before implementing any changes.
“LTA and PTC will continue to monitor the industry to ensure that the licensed operators abide by these regulatory obligations,” they added.

 

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Gas and electricity prices to increase from July to September​

The hike is due to an increase in energy costs, by 0.09 cents per kWh on average, said SP Group. PHOTO: ST FILE

Ang Qing

Jun 28, 2024

SINGAPORE - Gas and electricity tariffs will rise for the next three months.
From July 1 to Sept 30, those supplied by grid operator SP Group will see a 0.3 per cent increase in electricity tariffs compared with the previous quarter, the group said in a statement on June 28.
For households, this amounts to a tariff of 29.88 cents per kilowatt-hour before goods and services tax, up from 29.79 cents currently. The new tariff is still one cent lower than the first quarter of 2024.
With the new tariff, the average monthly electricity bill for families living in four-room Housing Board flats will rise by 35 cents before GST, increasing from $118.03 to $118.38.
The hike is due to an increase in energy costs, by 0.09 cents per kWh on average, said SP Group. These costs, which are paid to power generation companies, are adjusted quarterly to reflect changes in the cost of fuel and power generation.
City Energy, the producer and retailer of piped gas, said in a separate statement on June 28 that town gas tariffs will increase by 0.30 cents per kWh over the same period, also due to higher costs.
This means households will pay 23.42 cents per kWh before GST, up from 23.12 cents.

With GST, the revised tariff amounts to 25.53 cents.
The revised gas tariffs were approved by the Energy Market Authority.

 

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Govt studying how to tackle cost-of-living concerns, take better care of seniors: PM Wong​

Prime Minister Lawrence Wong speaking to the media on Aug 23. PHOTO: LIANHE ZAOBAO
Wong Pei Ting
Correspondent

Aug 23, 2024

SINGAPORE – Tackling cost-of-living concerns and taking better care of seniors are two key areas of focus for the Government, said Prime Minister Lawrence Wong on Aug 23.
In a press conference five days after his maiden National Day Rally speech, PM Wong said he is looking into longer-term care for seniors and their housing needs. This is a big issue that will continue to grow as more people age, he noted while outlining what Singaporeans can expect in the months ahead.
Besides helping older seniors who are in their 70s or 80s, there will also be support for their children – younger seniors who are entering or in their 50s and feel “sandwiched” with both ageing parents and children to look after, he said.
On cost-of-living concerns, PM Wong said his Government is looking at doling out more help to specific segments of the population, including those with larger families and more young children, where “costs add up quite quickly”.
Such additional support will add to broad-based schemes such as CDC vouchers, and cost-of-living payouts and U-Save rebates that target the lower- and middle-income groups.
During the press conference at the National Press Centre in Hill Street – PM Wong’s first after he took office as Singapore’s fourth prime minister on May 15 – he said there are different aspects to the cost-of-living issue, which is a major concern.
There are day-to-day expenses such as groceries, food and daily essentials, as well as big-ticket items like housing, he noted.

Asked if the Government will provide more CDC vouchers, given that the $300 in vouchers to be disbursed in January 2025 is less than the $800 given to each Singaporean household in 2024, PM Wong replied: “We haven’t had the 2025 Budget yet. That’s next year.”
PM Wong, who is also Finance Minister, added: “So whether or not there will be more CDC vouchers, I think everyone should just wait and see what is in the Budget announcement.”
The Government will continue to review how best to provide appropriate support, whether through broad-based or targeted measures, he added. “And we will do so in the Budget in 2025.”

At the rally on Aug 18, PM Wong had set out a major reset of policies, which included granting more paid leave for new parents, giving temporary financial help to lower- and middle-income workers who lose their jobs, and updating the Gifted Education Programme.
PM Wong said he had sought to flesh out, in more concrete terms, the aspirations and hopes that Singaporeans have shared during the Forward Singapore engagement exercise.

These are underpinned by two key pillars, he said – a renewed social compact and a refreshed Singapore Dream.
The renewed social compact relates to how all Singaporeans will get support despite their setbacks in life and get a fair shot in life, said PM Wong.
“At the same time, everyone has to do their part, work hard, make the effort to excel and uplift their families,” he said.
“If they do that, the Government will be there to support them every step of the way and help them to get ahead,” he added.
PM Wong said the refreshed Singapore Dream relates to how Singaporeans can find their own paths and not have to compare with one another.
“We can all be the best possible versions of ourselves,” he said. “In other words, we can thrive and flourish on our own terms and in ways that are less prescribed and more open.”
Realising these two shared goals requires a “major reset” of certain policies, attitudes and mindsets, he said.
Besides studying measures to help seniors and to address cost-of-living concerns, PM Wong said, his Government is also looking out for other issues that Singaporeans care about.
This is why regular engagement with Singaporeans is a very important aspect of his work, he added.

Since taking office, he has embarked on visits to several districts across the island. These are “very good opportunities for me to meet residents and to hear first-hand their perspectives and feedback”, he said.
PM Wong noted that he had previously committed to hold press conferences from time to time to share his thoughts with Singaporeans through the media.
He said he thought it useful to hold a press conference at this juncture, to take stock of what his Government has done and what is next on the agenda.
He also said he will continue to hold dialogues with different segments of society, and engage Singaporeans through social media and press conferences such as this one.
These engagements can help everyone see a common picture of why the Government is embarking on certain plans, where the nation is heading towards, and what everyone can do in big and small ways to realise a shared vision, he added.

“This is the commitment from me and my team,” he said.
“We are here to listen to you, understand first-hand your concerns, hopes and dreams, and build a stronger, more meaningful connection with every Singaporean.”
Asked if he had met his priorities after 100 days in office, PM Wong said his key priority after taking over was to think about the new directions that his Government would set to take Singapore forward in its next lap, and what that would mean for Singaporeans.
He took reference from the Forward Singapore exercise, and the rally was where he sought to “crystallise” these shared ambitions in clearer and more concrete terms, he added.
On the foreign policy front, PM Wong said he will, in the months ahead, visit more Asean countries before making trips to the country’s key partners outside of South-east Asia.
He is also set to attend a few international summits, including the Asean Summit in Laos from Oct 6 to 11, the Asia-Pacific Economic Cooperation summit in Peru in November, and the Group of 20 summit in Brazil from Nov 18 to 19.
PM Wong said it is important for him to meet leaders of other countries in his new capacity to establish good personal relations with them, as this will set the tone for Singapore’s overall relationship with those countries.

PM Wong also said he will find future occasions to elaborate on Singapore’s foreign policy and the external environment.
“It’s important for me to engage Singaporeans on these issues because I think everyone needs to understand what’s at stake, especially on critical issues where our collective security and fundamental interests are involved,” he said.
“We must be able to come together as one people, despite our differences and perspectives, and take a common, pro-Singapore position to advance our national interest together.”

 

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Singaporeans’ high savings a buffer as inflation pushes up cost of living: Experts​

Households in the lowest 20% income tier experienced the biggest increase in inflation in the first half of 2024. PHOTO: ST FILE

Chor Khieng Yuit
Senior Business Correspondent

Aug 24, 2024

SINGAPORE - Inflation has pushed up the cost of living in South-east Asia but financial watchers say most Singaporeans are in good financial shape, with their high level of savings serving as a buffer.
This is even as data from the Department of Statistics (SingStat) on Aug 22 showed personal saving contracted by 5.9 per cent in the second quarter of 2024 from the same period a year ago.
This is a sharp reversal from the 2 per cent growth recorded in the first quarter of the year.
But some respite is in sight as inflation continues to moderate and fall back to more comfortable levels.
SingStat defines personal saving as the difference between personal disposable income and private consumption expenditure of goods and services.
It noted that its personal saving figure consists of funds available to repay debts, buy financial assets such as stocks and shares, and invest in non-financial assets like property.
For the second quarter, personal saving fell to $22.9 billion from $31.5 billion a year ago.

Mr Abel Lim, head of wealth management advisory and strategy at UOB, said this means there is less money left to pay off a mortgage or a car loan.
The reduction in personal saving, he added, is partly a reflection of the high cost of living here.
It is also a reflection of the slower growth in personal disposable income.

In nominal terms, SingStat said personal disposable income grew by 4 per cent in the second quarter from a year earlier to $79.6 billion. This was a moderation from a 6.1 per cent increase in the first quarter.
The moderation, SingStat noted, can be attributed in part to weaker growth of pay for employees.
OCBC Bank’s chief economist Selena Ling said there is historically a seasonal step-down in personal disposable income in the second quarter from elevated levels in the previous two quarters due to the year-end bonus and payouts for Chinese New Year.
The personal saving rate, or the share of personal saving out of personal disposable income, fell to 28.8 per cent in the second quarter from 36.2 per cent in the previous quarter.

Ms Ling said the personal saving rate is normalising back to pre-pandemic levels seen in the third quarter of 2019 after shooting to as high as 49.8 per cent in the second quarter of 2020.
The figure bears watching, she noted, to see if it will drop below pre-pandemic norms.
For now, household balance sheets remain resilient and financial buffers remain substantial, Ms Ling said.

UOB’s Mr Lim further noted that the majority of Singaporeans have a cash buffer to guide them through inflationary conditions.
Singaporeans are some of the biggest savers in South-east Asia, he said, adding that this is further supported by their Central Provident Fund contributions.
“We are not in such a bad financial condition vis-a-vis some of our regional peers,” Mr Lim said.
An annual UOB study on consumer sentiment in Asean found that inflation remained the top concern for 55 per cent of Singaporeans and 63 per cent of regional peers.
Inflation is expected to trend lower globally over the course of 2024 and into 2025.
In Singapore, the Monetary Authority of Singapore lowered its headline inflation forecast for 2024 to a range of 2 per cent to 3 per cent, from 2.5 per cent to 3.5 per cent previously.
Households in the lowest 20 per cent income tier have been hit relatively harder by the rising cost of living.
A half-yearly report from SingStat on July 23 showed that this group experienced the biggest increase in inflation in the first half of 2024.
Their consumer price index (CPI) rose by 3.1 per cent in the six months to June 30 compared with the same period a year ago.
This compares with a 2.9 per cent increase for the middle 60 per cent income tier, and a 2.7 per cent rise for the top-earning households.
If imputed rentals on owner-occupied accommodation are excluded, the CPI for the lowest 20 per cent was also higher than for the other income tiers. The CPI for this group rose 2.9 per cent in the first half of 2024 against 2.8 per cent for the middle 60 per cent and 2.6 per cent for the highest 20 per cent.
Imputed rentals are excluded because most households in Singapore already own their homes and do not have to pay rent.
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While the lowest-income cohort saw relatively higher price rises in the first half of 2024, inflationary pressures have eased from the second half of 2023 when CPI for this group rose 3.7 per cent while inflation less imputed rentals was up 3.3 per cent.
A SingStat spokesperson told The Straits Times the relatively higher inflation for the lowest 20 per cent income group was due to higher food and hospital and outpatient prices.
These items account for a larger share of the expenditure basket for a typical low-income household, the spokesperson noted.
For instance, food makes up 23.25 per cent of the average low-income household’s budget compared with 17.7 per cent for the highest-income tier.
Similarly, the lower-income cohort spend 9.4 per cent of their budget on healthcare, which includes hospital and outpatient services, compared with top earners who spend 5.4 per cent.
Because a bigger part of their budget is spent on food and healthcare, those with lower incomes will feel the impact of price increases harder.
A spokesperson for the Ministry of Health said that healthcare inflation rose in the first half of 2024, mainly due to fee increases in hospitals and polyclinics.
“In public healthcare institutions, fees may be revised periodically, to ensure that they catch up with costs,” the spokesperson said.
Associate Professor Walter Theseira from the Singapore University of Social Sciences said hospital and polyclinic fees usually go up in quite lumpy amounts, noting that a 10 per cent rise is not uncommon.
Singapore economist Linda Lim, a business professor at the University of Michigan, said those with lower incomes tend to have worse health.
They may not go for regular check-ups so by the time they do, they may require more costly treatments, added Professor Lim, who has spent more than four decades studying the Singapore economy from her base in the US.
“This is a big problem everywhere,” she said.
SingStat noted that the other contributor to inflation in the first half of 2024 was tuition and other fees.

However, for the lowest 20 per cent income cohort, increases in education costs were a marginal 0.1 per cent compared with their richer peers who experienced increases of 3.2 per cent and 3.5 per cent.
The SingStat spokesperson said school fees for Singapore citizens have remained unchanged.
The spokesperson added that the lower-income group saw a smaller increase in the education category because they had benefited from enhancements to the Ministry of Education Financial Assistance Scheme.
The scheme now covers all miscellaneous fees that pay for school materials and programmes – standard and second-tier – in government and government-aided schools. Previously, only standard miscellaneous fees were covered.
The reduction in out-of-pocket expenses on miscellaneous fees helped moderate the higher fees for other educational expenses, the spokesperson noted.
The education expenditure basket also comprises tuition and other fees, which according to SingStat’s classification includes enrichment and supplementary courses like music and language classes.
Prof Lim said that unlike food, tuition is not regarded by the lower-income people as a necessity, so if fees rise, they will just cut down on these classes.
Prime Minister Lawrence Wong has assured Singaporeans that they will continue to get support from the Government, when necessary, to help them cope with rising living expenses.
In September, for instance, the latest in a series of payments aimed at alleviating the rising cost of living for Singaporeans will be disbursed to more than 2.4 million Singaporean adults. They will receive a one-off cash payment of between $200 and $400.
Eligible households have also been getting help with utilities expenses and service and conservancy charges for their Housing Board flats, among other support measures.

 

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Rent increase pushes fishball noodle stall to shut after 82 years​

Wang Xueying has been working at the stall since she graduated from secondary school.PHOTO: SHIN MIN DAILY NEWS

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Farah Daley

Aug 28, 2024

After serving the community for over eight decades, a beloved Bukit Merah hawker stall has shuttered for good.
The decision was made by Zhong Xing Foochow Fish Balls & Lor Mee's second-generation owners, Wang Xue Ying and her family, due to rising rental costs and health concerns.
"It's not easy to be a hawker," Madam Wang, 68, told Shin Min Daily News.
"We've been doing this since we were young, and our bodies are riddled with aches and pains."
The decision to shut down was also influenced by the upcoming renovation of the coffee shop.
She explained that the landlord had indicated the rent would increase significantly after the renovation in September, making it difficult to continue operating at a reasonable price point.

They were told the monthly rent would increase from over $2,000 to more than $6,000.
The stall, first established by Madam Wang's father in 1942, has a long history. He opened it at China Street after coming to Singapore from China in his 20s.
It moved several times over the years, eventually settling at Silat Avenue in Bukit Merah in 2010.
Madam Wang, 68, had been running the business together for decades, beginning work at the crack of dawn every day. She started helping out after graduating from secondary school.
After her father died in 1982, Madam Wang's older brother returned to manage the stall with her and her husband.
Madam Wang and her husband would prep the ingredients and noodles. She had to kill 100kg of fish daily to meet the demands of a long queue of customers, she recounted.
Her brother, who had been making the fishballs from scratch, was particularly affected by the physical demands of the job.
She gestured at the 70-year-old's hunched posture and said: "My brother used to be very handsome."
Despite the sentimental attachment to the business, Madam Wang and her family felt it was time to retire.
They expressed their gratitude to their loyal customers for their support over the years.
On the last day of operation on Aug 25, a steady stream of customers came to bid farewell to the iconic stall.

Many shared fond memories of the delicious food and the friendly service.
A long-time customer surnamed Zheng, 70, told the Chinese evening daily that he had been visiting the stall for decades and would drive 45 minutes every weekend to support the business.
Although he will miss their lor mee, he acknowledged the decades of work they have put in and said it is time they retire.

 

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MRT, bus fares to go up by 10 cents for adults who pay by card from Dec 28​

The Public Transport Council said the Government will provide an extra $250 million in subsidies to cover this deferred increase. ST PHOTO: KUA CHEE SIONG
Kenneth Cheng and Lee Nian Tjoe

Sep 12, 2024

SINGAPORE – Each train and bus ride will cost adults who pay by card 10 cents more from Dec 28, as public transport fares climb by 6 per cent.
Concessionary fares for seniors, students, people with disabilities and low-wage workers who pay by card will rise by four cents per journey, the Public Transport Council (PTC) said on Sept 9 after its yearly review of train and bus fares. About two million commuters are in this group.
The fare changes mean that an adult passenger taking the MRT from Tampines to Raffles Place will pay $2.02 from Dec 28, up from $1.92 now.
In 2023, fares went up by 7 per cent, or up to 11 cents, for adults who pay by card. The 11-cent hike is the highest on record.
Fares rose by 2.9 per cent in 2022 and 2.2 per cent in 2021. In 2020, there was a freeze on fares to help the public cope with the impact of the Covid-19 pandemic.
PTC, which regulates fares and ticket payment services, said the 6 per cent rise is less than a third of the allowable increase of 18.9 per cent for 2024.

This comprises a 3.3 per cent adjustment for 2024 and a 15.6 per cent hike deferred from the 2023 exercise.

The 2024 adjustment was driven by growth in core inflation and wages in 2023, but was moderated partially by an 18.6 per cent drop in energy prices from their peak in 2022, said the council.
PTC said it understands that the cost of living remains a concern for Singaporeans, and it decided to grant the 6 per cent hike to “cushion commuters from the full fare increase”.
The remaining increase of 12.9 per cent will be rolled over to future fare review exercises.

The council was asked at a press conference on Sept 9 why it did not allow more of the deferred hike from the previous exercise to be cleared in this round.
The council’s chairwoman Janet Ang said the increase for 2024 was deemed to be manageable for passengers, adding: “PTC’s mission must be to balance affordability, and reduce the gap between fares and costs.”
The council said the Government will provide an extra $250 million in subsidies to cover this deferred increase.
This is in addition to the more than $2 billion in subsidies it pumps in yearly to keep public transport services running, and extra funding of up to $900 million that will be spent over the next eight years to improve the bus network under the new Bus Connectivity Enhancement Programme.
“The additional government subsidy will help to moderate the fare increase while still accounting for the higher costs of providing public transport,” said PTC.
There will be no change to fares paid in cash on buses. Less than 1 per cent of public transport rides are paid for in cash.
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The cost of adult monthly travel passes and monthly concession passes will remain unchanged too, to help heavy public transport users cap their expenses, PTC added.
The council said operators SBS Transit Rail and SMRT Trains had applied for the full 18.9 per cent hike in 2024, citing reasons such as cost pressures arising from inflation and higher labour costs to keep salaries competitive.
In line with the 2024 fare increase, PTC said it would require SBS Transit Rail to contribute 15 per cent of its expected revenue increase, or $3.05 million, to the Public Transport Fund, which helps households cope with fare increases.
SMRT Trains will contribute 25 per cent of the same, or $9.96 million.
To help defray the fare increases, the Ministry of Transport and the People’s Association said the Government will provide public transport vouchers worth $60 each to resident households with a monthly income of up to $1,800 per person. Each household will get one voucher.
This is higher than the vouchers worth $50 each given out in the previous round to households with a monthly income of up to $1,600 per person.
The higher income eligibility criterion for the vouchers will benefit an extra 60,000 households. The vouchers can be used to top up fare cards or buy monthly passes, and will be given out in two stages.
Households that received a voucher in the 2023 exercise and continue to qualify will receive a voucher automatically. They will be notified by the end of December.
Households that qualify but do not receive a voucher in the first stage can apply for one online or at community clubs from early 2025. More information on the application process will be made public later.

PTC said households in the 21st to 40th percentile – the average public transport user – spent an average of 1.7 per cent of their monthly income on public transport in 2023, compared with 1.8 per cent in 2021.
Lower-income households in the 11th to 20th percentile, meanwhile, spent about 2.4 per cent of their income on public transport in 2023, down from 2.5 per cent in 2021.
After taking the latest fare and wage increases into account, the share of public transport expenses as a proportion of monthly income for these households will remain similar to that of 2023, said the council.
Public transport users said they expected fares to go up, as has been the case in recent years.
Business consultant Albert Kwan, 39, said this is somewhat justified, given that there are more MRT lines being introduced, and overall public transport connectivity has improved.
Partnerships director Alka Solanki, 52, said the fare increase means an extra 80 cents a day for her family of four, but “it is not going to break my bank”.
“It is acceptable given that there are improvements in MRT connectivity,” she added.
Retired real estate consultant James Tan, 66, said service levels should improve in tandem with fare increases.
Customer success executive Zoey Tan, 35, who now qualifies for a concessionary card for low-wage workers, said fares will become pricier when she changes her job and no longer qualifies for lower fares.
Transport economist Walter Theseira said the cost of operating public transport services has been rising faster than the fare increases that PTC has allowed.
“I expect PTC is also hoping that moderate inflation will give a bit of breathing room in the next few years to spread out the deferred increase,” said Associate Professor Theseira.

 

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Hot hot from Oven​

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Govt will do everything it can to help Singaporeans tackle cost-of-living concerns: PM Wong​

Over $10 billion has been earmarked for the Assurance Package to help cushion the impact of cost-of-living increases. ST PHOTO: ARIFFIN JAMAR

Goh Yan Han
Political Correspondent
Updated

Oct 02, 2024, 05:49 PM

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SINGAPORE – Singaporeans will get help to tackle ongoing cost-of-living worries, said Prime Minister Lawrence Wong, acknowledging that the issue remains a concern even as inflation has been moderating.

“My team and I will do everything we can to help you get through this difficult period,” he said in a video posted on his YouTube channel on Oct 2, addressing Singaporeans’ concerns about the cost of living.

While inflation is expected to come down further in 2024, this does not mean prices will never go up, he added.

 

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Price increases in goods and services will have to be done from time to time. To delay such adjustments will only make the pain worse in the future. But if such increases are needed, we will find ways to mitigate the impact,” said PM Wong.

He added that in the longer term, the key to managing the cost of living is to ensure that Singaporeans continue to enjoy good jobs with better wages.

“Then our workers will be able to earn more, with wages going up by more than inflation, and we can all become better off in real terms,” he said.

 

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https://www.channelnewsasia.com/tod...en-laws-protecting-retrenched-workers-4637736

 

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Koh Poh Koon says high bids ‘not the norm’, after $10,158 bid for Marine Parade Central hawker stall​

A bid of over $10,000 was put up for this vacant stall at Marine Parade Central Market and Food Centre in a July 2024 tender. ST PHOTO: WONG YANG
Wong Yang

Sep 11, 2024

SINGAPORE – While a few stalls at popular locations have attracted high bids, with five at the Marine Parade Central hawker centre crossing $8,000, such tender prices are not the norm, said Senior Minister of State for Sustainability and the Environment Koh Poh Koon.
He was responding on Sept 9 to Mr Yip Hon Weng (Yio Chu Kang), who asked if a recent bid of over $10,000 for a stall at Marine Parade Central Market and Food Centre indicated a trend of escalating hawker stall rentals, and how this would impact food affordability for Singaporeans.
A recent bid of $10,158 for a vacant unit at Marine Parade Central Market and Food Centre had raised eyebrows among netizens in August, with some expressing concern about the impact of high stall rentals on the cost of hawker food.
Dr Koh told Parliament the median successful tender price for cooked food stalls across hawker centres was about $1,800 in 2023. About a fifth of such stalls were awarded at tender prices at or below $500 in 2023.
The median monthly rent of non-subsidised cooked food stalls across hawker centres is about $1,250, and has remained at this level since 2015, he added.
According to a tender notice in July, the bid of $10,158 was the second-highest bid for the stall at the Marine Parade Central hawker centre, after a $10,680 bid that was withdrawn. The next three highest bids ranged between $8,113 and $9,500.
Dr Koh said the recent tender for the stall was “quite competitive”, attracting more than 40 bids.

He noted that the hawker centre is very popular, as it is open for the three meals throughout the day and has good footfall. Marine Parade MRT station, which opened on June 23, has an exit that leads to the hawker centre.
A survey by the National Environment Agency (NEA) found that stall rental makes up less than 10 per cent of stallholders’ operating costs, compared with raw materials, at 56 per cent, and manpower, at 20 per cent, Dr Koh said.
Replying to Mr Yip’s question on support for small business owners and new hawkers to help them with rising stall rentals, Dr Koh said only about 4 per cent of cooked food stalls in hawker centres today are paying rent above the assessed market rent. The remaining 6,000 stallholders pay rent no higher than this value.

NEA – which runs 121 hawker centres in Singapore – has put in place measures to ensure rental prices of hawker stalls are fair and not speculative, he added.
These include disallowing subletting or assigning of hawker stalls to prevent stallholders from engaging in rent-seeking behaviour, and removing the reserve rent in the tender of vacant stalls to allow rental rates to fully reflect market conditions.
Since September 2019, operators of new hawker centres have been required to stagger rentals for the first two years of operations such that stallholders pay 80 per cent of the stall’s rental in the first year, and 90 per cent in the second year.
Dr Koh said this is to help stallholders manage their operating costs as they gradually establish a clientele in the new hawker centre.
Tendered rents are also adjusted to the market rate determined through independent professional valuation after the stallholders’ first tenancy period of three years, he noted.

Dr Koh added: “For those who have, for example, paid a very high price – $10,000, $8,000 – in their first tenancy term, this price will hold. But following their first tenancy term, that price will be adjusted to the assessed market rent, which, as I said, is about $1,200 thereabouts, so that will help to make the price more sustainable for this hawker in the longer term over the next tenancy term.”
At Marine Parade Central Market and Food Centre, a hawker who wanted to be known only as Mr Yang, 53, said his wife Yang Ailan had submitted the $10,158 bid for the vacant stall as their son, who is in his late 20s, wants to start his own cooked food business.
Mr Yang, who helps his wife run a drink stall just four units away from the vacant unit, told ST in Mandarin: “Our son works in the car industry, but he’s not sure how stable it is since the economy isn’t doing so well. So he wants to open his own stall.”
He added: “We thought this would be a good place because we’ve had a drinks stall at this hawker centre for over 10 years, it’s clean, and we are very familiar with the area.”
A 20 per cent to 30 per cent improvement in their drink stall’s business since Marine Parade MRT station opened gave his wife the push to make the bid, said Mr Yang, who added that the tender for the stall has not been awarded.
Other hawkers at the food centre were less sanguine about the prospect of opening a stall with a monthly rental of over $10,000.
Mr Remus Seow, 28, who operates a Japanese fusion food stall, said a 20 per cent increase in sales after the station’s opening lasted only a month, and business has been only marginally better since then.
He told ST: “It’s not fair for them to bid this high because people might fight to meet the price and this could push up future bids. If that happens, who is going to take over the old generation of hawkers, and keep affordable food available for Singaporeans?”
In August 2018, the issue of high tender bids for hawker stalls was also in the spotlight after a woman made a successful $10,028 bid for a stall to sell drinks at Chomp Chomp Food Centre, only to end the tenancy agreement the same day she signed it.
NEA had called the bid – the highest successful bid received up till then – an “outlier”.
Citing two studies that showed stall rentals comprised only 12 per cent of hawkers’ overall costs, and hawkers generally priced food according to what the market can bear, then Senior Minister of State for the Environment and Water Resources Amy Khor told Parliament at the time that stall rentals do not directly affect food prices.

 

[True Believer]

The SG govt claims that HDB flats are affordable.

 

[k1976]

 

[True Believer]

Inflation is not accurately reported in SG because housing and car costs, which have a significant impact on household budgets, are conveniently excluded from core inflation for specific reasons related to measuring underlying price trends by the govt.

 

[k1976]

Inflation is not accurately reported in SG because housing and car costs, which have a significant impact on household budgets, are conveniently excluded from core inflation for specific reasons related to measuring underlying price trends by the govt.

CoRe or 苦inflation mah

 

[Robert Half]

High stress working life in this country & they still make everything so expensive

It take a good wise man to live a long life here

 

[k1976]

Why Every Singaporean Needs an Emergency Fund—And How You Can Build Yours​

Valerie Kor
Thu, 3 October 2024 at 4:40 pm SGT14-min read

emergency-fund-singapore
Almost every financial advisor you meet will ask if you have an emergency fund in place. You know what the unfortunate thing is? Too many Singaporeans don’t have one—some don’t even know what an emergency fund is!

An emergency fund is a sum of money set aside to cover unexpected expenses or financial emergencies, like medical bills or job loss. You might think that an emergency fund is only for people with high incomes, but the truth is that these kinds of emergency situations can happen to anyone.

In Singapore, we also content with financial challenges like a high cost of living, job market competition, and significant out-of-pocket medical expenses. While CPF helps with long-term needs, an emergency fund is far more liquid, making it essential for immediate financial security during crises.

 

[k1976]

Why do you need an emergency fund?​

An emergency fund is a stash of money set aside for accidents, sudden injury, or an unexpected loss of income. It’s essentially what you keep aside “for a rainy day”.

Unpredictable events can be life-altering as well as expensive, resulting in financial emergencies. An emergency fund gives you the buffer you need to pay out-of-pocket expenses, so you don’t have to turn to loans or credit cards to cover the short-term lack of cash.

At this point, you may be thinking: Isn’t that what insurance is for? Yes, if you have insurance to cover any of the financial emergencies above, it’s a great way to cover the bulk of your medical expenses. But even with insurance, you may find that such unexpected events may result in a loss of income or require additional living costs, such as needing a helper or money for urgent home repairs.

An emergency fund should be a financial priority for every Singaporean and should come before saving or investing for retirement.

 

[k1976]

How much should you set aside in your emergency fund?​

An emergency fund should be able to sustain you for 6 months or so, if you do not work. If you’re a first-jobber, you can work towards saving 3 months’ worth of expenses as a first step.

Consider the bare bones monthly expenses of Mr Tan, a working adult in his 30s:

Item	Cost
Food & transport	$500
Phone bill	$30
Electricity and utilities	$90
Insurance premiums	$400
Home loan contribution	$800
Total	$1,820

An emergency fund that can sustain Mr Tan for 6 months is therefore $1,820 x 6 = $10,920.

The size of your emergency fund also depends on factors like the number of dependents you support, job stability (how secure or volatile your income is), and your lifestyle.

Higher living expenses or uncertain employment may require a larger safety net for financial security. That’s why for self-employed individuals with variable income, we recommend saving up to 12 months of living expenses. It’s difficult to predict what your month-to-month income will be during emergencies.

 

[k1976]

How can you build your emergency fund?​

One of the biggest obstacles to building your emergency fund is cashflow. How fast you build it depends on your salary, liabilities and debt obligations.

While you’re still healthy and earning a good income, it is of paramount importance to save the excess and put it aside toward your emergency fund. Yes, we mean it’s more important than that luxury watch or Chanel bag.

By doing a simple arithmetic of take-home income minus basic liabilities, you can easily see how much extra cashflow you have every month. For instance, if Mr Tan’s take-home income is $3,000, and his living expenses add up to $1,820, his excess cashflow is $1,180.