Cost of living in Singapore

[A Singaporean]

Where got inflation ? We are even increasing gst 2 years consecutively.

 

[LITTLEREDDOT]

Consumer prices up 6.1% in 2022, with top earners seeing biggest rise among income groups in H2​

Rosalind Ang
UPDATED

JAN 26, 2023

SINGAPORE - Consumer prices rose more in 2022 than the previous year due to an increase in daily expenses for items such as food and electricity.
The 2022 consumer price index (CPI) rose by 6.1 per cent, significantly higher than the 2.3 per cent increase in 2021, according to data released by the Department of Statistics (SingStat) on Wednesday.
Overall, the main contributors to inflation rates for all household income groups were cars, food, accommodation, holidays, electricity, petrol and point-to-point transport services.
However, telecommunication services were the largest negative contributor to inflation rates in the second half of the year.
Excluding rent of owner-occupied accommodation, the CPI went up by 5.9 per cent year on year for the lowest 20 per cent income group, 7.1 per cent for the middle-income group and 8.1 per cent for the top earners.
Households in the highest 20 per cent income bracket saw the biggest increase in consumer prices of 7.5 per cent year on year in the second half of 2022, compared with the other income groups.
This is higher than the 5.9 per cent increase for the lowest 20 per cent and 6.8 per cent for the 60 per cent in the middle-income group.

This is because cars, petrol and holidays – which have become more expensive – had a larger impact on the spending of top earners than on the other income groups.
Such items accounted for a bigger share of the highest income group’s expenditure basket, noted SingStat.
Across all households, the CPI for all items rose 7 per cent year on year from July to December, higher than the 5.2 per cent increase in the first half of 2022.

 

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Cost of textbooks for primary, secondary students rise by up to 7% as price freeze ends​

The price hikes on the government-approved textbook list are capped at 7 per cent. ST PHOTO: ALPHONSUS CHERN

Ng Wei Kai


JAN 16, 2023


SINGAPORE — Parents of primary and secondary school students have had to pay up to 7 per cent more for textbooks this year with the end of a two-year price freeze on a list of government-approved books.
The prices of textbooks not on this list are also seeing a surge, with some rising up to 21 per cent.
Checks by The Straits Times found that between 2022 and 2023, prices of textbooks like Shing Lee Mathematics 20/20 textbook 1A and 1B went up by about 4.8 per cent.
In response to queries, the Ministry of Education (MOE) said about 20 per cent of the 1,000 primary and secondary school-level textbooks – or around 200 titles – have been allowed to be priced higher, with a cap of 7 per cent. The price increases range from five cents to 65 cents a textbook, it added.
“In recognition of the economic challenges posed by the Covid-19 situation, textbook publishers have absorbed the costs of textbooks over the past two years,” said the ministry.
“But with changes in global economic conditions as well as rising operational and raw material costs due to supply chain disruptions, some publishers have found it necessary to adjust textbook prices.”
MOE added that schools have the flexibility to use books outside the approved textbook list, depending on their assessment of the textbook’s suitability for the learning needs of their students.


In these cases, schools must ensure the textbooks are aligned to syllabus aims and learning outcomes, and that they are affordable and value for money.
Books not on the MOE-approved list include literature books, and some of them have seen bigger price jumps.
For instance, a copy of Boom, a play by Jean Tay used in some secondary schools, spiked in price from $14.90 to $18.10 on one school’s reading list – a 21 per cent increase.

The Principles Of Accounts textbook, published by Marshall Cavendish and used in secondary schools, rose in price by 6 per cent, from $17.15 to $18.20.
Among the biggest jumps was that for a Secondary 2 Express textbook called Distinction In English Text Editing, also published by Marshall Cavendish. Its price surged from $7.70 to $9.65 – a 25 per cent increase.
When asked, Marshall Cavendish and Shing Lee, major publishers of texbooks here, declined to elaborate on the reasons for the price increases.
Parents said they are feeling the pinch.
Ms Toh Ji Rong, 38, an educator whose son is in Primary 5 this year, said: “These textbooks last for the whole year and they are necessary. Fortunately, I work and earn a salary. So the expenses are still manageable.”


Another parent, who asked to be known only as Emil, said she borrowed science and mathematics textbooks for her children from friends to save money.
She said: “I’m a permanent resident and my children pay higher school fees, so if textbooks are more expensive, it will definitely add to my expenses.”
The increase in textbook prices comes amid an overall rise in the cost of living in Singapore.
Ms Hensinely Totong, 45, an administrator at a business centre, paid more than $100 for her Sec 1 son’s textbooks in 2022. She said she received government subsidies to help with the cost of school books and uniforms.
She added: “My pay is not going up at the same rate as the hike in costs for expenses like textbooks.”
Primary and secondary school students on the MOE financial assistance scheme (FAS) will receive free textbooks and uniforms, full subsidies for school and standard miscellaneous fees, as well as transport and meal subsidies to help with their expenses, the ministry said.
From Jan 1, 2023, pre-university students on the MOE FAS will receive a bursary of $1,200 a year that can be used to defray the cost of textbooks.
The ministry said those who do not quality for the MOE FAS but require some financial support may also apply for school-based FAS and/or assistance and bursaries from other schemes administered by their schools, grassroots organisations, or social service agencies.

 

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Singapore’s inflation problem is unlikely to dissipate any time soon​

Ovais Subhani
Senior Correspondent

Most economists believe consumer demand will continue to hold even if wage growth lags behind the pace of price increases. ST PHOTO: BENJAMIN SEETOR

JAN 28, 2023

SINGAPORE – Signs that inflation is softening have been emerging recently, but the persistent pace of gains in core consumer prices means the crisis is far from over.
This environment of high prices – in Singapore and in other advanced economies – challenges the market consensus that lower inflation can be achieved without a recession and a jump in unemployment.
Singapore’s core consumer price index, which excludes private transport and accommodation costs, rose by 5.1 per cent in December – the third consecutive month of increase – data showed on Thursday.
While the inflation measure, which reflects the expenses of Singapore households more accurately, is down from its peak of 5.3 per cent in September, that is a moderate drop compared with the all-items headline inflation, which came in at 6.5 per cent in December, down from a peak of 7.5 per cent in August. The dissonance between the two measures shows that headline inflation is more reflective of import costs, which have been easing in line with global prices of energy and food commodities that have come off their peaks as supply chain bottlenecks eased while goods manufacturers built huge inventories.
Thus, the stubbornness of core inflation means that it is more sensitive to domestic price pressures such as the strength of discretionary demand for services and the tight labour market that has kept wage pressures strong.
Mr Gilles Moec, chief economist of French multinational AXA Group and head of research at AXA Investment Managers, said: “It is possible to see the current price configuration as a transitory lull where old, supply-driven inflationary forces are abating, and newer, demand-side forces, supported by a still-robust labour market, have not peaked yet.”
The Monetary Authority of Singapore (MAS) said as much in its commentary on the December consumer price data.


“Unit labour costs are expected to increase further in the near term alongside robust wage growth,” it said, adding that thus, “businesses are expected to continue to pass through accumulated import, labour and other costs to consumer prices amid resilient demand”.
Academic research shows that households’ perceived well-being is more adversely affected by a rise in unemployment than by an acceleration in prices. Most economists therefore believe that consumer demand will continue to hold even if wage growth lags behind the pace of price increases. Experts refer to this phenomenon as the price-wage loop, where wages catch up with rising prices and fuel further inflation.
“The resilience in purchasing power may delay the slowdown in consumption and economic activity needed to ensure that the labour market lands, and that a truly lasting disinflation sets up,” said Mr Moec.

Singapore is not alone in facing difficult policy choices to bring inflation to an acceptable level of around 2 per cent. In fact, the next leg of the war on inflation almost solely depends on what the United States Federal Reserve does, starting with its first 2023 interest rate decision meeting in early February.


Interest rates play a crucial role in dampening domestic price pressures. Given that Singapore has a currency-led monetary policy, interest rates here follow the lead of US rates. The MAS, after tightening its monetary policy at its fastest pace ever between October 2021 and October 2022, is probably running out of ammunition that it can throw at the stubbornly high inflation.
Most analysts now believe the MAS may go for one more tightening move at its scheduled meeting in April or even earlier – which basically means pushing the Singapore dollar up on a trade-weighted basis against other currencies.
However, a significant minority of experts say that a stronger currency may further weigh down the export-driven manufacturing sector, which has already started to shrink.
With exports in decline, Singapore’s overall economic growth is set to come in significantly lower in 2023 than the rate of expansion in the past two years.
The Ministry of Trade and Industry expects gross domestic product (GDP) growth to come in at 0.5 per cent to 2.5 per cent in 2023 – down from 3.8 per cent in 2022 and 7.6 per cent a year earlier.
The growth slowdown means the MAS cannot be as aggressive in fighting inflation as it was in 2022, when the economy expanded at a decent pace, said Mr Brian Tan, a senior regional economist at Barclays Bank in Singapore.
Mr Tan is among economists who believe there is less need for further tightening. However, he said, there is a small chance that the MAS may give a slight push to the trade-weighted Singapore dollar come April.


The move, he said, would be aimed at minimising the impact of the goods and services tax increase – which came into effect in January – on inflation expectations.
The Singapore Index of Inflation Expectations (Sindex), published jointly by DBS Bank and Singapore Management University, appears to be well anchored for now.
The latest Sindex findings released earlier in January showed a drop to 3.8 per cent in December from an 11-year high of 4.6 per cent in September.
However, Dr Taimur Baig, chief economist and managing director of group research at DBS, said: “Taking the survey results in totality, local inflation trends are largely reflecting global factors, with the ongoing respite, as welcome as it is, too little and too recent to suggest last year’s sharp inflation bout is conclusively over.”
The December inflation data shows that while globally influenced inflation in some items – such as electricity and gas – has eased, it is still growing by double digits.
The fact that prices are not falling but only rising at a slower pace is a worldwide phenomenon and shows the resilience in consumer demand pointed out by the MAS. Thus, some analysts stress the need for central banks – mainly the US Fed – to remain aggressive despite the signals that commodity prices may have peaked.
The Goldilocks scenario – where the Fed would engineer a soft landing – is now centred around hopes of a 25 basis-point increase in benchmark US interest rates.
That would be a profound reversal of the aggressive stance the central bank took in 2022, raising its rates from close to zero to 4.25 per cent in just nine months.


Although there have been encouraging signs of moderating price trends in the past three months, many analysts point to Fed chair Jerome Powell’s remarks that he wants to see a “sustained period of below-trend growth” to achieve his goal of bringing inflation back down to 2 per cent. But with US fourth-quarter gross domestic product growth coming in at 2.9 per cent, seen as above trend, the Fed may have a response the market would not like.
Ms Sue Trinh, co-head of global macro strategy at Canadian multinational Manulife Asset Management, said the impact of interest rate increases on the economy typically is not easily observable until 12 to 18 months later. “We are wary that the transmission of the current global tightening cycle has barely begun,” she said.
She noted that the aggressive pace of monetary tightening and its associated lagged effects should drive a synchronised global growth downturn in the first half of 2023 for disinflation to set in.
Slowing final demand from advanced economies, elevated inflation, and a still-strong US dollar will most likely morph into material headwinds for growth in the rest of the world, especially for emerging markets, Ms Trinh said.
While economic conditions may improve in the second half of 2023, the risk is that the stagflationary dynamics – low growth and elevated inflation – may extend into late 2023 or even early 2024, she said.

 

[LITTLEREDDOT]

Household incomes in S’pore rose in 2022 but inflation has chipped away at growth​

Households across most income deciles saw increases in real average household income from work per household member. ST FILE PHOTO

Chin Soo Fang
Senior Correspondent

Feb 9, 2023

SINGAPORE – Median household income grew in 2022 and income inequality fell when compared with 2021, figures released by the Singapore Department of Statistics (SingStat) on Thursday showed.
Among resident employed households, monthly household income from work grew by 6.1 per cent in nominal terms, or before adjusting for inflation, from $9,520 in 2021 to $10,099 in 2022.
Median monthly household income from work rose 0.2 per cent in real terms, or after adjusting for inflation, in 2022. Household income from work includes employer Central Provident Fund (CPF) contributions.
From 2017 to 2022, median monthly household income from work of resident employed households increased 2.9 per cent cumulatively, or 0.6 per cent per annum in real terms.
Such households have at least one employed person, and the household reference person – previously referred to as the head of household – is a Singapore citizen or permanent resident.
Taking into account household size, median monthly household income from work per household member rose from $3,027 in 2021 to $3,287 in 2022, an increase of 8.6 per cent in nominal terms, or 2.6 per cent after adjusting for inflation.
From 2017 to 2022, median monthly household income per household member grew by 11.9 per cent cumulatively, or 2.3 per cent per annum in real terms.

Rise in income for all but top earners​

Households across most income deciles saw increases in average household income from work per household member after adjusting for inflation.
In 2022, the average household income from work per household member of resident employed households in all income groups rose in nominal terms, with the increases ranging from 5.3 per cent to 15.6 per cent.
After adjusting for inflation, households in the first nine deciles saw real income growth of 1.1 per cent to 10.1 per cent, while those in the top decile saw a real income decline of 1.3 per cent.


Between 2017 and 2022, the average household income from work per household member of resident employed households in the first nine deciles rose 1.5 per cent to 3.0 per cent per annum in real terms, while that in the top decile recorded a decline of 0.4 per cent per annum in real terms.
The decline experienced by the top decile was because of a larger increase in household size from 2.26 in 2021 to 2.34 in 2022, compared with households in the other deciles. This, coupled with higher inflation experienced in 2022, contributed to the decline in their real household income in 2022.

More money distributed through government schemes​

Resident households, including households with no employed person, received $5,765 per household member, on average, from government schemes in 2022.
This was higher than the $5,257 received in 2021, due to the one-off and transitionary measures in 2022, as well as enhanced schemes, to cushion the impact of the goods and services tax (GST) rate increase and higher inflation on cost of living, said SingStat.

Resident households, including households with no employed person, received $5,765 per household member on average from Government schemes in 2022. ST PHOTO: KUA CHEE SIONG
Resident households living in one- and two-room Housing Board flats continued to receive the most money from the Government. In 2022, they received $12,189 per household member, on average, from government schemes, close to double the amount received by resident households living in HDB three-room flats.
The Gini coefficient based on household income from work per household member – before government transfers and taxes – fell to 0.437 in 2022, from 0.444 in 2021.
The Gini coefficient is a measure of income inequality. A Gini coefficient of zero occurs when there is total income equality, and a coefficient of one means there is total inequality.
After adjusting for government transfers and taxes, the Gini coefficient in 2022 fell from 0.437 to 0.378. “This reflected the redistributive effect of government transfers and taxes,” said SingStat.
Nonetheless, this is still slightly higher than the Gini coefficient of 0.375 in 2020, which was the lowest on record.
The report, Key Household Income Trends, 2022, is available on SingStat’s website.

 

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Hawker who has sold $2 laksa for 15 years: ‘Some customers don’t have much money’​

Some hawkers have resolutely stayed the course, even as others struggle to keep a lid on prices.​

Mr Victor Woo has sold $2 laksa and prawn noodles for over 15 years at his stall in Chinatown Complex Food Centre. ST PHOTO: SHERMAINE ANG

Shermaine Ang

Feb 12, 2023

SINGAPORE - Two dollars. This is how much Mr Victor Woo has been charging for laksa and prawn noodles at his stall in Chinatown Complex Food Centre for over 15 years.
And he plans to keep it that way in spite of high inflation.
“Customers here are old and some don’t have much money,” he said in Mandarin.
He is familiar with his customers from the nearby Chin Swee neighbourhood and one-room rental flats in Chinatown, not far from the three-room flat he shares with his elderly parents whom he supports. Workers also come to fuel up before their shifts.
Despite rising prices of ingredients, which have seen his earnings fall by a few hundred dollars every month, he is adamant about keeping prices at Woo Ji Cooked Food the same – even after some customers urged him to look out for himself.
“After so long, I roughly know their circumstances, whether they have money or not,” said the 61-year-old, who helped out at his mother’s stall as a teen and took over when she retired.
“As long as I’m not making a loss and still can make enough to get by, it’s okay.”

He added that customers who buy the $3 and $4 portions, as well as consistently good business, make up for any shortfall.
He opens his stall at 6am, and usually sells out before 10am.
“The ($2) small portion is just right for the elderly – they don’t eat much,” he added.


He gets up at 1am to set up shop and works till 1pm. The bachelor runs the stall himself, from ordering ingredients to washing up.
Mr Woo is in the minority of hawkers who have held off raising prices.
Hawkers whom The Straits Times spoke to said they have had to raise prices of their dishes by 50 cents to $1, amid the 1 percentage point hike in goods and services tax in 2023 and rising cost of ingredients over the past three years.
They face pressure to contain price increases to $1.
Some have made sure to keep cheap options on their menu – $1 nasi lemak by Kedai Makan Muhajirin in Lorong 7 Toa Payoh, for instance, and $2.50 bak chor mee by Ah Gong Minced Pork Noodle at Maxwell Food Centre – even as they raised prices for other foods.

Some hawkers have made sure to keep cheap options on their menu – $1 nasi lemak by Kedai Makan Muhajirin in Lorong 7 Toa Payoh, for instance, and $2.50 bak chor mee by Ah Gong Minced Pork Noodle at Maxwell Food Centre. PHOTOS: BRIAN HE, SHERMAINE ANG
Mr Jason Huang, 32, a Hokkien mee seller at Toa Payoh West Market and Food Centre, said he reduced his $5 noodle portions slightly while keeping the same amount of ingredients, as he did not want to raise prices by more than $1.
Hawkers ST spoke to said quality is most important to them, as it is what makes customers come back.
“We can’t lie to the customers’ taste buds,” said Mr Lim Jo Huak, 64, who runs Ri Tao Fu Teochew Pig’s Organ Soup at Jalan Kukoh Food Centre.
He raised the price of his pig’s organ soup from $4 to $5. But like many others, he will not change his supplier, whom he has built ties with for decades.
The owner of Angel Horse Teochew Fish Soup at Albert Food Centre, who gave his name only as Mr Tan, said: “We don’t cut corners. Customers know that, they come back because the food is good.”
Not wanting to increase prices, he settled on removing his smallest $4.50 portion from the menu. His noodles are now priced from $5.
“Customers now are very smart, they’ll know if we shrink portions,” said the 56-year-old, who has run the stall for 30 years with his wife.

One of two sisters running Yong Seng Heng Prawn Noodles at Circuit Road Hawker Centre said: “Business is not very good. We’re earning less and less.”
Giving her name only as Madam Tan, she added: “But this is an elderly estate. Customers are poor and old, how can we raise more?”
Mr Cornelius Tan, vice-chairman of the Chinatown Complex Hawkers’ Association, said a “significant percentage” of the 226 stalls in the food centre have raised their prices over the past few months by 50 cents for food and 10 cents to 20 cents for drinks, on average.
Mr Kenneth Lee, vice-chairman of Kheng Keow Coffee Merchants Restaurant and Bar Owners Association, said the majority of coffee-shop stalls, foodcourts such as Koufu and other eateries such as Ya Kun and Killiney Kopitiam, have also raised prices by 50 cents to $1.
Some customers ST spoke to were accepting of the price increases.
“The cost of everything is going up,” said a part-time foodcourt worker in her 60s, who wanted to be known only as Madam Ee.
She had bought prawn noodles at Circuit Road Hawker Centre near her home. “I’ve been buying from (this hawker) for many years, and she only raised a bit. It’s reasonable,” she said.
“I come back because the food is good. We have no choice anyway – even if the price increases, we still must eat,” she said.

 

[LITTLEREDDOT]

50 cents for milk in fish soup, 20 cents for bean curd syrup: Rising prices or profiteering?​

Some take advantage of inflation and the GST hike to mark up prices, say hawkers and F&B owners The Straits Times spoke to. But it’s hard to tell where the line between profiteering, and passing on real costs, begins and ends.​

Diners here have taken to social media to complain about rising food prices and extra charges. PHOTO: ST FILE
Andrew Wong

Feb 12, 2023

SINGAPORE – Over the last few months, Singaporeans have taken to social media to complain about rising food prices and extra charges.
One customer said she was asked to pay 20 cents for extra sugar syrup at Rochor Original Beancurd in Geylang. Another was stumped by the 50 cents he was charged for evaporated milk in his fish soup at a Kopitiam foodcourt.
Are customers being fleeced – or are those in the food and beverage (F&B) sector truly suffering from inflation and the goods and services tax (GST) hike, and having to pass on the costs to customers?
“Everybody thinks the GST hike is only 1 per cent and wouldn’t affect us that much,” Mr Lim Min Jie, owner and chef of Braise, a stall specialising in braised meats at Golden Mile Food Centre, told The Straits Times.
The 46-year-old said that after accounting for the price changes across his supply chain, the cost price of his ingredients has already gone up between 5 per cent and 10 per cent. “A lot of people don’t look at it that way, so it’s quite tough for us. There are some people who will say we are making use of the GST hike to increase our prices.”
His sentiment is shared by others in the industry.
“Many customers have been understanding of the price revisions, but we can’t say the same for all,” said Ms Najeera Roseni at the family-owned House of Samosas in MacPherson Road.

For instance, the cost of fresh chicken from her supplier went up from $6.50 per kg at the start of 2022, to $9.50 per kg, and is now $12.50 per kg before GST.
The 28-year-old said many customers have tried to ask for discounts; others simply stopped coming. “Our corporate orders also shrank significantly in January,” she added.
Despite that, she said she understood customers’ concern that F&B businesses may be engaging in profiteering. “There’s no smoke without fire – I do think there are some out there who take advantage of the inflation to mark up their prices,” she said, adding that while businesses’ cost prices have no doubt increased, their price revisions have to be realistic.

The Committee Against Profiteering said it received 286 feedback submissions from April 1, 2022, to Jan 31, 2023, of which 26 involved specific allegations of GST misrepresentation. It has worked with partner agencies such as the Competition and Consumer Commission of Singapore, the Consumers Association of Singapore, and the People’s Association to engage those businesses.
Those businesses have committed to being more transparent with their pricing, Trade and Industry Minister Gan Kim Yong said in a written reply to a parliamentary question last Monday.
Minister of State for Trade and Industry Low Yen Ling said in a parliamentary reply in January that the Federation of Merchants’ Associations Singapore and the Heartland Enterprise Centre Singapore have conducted outreach and walkabouts at coffee shops, Housing Board shops and hawker centres to remind their members of the need to be transparent about their pricing.

Not clear if businesses are profiteering​

Inflation in Singapore reached decade highs in 2022, spurred by supply-side disruptions during the Covid-19 pandemic, among other factors. And it showed up in the prices of Singaporeans’ favourite dishes.
Data from the Department of Statistics shows that a plate of chicken rice cost an average of $3.38 at the start of 2019. This rose to $4.08 by the end of 2022.

“Before the GST hike, we’d already seen other sources of inflationary pressures seeping into the entire value chain,” said DBS Bank senior economist Irvin Seah, adding that some businesses would have had no choice but to pass on the cost to their customers.
OCBC Bank chief economist Selena Ling said that food inflation, including hawker prices, will likely be sustained in the near term to play catch-up.
Li Na Fishball Noodle owner Jeevan Ananthan, who gave up a comfortable career in finance to set up the hawker stall with his wife, could not agree more.
Utilities, rental and ingredient prices – “literally everything” – have shot up for him in recent weeks, said the 31-year-old.

Tough to sustain low prices​

But were hawker prices too low to begin with?
This is debatable, but one of the key features of hawker food has always been competitive pricing, said Ms Ling.

Professor Lawrence Loh, director of the National University of Singapore Business School’s Centre for Governance and Sustainability, said that historically, prices of hawker food have remained low due to containment of costs. “The low prices cannot be sustained if there are high pressures on the cost side, but we need to be mindful of profiteering too,” he said.
Ms Ling pointed out that it is not so straightforward to determine if hawkers or F&B businesses are overpricing their goods.
There is also a time lag in passing on cost increases. “Many could not raise prices over the last three years due to the pandemic and weak demand, so they had to absorb any cost increases,” she said.
But as the economy slowly reopened in 2022, demand has also strengthened, she added.
Hence, these hawkers and businesses became more confident in passing on some of the cumulative cost increases.

 

[LITTLEREDDOT]

Such a stupid survey.
If hawkers do not raise prices, they reduce the food portions, especially the ingredients.

#trending: Singapore netizens say cost of eating out has risen, disagree with findings of food prices survey​

Ili Nadhirah Mansor/TODAY
A survey by the Institute of Policy Studies concluded that many food stall holders had not raised prices after the Goods and Services Tax increase in January 2023, while those that had done so raised prices by marginal sums.
Follow us on Instagram and Tiktok, and join our Telegram channel for the latest updates.

• An Institute of Policy Studies' survey found that prices of food outlets such as hawker centres and food courts have remained mostly the same between late 2022 and early 2023, after the GST increase
• Online users disputed the results of the survey and questioned its accuracy, with many claiming that food prices have risen
• Stall owners surveyed by IPS indicated that they may raise prices in the future
• IPS clarified that the survey only looked at food price increases following the GST hike, between September to November 2022 and January to February this year

BY

LEE WENXIN​

Published March 14, 2023
Updated March 15, 2023
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SINGAPORE — A survey that found that many food stalls did not raise prices after the recent Goods and Services Tax (GST) increase has been disputed by some online users, who claimed that food prices were firmly on the rise.
The study by the Institute of Policy Studies (IPS) found that many hawker centre, food court and kopitiam stall owners did not raise prices between late last year and early this year despite rising operational costs.
Even among those who did raise prices, the increase was a small margin of not more than 30 cents for each food item, the IPS survey showed. The findings were released on Monday (March 13).
The online community, however, disagreed with the research conclusions, with some calling into question the accuracy of the study.
An Instagram user on TODAY’s post of the IPS study wrote: “Last time a kopitiam bento set could go for $5.50, now $7; coffee or Milo around $1.80, now $2 plus; is this research legit?”

Another wrote: “It's no way close to reality. Go to all the schools and ask the children to write the prices of all their daily meals including drinks they had for a month outside of schools, then come back with the data.”
Social media users also noted instances of so-called "shrinkflation" — when prices of goods remain the same but the quantity decreases — which may have resulted in the survey results being inaccurate.
One Instagram user said: “The portion sizes are now so small that you can probably take these 'findings' with a pinch of salt.”
A Facebook user agreed: “Cost is one thing but size or volume can be another. Many could have reduced (amount) to keep price low but consumers may need to eat double to fill up.”
Online users also lamented that wage increases cannot match the rising cost of living, especially with another impending GST hike at the start of 2024.
“I can imagine prices will increase another 10 per cent when GST increases again at the end of the year. The thing is, my salary only increased 3.6 per cent this year. Life is hard...”

Some people shared their cost-saving tips with fellow Singaporeans.
“Personally, if you hunt around, you can do lower than $15 a day," one wrote.
The commenter said that three curry puffs costing $1 each would do for breakfast.
"A can of luncheon meat and baked beans cost $2.50 and 92 cents respectively. Will do for lunch. Dinner of two vegetables and one meat will be under $4.''

IPS CLARIFIES DATA COLLECTION METHODLOGY THAT WAS USED​

IPS conducted the survey by collecting the first round of data from September to November 2022, before the GST rose from 7 to 8 per cent in January this year.
They then collated prices from January to February after the GST increase and compared them with the prices before the tax increase.

Some stall owners have indicated that they have not raised prices for the time being, but might consider price increases in the future, IPS said, adding that the prices studied were taken off menus, which may or may not be updated to reflect real-time prices.
The prices were also taken from food establishments that were seen as more affordable such as food courts, hawker centres and kopitiams. Prices of restaurants or food delivery services are likely to increase exponentially, IPS added.
In response to queries from TODAY, researchers clarified that their study only looked at increases following the GST hike and not increases owing to other factors such as the Covid-19 pandemic or the Russia-Ukraine war.
They also noted that their study had specified that the quality and quantity of food were not accounted for, and that the difference in prices could have reflected variations in these aspects.
As to whether the study had accounted for price differences due to the type of food establishment, they said that they had used a standardised criteria to classify establishment types to reflect difference in food prices.
For example, hawker centres were defined in the study as "open-air, standalone complexes with many food and drink stalls" while food courts were defined as air-conditioned food establishments.
The researchers reiterated that the focus of the study was to provide an "in-depth regional analysis of food prices" at the time of data collection, which was between September to November last year, and not on price differences between 2022 and 2023.
The cost of eating out here is likely to continue to go up relative to individual and household incomes, IPS warned.
Hawker food may no longer remain as cheap compared to other meal options in the current economic climate.

 

[SBFNews]

Whatever survey is all manipulated by PAP. It doesn't reflect ground conditions lah.

 

[Eisenhut]

Survey done is to support the garhmen stand, they are very "loaded"

 

[LITTLEREDDOT]

#trending: Singapore netizens say cost of eating out has risen, disagree with findings of food prices survey​

Ili Nadhirah Mansor/TODAY
A survey by the Institute of Policy Studies concluded that many food stall holders had not raised prices after the Goods and Services Tax increase in January 2023, while those that had done so raised prices by marginal sums.
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• An Institute of Policy Studies' survey found that prices of food outlets such as hawker centres and food courts have remained mostly the same between late 2022 and early 2023, after the GST increase
• Online users disputed the results of the survey and questioned its accuracy, with many claiming that food prices have risen
• Stall owners surveyed by IPS indicated that they may raise prices in the future
• IPS clarified that the survey only looked at food price increases following the GST hike, between September to November 2022 and January to February this year

BY

LEE WENXIN​

Published March 14, 2023

SINGAPORE — A survey that found that many food stalls did not raise prices after the recent Goods and Services Tax (GST) increase has been disputed by some online users, who claimed that food prices were firmly on the rise.
The study by the Institute of Policy Studies (IPS) found that many hawker centre, food court and kopitiam stall owners did not raise prices between late last year and early this year despite rising operational costs.
Even among those who did raise prices, the increase was a small margin of not more than 30 cents for each food item, the IPS survey showed. The findings were released on Monday (March 13).
The online community, however, disagreed with the research conclusions, with some calling into question the accuracy of the study.
An Instagram user on TODAY’s post of the IPS study wrote: “Last time a kopitiam bento set could go for $5.50, now $7; coffee or Milo around $1.80, now $2 plus; is this research legit?”

​

Another wrote: “It's no way close to reality. Go to all the schools and ask the children to write the prices of all their daily meals including drinks they had for a month outside of schools, then come back with the data.”
Social media users also noted instances of so-called "shrinkflation" — when prices of goods remain the same but the quantity decreases — which may have resulted in the survey results being inaccurate.
One Instagram user said: “The portion sizes are now so small that you can probably take these 'findings' with a pinch of salt.”
A Facebook user agreed: “Cost is one thing but size or volume can be another. Many could have reduced (amount) to keep price low but consumers may need to eat double to fill up.”
Online users also lamented that wage increases cannot match the rising cost of living, especially with another impending GST hike at the start of 2024.
“I can imagine prices will increase another 10 per cent when GST increases again at the end of the year. The thing is, my salary only increased 3.6 per cent this year. Life is hard...”
Some people shared their cost-saving tips with fellow Singaporeans.
“Personally, if you hunt around, you can do lower than $15 a day," one wrote.
The commenter said that three curry puffs costing $1 each would do for breakfast.
"A can of luncheon meat and baked beans cost $2.50 and 92 cents respectively. Will do for lunch. Dinner of two vegetables and one meat will be under $4.''

IPS CLARIFIES DATA COLLECTION METHODLOGY THAT WAS USED​

IPS conducted the survey by collecting the first round of data from September to November 2022, before the GST rose from 7 to 8 per cent in January this year.
They then collated prices from January to February after the GST increase and compared them with the prices before the tax increase.

​

Some stall owners have indicated that they have not raised prices for the time being, but might consider price increases in the future, IPS said, adding that the prices studied were taken off menus, which may or may not be updated to reflect real-time prices.
The prices were also taken from food establishments that were seen as more affordable such as food courts, hawker centres and kopitiams. Prices of restaurants or food delivery services are likely to increase exponentially, IPS added.
In response to queries from TODAY, researchers clarified that their study only looked at increases following the GST hike and not increases owing to other factors such as the Covid-19 pandemic or the Russia-Ukraine war.
They also noted that their study had specified that the quality and quantity of food were not accounted for, and that the difference in prices could have reflected variations in these aspects.
As to whether the study had accounted for price differences due to the type of food establishment, they said that they had used a standardised criteria to classify establishment types to reflect difference in food prices.
For example, hawker centres were defined in the study as "open-air, standalone complexes with many food and drink stalls" while food courts were defined as air-conditioned food establishments.
The researchers reiterated that the focus of the study was to provide an "in-depth regional analysis of food prices" at the time of data collection, which was between September to November last year, and not on price differences between 2022 and 2023.
The cost of eating out here is likely to continue to go up relative to individual and household incomes, IPS warned.
Hawker food may no longer remain as cheap compared to other meal options in the current economic climate.

 

[LITTLEREDDOT]

Forum: Inflation data should take into account shrinkflation​

Mar 30, 2023

It was reported that food inflation was unchanged in February at 8.1 per cent, as a steeper increase in non-cooked food prices was offset by a smaller rise in the prices of prepared meals (Singapore core inflation holds firm at 14-year high of 5.5% in February, March 23).
There are many occurrences of shrinkflation taking place which may not be reflected by the reported food inflation rate.
Many food vendors have started to charge for ingredients that used to be free or have always been part of a dish.
A bowl of sliced fish soup used to come with a dash of evaporated milk. Nowadays, stallholders charge me at least 50 cents for the milk.
A whole chicken purchased from the wet market used to include chicken fat, which is a key ingredient in chicken rice recipes. Now, I see packs of chicken fat for sale, priced at a dollar or two.
Even when it comes to groceries, shrinkflation is a common practice by companies as a way of managing profit margins by adjusting the weight and volume of products sold while maintaining the same selling price.

A branded chocolate bar which used to weigh 200g could now be 180g, yet the selling price remains the same.

I welcome measures such as the Assurance Package and GST (goods and services tax) Voucher scheme to target the rising cost of living. However, I hope the authorities will consider the impact of shrinkflation in people’s daily spending, which may not be accounted for fully in the official inflation figures.

Foo Sing Kheng

 

[LITTLEREDDOT]

Instead of Swiss standard of living, Singapore now has Shit standard of living.
Singapore is now eating insects, like in the Indochina countries.

16 species of insects like crickets, silkworms will receive SFA green light to be sold as food​

The FAO has been promoting insects for human consumption, in a bid to feed the world’s growing population in a more affordable way. PHOTO: PIXABAY

Cheryl Tan

Apr 7, 2023

SINGAPORE - A total of 16 species of insects, such as crickets and silkworm pupae, will receive the green light from the Singapore Food Agency (SFA) for human consumption in the second half of this year, The Straits Times has learnt.
This comes after the agency recently concluded a public consultation exercise from Oct 5 to Dec 4 last year on the regulation of insects and insect products. SFA received a total of 53 responses.
The approval of the insects for consumption will also be subject to various food safety requirements, including treatment processes to kill pathogens, and ensuring that the insects are packed and stored in a manner that prevents contamination.
SFA told ST in October 2022 that it had conducted a thorough scientific review and assessed that specific species of insects with a history of human consumption can be consumed as food, either directly, or made into items such as fried insect snacks or protein bars.
The United Nations’ Food and Agriculture Organisation (FAO) has in recent years been promoting insects for human consumption, in a bid to feed the world’s growing population in a more affordable and sustainable way.
The FAO had said that edible insects provide high quality nutrition, require less feed and emit less greenhouse gases compared with farmed livestock.
Following the consultation, SFA said that it would also be permitting silkworm (Bombyx mori) cocoons for human consumption, given that these have been consumed previously in places in East Asia like China and Malaysia.

Silkworms produce their cocoons with silk threads - which are composed of two main proteins, known as sericin and fibroin.
While silk has traditionally been used to produce textiles, ST understands that technology developments in recent years have allowed companies to turn these silk threads into food and edible coatings, with many Japanese biotech firms making strides in this area.
In addition, SFA said that it would also permit fibroin from silkworm cocoons for consumption, given that the protein has been approved in Korea, Japan, and is “generally recognised as safe” by the United States’ Food and Drug Administration.

Those looking to introduce black soldier fly larvae for human consumption, however, will have to apply for approval with SFA under its novel foods framework, as there has been no known history of human consumption.
Black soldier fly larvae is used widely in Singapore - as it is able to consume up to four times its body weight in food waste. In turn, it produces a by-product known as frass, which can be used for fertiliser. The larvae itself is often used as fish or shrimp feed.
However, industry players in the insect space remain divided on the scale of consumer demand following the approval, though many are already gearing up for their product launches.
Mr Christopher Leow, chief executive and co-founder of Future Protein Solutions, said that his company is coming up with a few exciting concepts integrating the use of cricket protein, and is thinking of new ways of marketing his products to entice the general public.
“A lot more education would be needed to boost public acceptance of the consumption of insects. So it might take awhile before these insects become mainstream at local restaurants,” he added.

Globally, both high-end restaurants and causal eateries offering insects dishes like crickets have not garnered significant traction, so a lot more needs to be done to normalise insect consumption, Mr Leow noted.
Some Chinese and Korean restaurants here, however, have already begun selling silkworms without SFA’s approval, according to a report by CNA.
Asia Insect Farm Solutions’ co-founder Yuvanesh T.S. said that he too is planning a product launch, and is expecting the buzz generated around edible insects to stir up demand, though it remains to be seen whether consuming insects will be a trend that sticks with Singaporeans.
The firm produces cricket powder for use in flour and cookies and it is currently selling to customers in the United States and Britain.
Mr Gavriel Tan, co-founder of Altimate Nutrition, a startup from Republic Polytechnic, said that the company is preparing for mass production, and is liaising with its manufacturer in Thailand for the first batch of flavoured cricket protein bars.

Altimate Nutrition produces protein bars made with cricket flour. PHOTO: LIANHE ZAOBAO FILE
He added that the bars will be ready for sale upon SFA’s approval.
The company currently has a partnership with the House of Seafood restaurant to develop insect-based recipes. They are exploring ideas like cricket dip and sambal crab with cricket.
Mr Tan noted that consumers are very polarised when it comes to insect protein, with some finding its consumption “intriguing” while others are repulsed.
“To address this, we intend to continue organising workshops and seminars to raise awareness about the benefits of insect-based foods,” he said.
Professor William Chen, director of the Food Science and Technology Programme at Nanyang Technological University, said that while the consumption of insects is “no stranger” to a number of Asian countries, the direct introduction of “whole insects” in restaurant menus here might still be challenging due to the general negative perception of insects.
“One way to integrate insects into our diet would be to add insect proteins into our familiar foods such as pasta, with proper labelling. With no sight of the whole insects and no change in the taste – I can safely say this after tasting spaghetti bolognese made with mealworm protein-based pasta – consumers would slowly accept insect-based foods,” he added.
ST has contacted SFA for more information.

 

[LITTLEREDDOT]

So long Singapore: Expats flee city as rents go through the roof​

Southeast Asian city-state is losing international talent as some expats report rent hikes as high as 80 percent.

Singapore's average rental prices surged by 30 percent in 2022, with many residents experiencing even steeper hikes [File: Feline Lim/Reuters]
By Toh Ee Ming
Published On 20 Apr 2023

Singapore – Australian national Ben Dunn and his family consider themselves “Aussie-poreans”. He has lived in Singapore for the last 16 years and his children, aged 10 and 13, were born here.
Drawn to Singapore’s “melting pot of people and ideas”, sunny climate, and liveable environment, the Dunns enjoy soaking up the greenery at Botanic Gardens, visiting Queenstown Library and eating hawker food at the Tiong Bahru Market.
But after watching the monthly rent for the family’s condominium soar from 7,000 to 11,000 Singapore dollars ($5,242 to $8,238) in a matter of months, Dunn and his wife made the difficult decision to return to Australia when their lease ends in June.
“Since the pandemic, we’ve been thinking about how it’s the right time to return home after being away for so long,” Dunn, 51, who works in finance, told Al Jazeera.
“We love living in Singapore but with the cost of living going up and wages not rising proportionally, this rent increase will cause a serious impact.”
While there are no official figures, Dunn is among a growing pool of expats leaving Singapore because of soaring rents, prompting concerns about whether the Southeast Asian city-state is at risk of losing its allure as a regional business hub.
Average rental prices in Singapore, where about 40 percent of the population is foreign-born, surged by 30 percent in 2022 – the fastest pace in 15 years, according to data from Singapore’s Urban Redevelopment Authority.

A shortage of housing supply due to the pandemic has led to large rent increases in Singapore [im Wimborne/Reuters]
The surging prices have been blamed on a range of factors, including a shortage of housing supply due to pandemic-caused construction delays and strong demand from companies and talent to relocate to the city, driven in part by China’s crackdowns on private industry and Hong Kong.
The number of Employment Permit and S Pass holders – the main visas issued to foreign professionals – grew from 323,500, in 2021, to 365,200, in 2022.
International and local business communities here have also raised concerns over the rising cost of residential and office spaces.
Seven in 10 foreign and local businesses are ready to relocate staff if costs do not come down, while half of expats who renewed their residential lease recently saw their rent rise by more than 40 percent, according to a survey by the European Chamber of Commerce in Singapore (EuroCham).
APAC Relocation, an international relocation company, said it has seen about 10 percent of its clientele move because of rising rents during the past five to six months.
Many expats are also choosing to downgrade from private landed properties and bigger condominiums in Singapore’s city centre to smaller apartments and even public housing in suburban areas, Unni Krishnan, relocation manager at APAC, told Al Jazeera.

Some expats are leaving Singapore due to the soaring cost of living in the city-state [Edgar Su/Reuters]
Melody, a Taiwanese national in her 30s, arrived in Singapore two years ago with a promising career in the tech industry and dreams of putting down roots in the city with her partner.
But last year, she was hit by a double whammy. She was retrenched in recent tech layoffs and the monthly rent for her two-bedroom apartment in Newton was raised from 4,000 to 6,500 Singapore dollars ($3,000 to $4,870).
She has heard similar stories of friends’ landlords raising rents by 60 to 100 percent.
For Melody, the situation presented the difficult choice to either stay on and “endure the situation with barely any savings”, or move somewhere with a lower cost of living. By the end of April, she plans to return to Taiwan.
Melody feels the current rental situation and lack of government intervention have created an unfriendly environment for mid-level expats like herself.
“It’s sad to hear these stories. To the people who come here, Singapore represents a land of opportunity, an exciting Asian business hub where you’re surrounded by diverse people, cultures and your kids grow up in an international environment,” Melody, who asked not to be identified by her real name, told Al Jazeera.
“It was a really pretty package… before all of this happened. In times like this, it makes us feel like we are so easily dispensable and just easily let go and nothing is being done to retain us.”
Likewise, Ari had leapt at the opportunity to work in Singapore. He holds a senior position in the food and beverage industry, and moved here with his wife and young daughter a year ago.
When their lease ended in January this year, the landlord raised the rent by 50 percent – from 5,000 to 7,500 ($3,747 to $5,620) – putting a substantial dent in their savings. Some of their friends were hit with rent hikes of 70 to 80 percent.
To cope, Ari and his family cut back on spending by eating out less, taking public transport whenever they could and turning off the air conditioning. While Ari considered finding a cheaper apartment elsewhere in Singapore, he was disappointed to find that even rents in far-flung locations were not immune from the hikes.
By the end of April, Ari plans to find a new job elsewhere and leave Singapore.
“It’s just really disruptive and it’s a shame that we have to leave Singapore,” Ari, who requested to use a pseudonym, told Al Jazeera.

The Singapore government has said it is monitoring the rental market closely amid concerns rising costs are putting accommodation increasingly out of reach [File: Edgar Su/Reuters]
Achieve Group chief executive Joshua Yim has witnessed companies turning to creative solutions to handle the rising costs.
Yim, whose talent acquisition company recruits workers in various fields including tech, banking and pharmaceuticals, said some multinational corporations with regional headquarters in Singapore are relocating their staff to cheaper cities like Kuala Lumpur, Jakarta and Bangkok, where they can work remotely and fly into the city-state only when necessary.
Yim has seen numerous expats leave Singapore because of escalating rents in the past six months, with others negotiating for better packages, “having done their research on Singapore”.
Still, companies these days may not be able to offer such handsome packages and housing allowances as in the past, Yim added.
While the topic has been the talk of the town in the business community, Yim said he is optimistic the situation will ease by the end of this year. He envisions the government will take steps to prevent further erosion of Singapore’s competitiveness.
Albert Tsui, executive director of advocacy and policy at the Singapore Business Federation, pointed out that disruptions in supply chains and inflation have added to business costs along with rising rents.
But while rising costs may pose a risk to Singapore’s attractiveness, companies are strongly aware that a variety of factors come into play when determining their country of choice for investment, Tsui said.
“What continues to distinguish Singapore is our ready access to global talents, robust infrastructure and the institutions that can protect the value of business assets,” Tsui told Al Jazeera.
“Singapore’s stable political climate and pro-enterprise environment also promote business sustainability, which makes us an attractive destination.”

Singapore is one of Asia’s major financial and business hubs [Caroline Chia/Reuters]
In response to concerns that soaring rents could affect Singapore’s ability to attract foreign talent, the government has insisted it is closely monitoring the property market, including the residential rental market.
“That said, global talents consider many factors besides rental prices when making relocation decisions,” National Development Minister Desmond Lee said in a response to parliamentary questions last November.
“These include Singapore’s standing as a global business hub, our strong external connectivity, our good trade links, our education and healthcare standards, and the quality of life.”
For expats like Dunn, though, the situation has made it difficult to stay on.
“We’re leaving with a heavy heart but we’re very torn about it,” he said.
SOURCE: AL JAZEERA

 

[LITTLEREDDOT]

Soaring COE prices: What’s driving the insanity, and when will it end?​

Christopher Tan
Senior Transport Correspondent

Besides supply and demand, there are several factors driving COE prices up. PHOTO: ST FILE

Apr 23, 2023

SINGAPORE - Nearly 30 years ago, the Government refuted a June 1994 Business Times article which stated that certificate of entitlement (COE) prices would soon skyrocket on the back of an imminent shrinkage in supply because of fewer vehicles being deregistered – the main determinant of COE supply.
In a letter to the editor, the then Ministry of Communications (the precursor of the Transport Ministry) argued that fewer deregistrations also meant that fewer people were bidding for COEs to replace their deregistered vehicles.
“In such a situation – where a reduction in supply of COEs is accompanied by a corresponding reduction in demand for COEs – it does not follow that COE prices will ‘shoot through the roof again’,” it wrote.
As it turned out, COE prices shot through the roof, with the premium for bigger cars hitting $110,500 by end-1994 – a record that would stand for more than 20 years.
The surge, however, had little to with supply or demand. It had to do with speculation, where motor traders secured as many COEs as they could in the hope of pairing them with buyers.
And when they failed, they would quickly register the cheapest vehicle – in this case, the smallest motorcycles back then – with the unused COEs, and deregister the bikes to recoup the COE amount. Their losses were thus limited to cost of the mini-bikes.
The Government, which was refunding tens of millions of dollars to these speculators, acted swiftly to plug this loophole, by making car COEs non-transferable. The following month, all car COE prices plunged, with the premium for bigger cars nearly halved to $65,000.

It is not wrong to postulate that replacement demand is a determinant of COE prices. But there are several other factors which are equally important and are usually amplified when the COE supply is small.
For starters, people do not buy cars once every 10 years (the lifespan of a COE). Many buy them every three to five years, often when the warranty of their existing car runs out. In addition, Singapore has seen an influx of foreigners since the Covid-19 pandemic kicked in. Many of them seek to buy cars, which adds fuel to the frenzy.
On their part, car sellers fan demand further by dangling promotions, or by telling consumers they should buy soon because COE prices will go higher. The latter becomes a self-fulfilling prophecy when consumers are swayed by this fear tactic.

And speculation – which drove prices to insane levels three decades ago – may well have returned in a new form.
The premium for bigger and more powerful cars hit a new record of $120,889 at the latest tender on April 19. Its proxy, COE in the Open category (which remains transferable), also set a new high of $124,501. The COE for smaller, less powerful cars is likewise at a record $103,721 – well past a level which triggered the Monetary Authority of Singapore to reintroduce car loan curbs 10 years ago (which cooled prices immediately).
While this latest round of hikes could be attributed to expectations of another supply shrinkage in the May-July quota period, motor traders point to private-hire vehicle operators as one underlying driver of runaway prices.
From the time ride-hailing firms entered Singapore 10 years ago, the private-hire fleet has been growing aggressively. From just 16,396 in 2013, it reached a record 77,141 in 2019 – swelling nearly five times in just six years, grossly outpacing the overall car population growth of 1.5 per cent in the same period.

Amid the Covid-19 pandemic, the private-hire fleet shrank to 67,990 in 2021.
Growth resumed thereafter, with the fleet hitting 72,632 at end-December 2022, and 73,982 at end-February 2023. This represents an 8.8 per cent growth from 2021, while the rest of the car population crept up by merely 0.1 per cent in the same time frame.
With tourism returning to pre-pandemic levels, and with no regulatory cap on private-hire fleet size in sight, operators will likely continue to grow their fleet.
There are points of similarity between private-hire firms and the speculators who drove COE prices to six-digit levels three decades ago.
One, they are able to pass higher cost to vehicle hirers (drivers). Two, they are able to dispose of unhired cars by converting them into normal cars and selling them as used vehicles. Three, the more vehicles they acquire, the fewer can be sold to individual consumers, which in turn sets the stage for higher demand for rental cars.
In short, they are able to mitigate their risks. In fact, the only real risk they face is when COE prices start to slide when the uptrend in supply comes (starting as early as next year). When this happens, they will be stuck with an expensive fleet of cars which they cannot rent out or resell.
Motorists currently driving private-hire cars because they are priced out of the car market by stratospheric COE rates will stop driving them when COEs return to saner levels. In that sense, it is in the interest of private-hire firms to keep bidding aggressively to keep premiums high for as long as possible.
Unlike 1994, the Government on its part, faces no revenue risk this time round. It has nonetheless been trying to cool the market.

In Budget 2023, far more punitive taxes were introduced for costlier cars – mostly those with bigger or more powerful engines or motors. This has worked to some degree. Since February, the price increase in COE for bigger, more powerful cars has been smaller (+14.6 per cent) than the increase in COE for smaller, less powerful cars (+20.6 per cent).
This has also partly to do with consumers switching to the cheaper category of cars, and sellers importing more models which qualify for the cheaper COE category.
The Land Transport Authority has also tweaked the supply formula twice since July 2022, first, by basing each quarter’s quota on deregistrations of the preceding two quarters, and then, in January, expanding it to deregistrations of the preceding four quarters. This is meant to reduce supply volatility.
This cooled the market briefly, but clearly more needs to be done.
Make a decisive policy change to treat private-hire cars like taxis since they serve the same role as taxis. Cap their fleet size. Have an age limit on private-hire cars. Ban the conversion of private-hire cars to normal cars – or at least stipulate a minimum no-conversion period. Demand that ride-hailing firms adopt a transparent fare structure – the way taxi and public transport fares are transparent.
Will this affect fares and service availability? Unlikely.
The recent hikes in point-to-point transport fares and longer waiting time had less to do with a dip in driver supply than with drivers tailoring their driving pattern to maximise fares, and platform owners looking to increase profit margins. After all, the point-to-point vehicle fleet is now at more than 60,000 – more than double the taxi fleet in 2012 (before private-hire firms arrived).
Separately, the drive towards cleaner cars may be indirectly driving COE prices up. Sellers are using part of the tax incentives to price their hybrid or electric cars in such a way that they secure a more decent profit margin. This way, they are able to outbid others – such as those selling cars without incentives – to secure more COEs.
There must be a way where Singapore can encourage the adoption of cleaner vehicles without inadvertently driving up cost of all vehicles. Some cities use methods such as preferential access to restricted areas and income tax offsets to drive the green initiative.

COE premium for smaller cars surges to $103,721; Open category hits all-time high of $124,501
Lastly, easy credit underpins all the factors cited above. While car loans are still restricted to 70 per cent of selling price and tenure limited to seven years, loopholes exist. One, cars bought on leasing plans do not have these restrictions. Two, sellers have been inflating list prices to overcome the curbs. Three, cars registered under companies – such as private-hire firms – do not have to observe the restrictions.
A quick glance at car advertisements will reveal a rash of “100% loan” and “zero downpayment” slogans. The Straits Times has highlighted these tactics for years, but they have not been stamped out.
Stratospheric COE prices have a trickle-down effect on prices of other goods and services, contributing to overall cost of living.
While the premiums may continue to rise for the next quarter or two, the cyclical upswing in supply slated to start in 2024-25, could see some natural easing. But by then, premiums may have reached $150,000.
A multi-agency effort may be needed to arrest this trend again.

 

[SBFNews]

Fuck PAP

 

[birdie69]

Fuck PAP

My famili went to newly renovated coffee shop for dinner at Ellas.

All the prices of food go up at least 25%-33%.

I do not know the MPs of Pasir Ris are aware of this scrupulous stall owners and what they are going to do, close both eyes pretend nothing happens, Senior Minister Teo?

 

[CPTMiller]

People still can afford to queue and pay. Why blame the MP??

 

[SBFNews]

My famili went to newly renovated coffee shop for dinner at Ellas.

All the prices of food go up at least 25%-33%.

I do not know the MPs of Pasir Ris are aware of this scrupulous stall owners and what they are going to do, close both eyes pretend nothing happens, Senior Minister Teo?

They earn millions. It doesnt affect them. They will tell you to upgrade your skills if you want more salary and have a better living. FUCK PAP

 

[CPTMiller]

Upgrade ,Upskills ,Work fast, cheaper salary is the way to go