They have mounted a tiger. A tiger that is made up of high value of sing dollar and high property price.
High sgd is to attract parking of money in sgd, be it property or others.
High property price is to create wealth the easy, way just like COE.
However, property price cannot rise forever. There is a limit because it is actually wealth created through the use of our future earning now. When the salary of a person is not enough to repay a property in his life time, that limit is reached. Further increase would means that his children have to continue with repayment of the loan.
To mitigate this situation, they can either increase the wages or devalue the sgd.
However, with the high value of sgd, the wage cost has already priced ourself out in terms of competitiveness, so there is not much room for further wage increase. To make matter worse, high property price further add to business cost.
The option of devaluing the sgd is suicidal as it would lead to capital flight.
The situation is dire but people still think that they should buy a condo to make money, leaving them with no choice but to increase stamp duty and reduce loan value so suddenly to stop aggravating the situation.
Let's see how our scholars can lead us out of this mess.
