Wednesday 16 May 2012

Parliament Highlights - 14 May 2012



Wider govt plan to help bridge wage gap
Aid for low-income includes subsidies, Workfare and retraining
By Toh Yong Chuan, The Straits Times, 15 May 2012

GOOD jobs and wages backed up by an array of targeted schemes to help lower-income households are part of the Government's plan to tackle the wage gap, Minister of State for Manpower Tan Chuan-Jin said yesterday.

In the first Parliament sitting since Professor Lim Chong Yah's radical proposal to push up wages at the bottom, Mr Tan laid out the multi-pronged approach to helping low-income families, saying wages are only part of the equation.

What the Government has put in place, he said, is a 'comprehensive and active strategy to help low-income families improve their overall quality of life and share in Singapore's continued progress'.

The help includes subsidies for housing, education and health care, income top-ups through Workfare, funds for retraining, and support for companies that pledge to share their productivity gains with lower-wage workers.

The Government's policies to grow the economy have also yielded dividends for lower-income households, Mr Tan made clear. The bottom fifth of Singaporean households enjoyed real income growth per member of 13.6 per cent over the last five years.

Last year, those in the bottom fifth saw the highest percentage growth in income per member, as compared to households in the upper quintiles. This is before Workfare and other subsidies.

The increase reflects not just the rise in wages but also the fact that more household members are employed in an economy that has created many new jobs. 'It is also worth recognising that this significant growth in incomes in the last five years occurred despite the rise in the proportion of foreign workers in the workforce,' Mr Tan said.

The Minister of State was responding to questions from four Members of Parliament on wage growth.

At the same time, Mr Tan also acknowledged that incomes of some Singaporeans in specific low-wage jobs have not gone up.

Addressing Moulmein-Kallang GRC MP Denise Phua's question on whether the Government would consider 'shock therapy' for wages, Mr Tan said the Government believed in a balanced approach.

That means intervening to support businesses in restructuring, raise workers' skills, and ensure lower-wage workers get a fair share of productivity gains. This is done through schemes such as the Workfare Training Support and the Inclusive Growth Programme, with its focus on sectors where wages have lagged, such as cleaning, food and beverage and retail.

Mr Tan also said that to force wages up suddenly, as recommended by Prof Lim, would be to put at risk small and medium enterprises, the major employers of lower-wage workers.

The Government is also tackling practices such as cheap sourcing, which has depressed wages of workers in the cleaning and security sectors. Details for an enhanced accreditation framework for cleaning companies that requires them to pay 'appropriate wages' to cleaners will be ready soon, he added.

Workers' Party Non-Constituency MP Yee Jenn Jong asked about the impact of the current high inflation on the Government's target to raise real median wages by 30 per cent in the decade from 2010. Mr Tan said the Government does not expect the current high levels of inflation to persist in the years to come.

Earlier, Trade and Industry Minister Lim Hng Kiang reiterated that inflation, which was 5.2 per cent in March, is expected to ease gradually in the second half of this year.

The Government has allowed the Singapore dollar to appreciate to curb imported inflation and taken steps to cool the property market, and is now reviewing COE supply, as rents and COEs are two major contributors to current high inflation, Mr Lim said. He also stressed that while food prices have risen, they are nowhere near the peak in 2008.

Responding to concerns about whether productivity improvements would lead to wage increases, Mr Tan said that has been the trend over the long term. Since 2000, productivity grew at 1.7 per cent a year and real wages grew by a comparable 1.6 per cent a year.


Benchmark for cleaners' pay to be considered
By Toh Yong Chuan, The Straits Times, 15 May 2012

A SUGGESTION by Ms Denise Phua will be considered in the government review of its Workfare Income Supplement scheme, which is due next year.

The MP for Moulmein-Kallang GRC has called on the Government to study the job scope of cleaners and set a benchmark for their pay.

The benchmark can then be used to calculate how much low-wage workers should receive under Workfare to supplement their incomes, she said yesterday.

In response, Minister of State for Manpower Tan Chuan-Jin said the idea will be taken into consideration during the review, which is done every three years.

Mr Tan did not elaborate on what the review will cover but said the scheme 'remains an effective way' to encourage low-wage workers to stay employed by boosting their pay.

Workfare was introduced in 2007 as a permanent scheme to boost the pay of older, low-income Singaporean workers. It gives up to $2,800 each year to those earning below $1,700 each month.

The sum given depends on the age and pay of the workers. Older workers who earn less receive higher payouts.

In the last review of the scheme, in 2010, the qualifying income ceiling was raised from $1,500 to $1,700.

At the same time, the scheme was expanded to give salary subsidies to employers when their workers attend skill upgrading courses. It also gave workers training grants.

Mr Tan said 50,000 low-wage workers received such training grants last year.



Extra 1% a gain of $7,200 over 10 years
THE extra 1 per cent interest paid on the first $60,000 of Central Provident Fund (CPF) balances means a gain of $7,200 over 10 years.

Over 20 years, it goes up to $17,900.

Senior Parliamentary Secretary for Manpower Hawazi Daipi gave these figures in Parliament yesterday to show how the extra interest improves retirement adequacy.

He was replying to Nominated MP Mary Liew, who wanted to know how the Government was helping CPF members build up their retirement savings.

The Government started paying the extra 1 per cent interest in 2008.

Low-income CPF members are also helped through the Workfare Income Supplement scheme, said Mr Hawazi.

The scheme tops up the wages of low-income workers. Most of the payout goes directly into their CPF accounts.

With the extra interest, a 35-year-old Singaporean earning $1,000 a month will get an additional 21 per cent in his retirement account by the time he turns 65.

Workfare contributions will add a further 9 per cent.


Govt intends to keep taxes and fees low
Govt charges, excluding COEs, make up small part of high inflation
By Goh Chin Lian, The Straits Times, 15 May 2012

GOVERNMENT fees and charges excluding the certificates of entitlement (COE) that motorists need to own a vehicle, account for 0.1 percentage point of the high inflation that Singapore is now facing.

Minister of State for Finance and Transport Josephine Teo cited this figure yesterday to 'put things into perspective'.

Both Mrs Teo and Trade and Industry Minister Lim Hng Kiang pointed out that more than half of the 5.2 per cent headline inflation in March was due to housing rentals and a sharp spike in COE prices for private cars.

Mrs Teo said all government agencies will do their best to keep costs and fees as low as possible for households and businesses.

These fees include service and conservancy charges, university fees, and hospital and polyclinic fees.

'Taxes and fees are already low and we intend to keep them low,' she said.

She was responding to Nominated MP Teo Siong Seng, who asked if the Government would consider reviewing and reducing the taxes and charges levied by its departments and agencies.

Three other MPs, including Mr Ang Wei Neng (Jurong GRC) and Mr Lim Biow Chuan (Mountbatten) asked Mr Lim Hng Kiang about government measures to curb inflation and contain costs.

Both ministers spoke about plans aimed at reining in COE price increases, which contributed 1.2 percentage points to last month's 5.2 per cent inflation rate.

The Government is reviewing earlier plans to cut the growth rate of Singapore's vehicle population from 1.5 per cent a year to 0.5 per cent from August. That affects the supply of COEs.

Officials are also considering more flexibility when implementing the claw back of the past over-supply of COEs. It was to be done in one year, but was later spread out over three years.

Both office holders also highlighted measures to cushion the impact of rising costs on lower- and middle-income households, such as through the GST Voucher scheme, whose first payout will be in July. The scheme has three components: cash, Medisave top-ups for elderly Singaporeans and U-Save utility rebates.

Mrs Teo pointed out that the Government is also reducing marginal income tax rates, to ease the tax burden of middle-income earners.

The Government has also taken steps to cool the property market, which besides COEs, has been the other major factor in pushing up the inflation rate, both ministers noted.

Mrs Teo acknowledged that for businesses, the hikes in the foreign worker levy are the 'main driver' for government-related cost increases, but they are necessary to manage Singapore's dependence on foreign workers.

She said: 'In the short term, this may translate into domestic cost pressures, while the effects of productivity improvements will be realised in the medium to longer term.'

Measures to help businesses include a special employment credit for hiring older Singaporean workers and an improved Productivity and Innovation Credit Scheme.

Earlier, Mr Lim noted that firms that improve productivity can afford higher wages and cope with higher business costs without passing cost increases on to consumers. Such measures, together with appreciating the Singapore dollar, are part of the multi-pronged approach to curbing inflation, he said.

Asked by Nominated MP Mary Liew about help for the low-income group if high inflation continues, Mr Lim said this year's Budget took this into account.

He said: 'We had expected inflation to remain stubborn this year and to tail off gradually towards the second half of the year, and this was one of the key considerations in our Budget package, which had a very generous inclusive package for the low-wage households.'

Food price increases 'not as bad as in 2008'

FOOD prices have risen, but they are nowhere near the peak of 2008, Trade and Industry Minister Lim Hng Kiang said.

Prices then soared nearly 8 per cent because of bad weather and a global supply shortage, Mr Lim recalled yesterday.

But the rate of increase has since slowed, to 3.1 per cent last year and below 3 per cent in February and March this year, he added.

To show the difference, he pointed to the price of white rice, which peaked at $1,300 per tonne in 2008, but has stayed fairly stable around $700 this year.

He gave these figures to show that the high headline inflation of 5.2 per cent in March did not affect as many people because a large part of the increase is due to property rentals and car costs.

Although the under-3 per cent rise in food prices earlier this year is 'a slightly positive note' in Singapore's inflation figures, 'overall, 3 per cent is of course higher than what we normally experience', said Mr Lim.

'We have had a more challenging situation in 2008 and we managed to overcome that situation. Today, the situation is not as bad as 2008,' he added.

Mr Lim Biow Chuan (Mountbatten), however, said his residents have told him food prices have risen not only at hawker centres, but also in the supermarkets.

He wanted to know whether the ministry will have more measures to monitor the price of food.

Minister Lim said a retail price watch group headed by Minister of State (Trade and Industry, and National Development) Lee Yi Shyan already keeps a close watch on excessive price increases of food and other daily necessities.

The group works with supermarkets, wholesalers, hawkers and food courts to promote cheaper alternatives and educate consumers on how to shop smart.

Supermarkets in the group - NTUC FairPrice, Giant and Sheng Siong - also did not raise the prices of their house brand items for at least six months last year.

The Competition Commission of Singapore and consumer watchdog Consumers Association of Singapore are also in the group to help stop anti-competitive and unfair trading practices.





Shoebox units an untested market in heartland: KhawMinister says Govt monitoring rising popularity of such flats, will regulate if necessary
By Amanda Tan, The Straits Times, 15 May 2012

NATIONAL Development Minister Khaw Boon Wan gave yet another warning on shoebox apartments yesterday, amid a craze for these small units.

Shoebox flats, which are 50 sq m (about 540 sq ft) or smaller, have been gaining ground among homebuyers in Singapore, and have proliferated, with many being built in suburban areas.

But the shoebox market in the heartland is 'untested', Mr Khaw said in Parliament, echoing earlier warnings from property consultants that it remains to be seen if tenants will bite.

The minister also said the Government is 'monitoring the trend of shoebox units in Singapore' and will consider 'additional regulations', if necessary.

He made a similar comment at a feedback forum earlier this month, saying the Government will 'step in' if the proportion of such homes becomes too high.

While the low absolute price of such flats has appealed to buyers, they have been criticised for driving property prices higher and being too small to live in, for example.

Mr Khaw, who was replying to Mr Ang Wei Neng (Jurong GRC), noted that there are about 2,500 completed shoebox apartments in Singapore.

These make up 1.2 per cent of the 210,000 non-landed private housing stock.

About 80 per cent of these completed flats, which are targeted mostly at singles and expatriates, are found in the Central Region, he said.

Mr Khaw added that the stock of shoebox units is expected to increase, hitting about 9,700 units by 2015. But unlike existing units, many new ones will be found in suburban areas.

While he has yet to have a clear picture of the buyer profile of these flats, Mr Khaw said that, at a glance, it is mostly Singaporeans 'with an HDB address'.

'Obviously, they don't plan to stay there because they won't be able to fit into this 50 sq m for a family of several (members)... Looks like they are investors parking their funds there and expecting to be able to rent out,' he said, suggesting that some buyers could have seen units in the Central Region being tenanted out relatively easily, and with a reasonable yield.

Still, Mr Khaw stopped short of introducing new measures now, as the heartland is still an 'untested market' for shoebox units.

He said: 'It is hard for me to intervene in the market thinking that I know better than the developers or the investors.

'So I think the minimum I can do is to alert everybody... and I think my job is to share information as much as I can with the investing public as well as the developers.

'But we are watching it closely and, if need be, if evidence is clear that we need to intervene, I will not hesitate.'

Mr Khaw also highlighted new rules which will be implemented later this week to provide more transparency for buyers in the property market.

These include requiring developers to provide more information, like the breakdown of a unit's total floor area.

In a separate reply to Mr Liang Eng Hwa (Holland-Bukit Timah GRC), Mr Khaw noted that several rounds of property market cooling measures have produced results.

For the first time in several quarters, private home prices saw a marginal decline in the first quarter of the year.

'These are encouraging signs that the market is moving towards a more sustainable path. But we must not let our guard down,' he said.

Still, he acknowledged concerns, like rising prices for mass market properties outside the Central Region, and said developments will be monitored closely.


*Written Answer by Ministry of National Development on planning for housing according to population changes and demands 



Cyber wellness lessons in schools to curb online bullying
By Stacey Chia, The Straits Times, 15 May 2012

WHILE cyber bullying of students and teachers is not a major problem, the Ministry of Education (MOE) is not taking any chances.

It will provide secondary school students with an additional four hours of cyber wellness lessons a year, starting next year.

This is one of the ministry's measures to ensure that the incidence of cyber bullying remains low, Senior Parliamentary Secretary for Education Hawazi Daipi said in Parliament yesterday.

He also stressed the importance of character education in managing cyber wellness.

'If they know what is right, what is wrong, what is good, what is bad, and the consequences of their behaviour, they will be able to conduct themselves well,' he said.

He was responding to concerns brought up by Mr Christopher de Souza (Holland-Bukit Timah GRC) on whether there are efforts to deter students from bullying their teachers online.

Mr Hawazi noted that data from the ministry and schools show that cyber bullying of students and teachers is 'not a major problem'.

An MOE spokesman said that currently, cyber wellness topics are integrated into English and Mother Tongue classes. Schools also run their own cyber wellness programmes.

The new lessons, which will be part of the Character and Citizenship Education curriculum, will be rolled out progressively from next year.

Cyber wellness programmes could also start as early as at preschool level, said Minister of State for Information, Communications and the Arts Chan Chun Sing.

He was responding to concerns raised by Ms Low Yen Ling (Chua Chu Kang GRC) on cyber wellness among young children. She raised the issue of premature video game addiction among preschoolers and whether the ministry has plans to target it.

Mr Chan, who is also Acting Minister for Community Development, Youth and Sports, said that with more parents using smartphones and tablets as 'babysitting' tools, the Media Development Authority (MDA) will continue to work with various partners to extend outreach efforts to protect children as they explore the media.

Ms Low also asked about the effectiveness of the ministry's current cyber wellness programmes.

Mr Chan said the MDA's cyber wellness website has been 'well-received', with about 220,000 page views. It has information on related issues and media classification tools. The information is also available in a parental handbook.

He said there are plans to include more information and print the handbook in Chinese, Malay and Tamil.


MPs lobby for improved bus services in their wards
Gripes include irregular frequency, poor ratio of services to residents
By Goh Chin Lian, The Straits Times, 15 May 2012

WITH detailed figures in hand, Dr Lim Wee Kiak (Nee Soon GRC) yesterday painted a picture that shows all is not equal when it comes to bus services.

At least not in the three towns he highlighted: Woodlands, Yishun and Sembawang.

All three are served by the MRT but the proportion of bus services to residents varies vastly, said Dr Lim.

Woodlands, the most populated, has 28 bus services at its interchange, followed by Yishun, 17 and Sembawang, five.

This works out to one bus service for 8,642 residents in Woodlands, 10,823 residents in Yishun, and 13,620 residents in Sembawang, said Dr Lim, in his call for improved bus services for his Canberra ward in Sembawang.

He was one of three MPs who rose in quick succession to urge Minister of State for Transport Josephine Teo to improve the bus services in their wards.

Dr Fatimah Lateef (Marine Parade GRC) lobbied for the Joo Seng area, which she said has only three bus services with 'very irregular frequency'.

The situation has not improved despite her bringing up the matter many times. 'Six rounds of house visits in six years and I get the same feedback every time,' she said.

Ms Lee Bee Wah (Nee Soon GRC) was next but before she could express her lament, Speaker Michael Palmer said with a wry smile: 'I'm assuming it's not a specific bus route.'

Her concern centred on six new Build-To-Order housing projects in her Nee Soon South ward. Since last year, residents have moved into two of them.

But she said: 'There's not much improvement in the bus services despite many, many appeals... Every time, the answer is the same: LTA is studying.'

Mrs Teo retorted with a smile: 'After studying, they have improved 100 bus services.'

She also expressed the hope that more services will be improved with the planned introduction of 550 new buses, but she declined to make any promises to the three MPs.

Instead, she outlined the broad principles for planning bus routes and prioritising improvements.

The Land Transport Authority (LTA) reviews transport demands for new housing developments and may decide to add buses, change existing bus routes or start new services.

When deciding on new routes, the LTA looks at projected demand, benefits to the community as well as the availability and adequacy of existing alternatives. It will apply these same considerations for the 40 or so new bus services to be progressively introduced from this year, under a $1.1 billion plan to buy 550 buses to ease crowding on public transport and improve frequencies at peak hours.

She indicated that one priority in deciding new routes will be bus services that can serve more than one area and make travel more convenient for a wider spectrum of commuters.

More than 100 bus services have been improved since June 2010 as part of a quarterly review by the LTA and public transport operators.

And looking directly at Dr Lim, she said that six involved Sembawang.

She added: 'To pre-empt all other members from raising and sharing with me statistics in your specific areas, feedback that you've got from your house visits, let me assure you that we fully intend to be consulting with the grassroots.'

Still, the LTA has 'to prioritise and we'll do our best to try and meet the various requests'.

Later, a Bill to amend the Land Transport Authority of Singapore Act was introduced to let the LTA implement the $1.1 billion bus package, like contracting bus operators to ramp up public bus services and setting up a new statutory fund.


Why identities of accused cannot be kept secret
By Tham Yuen-C, The Straits Times, 15 May 2012

PUBLIC justice is needed to show that justice is not just done, but seen to be done, said Law Minister K. Shanmugam yesterday, when he explained why the identities of accused persons in most cases cannot be kept a secret.

He said this in a written reply to Mr Lim Biow Chuan (Mountbatten), who asked whether his ministry would consider a law that prevents photographs of accused persons from being published.

'Our legal system operates on the principle of public justice. Accused persons are publicly tried. The verdict of the court is publicly announced. Reporting of ongoing proceedings is allowed so long as it does not prejudice the proper administration of justice,' said Mr Shanmugam.

He also said that he assumed Mr Lim's question was prompted by the recent publicity over the online vice ring case, in which 48 men have so far been charged in court with having paid sex with an underage prostitute. All the men were identified by their names in news reports, and some also had their photographs, occupations and other details published.

Mr Shanmugam pinpointed two ways to protect the identities of those accused until they were convicted, but both are not feasible, he said. One was for the court to make a gag order. But people in court, such as the public or the media, would still know the identity of the accused. The other was to hold the proceedings in camera and prevent the public and the press from attending. But this would interfere with open justice, he said.

'It would also amount to having secret trials, where accused persons are tried behind closed doors. We then have to decide the types of cases where there will be such trials,' said Mr Shanmugam.

Such exceptions exist, for example, when there is a need to protect sensitive information relating to national security, or to protect the identities of young persons and victims of sexual offences. But these must be carefully justified, he said.

'The solution to adverse publicity during ongoing proceedings must be to increase public awareness that a charge is not the same as a conviction, and that an accused person is presumed to be innocent until he is found guilty by a court of law. But I accept and recognise that this is a significantly uphill task.'



PM: Safeguards in place for $5b pledge to IMF
By Matthias Chew, The Straits Times, 15 May 2012

THERE are safeguards to ensure that Singapore's pledge of US$4 billion (S$5 billion) to the International Monetary Fund (IMF) will be used responsibly, and repaid with interest, Prime Minister Lee Hsien Loong said yesterday.

Singapore will not be lending directly to other countries, but through the IMF, he noted.

And as the IMF enjoys preferred creditor status, debtor countries have to repay IMF loans ahead of others, Mr Lee said in a written reply to MP Desmond Lee (Jurong GRC).

Also, IMF loans are given with conditions that require debtor countries to reform its economic policies, and disbursed in tranches.

Countries must meet the conditions before they can receive the next tranche.

Mr Desmond Lee had wanted to know why Singapore had to make the pledge last month and if the money was to be used to bail out euro zone countries with debt problems.

He also asked what safeguards there were in place to ensure its repayment.

PM Lee reiterated that it was in Singapore's interest for the IMF to retain 'its ability to ensure the stability of the international economy and monetary system', given Singapore's dependence on global trade and international finance.

The IMF had asked member states since the start of the year to commit more money on a temporary basis, in order to raise its lending capacity and boost confidence that it can tackle the sovereign debt problems in Europe.

But Singapore's pledged amount, PM Lee noted, was not specifically for bailing out euro zone states. The IMF may use the funds to help any member state in need.

Should Singapore's pledge be used, PM Lee said, the money will not come from the Government budget but from the official foreign reserves.

In addition, Singapore is expected to have to contribute more money on a permanent basis to the IMF by 2014.

Last month's temporary contribution, he said, will in effect bring forward part, or all, of Singapore's increased commitment.

Singapore is among more than 30 countries which have collectively committed more than US$430 billion.


When big policies impact the little man in the street
By Aaron Low, The Straits Times, 15 May 2012

IN A sitting when Parliament discussed the most important and pressing issues of the day, it was a small municipal issue that sparked off the most animated exchange.

Buses may not seem as important as fast-rising prices or as worrying as cyber-bullying, but they are about as real as government policy gets for the man- in-the-street.

Yesterday, this was made quite clear when three MPs stood up to press the Transport Ministry on why there seemed to be not enough buses in their estates, despite pledges made by the Government to improve bus services around the island.

The questions first posed by Dr Lim Wee Kiak (Nee Soon GRC) to Minister of State for Transport Josephine Teo seemed innocuous enough.

He wanted to know how the Government allocates bus services, and how often it looks at the adequacy of the services.

Mrs Teo replied in her usual calm and rational manner that the Land Transport Authority (LTA) studies and plans for these well in advance.

Reviews are always on-going and in fact, she said, more than 100 bus services have been improved since June 2010.

Clearly dissatisfied with the answer, Dr Lim, followed by Dr Fatimah Lateef (Marine Parade GRC) and Ms Lee Bee Wah (Nee Soon GRC) all stood in quick succession to lob questions at Mrs Teo, prompting a slight look of alarm as she parried their queries.

Dr Lim came armed with hard numbers to show that some estates appear to be better served than his ward.

At Woodlands interchange, based on the number of buses at the bus interchange and the total resident population in the estate, there are 8,642 residents to one bus service.

But in Sembawang, where Dr Lim is MP, the number stands at 13,620, implying that his estate is not as well serviced as other wards.

Taken aback by Dr Lim's numbers, Mrs Teo said: 'Dr Lim has clearly done his homework. He's an eye surgeon, I would think that it's wise to trust his mathematics as well.'

Ms Lee did not mince her words when she pointed out that there are four public housing projects due to be completed in her Nee Soon South area, which will mean an influx of thousands of new residents.

Despite her many appeals, there has not been much change.

'So I would like to know when LTA will let us know (about) the improvements in that region because every time the answer is the same: LTA is studying,' she said.

Mrs Teo quickly assured all the MPs that the LTA was doing its best and that it was a matter of prioritising the allocation of bus services to the various parts of the island.

Buses are a hot topic for many MPs because they are probably one of the most basic issues residents - and voters - identify with. Buses ferry people around, get them to work and get them back home in time for their family dinners.

Mess up bus routes and MPs could have on their hands hordes of angry voters, as the case of Bukit Gombak has shown.

In 1991, poor bus services were said to be among the reasons that led to the People's Action Party's (PAP's) Seet Ai Mee losing to Mr Ling How Doong of the Singapore Democratic Party in that ward.

Six years later, the PAP's candidate for the single seat, Mr Ang Mong Seng, won it back by paying attention to the basic transport needs of residents.

In one instance, residents at Hillview complained to him that bus service 176 was always full. He also observed that on a typical morning some 100 people could be standing at the bus stop watching full buses zoom by.

He fixed the problem, got more trips on the road, and in 1997, Mr Ang won the ward back for the PAP.

The bus debate shows that though the big issues are important, it is only when a big-picture policy, such as the land transport infrastructure plan, cuts close to the bone that people sit up and pay attention.

Inflation is another of those issues that is just starting to make people pay close attention.

Yesterday, four MPs filed questions asking what the Government plans to do to alleviate the pain of rising prices.

With inflation likely to stay at around 5per cent in the near future, MPs were clearly worried about what this would mean for their residents.

Trade and Industry Minister Lim Hng Khiang reiterated that thus far, the bulk of inflation really is due to large ticket items, of housing rentals and car prices.

Most Singaporeans, he said, owned their own homes so the issue of rents was not relevant to them. As for private cars, only a small part of the population buys cars, so the majority of people are also not affected by the high inflation.

He also said that the Government has implemented a raft of measures to dampen the rate of rising prices, including measures aimed at lowering the cost of imports and cooling the economy.

But despite all the measures, people are still complaining that food prices at supermarkets have gone up 'quite drastically', said Mr Lim Biow Chuan (Mountbatten).

Admitting that food prices have risen above historical rates, Mr Lim said, however, that they are still not as bad as they were in 2008, when there was a food price shock due to bad global weather.

No one else stood up to probe the minister on food prices. Perhaps, for now, food inflation at 3per cent has yet to hurt in a big way.

But will it? Let's hope the big policies in place will help ensure that the issue of food cost increases does not hit consumers in a big way.

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