Pain of rising priceswill be with us fora while, says Tharman
Loh Chee Kong, Today Online 9 Jun 08;
THE weekend surge in oil prices might have sent ripples around the worldand prompted drastic government measures across the globe but there is no need to press the panic button in Singapore for now.
Giving a snapshot of how the Republic’s economy is coping with inflation and rising commodity prices, Finance Minister Tharman Shanmugaratnam nevertheless said yesterday that Singaporeans have to experience “discomfort” that would “be with us for a while”.
Speaking on the sidelines of a People’s Association event to promote entrepreneurship among the Indian community, Mr Tharman said that while global rice prices are heading south, “unfortunately, the fuel price increase in Malaysia means that vegetables, poultry and some other prices will go up”.
When asked if Singapore could be headed for a slump, Mr Tharman said: “I don’t think we are heading towards a recession, at least from the signs that we are having at this point. But there will be discomfort on the ground.”
Noting that commodity prices “are much higher than they used to be”,Mr Tharman said the Government “are tackling it and we are confident of tackling it” through its measures including the growth dividends and Goods and Services Tax offset package, as well as ground up community initiatives to help the needy families.
“Despite all the problems we have, it’s worth reminding ourselves that it’s still an economy that is growing,” Mr Tharman said. “Unemployment rate is low. From the latest surveys, our polytechnic and university grads have exceeded their predecessors’ starting pay as well as the speed at which they obtained their jobs.”
And in spite of the tight labour market, Mr Tharman was heartened with the rising number of Singaporeans “who want to do their own thing”.
This bodes well for the country’sefforts to instill an entrepreneurial spirit in its citizens, he added.
Earlier in his speech, Mr Tharman observed how the Indian community, which used to comprise mainly teachers, civil servants and workers, has began churning out entrepreneurs.
Said Mr Tharman: “Even in today’s context, you ask a non-Indian what he thought of the Indian community, he would say, ‘Oh, very good doctors and lawyers’.”
Over the last five years, he hasobserved a “significant” change in theattitudes of Singapore youth of all races, who are now “more willing to try something different, instead of following well-trodden paths”.
Recounting his recent visit to Israel, Mr Tharman described the country as an “unruly democracy where everyone has his own opinions”. But he added that “it creates a highly innovative economy”.
And he believes Singapore can become likewise.
Said Mr Tharman: “We have it in ourselves to do the same. It is not outside our cultures to be questioning people, to be people who have minds of our own. But we have more evolving to do.”
