Dylan Loh Today Online 24 Jan 11;
SINGAPORE - Allaying concerns over the rising food prices, Prime Minister Lee Hsien Loong said yesterday that he expects prices to stabilise in the next "few months".
Mr Lee, who was giving out $44,000 worth of grocery vouchers and cash to some 290 underprivileged residents in Teck Ghee, also assured Singaporeans that various government assistance schemes were in place to help the needy.
Speaking to reporters on the sidelines of the community event, the Prime Minister recalled that prices of food - particularly rice - had also increased sharply in 2008 when wholesale prices went up by at least 50 per cent.
Then, Singapore had to make sure that there were enough supplies, said Mr Lee.
He added: "We were able to maintain, keep the prices stable and see ourselves through that period. And after a few months, the prices came down again and inflation stabilised and I expect that to happen again this time."
Speaking to MediaCorp, economist David Cohen concurred that the rate of increase in food prices may ease.
However, Mr Cohen, who is the director of Asian forecasting for consultancy firm Action Economics, added that he did not expect any sharp relief from the rising prices any time soon.
Said Mr Cohen: "Singapore is a price-taker, it's a tiny open market. So it's very much dependent on the global supply and demand."
The economist noted that one way the Government could help people cope would be through tax relief for lower-income citizens.
The Government is expected to reveal its Budget next month.
Speaking at a Marine Parade community event yesterday, Senior Minister Goh Chok Tong told reporters on the sidelines that, in view of the rising prices, he expects Finance Minister Tharman Shanmugaratnam to "come up with some ways to help lower the cost of living for Singaporeans".
Mr Goh said: "How he does it? I do not know at this stage. How much he wants to do? I do not know at this stage but, logically speaking, it'll be surprising if he doesn't do anything."
Mr Goh, who is also a Member of Parliament for Marine Parade GRC, was distributing hongbaos and festive goodies to about 50 Marine Parade public assistance recipients.
