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By Low Ching Ling
IT is the 'hottest issue for Singaporeans', Prime Minister Lee Hsien Loong noted in his annual stocktaking speech at the National Day Rally.
The rising cost of living, particularly food prices, is nothing short of dramatic.
This is why the Government will be giving $256 million more in aid to Singaporeans, PM Lee said on Sunday.
This is on top of $3 billion in help this year, promised earlier. (See table at right.)
| HOW IS S'PORE GOVERNMENT HELPING? |
- For three-room, low-income family: $5,000 this year. Extra
- For five-room, middle-income family: $3,400. Extra $210 to come.
- Low-income families get three to six months of ther utilities bills. This year's rebates to go up by 50%.
- rowth Dividends: Up by 50%, due on 1 Oct.
- Medisave top-ups.
- Workfare for low-income workers.
- Special one-off payment for low-income workers.
- Higher public assistance rates for poor.
- Extra 1% interest on first $60,000 of Central Provident Fund balances.
- Income tax rebate of 20% to help middle-income.
- More university, poly bursaries. Top-up of post-secondary education accounts.
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But hongbaos will not solve the inflation problem, PM Lee said.
'The best solution is still to keep the economy competitive. To become more productive and so we earn more for ourselves,' he advised.
'Then we can raise our standard of living despite the increase in oil and food prices.'
He urged Singaporeans to react rationally.
'We should understand why it is happening to us, and what we can do about it,' he said.
Inflation is a worldwide phenomenon and the Government cannot prevent prices from going up here.
But the Government has ensured there is a 'good pipeline of projects', such as the Formula One race and the integrated resorts.
'These projects will sustain our momentum and keep our economy growing,' he pointed out.
This is important because, 'dark clouds have gathered'.
The US is in the doldrums - tumbling house prices, rising unemployment and loss of consumer confidence.
And the 'dark clouds' have spread to the rest of the world and Singapore.
One sign of the times is the huge demand for rental flats. It has tripled in just a year.
Then, there were about 4,000 applicants in the queue with a waiting time of 15 months.
The wait ranges from 5.5 months for a two-room flat in Bukit Merah or Jurong to 19 months for a one-room flat in Woodlands.
The Housing Board is building more flats to meet demand, PM Lee said.
Despite the slowdown, Singapore will see a 4 to 5 per cent growth this year, and that is 'not bad', he said.
Expect slow growth and more uncertainties next year, but fret not. The Prime Minister said he is not expecting a crisis.
'We're still competitive and investors still want to be here... But we must be vigilant and psychologically prepared in case of trouble.'
When the world economy recovers, he is sure Singapore will bounce back up.
| WHY MORE ERP CHARGES NOW? |
| Because there are more cars on road and more jams. from 320,000 in 2000 to 430,000 now.
But road tax came down. For average owner of 1,600cc car:
- ERP . pay $76 more a year
- Road tax . pay $130 less
- Savings . $54 every year
Car ownership charges/ taxes came down too . from $110,000 in 2000 to $64,000 now for 1,600cc Toyota Corolla.
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Govt to hand $700m to boost families
IT was not so long ago that Prime Minister Lee Hsien Loong was lamenting our baby woes in his maiden National Day Rally speech in 2004.
Four years later, our baby blues have yet to go away.
And once again, PM Lee has come up with sweeteners to entice Singaporeans to have children.
First, he wants to see more people tie the knot.
To help singles find partners, the Government will merge the Social Development Unit and the Social Development Service.
Next, the Government needs to get married couples to have more children and to have them earlier.
And parenting should not just be a job for the mums. Dads too must chip in, PM Lee said.
So the Government is extending childcare leave, which can be claimed by fathers. It is also introducing infant-care leave, which can also be taken by fathers.
But one main gripe of Singaporeans when it comes to starting a family is the lack of a work-life balance.
PM Lee noted that flexible work arrangements and family-friendly employers can make the life of a working mother easier.
And the Government will help share the burden of employers by extending maternity leave to four months.
But ultimately, it's all about balance, PM Lee said.
| HONEY, WHO SHRANK OUR DOLLAR? |
| Your pay went up, but a lot of your wage increase went to oil producers.
Higher fuel and food prices are hurting consumers everywhere. Even governments are hurting because they can't maintain fuel subsidies.
How to give subsidies when we import most of our food and all of our fuel?
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'Do you work 110 per cent, or set aside time for other priorities?'
Another common complaint about raising children is the cost.
PM Lee said: 'Financial considerations cannot be the motive for having children. Many couples are indignant at this suggestion. But it's right for us to help lighten the burden of those with children.'
Hence, an enhanced baby bonus for first-time parents and more tax incentives for working mums.
The latest measures will cost the Government about $700 million a year, almost twice what it is spending today.
PM Lee said: 'The package will make a difference to many couples. But I cannot guarantee it will solve our problem. This is a deep problem, which we will have to revisit periodically.'
And to the naysayers out there, he has this message: 'Please put emphasis on marriage and family, and make these your priorities in life.'
This article was first published in The New Paper on Aug 19, 2008.
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