THE first step in a joint effort to help needy Singaporeans cope with the rising cost of food items has come in the form of a kitty with at least $1 million in it.

The Ministry of Community Development, Youth and Sports (MCYS), the National Trades Union Congress and NTUC FairPrice, along with private food retailers and distributors, have formed a loose group to find ways to tackle the problem.

The money will come from MCYS' ComCare fund and details would come 'very soon', said Minister of State for Community Development, Youth and Sports Yu-Foo Yee Shoon.

'There is enough budget and we are ready to supplement the effort,' she said of the fund's $63.7 million budget.

ComCare is a fund Prime Minister Lee Hsien Loong unveiled in January 2005 to help those left behind - the elderly, the poor and the jobless - as Singapore restructured its economy.

The Straits Times understands that others in the group will also contribute in cash or kind.

This effort follows an announcement last Thursday by Senior Minister of State for Trade and Industry S. Iswaran, who said his ministry was working with MCYS to explore ways of helping those worst-hit by the rising prices of household essentials like coffee, tea, canned drinks, condensed milk and sugar.

Two days ago, Minister for Community Development, Youth and Sports Vivian Balakrishnan also said the Government would provide 'targeted assistance to people in greatest need'.

Mrs Yu-Foo, who was at a senior citizens' walkathon at Bishan Park yesterday, said that while Singaporeans could still afford rice, the general price increases added up and could upset their financial situation.

She said MCYS would take a multi-pronged approach to help them through this period: 'Don't worry. We have enough resources, especially for children. Children should not drop out of school because of financial problems.'

Anyone who needs help may call the ComCare helpline at 1800-222-0000.

ComCare received 8,600 calls from January to March, with 22 per cent asking for financial aid, 14 per cent for social assistance and 9 per cent, for employment.