In Singapore, inflation and interest rates are set to remain high. Singapore prepares to ramp up support measures to help deal with the rising cost of living, Prime Minister Lee Hsien Loong said.
Rising living costs have always been a hot topic for the wealthy city-state. Lee’s political party has dominated since independence in 1965. Households are now feeling the pressure of rising costs driven by the war in Ukraine.
Singapore’s consumers are spending more relative to income. The expense-to-income ratio rose to 64% in May from 59% a year earlier, according to an analysis by DBS Bank.
Lee said the government has carried out many support packages. The government helps those who need it most. More such measures will be “implemented in the coming months,” he added.
Singapore will have to make a “deeper response” by transforming industries. Increasing productivity to ensure local wages keep pace with inflation, Lee said.
Lee painted a bleak picture of U.S.-China ties in his speech. Lee said Singapore had to be “psychologically prepared”. In the coming decades, the region will not be as stable and peaceful as it has been.
His comments came just as China’s military announced a new exercise near Taiwan on Monday. The exercise is to keep up pressure on the island after the visit of U.S. House Speaker Nancy Pelosi.
“Relations between the United States and China are worsening with intractable problems, deep suspicions, and limited engagement between them,” Lee said. “This is unlikely to get any better anytime soon. Also, miscalculations or mishaps can easily make things much worse.”
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