More Price increases Coming!
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Consumers not cutting back on buying household items
Channel NewsAsia - Thursday, December 27
SINGAPORE : Prices of household items have gone up, but that has not stopped consumers from buying. Some retailers are even reporting a growth in sales.
Every dollar counts these days, but many shoppers are not cutting back on spending, especially on household items.
One shopper said, "The spending would probably be almost the same. ItÂ’s just that I would be more conscious about buying brands like the supermarket brands or I would try and check out things that are on offer."
Another noted, "These are basic necessities that we have to buy. So we just have to make the purchase. But I do make my purchases wisely, I donÂ’t spend more than what I need."
A buoyant economy is also one of the reasons why NTUC FairPrice said it has seen sales increase this year, compared to the same period the previous year.
NTUC FairPrice declined to give actual figures, but it did say that the sale of their housebrand products — ranging from essential items like rice, detergent and brown rice — has seen double—digit growth in 2007.
So consumers are willing to pay, despite the relatively higher prices.
Lau Chuen Wei, Executive Director, Singapore Retailers Association, said, "Consumer confidence has built up over the first three quarters of the year. And then news about this inflation has very subtly slipped in. By that time, people would have possibly made their plans.
"And when this news of this inflation has come in, at this last quarter, itÂ’s only like two or three months left of the year, and that is the main shopping period of all the festivities, feasting, dining and all the presents.
"As a consumer myself, I would probably think, ok let this be my last burst this year, I would still go and spend. I will still have a Merry Christmas and worry about this next year."
But the growth in year—end sales does not necessarily mean, bigger profits for all retailers.
Ms Lau said, "By and large, when talking to the retailers, they say yes the sales may have gone up, but their margins, which are already very tight, seem to be getting tighter and tighter.
"And what that means — the challenge for them is how to manage costs... — is how to make the best use of whatever staff is available, and that is another major challenge, especially now, where the job market is so buoyant."
The Singapore Retailers Association said competition will keep prices low for now. However, rising costs will eventually force retailers to increase prices, and the products likely to be affected include electronics and household items. — CNA/ms -
Oil prices rise on Turkish air raids, supply concerns
Traders work in the energy options pit at the New York Mercantile Exchange in November 2007. Oil prices rose sharply on Wednesday as speculators' nerves were rattled by Turkish air raids against Kurdish rebel hideouts in northern Iraq and lingering supply concerns.
Oil prices rose sharply on Wednesday as speculators' nerves were rattled by Turkish air raids against Kurdish rebel hideouts in northern Iraq and lingering supply concerns.
Oil prices spiked after Turkish president Abdullah Gul praised the United States for providing military intelligence as Ankara confirmed its third air strike in 10 days against apparent Kurdish rebel bases.
New York's main oil futures contract, light sweet crude for February delivery, closed up 1.84 dollars at 95.97 dollars a barrel following the US markets break for the Christmas Day holiday on Tuesday.
In London, Brent North Sea crude for February delivery settled up 1.24 dollars at 93.94 dollars a barrel halfway through a holiday-shortened trading week.
US-based traders said confirmation of fresh Turkish air strikes had once again raised geopolitical angst, particularly as Iraq has some of the world's largest oil reserves.
In earlier New York trading, prices had surged as high as 96.54 dollars. Prices struck a record high of 99.29 dollars on November 21.
Turkey's air raids on Wednesday were the third against the Kurdistan Workers' Party (PKK) targets in northern Iraq that the military has confirmed since December 16, in addition to a cross-border ground operation.
"Further Turkish military efforts against the PKK rebels keeps the geopolitical pot boiling in that oil flows from Iraq could potentially be disrupted," said Mike Fitzpatrick, a market trader at Man Financial.
Ankara says an estimated 3,500 PKK militants have taken refuge in northern Iraq, using camps there as a springboard for attacks across the border.
Traders said fresh supply worries had also stoked prices higher.
"Poor weather closed two of Mexico's main export ports in the Gulf on Monday, as well. Although they have reopened, the delays may impact US oil supplies in the weeks ahead. Crude oil stocks are already near three year lows," Fitzpatrick said.
Market participants said they were awaiting a weekly snapshot on US energy stockpiles due to be released Thursday, a day later than normal due to the Christmas holiday.
Last week's update from the US Department of Energy revealed that US crude oil stocks had fallen below their five-year average for the first time in more than three years.
Oil prices had also risen in earlier trading in Asia.
Asian traders said prices had got bid up on expectations of strong heating fuel demand as cold weather continues to buffet the US midwest.
"What you are seeing is reasonably cold weather in the US which means we will see demand for heating oil," said Jason Feer, Asia-Pacific general manager for energy market analysts Argus Media in Singapore.
"The market sort of tends to view the cold weather as a bullish factor," he said. — AFP -
Crude oil gains push gold prices up
—Bloomberg
Gold rose in Asia after a gain in crude oil boosted the appeal of the precious metal as a hedge against accelerating consumer prices.
Crude oil rose for a third day in New York on concern that shipments from Iraq may be disrupted after the Turkish military attacked Kurdish bases in northern Iraq.
Crude oil for February delivery gained as much as 67 cents, or 0.7 per cent, to US$94.80 a barrel in electronic trading on the New York Mercantile Exchange.
"We've had a relatively close relationship between oil and gold in the last few months and part of that has to do also with the currency relationship that oil, gold and the dollar have all tied up together," said Merrill Lynch global commodities research head Francisco Blanch.
Bullion for immediate delivery gained as much as US$3.48, or 0.4 per cent, to US$810.48 an ounce, and traded at US$809.84 an ounce early yesterday.
Gold often moves in the opposite direction to the US dollar.
The relationship between oil, the US dollar and gold would probably follow a similar pattern into next year, Mr Blanch said.
Seasonal patterns showed that the dollar strengthens in January and next month may be a "good time" for investors to enter the market, Deutsche Bank head of commodity research Michael Lewis said. -
$138m in utilities rebates for families
The help package is part of money earmarked to help Singaporeans cope with GST hike
Straits Times, The (Singapore)
Prime News, Pg 4
December 28, 2007
Author: Lynn Lee
THE cost of electricity and water for housewife Marina Amid's family of six comes up to over $100 a month.
That sum is about a tenth of the over $1,000 her husband, a mechanic, brings home each month.
So the couple, who have four children of primary school age, are looking forward to the utilities rebates they will receive next year.
All families who live in three-room Housing Board flats, as they do, will receive rebates worth $210 next year.
Madam Marina, 31, said that would help the family cope with the rising cost of living.
'Items like cheese cost more these days. I am also spending more money at the wet market. So any extra money my family can save on bills is helpful,' she said.
The utilities rebates are part of a $4 billion government package to help Singaporeans cope with the hike in the goods and services tax, from 5 per cent to 7 per cent in July this year.
A total of $138 million in rebates will be given out next year in two instalments - in January and July.
The rebates are to help low- and middle-income households, and the largest rebates go to households in smaller one- and two-room flats.
Next year, one and two-room households will get $220 in rebates; four-roomers, $200; five-roomers, $130; and those in executive flats, $90.
The rebates are part of the Utilities-Save package to be given out over five years, from this year to 2012.
They will cost the Government $550 million in all and benefit over 760,000 HDB households.
The rebates come at a time when the cost of living has been rising much faster than in previous years.
Inflation hit a 25-year high of 4.2 per cent last month, with food, transport and communication costs recording big increases.
On Wednesday, utility company Singapore Power (SP) announced a hike in electricity tariffs of nearly 6 per cent, to 22.62 cents per kilowatt-hour. The new rates will take effect from Jan 1.
That will result in an increase of between $1.30 and $5.50 a month in electricity costs for families in one- to five-room HDB flats.
All eligible households will be notified of the rebates in next month's bill.
Members of the public can call SP Services at 1800-222-2333 for more information.
Needy Singaporeans who need more financial help can also tap the Ministry of Community Development, Youth and Sports' ComCare social assistance schemes, through the Community Development Councils.
They can also approach grassroots volunteers for help to pay their utility bills through the Citizens' Consultative Committee ComCare Fund.
[email protected]
Copyright, 2007, Singapore Press Holdings Limited -
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Costs to go up as oil prices briefly breach US$100 per barrel
By Asha Popatlal, Channel NewsAsia | Posted: 03 January 2008 2207 hrs
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Costs to go up as oil prices breach US$100 per barrel mark briefly
SINGAPORE: For the first time, world oil prices briefly crossed the psychologically important level of US$100 a barrel on Wednesday.
Analysts attribute the surge to tight supplies and continued strong demand.
One analyst said consumers are being hit by a double whammy, with the high oil prices and the recent spike in food prices.
Song Seng Wun, CEO and Regional Economist, CIMB-GK Research, said: "I suppose if it had been any other time, say six months ago, it probably would not have meant that much because crude oil prices had been going up steadily for the last five years.
"It only became a lot more significant now, coupled with the inflation in food prices. We have seen food prices go up significantly in the second half of last year and food prices, unfortunately, will stay high.
"CPI (consumer price index) may go up 2 percent or even beyond 5 percent year-on-year. Young Singaporeans may not have seen that kind of inflation in a long, long time."
"Even a small amount of inflation – such as what we are seeing today – can have a big impact on what you can do with your money.
"For example, S$100 today is reduced to just S$88 spending power by 2010 if we experience an inflation rate of 4 percent. And if that inflation rate is moved from 4 percent to 8 percent, that S$88 is reduced to just S$77 in 2010," said Gary Harvey, CEO of Ipac Wealth Management Asia.
The solution, however, is basic – see what you are spending on and budget carefully to stretch that dollar further.
While rising fuel and food prices will continue to have an upward impact on one's day-to-day costs, economists said there is a slight silver lining in that prices for consumer goods such as flat-screen TVs and mobile phones have remained unchanged or have even gone down.
This is because big manufacturers have managed to keep the prices down. But economists said that may not necessarily be the case in 12 months' time, if material or wage costs continue to climb. -
Oil prices strike new US$100 record, then dip
Posted: 04 January 2008 0536 hrs
NEW YORK : Oil prices leapt back above 100 dollars in New York Thursday on worries about tight supplies and US currency weakness, but eased back later in the day.
New York's main contract, light sweet crude for delivery in February, struck an all-time record of 100.09 dollars per barrel in early US floor trading but then settled with a loss of 44 cents at 99.18 dollars.
On Wednesday, the contract had briefly touched 100 dollars for the first time.
Brent North Sea crude for February settled down 24 cents at 97.60 dollars after hitting a record 98.50 dollars earlier in the day.
The US Department of Energy said Thursday that US crude inventories had fallen by 4.0 million barrels in the week ended December 28. That was the seventh week in a row that stockpiles had dropped.
Analysts also pointed to violence in Nigeria, the biggest oil producer in Africa, as a catalyst for the spike to 100 dollars on Wednesday.
They added that crude was also being supported by concerns about stability in Pakistan, falling US energy inventories and cold weather, which was pushing up demand for heating fuel.
Phil Flynn at Alaron Trading said oil and other commodities were "on fire" as traders bid up prices helped by a soft dollar.
"If oil closes above 100 dollars the next target for oil would be close to 104 dollars," he said. "But I stress we must close above 100 or it could still be a sign that oil is at a 'blow-off' top."
Analysts said the symbolic 100-dollar price level would heap pressure on the OPEC oil-producing cartel to increase output when its 13 members meet on February 1.
"If oil prices are still around 100 dollars per barrel in the run-up to the next OPEC meeting we would expect quotas to be raised again," said Julian Jessop, chief international economist at Capital Economics.
The Organization of thee Petroleum Exporting Countries froze its oil output levels at its last meeting in December, resisting calls for an increase to help cool sky-high prices that threaten to dampen global economic growth.
The cartel, which produces about 40 percent of world oil, insisted that the market was well-supplied and blamed market speculators for fueling prices.
Analysts argue that rising oil demand has outstripped growth in supply, pointing to booming Asian economies like China and India and insufficient investment by oil exporters, which has led to a decline in spare production capacity.
Crude prices have quadrupled over the past five years.
- AFP /ls -
Asian consumers fear US$100 oil will add to daily struggle
Posted: 03 January 2008 1821 hrs
SINGAPORE - From a Beijing cab driver to a vendor selling food wrapped in banana leaves at a Jakarta roadside, life for ordinary people in Asia is set to get even tougher after the price of oil hit 100 US dollars.
Consumers across the region griped about the rising cost of fuel after crude oil hit 100 dollars per barrel for the first time during trading in New York on Wednesday.
"What can I do? I just suffer," 30-year-old businesswoman Sirintra Vanno complained at a petrol station in Bangkok. "I have no choice but to drive every day to go to work because public transportation services are so limited."
Nena, an elderly woman who sells meals wrapped in banana leaves by the roadside in Jakarta, said higher fuel prices had dramatically cut her daily income over the past few months from 60,000 rupiah to 35,000 rupiah.
"I have to buy things at higher prices now but I cannot raise the price of food every time kerosene rises," she said.
Hery, 54, a motorcycle taxi driver in Jakarta, said he feared rising oil prices would lead to cuts in government subsidies for the cooking fuel, which costs 6,000 rupiah (64 cents) per litre.
"It will be out of reach" if the price goes higher, he said.
Australian truck driver Doug McMillan said the rising oil price was having a devastating impact on his business, which uses trailers to deliver farm equipment across the country's vast Outback.
McMillan said fuel costs used to account for about one-third of his expenditure but were now 55 percent -- and rising.
"By the time you pay your drivers' wages, there's no profit left," he told AFP by phone as he drove one of his rigs.
Song Haisheng, a 30-year-old taxi driver in Beijing, said he too was under pressure, adding he and many of his colleagues were barely surviving at current petrol prices.
"In order to save fuel, many taxi drivers now would rather park and queue along the street like this than cruise blindly as we used to do in search of customers," he said as he queued outside an office building in Beijing.
The Chinese government caps the prices at which refiners can sell their products, partly shielding consumers from the immediate impact of global oil spikes.
But it allowed refiners to raise domestic fuel prices by roughly 10 percent in November and ordinary Chinese now fear more hikes, with even the more well-off feeling the impact of record fuel prices.
"Nowadays I try not to travel by car when going on business trips and instead opt for the train as much as possible," said Huang, 42, who would only give his surname as he waited for his company driver to pick him up in Beijing.
On the streets of Manila, taxi driver Mario Agbayani was also worried.
"If pump prices continue to rise, I will be forced to look for another job because what I would be earning in a day would not be enough to even buy petrol," the 40-year-old father of three said.
He spends 12 hours a day on Manila's chaotic roads but takes home only 500 pesos (about 12 dollars) after expenses.
Japanese businessman Narihisa Murakami, 38, said in Tokyo that ordinary folks were powerless in the face of rising fuel prices, calling them "a real problem" and adding that fuel economy had become key when buying a car.
In Singapore, freelance motorcycle courier Irwan Shah, 45, said he tried to save by gassing up across the Causeway in neighbouring Malaysia, where petrol costs half the price it does in the city-state.
Another Singaporean courier, Surahman Ridwan, 52, resorted to a more drastic solution. "I had to cut down on cigarettes just to pay off my petrol costs more comfortably," he said. - AFP/ir -
Aiya ... don complaint ... Singaporean made their choice during GE...Originally posted by sunnytv:Now you know why the rich and the MP raise their salaries, they had foreseen these will happen. Selfish talents still sucking money non stop. Everything is going up. Next year, Chinese new year, More Price increases Coming soon. Keep saying affordable, for themselves.
So don complain ... -
Shortage in China-made liquid medicine results in price hike
By Chai Ping and Lee Khai Yan, Channel NewsAsia | Posted: 03 January 2008 2244 hrs
SINGAPORE: As China-made liquid medicine that is not accompanied with a Free Sale Certificate from China's State Food and Drug Administration cannot be sold in Singapore, this has resulted in a 60 percent shortage of such Chinese propriety medicine and an increase in prices at the clinics which give out such medicine.
Some Chinese manufacturers feel Singapore is too small a market for them to apply for the Free Sale Certificate, so most of the liquid medicine left is either locally produced or from Malaysia.
To make up for the shortage in supply, Chung Hwa Medical Institution in Toa Payoh has decided to use powdered medicine as a replacement for the liquid ones. But patients are not happy about it.
One of them said: "When you drink it, it gets stuck halfway (down your throat) so you have to sort of swallow a lot of water to 'push' the mixture down."
Chinese physicians said powdered medicine is equally effective and easier to prescribe.
It normally contains just one ingredient, while liquid medicine is usually a compound of two or more ingredients.
Ang Liang, director of Singapore Chung Hwa Medical Institution, said: "In compound mixtures, you cannot remove ingredients as they are mixed together. For powdered medicine, you can take away what you don't want or add what you want, so we can prescribe a more suitable mixture of medicine for the patient."
But such flexibility comes at a cost, as powdered medicine is 30 to 40 percent more expensive to produce.
At Chung Hwa Medical Institution, the price of a daily dosage of powdered medicine has increased from S$2 to S$3.