MP Inderjit Singh calls for review of "grow-at-all-costs" govt policy
By Julia Ng, Channel NewsAsia | Posted: 25 February 2008 1546 hrs
SINGAPORE: The MP for Ang Mo Kio GRC, Inderjit Singh, kicked off the debate on the Budget Statement on Monday.
The entrepreneur listed cost increases in 18 areas, among them the levy for skilled foreign workers, electricity tariffs, healthcare services, university tuition fees and public transport fares. All these have led to an overheated economy.
Mr Inderjit Singh said such increases were either triggered or allowed by what he called the government's "grow-at-all-costs" policy.
He called for a review of this policy which he argued, has worsened the income divide.
Mr Inderjit Singh said: "I feel a significant part of the inflation has been caused by factors that we could have controlled, what I call controllable factors - factors which the government can manage and could have done something about.
"In the last two years, the government has contributed to inflation by allowing multiple cost increases, both directly or through policy changes that resulted in cost increases. The end result is an era of very high cost increases, high inflation not supported by enough wage increases, especially for the lower and lower middle income Singaporeans and companies."
Mr Inderjit Singh also singled out the 2 percentage point GST hike last July as a 'very significant cost increase'. This had triggered off other cost increases which were passed on to consumers.
The MP recounted how the Finance Minister had strongly defended the GST hike, citing reduction of government income from other sources and the need to generate enough money to fund Singapore's growth.
But the government was faced with a 'pleasantly embarrassing outcome', he said. Instead of projected deficit of $0.7b, it had a surplus of $6.4 billion.
"The government had been too quick to increase the GST last year. In light of the booming economy, which should have been visible by mid-2007, the government could have made the late decision to hold off the GST rise by a year or two," Mr Inderjit Singh said. - CNA/ir
it's always the case. where do you gat all those wool from? The SHEEP of course!
把他人的兴ç¦�， é€ åœ¨æˆ‘çš„åº�苦上
Originally posted by SevenEleven:it's always the case. where do you gat all those wool from? The SHEEP of course!
Hahaha...................
meh meh meh......................
That's why more sheeps the merrier, these days we have diversified our source from local sheeps to imported sheeps.
Jan08 CPI hits a new high of 6.6% .... WOH
Originally posted by mistyblue:Jan08 CPI hits a new high of 6.6% .... WOH
It's ok, the Ministers can afford it, they have salary increases of afew hundred percent.
So long as our Minister's poor family get to have a higher standard of living at the serfs expense, why not, it's a win win situation.
MP Inderjit Singh says govt policies may have contributed to inflation
By Asha Popatlal, Channel NewsAsia | Posted: 25 February 2008 1546 hrs
SINGAPORE: The Budget Debate kicked off in Parliament on Monday with MPs taking a long and hard look at what has been troubling many Singaporeans - growing cost increases.
MP for Ang Mo Kio GRC, Inderjit Singh, pointed out that the "grow-at-all-costs" policy of the government might have overheated the economy and worsened the income divide.
From electronic road pricing (ERP) and public transport fares to the Skilled Foreign Worker levy to healthcare charges, MPs cited a litany of recent cost increases.
While some may have been beyond the government's control, Mr Inderjit Singh questioned whether all the hikes were necessary and if some could have been deferred.
He said: "I feel a significant part of the inflation has been caused by factors that we could have controlled.
"In the last two years, the government has contributed to inflation by allowing multiple cost increases, both directly or through policy changes that resulted in cost increases.
"The end result is an era of very high cost increases, high inflation not supported by enough wage increases, especially for the lower and lower middle income Singaporeans and companies."
The impact on the needy is telling. With real income shrinking as well, statistics show the lower 20 percent of Singaporeans are suffering effectively higher inflation rates than the top 20 percent.
Mr Inderjit Singh argued for a review of what he called the "boom and bust" policy of growing as fast as possible during the good years to compensate for periods of slower growth, even if some Singaporeans could not keep up.
In addition, he felt the government might have been too quick to impose the GST hike last year, a significant cost increase which triggered off other increases which were passed on to consumers.
"In light of the booming economy which should have been visible by mid-2007, the Government could have made the late decision to hold off the GST rise by a year or two," said Mr Inderjit Singh.
He recalled how the Finance Minister had stoutly defended the 2% point GST hike, citing reduction of government income from other sources and the need to generate enough money to fund Singapore's growth.
But now, instead of projected Budget deficit of $0.7billion, the government had a surplus of $6.4 billion, leaving the government to face a 'pleasantly embarrassing outcome'.
This point was also highlighted by other MPs who spoke during the Budget debate on Monday.
With Singaporeans experiencing one of the highest spikes in the cost of living in the last five years, MP for Pasir Ris-Punggol GRC, Michael Palmer, said direct assistance could help.
He said the government could set aside some money for a contingency fund from the Budget surplus to provide an inflation relief package, similar to the GST Offset package and specifically targeted at the low and middle income earners.
Mr Palmer said: "We expect inflation to rise to between 4.5% and 5.5% (this year). That represents at least a 900% increase from the 2005 figure and a 450% increase from the 2006 figure. If inflation hits 4.5% this year, it will still be more than a 200% increase from last year. So when the Minister said that 'inflation today is higher than what we have been used to in Singapore for many years', in my humble opinion, that may be understating the matter somewhat," he said.
His bottomline? The fear of creating an expectation of handouts should not deter the government from being caring and giving help when it has the resources to do so. - CNA/ir
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MPs say more could be done to help businesses cope with rising costs
By Wong Siew Ying, Channel NewsAsia | Posted: 25 February 2008 2309 hrs
SINGAPORE : Rising costs in Singapore took the spotlight in Parliament on Monday, at the start of the annual Budget debate.
Several MPs asked if more could be done to help businesses cope, from cutting corporate taxes and the foreign worker's levy to reviewing the government land sales programme.
The property bubble has contributed to the overheating economy.
According to Ang Mo Kio GRC MP Inderjit Singh, the government's move to lift anti-speculation measures has been detrimental to both Singapore and Singaporeans.
He also took a shot at the government's Land Sales Programme, saying that the Reserve List system has caused larger fluctuations in the market.
Mr Inderjit Singh said, "Without a reserve price, there may be times where land is sold cheaper than we would ideally like, but over the long term, the land sold for higher prices in good years could allow us to reach an acceptable level of income that we want from the land. It will make land release predictable and the market can then adjust.
"We can put in place disincentives for hoarding land which developers buy from the government. Very importantly, when the property market is weak, the government should not panic, (and) should instead go ahead and release the land anyway."
Under the Reserve List system, a reserve site will only be put up for tender if a developer puts in a minimum bid acceptable to the government.
A recent report has ranked Singapore as the 7th most expensive office location in the world, jumping 10 places within a year.
Some MPs expressed concern that this could hurt local businesses.
Jessica Tan, MP for East Coast GRC, said, "Office rentals have increased 56 percent in 2007, industrial rental by 30 percent, oil prices by 50 percent and commodity prices by 31 percent. A rental rebate or even a reduction of the workers' levy would provide some relief for businesses...considering that all SMEs form 99 percent of enterprises in Singapore and employ 62 percent of our workforce, any such benefit would have had a significant impact."
Some said that a cut in corporate taxes could help, while there was also a call for measures to defray rental costs.
Michael Palmer, MP for Pasir Ris-Punggol GRC, said, "In the implementation of any such tax relief, the government could consider giving different rates of relief depending on the type of industry and the location of the premises rented.
"For example, greater tax relief could be given to businesses that are willing to move non-core departments outside the business district. The relief need not be for the whole amount of rent paid - it could be capped."
Apart from concerns about rentals, MPs also rued the missed opportunity to offer incentives to promote eco-friendly business practices.
This could be in the form tax deduction for companies with an approved carbon offsetting programme, zero-rate GST or enhance capital allowances on energy saving devices used by companies. - CNA/ms
Originally posted by will4:MP getting more outspoken.
... because some of them knows that they (the 'government') can very well end up being the only local population occupying Singapore...
NO HOLIDAYS
NO CABLE TV
NO INTERNET
NO CHOICE
Incomes are increasing, but not always fast enough to make up for the rising cost of living. Today, we find out how a 3-room flat family copes
By Genevieve Jiang
February 26, 2008
TO keep up with the rising cost of living, Mr Sunil Sharma has been working overtime for the past five months to earn extra income.
The 40-year-old office assistant at a despatch company used to earn about $1,000 every month.
But now, with overtime pay, he can earn up to $1,500.
To save money, Mr Sunil and his family have been cutting down on indulgences such as family holidays, shopping trips and meals out.
Despite belt-tightening measures, the family still owes close to $300 in utility bills and about $130 in town council conservancy charges.
Mr Sunil said: 'Most of my pay goes to daily expenses and we have little savings.'
His wife, Mrs Kiran Sharma, 45, is a housewife.
The couple and their 14-year-old son Jaikishen live in a three-room flat in Bedok. The bulk of Mr Sunil's pay is spent on his son.
Although the boy has been getting a $800 bursary for the past four years from the Southeast Community Development Council, the family spends another $300 on Hindi lessons, which Jaikishen attends on weekends.
The teenager also gets a weekday allowance of $6, which comes up to $120 monthly.
Previously, Mr Sunil also spent $200 on tuition fees, but starting this year, he decided to rely just on free remedial lessons after school.
Mr Sunil said: 'We've decided to cut back because his grades seem to be improving. If he slips, I'll have to find some way to make sure he gets extra help.'
With the latest Budget changes, the family will get some help in the form of Goods and Services Tax Credits, amounting to about $500 in total. They also get a one-off $800 grant from welfare organisation Family Life Centre.
However, there are some expenses that have gone up inevitably.
Previously, when Jaikishen was in Bedok Green Primary School, he was able to walk to and from school. Now, he has to take a bus every day to Bedok Green Secondary.
Transport comes up to between $30 and $40 every month.
The couple has a 11-year-old daughter, who has been living in India with Mr Sunil's parents.
CAN'T COPE FINANCIALLY
They sent her away when she was born because they couldn't cope financially then.
These days, Mr Sunil sends between $2,000 and $3,000 a year to India for her education and living expenses.
Jaikishen was diagnosed with Attention Deficit Hyperactive Disorder when he was in Primary 1, but he goes for free medical checkups every three months at the Child Guidance Clinic.
Indulgences for the family are few.
Previously, they would visit relatives in India and Indonesia at least four times a year. Last year, there were no family holidays.
They used to treat Jaikishen to meals at nearby fast-food joints at least two to three times a week. They have since been reduced to once a week.
Mrs Kiran's shopping budget at the nearby town centre has also been cut from about $50 a month to $20.
She said: 'Previously, I would buy Revlon makeup, and some clothes and shoes. But now, I try not to buy makeup at all. I also count on hand-me-downs from Jaikishen's cousins, so he doesn't need to buy new clothes.'
She used to enjoy occasional massages which cost her about $40 per session, but that, too, had to go.
And while she would previously spend up to $30 a week on lottery, she now spends only $3 a week.
This is to make up for more money spent on their son's transport and daily groceries.
While food would previously cost them at most $200 a month, it now costs up to $300.
And utility bills have gone up from about $60 to $80.
The family doesn't subscribe to cable TV, nor the Internet.
Jaikishen was given a handphone early last year, but his subscription plan was reduced to a cheaper one this year.
Mr Sunil said: 'He had previously abused the service by subscribing to various games without my knowledge. He even made overseas calls to his cousins in Indonesia.
'I was shocked when I got the bill of more than $300. It was because of his bills that we couldn't pay our utilities and the town council.'
So starting this year, Jaikishen is on a basic mobile plan which allows only incoming calls.
Mrs Kiran, who studied up to Secondary 3, said she is now considering taking up courses so that she can return to work when Jaikishen is older.
She said: 'It's hard on my husband supporting the family alone, but at this point, we want to be around for my son.
'Once he's more mature and independent, I'll try to return to work.'
Why do u post the same stuff in 3-4 different threads?
Backside itchy finger boh liao?