Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

[ktnpl]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

True but this does not help with the inflation issues.

Since MAS cannot directly control liquidity being we are an open economy - there should be more effective tools to control credit other than loan to value ratios or stamp duties. Incidentally these are property specific. And the SG CPI excludes properties for various reason but this was brought up in inflation dialogues. Contradictory ......

And bear in mind stamp duties etc are taxes which help regulate spend vs income gaps but it does not help in inflation. This is where the fiscal cliff issues are causing some concerns ...... so GST adjustment might be on the cards.

But that has got no direct impact on inflation ......

Recently inflation is reported in two guise, headline inflation and core inflation. The former includes energy, transport and housing while that latter does not. The latest figures are 5+% for headline inflation and 2+% for core inflation. Personally I find the latter quite meaningless unless one is a recluse living in a cave. The inflation figure that is more relevant to most of us is headline inflation which is 5+%. Taxes are included in the inflation figure, hence any increase in GST will increase inflation, ceteris paribus (all other things equal).

Incidentally my investment target is 5+% annual returns, just to keep up with inflation.

 

[brosiss]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

The fact is world economy is not doing well, China slowing down, so we need to grow domestically, population growth will fuel infrastructure projects, public spendings, property craze is more or less curb, and transportation cost increase is moderated.

This should sustain us couple of years before the world economy has good recovery and growth. Then you will see our economy roar again. During these period, the gov role is critical to moderate domestic growth and also inflation.

If we can bring up population to 6 million, what's stopping us to up to 7 million when our economy require more workforce when world economy recovering.

 

[Oilman]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

This thread reads like it's lifted from my old textbook. Borrrring.

 

[brosiss]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

Don't complain too much la.. Think of how one can benefit during this phenomenon of population growth. When this opportunity is over, it will reach saturation point. Then everything will become difficult.

 

[brosiss]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

Raise interest rate will bring more inflation. Old sch will raise interest. The fact is housing is in demand in Singapore, high interest rate would means the very rich can buy and the middle income became harder to find a roof.

The gov has missed the boat to control property prices. They should build more housing in proportion to population growth. But the ministers then did not do their job. Now they can do now is to curb growth, but not too much.

 

[Shev]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

Inflation at 5% but exchange rate with major currencies gain 10% or more this year.

So govt encouraging us to go to Malaysia for groceries, petrol etc etc and to other countries to do our shopping and skip the gst. Nett gain on all purchases plus tax refund in some countries.

Maybe more beneficial to our economy if we help stimulate economies of other countries and we can then enjoy more FDI and more job opportunities and higher salaries.

 

[Red_Bean_Bun]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

Iskandar here we come ....... and JB for servicing ....

Inflation at 5% but exchange rate with major currencies gain 10% or more this year.

So govt encouraging us to go to Malaysia for groceries, petrol etc etc and to other countries to do our shopping and skip the gst. Nett gain on all purchases plus tax refund in some countries.

Maybe more beneficial to our economy if we help stimulate economies of other countries and we can then enjoy more FDI and more job opportunities and higher salaries.

 

[Saosin]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

Our tourism board said it best, "Uniquely SingaPore!!"

Fark...

 

[Shev]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

Our tourism board said it best, "Uniquely SingaPore!!"

Fark...

That's meant for tourist only. Or was it meant for Singaporeans to tell us that we should only regard ourselves as tourist then we can see the unique side of Singapore ?

 

[Saosin]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

That's meant for tourist only. Or was it meant for Singaporeans to tell us that we should only regard ourselves as tourist then we can see the unique side of Singapore ?

It works both ways...tourists read from L to R, sinkies read from R to L..we have to read between the lines..Or rather, between the 2 words if u will.

 

[ktnpl]

Re: Singapore Wages May Worsen Fastest Rich-World Inflation: Economy

The mother of all problems is that wages for the masses have failed to keep up with inflation. If this imbalance goes on for another decade, Singapore may become dysfunctional. Monetary tightening has to start soon. But the solution does not lie with interest rate or exchange rate. Like the US, our money supply has grown too fast! Our market is flooded with liquidity and there is too much S$ floating around.