THE stock market is heading down. So too the mood among investors, though there was some relief following the US Federal interest rate cut last night.
But at least one thing is up, although it is hardly cause for celebration.
The cost of living is rising (see graphics at right), and there seems to be no relief in sight.
Should the Government further extend its helping hand to the needy in tandem with rising costs?
At least three MPs asked Dr Vivian Balakrishnan, the Minister for Community Development, Youth and Sports (MCYS): Can the Government be more charitable towards the poor at this time?
The MPs were concerned about those on public assistance (PA).
The scheme provides aid to those unable to work due to old age, illness or disability, have no means of subsistence and no one to depend on.
MP Seah Kian Peng wanted to know if the scheme takes into account the rising Consumer Price Index (CPI) and if the current $290 monthly payout should be increased to at least $313, considering the expected escalation this year.
The PA allowance was increased by between $30 and $115 a month, depending on family size, for the first time in five years last July to help the destitute cope with the GST hike.
But is it enough to fight inflation, partly caused by the GST increase?
Last November, inflation hit 4.2 per cent, the fastest rise in 25 years.
Some economists have said it could even leap past 6 per cent in this current quarter on the back of record oil prices and higher food costs.
Insight and a Promise
But Dr Balakrishnan said he would not peg the PA allowance strictly to the CPI. Instead, he offered an insight into how he arrived at the amount - and promised a review.
First, he told his staff to consult the the Ministry of Health's (MOH) nutrition department on what food items goes into a "healthy meal".
Next, his staff went to the NTUC Fairprice supermarket to buy them.
He said: "They literally filled their basket and I made them put it in front of me on my desk so I could see that this was the real thing.
"That is what I'm really pegging at."
He added: "At the end of the day, there are four things we want to deliver - food on the table, a roof over your head, healthcare when you need it and education for your children - four essential pillars."
As of mid-December, that basket of food cost $95 a month, he revealed.
"So, any sum of money, cash which you give in excess of $95, is enough to buy the raw ingredients."
As for housing, PA recipients typically live in subsidised HDB rental flats, Dr Balakrishnan pointed out.
"That sum which we currently provide in terms of cash... is enough for food (and) a roof over your head."
Yes, the PA allowance, he admitted, is "not a generous amount".
But most PA recipients are "living on more than what the Government gives in cash", he said, referring to hong baos and additional food, hampers and help from the local community.
Healthcare costs are also covered by the Government. The Education Ministry gives generous subsidies too.
So, no Singaporean will be deprived.
Dr Balakrishnan added that MCYS is reviewing the PA allowance, and will be done by the end of the year.
Speedier review?
Can he speed up the review, asked Mr Seah.
He noted: "Eleven months from now is rather long given that some estimates of the CPI for this year could be as high as 6 per cent."
And what about those who don't meet the PA criteria but are nevertheless in dire financial straits?
They need help to cope with rising costs too, MPs Halimah Yacob and Liang Eng Hwa pointed out.
They wanted help to be extended to those who need medium-term financial aid and wanted to know if MCYS would consider raising the $1,500 monthly household income ceiling for most financial schemes.
The minister clarified that not all schemes are pegged to the $1,500 threshold, though that sum is also being reviewed.
He noted that the impact of rising prices on the low-income have been cushioned by healthcare, housing and education subsidies, utilities and service and conservancy rebates.
There are also subsidised services for the elderly and disabled with household incomes exceeding $1,500, the Workfare Income Supplement, and the ComCare Fund. CDCs and other grassroots organisations have the leeway to give aid to "borderline", deserving cases too.
But at the end of the day, the work ethic must not be eroded, Dr Balakrishnan warned.
Yes, the Government will help, but "there's no free lunch" in Singapore.
"If, through bad luck or bad decisions, we hit hard times, the rest of the community will help us out, but without losing the commitment to self-responsibility and the necessity for hard work," he said.
Govt relief and subsidies
>Workfare Income Supplement
- Scheme to reward older low-wage Singaporean workers for staying employed.
- To qualify, they must be above 35, earn $1,500 or less monthly and live in property worth not more than $10,000 in annual value.
- They must also work at least three months in any six-month period in calendar year, or at least six months in calendar year.
> GST credits
Given to Singaporeans to help offset GST hike last July.
> ComCare Fund
To help those left behind - namely elderly, poor and jobless - as Singapore gets on with economic restructuring.
> Utilities and service & conservancy rebates
Rising costs
Education
June
Some NUS course fees up by average of 14 per cent
Utilities
July
Electricity tariffs up by almost 9 per cent for Jul to Sep
September
Electricity tariffs up by average of 0.86 cents per kilowatt-hour for Oct to Dec
December
Electricity tariffs to go up by nearly 6 per cent per kilowatt-hour in January this year, the highest increase since 2001
Housing
July
Resale price index for HDB flats up 2.9 per cent from three months before HDB rents at 10-year high
September
As at end-September, HDB resale price index up by about 11 per cent since start of year
October
Private home prices up 8.3 per cent between Jul and Sep to highest level in 10 years
November
Annual values of HDB flats to be raised in Jan 2008, meaning property taxes (4 per cent of annual values of owner-occupied homes) will rise
Annual values to increase by average of 18 per cent for four-room and executive flats, 20 per cent for one-, two- and five-room flats, 25 per cent for three-room flats
Transport
July
Vehicle owners who park in CBD pay 20 per cent more than last year in monthly season parking charges
February
ERP rates at CTE, PIE & ECP up by 50 cents
April
Petrol and diesel prices up by 10 cents a litre
July
Pump prices up by 2 cents a litre days after a 2 per cent point GST hike sent petrol and diesel prices up by 0.23 to 0.33 cents a litre
August
ERP rates for cars passing Orchard Road, YMCA and Fort Canning Tunnel gantries up 50 cents
October
Adult EZ-Link bus fares up by 1 to 2 cents
Petrol and diesel price up 3 to 5 cents a litre
November
ERP rates up. New gantries built
Petrol and diesel price up to five cents, pushing all but one grade of petrol above $2 mark
December
Taxi fare hike
Health
January
NUH's A&E fees up from $70 to $80
February
Private fees for specialist outpatient clinics at SGH up by $5
KKH raises private fees for specialist outpatient clinics and ward treatment fees for all patients. Estimated impact on bill size is 0.2 per cent to 4.3 per cent
April
SGH's C-class patients pay $1 more. Those in B2 wards pay $3 more
May
Subsidised patients at four public hospitals pay $24 or $25 for visit to specialist clinic, up from about $21
NUH's ward charges for B2 & C-class wards up by $2
Polyclinic consultation fees for adults, which used to be standard $8, now $8 to $8.80. $4 to $4.50 for elderly and young children, up from $4
July
CGH's A&E fee up by $10, daily treatment fee for B2 and C-class wards up by $1, daily ward charge for B2 wards up by $1
Food
June
Prices of milk up, according to Case survey. Price of condensed milk up by 10 to 50 cents, 15 to 47 cents for evaporated milk, 10 to 55 cents for four brands of fresh milk
Two price hikes for Malaysian eggs in one week, bringing total increase to 1 cent per egg
October
Fresh chicken prices up by 30 to 90 cents per kg
Flour prices up 30 per cent
November
Over 100 bakeries to raise bread prices by up to 20 per cent after jump in flour prices
