News: Brilliant Analysis by DPM

[SimonTan]

This is our D Prime Minister talking leh.

His argument very spot-on and direct.

 

I feel safe and see much future in Singapore. My future so bright....I got to wear shades!

 

I hope those non-average singaporeans are feeling ok too. Just have to buy smaller house(or stay with parents) and take MRT it will be ok!

 

 

 

http://business.asiaone.com/Business/News/...429-342813.html

DPM Tharman: Average S'porean won't feel the sharp effects of inflation

 

The average Singapore will not feel the effects of a sharp inflation, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said today in a speech at this year's May Day dinner.

 

He acknowledged that the 5.2 per cent increase in the Consumer Price Index (CPI) for March 2012 compared to a year ago, was a "high figure".

 

But more than half of this inflation rate of 5.2 per cent comes from higher COE premiums on cars and the effect of higher market rents on homes, the Manpower Minister said.

 

So those who already own their homes and are not buying a new car will be unaffected.

 

In fact for most Singaporeans, inflation in actual household expenses is lower than 5 per cent.

 

Mr Tharman explained that the increase in prices of daily necessities and essential services, such as food, clothing and footwear, and education, has actually been much more moderate, at 3.0 per cent or lower.

 

Nevertheless the Government is closely monitoring the situation, including prices of everyday goods and services, Mr Tharman said.

 

Inflation remains an important challenge and it is also one that union leaders are most concerned about, he said.

 

The Monetary Authority of Singapore has been gradually strengthening the value of the Singapore dollar to reduce the impact of imported inflation.

 

Actions have also been taken to cool the property market as an overheated property market with inflated property prices, while by themselves not part of the CPI, can drive up other prices.

 

 

 

[Mustank]

This is our D Prime Minister talking leh.

His argument very spot-on and direct.

 

I feel safe and see much future in Singapore. My future so bright....I got to wear shades!

 

I hope those non-average singaporeans are feeling ok too. Just have to buy smaller house(or stay with parents) and take MRT it will be ok!

 

 

 

http://business.asiaone.com/Business/News/...429-342813.html

DPM Tharman: Average S'porean won't feel the sharp effects of inflation

 

The average Singapore will not feel the effects of a sharp inflation, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said today in a speech at this year's May Day dinner.

 

He acknowledged that the 5.2 per cent increase in the Consumer Price Index (CPI) for March 2012 compared to a year ago, was a "high figure".

 

But more than half of this inflation rate of 5.2 per cent comes from higher COE premiums on cars and the effect of higher market rents on homes, the Manpower Minister said.

 

So those who already own their homes and are not buying a new car will be unaffected.

 

In fact for most Singaporeans, inflation in actual household expenses is lower than 5 per cent.

 

Mr Tharman explained that the increase in prices of daily necessities and essential services, such as food, clothing and footwear, and education, has actually been much more moderate, at 3.0 per cent or lower.

 

Nevertheless the Government is closely monitoring the situation, including prices of everyday goods and services, Mr Tharman said.

 

Inflation remains an important challenge and it is also one that union leaders are most concerned about, he said.

 

The Monetary Authority of Singapore has been gradually strengthening the value of the Singapore dollar to reduce the impact of imported inflation.

 

Actions have also been taken to cool the property market as an overheated property market with inflated property prices, while by themselves not part of the CPI, can drive up other prices.

 

technically true leh boh sala leh

 

[Felipe]

Hint of property bubble burst cos no new buyers?

[Maroon5]

ya average singaporeans wont feel the pinch................until the day they get to see their cpf. 2.6% int vs 5% inflation, u do the maths.

[Solar]

if my livelihood depends on a vehicle, and the damn coe increased so much.

will i pass my costs down?

 

chances are, i will..and many will.

 

those who depend on the services will also get affected.

 

this guy..just like $1000 own a hdb story..

[Darryn]

Hint of property bubble burst cos no new buyers?

 

I'm hoping condo prices drop in this 1/4 - we are looking to buy an investment property now, quite happy if the "bubble bursts" and prices start to drop a bit..

 

[Royho1979]

 

technically true leh boh sala leh

 

Not really leh.... the cost of COE and HDB will cascade down. The senior executives who want to change cars and buy ppty.. they are going to ask for higher salaries or charge more for their services. Some one will have to pay for it and the cost will be passed on downstream and in the end everyone suffers.

[Wind30]

Not really leh.... the cost of COE and HDB will cascade down. The senior executives who want to change cars and buy ppty.. they are going to ask for higher salaries or charge more for their services. Some one will have to pay for it and the cost will be passed on downstream and in the end everyone suffers.

 

he did mentioned the issue about cascading prices. Government knows about it.

[Vulcann]

Guess biz owners who rely on commercial vehicles to do deliveries also not affected...

 

They are excused from COE bidding and purchase their vehicles at only market value right?

 

[rolleyes]

[Celicar]

In fact, if you choose not to buy any food and just pick scraps off the table, specifically DPM's table, you will lagi be less affected.

[Carbon82]

This is our D Prime Minister talking leh.

His argument very spot-on and direct.

 

I feel safe and see much future in Singapore. My future so bright....I got to wear shades!

 

I hope those non-average singaporeans are feeling ok too. Just have to buy smaller house(or stay with parents) and take MRT it will be ok!

 

 

 

http://business.asiaone.com/Business/News/...429-342813.html

DPM Tharman: Average S'porean won't feel the sharp effects of inflation

 

The average Singapore will not feel the effects of a sharp inflation, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said today in a speech at this year's May Day dinner.

 

He acknowledged that the 5.2 per cent increase in the Consumer Price Index (CPI) for March 2012 compared to a year ago, was a "high figure".

 

But more than half of this inflation rate of 5.2 per cent comes from higher COE premiums on cars and the effect of higher market rents on homes, the Manpower Minister said.

 

So those who already own their homes and are not buying a new car will be unaffected.

 

In fact for most Singaporeans, inflation in actual household expenses is lower than 5 per cent.

 

Mr Tharman explained that the increase in prices of daily necessities and essential services, such as food, clothing and footwear, and education, has actually been much more moderate, at 3.0 per cent or lower.

 

Nevertheless the Government is closely monitoring the situation, including prices of everyday goods and services, Mr Tharman said.

 

Inflation remains an important challenge and it is also one that union leaders are most concerned about, he said.

 

The Monetary Authority of Singapore has been gradually strengthening the value of the Singapore dollar to reduce the impact of imported inflation.

 

Actions have also been taken to cool the property market as an overheated property market with inflated property prices, while by themselves not part of the CPI, can drive up other prices.

 

I have to disagree with Tharman view point, for 3 obvious reasons, which I am still wondering why a Finance Minister cannot visualize... ...

 

1) Higher COE premium and property price lead to higher business operation cost, how can that not affect our daily necessities and essential services in longer run?

 

2) Going at this rate (salary increment is not "aligned" with inflation), how can our next generation afford a roof comfortably??

 

3) Statistics shows that Singaporean do not have enough saving, but at this kind of inflation rate, the more we save, the more we "lose", and are these not affecting us???

Edited April 30, 2012 by Carbon82

[Zanter]

This is the same BRILLIANT guy who says that allowing loans for people to buy COE does not increase the COE price. Where did he get his finance degree from?

[Blackyv]

I'm hoping condo prices drop in this 1/4 - we are looking to buy an investment property now, quite happy if the "bubble bursts" and prices start to drop a bit..

 

Wah, u very rich hor?.. Strike toto huh?.. Want to buy ec and condo leh...

[Toothiewabbit]

3 percent increase in prices of daily necessities and essential services, such as food, clothing and footwear, and education may seems moderate but it is still a HUGE increase for lower to middle income families.

 

It is only the upper-middle to high income earners that don't feel the pinch!

 

When will the gahmen stop measuring the sentiments of the ground with percentages and annual GDPs?

Edited April 30, 2012 by Toothiewabbit

[Jolie888]

What Darman said is correct what ... similar to my recent post in MCF.

 

If most SGeans take public transport and already bought their HDB flats, then they won't be affected by the current high COE and property prices what!

 

Why always must buy new car?

Why must upgrade to condo ... shoebox unit oso jadi?

Then when cannot chase their aspirations, they kpkb in blogs and forums.

Blame govt, blame PAP, blame FT, blame their father mother!

 

Why liddat?

Be contented.

If you not rich enough, how to always own new car and live in condo?

Those are reserved for the privileged few.

If one does not belong to the privileged, just make sure you give the best education to your children, to eventually reach there.

 

Oh BTW, if one could afford to own a new car less than a decade ago, when COE plummeted to <$10K, that does not make you rich hor.

You were lucky to be given a short taste of the high life. So you only feel "rich" now.

In time to come, in fact a short while more, you will fall back to where you really belong.

Back to reality.

Back to BMW, or old used cars.

 

So the govt wasn't joking when they first introduced COE and ERP ... which is to weed out the marginal owners. Think this were the actual words used.

Well, if you thought that having owned a car already puts you on the 'safe' side, you could be wrong, if you find yourself now not able to afford $150K COEs. It just means that you were all along in the targeted group, to begin with! The 'not safe' side.

 

[Raymondism]

This is our D Prime Minister talking leh.

His argument very spot-on and direct.

 

I feel safe and see much future in Singapore. My future so bright....I got to wear shades!

 

I hope those non-average singaporeans are feeling ok too. Just have to buy smaller house(or stay with parents) and take MRT it will be ok!

 

 

 

http://business.asiaone.com/Business/News/...429-342813.html

DPM Tharman: Average S'porean won't feel the sharp effects of inflation

 

The average Singapore will not feel the effects of a sharp inflation, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said today in a speech at this year's May Day dinner.

 

He acknowledged that the 5.2 per cent increase in the Consumer Price Index (CPI) for March 2012 compared to a year ago, was a "high figure".

 

But more than half of this inflation rate of 5.2 per cent comes from higher COE premiums on cars and the effect of higher market rents on homes, the Manpower Minister said.

 

So those who already own their homes and are not buying a new car will be unaffected.

 

In fact for most Singaporeans, inflation in actual household expenses is lower than 5 per cent.

 

Mr Tharman explained that the increase in prices of daily necessities and essential services, such as food, clothing and footwear, and education, has actually been much more moderate, at 3.0 per cent or lower.

 

Nevertheless the Government is closely monitoring the situation, including prices of everyday goods and services, Mr Tharman said.

 

Inflation remains an important challenge and it is also one that union leaders are most concerned about, he said.

 

The Monetary Authority of Singapore has been gradually strengthening the value of the Singapore dollar to reduce the impact of imported inflation.

 

Actions have also been taken to cool the property market as an overheated property market with inflated property prices, while by themselves not part of the CPI, can drive up other prices.

 

 

trying to blame government again?

[Zanter]

For the ones who have worked, got married a few years ago, the impact is less. For those who will be allowed their virgin vote at the next general election, they are non too pleased. Do you think if cat A COE at 100k & Cat B @ 150k, and a 3 room HDB at 500k, the current Govt will still be in power? Where is the Singapore dream for them? Collect taxes also don't go overboard till sink the ship yeah?

[Carbon82]

What Darman said is correct what ... similar to my recent post in MCF.

 

If most SGeans take public transport and already bought their HDB flats, then they won't be affected by the current high COE and property prices what!

 

Why always must buy new car?

Why must upgrade to condo ... shoebox unit oso jadi?

Then when cannot chase their aspirations, they kpkb in blogs and forums.

Blame govt, blame PAP, blame FT, blame their father mother!

 

Why liddat?

Be contented.

If you not rich enough, how to always own new car and live in condo?

Those are reserved for the privileged few.

If one does not belong to the privileged, just make sure you give the best education to your children, to eventually reach there.

 

Oh BTW, if one could afford to own a new car less than a decade ago, when COE plummeted to <$10K, that does not make you rich hor.

You were lucky to be given a short taste of the high life. So you only feel "rich" now.

In time to come, in fact a short while more, you will fall back to where you really belong.

Back to reality.

Back to BMW, or old used cars.

 

So the govt wasn't joking when they first introduced COE and ERP ... which is to weed out the marginal owners. Think this were the actual words used.

Well, if you thought that having owned a car already puts you on the 'safe' side, you could be wrong, if you find yourself now not able to afford $150K COEs. It just means that you were all along in the targeted group, to begin with! The 'not safe' side.

 

Transport cost and property price affect everyone, not only car buyer or condo upgrader.

 

If you care to look deeper into the issues. transport cost and rental take up about 30% or more of the business cost, and any upward adjustment would put pressure on the price of every others items and services you can think off (a chain effect). In layman term, when cost of truck / van goes up (by 100% like now), logistics company will have to charge more for delivering say a lorry load of vegetable to whole seller, who in turn will pass the cost to say economy rice stall owner, and we consumer will get hit sooner or later.

 

The same goes for property price and rental. as stall owner have to pay higher rental after coffee shop, hawker centre stall changing hand with ultra high price tag, and where do you think these extra cost will goes to? We consumer... Have you not noticed that a bowl of noodles or a plate of chicken rice cost at least S$3.00 - S$3.50 now even at non-air-conditioned hawker centre (where that kind of pricing is what air-conditioned food court used to charge just 2 years ago)?