Many concerns occupy Singaporeans’ minds in this phase of ‘The Big Reset’. Coupled with cost of living, inflation is among the top two issues for citizens today. Even globally, 34% of Singaporeans believe that rising inflation is the No. 1 threat facing the world in these current times. The Government’s focus though will be addressing it locally, and it is certainly an uphill task ahead—given that Singapore’s core inflation hit a near 14-year high of 5.3% in September 2022.
As things currently stand, the numbers aren’t in the Government’s favour. Our study, “Emerging From The Pandemic: The New Mood In Singapore” shows that 9 in 10 (91%) Singaporeans feel that inflation is impacting their life in some way and over half of Singaporeans (55%) feel that the Government is not doing enough to keep inflation in check.
The direct impact of price rises is being felt by Singaporeans in almost all areas of their lives, and in our study we asked citizens to highlight the extent of this impact on a scale of 1 to 5. The top areas where it’s hurting the most include petrol stations/pump prices, utility prices (e.g., water, gas, electricity), supermarkets, food courts/local coffee shops, and taxis/transport service providers (e.g., Grab).
Local issues, global causes
The Singapore Government’s struggle to address inflation is understandable given the global nature of this issue. This is also attributable to the pandemic, particularly the global expansionary fiscal policy that followed it.
Stringent lockdowns, increased expenditure on healthcare, unemployment benefits, and relief measures—inflation was an inevitable consequence of such expansionary fiscal policies.
Furthermore, international events such as China’s pursuit of a zero COVID policy and resulting economic slowdown, instability over global supply chains, and the Russia-Ukraine War have only added to food and energy insecurities, worsening the inflationary issue even further.
However, the Government is aware of community sentiments and growing discontent among citizens, and the recent SGD 1.5 billion targeted support package announced by Deputy Prime Minister, Lawrence Wong, on June 21 is a step in the right direction. Additionally, in the last few months, The Monetary Authority of Singapore (MAS) has strengthened the Singapore dollar four times to help control imported inflation. In the recent National Day address, Prime Minister Lee Hsien Loong, while assuring Singaporeans of additional help if things worsen, also added, “the basic reality is that international economic conditions have shifted.”
Here, we have highlighted selected portions of our full report that offers comprehensive insights on the evolving citizen and consumer attitudes, behaviours, and expectations of Singaporeans. To get your personal copy of it, drop us a message saying “Yes, send me my free report!” to connect@blackbox.com.sg.
Author: Blackbox Research Team
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