Free trade delivers real, pocket-level impact

FROM B1

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fresh investors and suppliers across diverse sectors, as well as assist domestic businesses to explore new markets and tap overseas opportunities.

This is not some abstract economic model. It is showing up directly in the prices of groceries, meals and daily necessities.

This is also the reason BYD and Xiaomi are increasingly becoming familiar household names, while Chagee, Mixue, Luckin Coffee, Haidilao, Xiang Xiang Hunan Cuisine, Nong Geng Ji and Scarlett, among others, have made their presence felt even in suburban malls across Singapore.

A new wave of lifestyle brands is also emerging. For instance, Pop Mart with its popular “blind box” concept has also gained popularity, as seen in the growth of its Robo Shop vending machines.

The average Singaporean’s view on Chinese brands has also evolved, with growing appreciation for their innovative designs, quality and competitive pricing, and shifting away from past perceptions that Chinese goods were mainly cheap knockoffs.

THE COST-OF-LIVING DIVIDEND

These changing consumption patterns are also showing up in our macro indicators. Just look at inflation trends. Headline inflation has eased over the past year, helped by moderating global energy and food prices.

Core inflation, which excludes accommodation and private road transport, also tells a similar story of more benign increases for the year to date.

The strength of the Singapore dollar is an important contributing factor since the Monetary Authority of Singapore uses the trade-weighted exchange rate as its key monetary policy tool with the objective of ensuring price stability over the medium term.