Singapore must be prepared for more economic headwinds in year ahead: PM

Slower growth, possible recession; solution is to raise productivity, transform businesses

- Justin Ong

Singaporeans must be prepared for more economic challenges in the year ahead, even as the Government does all it can to cushion the impact of the Russia-Ukraine war, especially on the cost of living, said Prime Minister Lee Hsien Loong yesterday.

"The fundamental solution... is to make ourselves more productive, to transform our businesses, to grow our economy, to uplift everyone," he said. "Then our incomes can go up, and that can more than make up for higher prices of energy and food. Then we can all become better off in real terms." PM Lee was addressing unionists and employers at the May Day Rally at Downtown East.

In his speech, he outlined the Government's measures to alleviate cost-of-living pressures on Singaporeans. These include the $560 million Household Support Package announced at Budget 2022, which comprises U-Save and service and conservancy charge rebates and Community Development Council vouchers to reduce living expenses for nearly all households with lower- and middle-income households receiving more.

The Monetary Authority of Singapore has also tightened monetary policy to reduce imported inflation, leading to the Singapore dollar appreciating.

Singapore is also taking steps to secure its own food and energy supplies, in the event of these being disrupted by the ongoing Russian invasion of Ukraine.