Mr Wong noted that the increase in prices over the past few months is not unique to Singapore, but is happening worldwide.
While there were initial hopes at the start of 2022 that global inflationary pressures would ease over the course of the year, it is now likely that global inflation will be higher for longer due to the war in Ukraine, said Mr Wong.
“Now, before we’ve had the chance to see through the pandemic, we are faced with yet another economic challenge. After many years of relative price stability, the recent surge of higher inflation has understandably come as a shock to many,” he added.
“But when viewed against the global context and our own experience, I hope we can better understand the causes of higher prices and what we can do to manage this together.”
Responding to a question from Member of Parliament Lim Wee Kiak (PAP-Sembawang) who had asked what the “threshold” was for more help to be given amid high inflation, Mr Wong said he could not provide a specific “trigger point”.
“On how high inflation has to be before we see more help … I am not able to give a specific trigger point at this. Now, we as I said, monitor a range of indicators. Not just the headline of economic growth, inflation, for that matter, unemployment, but also how it impacts on different groups, different income groups, different occupations,” he said.
“And then, for that matter, what is the impact of our current package of measures which have not been implemented? We need to see that properly implemented and feed through the economy as well.”
“So there are all these different considerations. And that’s why we cannot so simply distil it to just one key parameter. But the assurance that we continue to give is we will monitor this very closely. And should there be a worsening … of the situation externally and within Singapore, we will certainly stand ready to do more.”
He added that help from the Budget 2022 is coming, and that if the situation “worsens and more support is needed”, the Government stands ready to do so.
“There are dark clouds over the horizon. But we will get through this together, as we have always done, as one united people.”
