SPEECH BY MR LEE YI SHYAN,MINISTER OF STATE FOR TRADE AND INDUSTRY, AT KAMPONG CHAI CHEE CHINESE NEW YEAR CELEBRATION CUM HONG BAO PRESENTATION, 3 FEBRUARY 2008, 7.00 PM AT OPEN SPACE OUTSIDE NTUC FAIRPRICE (BLK 212), BEDOK CENTRAL

I am very happy to be here tonight for the Kampong Chai Chee Chinese New Year Celebration cum Hong Bao Presentation. I would like to wish everyone a Happy New Year and an early welcome to the Year of the Rat.

I am also very happy that several hundred residents have joined us tonight for this variety show. Tonight, apart from enjoying ourselves with the songs, skits and dances, we are also able to share the New Year joy with our residents. We have prepared more than 100 New Year goodie bags for our residents, and we will be giving them out shortly.

2007 was a good year for Singapore. Our economy grew by 7.5%, and many Singaporeans have good jobs and received bonuses last year. According to the Ministry of Manpower, a record number of 236,600 jobs was created last year, as compared to the 176,000 jobs created in 2006, a whopping increase of slightly more than 60,000. Our unemployment is amongst the world’s lowest at 2.1%. A strong economy ensures that everyone who is willing to work has a job.

However, as our economy has grown strongly since mid-2003, wages have gone up, and real estate prices have gone up. Quite a number of shops have in turn, adjusted their prices upwards. Some residents told me that they are feeling the pinch of rising prices, especially food prices. They find that they have to pay more when they go to the wet market, supermarket or hawker center. I understand your concerns. The Government too is concerned with controlling inflation as best as we can, to minimize its impact on Singaporeans’ standard of living.

What are the reasons for the increase in prices? Singapore does not have any natural resources. We import nearly all the food items we consume. Because of this, we are vulnerable to global price increases.

Food prices worldwide have been increasing. There are several reasons. First, changes in weather patterns. Natural disasters such as droughts in countries such as Malaysia and Australia affect the supply of vegetables and dairy products. Second, increasing wealth and consumption in large economies such as China and India add to food demand and put pressure on food prices. We read from the newspapers about instances of panic buying of cooking oil and flour in Malaysia; we read about the shortage of pork in China. Fortunately, the supply of food in Singapore remains ample and stable.

As the prices of raw food increase, prices of cooked food in our hawker centers, food courts and restaurants will also be affected.

But I must say that based on our survey, ¾ of the hawker stalls have not increased their prices since June last year. They have been holding back price increases and depended on higher volume of sales. I would like to commend them for contributing to price stability. In Bedok itself, many of the hawkers have not increased prices. I would like to commend them for holding prices for as long as they can. But if residents come across any stalls which they know have increased prices beyond what they think is reasonable, please let me or my grass root leaders know. Consumers can also call the Ministry of Trade and Industry at 6884 4478 or provide feedback on our website www.mti.gov.sg.

The Government is aware that Singaporeans are facing rising prices and is watching inflation closely. Our best insurance against rising prices is to continue to have a strong economy with good growth, as this will translate into good jobs and good wages for Singaporeans. The Government has not forgotten the retirees. When we have the Progress Package and other assistance schemes, we have given more to older and lower-income Singaporeans. This year, as the Prime Minister has said in his New Year Message, as the economy is strong, we should have something in the Budget to help needy and older Singaporeans.

In our constituency, we have also not forgotten the needy. Tonight, we will be giving out goodie bags of essential items to them. The goodie bag has been carefully selected with the residents in mind. They include items for daily use such as cooking oil, noodles, soya sauce, canned food, rice, milk, biscuits and bread. I hope you will like what we have prepared for you.

May I wish everyone a happy and healthy Lunar New Year.