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January 3, 2008 Thursday
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Jan 3, 2008
RISING LIVING COSTS
Spare a thought for the middle classes
IT IS appreciated that the Government has made a timely realisation of rising living costs in Singapore. Corresponding actions to increase salaries of civil servants and acknowledgment of the impact of rising living costs on the needy are heart warming.

But a substantial portion of society has been neglected. The rise in living costs, particularly food, ranges from 5 to 50 per cent, and overall there is at least a 25 per cent increase in household budget for groceries. Increase in prices of utilities, petrol and transport, particularly taxis, further strains the household budget.

Inflation calls for an overall adjustment of salaries and wages of all employees in Singapore, not just those in the civil service.

The question is, how responsive are employers in the private sector to inflation? Do they realise they must seriously consider a substantial pay rise for their employees? What steps is the Government taking to ensure these employers do their part to ease the burden on their employees?

Let's not forget professionals and those in the higher income group, who are the major contributors of tax in Singapore. Although they may be able to absorb a higher cost of living, it is a big pinch on their pocket. Perhaps they are too busy making money for their family and paying taxes to voice their concerns.

It is also a point to be noted that this is the group of people who were badly hit when there was a reduction in CPF rates and a ceiling cap imposed on CPF contributions. When times got better, nothing remarkable was done to fully reinstate the cut in CPF rates or remove the cap on CPF contributions. But many of these people are still struggling with housing loans.

Any relief package introduced by the Government does not benefit them much as they are usually not eligible or eligible only for a minimum amount.

A substantial portion of these people are in the private sector. Rising living costs have hit them hard.

I urge the Government and employers in the private sector to show sympathy and concern for these people who are the backbone of society. It is time to consider their problems and do something for them.

Kamala Dewi Poologanathan (Ms)

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