'I think it is important that we continue to do financial planning, to be judicious of how we use our resources,' he said at the Mujahidin Mosque in Queensway yesterday morning after celebrating Hari Raya Puasa with some 1,000 Muslims.

Planning, he said, was important for the long-term benefit of both the family and children, with the economy slowing down and the cost of living continuing to rise.

Dr Yaacob said the increase in electricity and transport fees, which kicked in yesterday, was something that could not be avoided because of the rising fuel prices.

'The more important thing for us is that we are now subjected to globalisation forces which are beyond our control,' he said.

More gloom greeted Singaporeans yesterday as they woke up to news that the US$700 billion (S$1 trillion) bailout plan to rescue failing banks in the United States had been rejected by Congress, sparking fears of a global financial meltdown.

Earlier, the head of the Islamic community in Singapore, Mufti Syed Isa Semait, also spoke on the topic of finances in his sermon after morning prayers and urged prudence to prepare for tough times ahead.

'Let us improve the financial status of our families. Do not overspend. Think twice before we make purchases, especially big-ticket items. Plan our expenditure. Do not overburden ourselves with loans. Save part of our salary. Prioritise our spending,' he said.

But one thing that parents should not stint on is their children's education, he said. 'Their future depends on us parents and how we plan for them.'

Dr Yaacob also urged Muslims not to worry about not being able to make the annual haj pilgrimage to Mecca and Mina.

The Saudi Arabian authorities have cut the number of slots for people visiting the two cities during the Hari Raya Haji period in December this year, due to construction work there. This move is to ensure the safety and smooth flow of pilgrims.

Annually, about two million pilgrims from around the world go to Mecca to perform the haj. The number of pilgrims has been rising each year and the Saudi government has given a quota for each country.

Singapore had asked for 3,000 places this year, as in previous years. However, it was told by the Saudis last month that it had been allotted only 2,180 places.

Dr Yaacob said: 'We have made the effort, we have already made the appeal to the Saudi authorities (for more places). We are waiting for the reply.

'We must be patient, these are things beyond our control. And if we are patient, I'm sure things will be all right for us.'

wycin@sph.com.sg