Panel to look into charges of profiteering from GST

The authorities are taking steps to ensure that the increase in the goods and services tax (GST) is not used as a cover by businesses to raise prices.

The 13-member Committee Against Profiteering (CAP) will look into feedback on unjustified price increases of products and services commonly consumed or used by Singapore households.

Chaired by Minister of State for Trade and Industry Low Yen Ling, the committee met yesterday and said it "will keep a very close watch" on the prices of daily necessities and groceries, Ms Low told reporters.

It will investigate feedback it receives, and may expose errant businesses seeking to profiteer from the GST increase, she added.

The GST rate will increase from 7 per cent to 9 per cent in two stages - 1 percentage point each time on Jan 1, 2023, and Jan 1, 2024.

The reconvened committee, first set up in 1994, will guard against profiteering on essential food items, meals at hawker centres and coffee shops, and essentials like household products.

Ms Low said the committee has been set up about nine months before the GST increase to assure the public that "we will take a whole-of-government approach, in fact, take a whole-of-society approach to look into egregious cases (of) unjustified price increase".

At the same time, she noted that businesses are facing cost pressures. Ms Low said the Ministry of Trade and Industry "will spare no effort to support those sectors".

"In general, our businesses are honest and transparent in their pricing", and they should continue to be so, said Ms Low. The committee's role is to strengthen transparency in pricing to enable free market competition to function as it should, she added.

It will use the Consumer Price Index to keep a close watch on the prices of essential goods and services, she said.

Ms Low noted that the committee received about 200 pieces of feedback from the public between 2007 and 2009. About 90 per cent of them were related to the F&B and retail sectors.

Members of the committee said they would look out for consumers' interests.

Mr Hong Poh Hin, vice-chairman of the Foochow Coffee Restaurant and Bar Merchants Association representing more than 400 coffee shops, said businesses can adjust their prices, but they have to be transparent about it.

Consumers Association of Singapore president and Radin Mas MP Melvin Yong said: "We are mindful that some businesses may take this opportunity to raise prices without justification. We must therefore send a strong signal that profiteering and unjustified price increases cannot be tolerated."

Consumers like administrative manager Siti Ali, 40, welcomed the committee's efforts, saying the committee can be "a gatekeeper to strike a balance between understanding the needs of consumers and businesses".

Members of the public can report unjustified price hikes that cite the GST at www.cap.gov.sg from April 1. They can also call a hotline number or go to community clubs.

Apart from Ms Low, Mr Hong and Mr Yong, the other members of CAP are: Former Nominated MP R. Dhinakaran, president of the Singapore Retailers Association; Mr Andrew Kwan, president of the Restaurant Association of Singapore; Mr Lam Yi Young, chief executive officer of the Singapore Business Federation; Madam Amatul Jameel Suhani, chairman of the People's Association Malay Activity Executive Committees Council; Mr David Tan, president of the Singapore Food Manufacturers' Association; Mr Yeo Hiang Meng, president of the Federation of Merchants' Associations; Non-Constituency MP Hazel Poa; Mr Lim Hock Chee, CEO of Sheng Siong Group; Mr Loh Wee Lee, CEO of Lazada Singapore; and Mr Seah Kian Peng, group CEO of FairPrice Group and an MP for Marine Parade GRC.