More help will be provided if inflation is higher than expected: Lawrence Wong

The Government will do more to help Singaporeans if inflation turns out to be higher than expected, Finance Minister Lawrence Wong said yesterday.

"The outlook we have projected for the economy and inflation is obviously based on certain assumptions, but who knows what will happen in the external environment," he said in response to a question during a discussion with Singaporeans on the impact of Budget 2022 broadcast on Channel 5.

He added that the Government will continue to monitor downside risk closely and should the situation worsen, it will definitely respond.

He said: "For example, if inflation were to become more persistent, or turns out higher than expected, we can take actions on the monetary front to tackle inflation, but we can also provide more help to Singaporeans to cope with rising prices."

Singapore consumer prices hit new highs in December last year, exceeding economists' forecasts and prompting the Government to say that it is reviewing its inflation forecasts for this year.

Mr Wong fielded several questions on Budget 2022 during the hour-long programme, including concerns over rising prices.

National University of Singapore's Energy Studies Institute research fellow Melissa Low asked if there will be further support for those concerned about the stress and cost of rising electricity bills and prices with inflation.

In response, Mr Wong said the Government has given significant help through the Household Support Package, GST Vouchers and enhanced Assurance Package.

He added that the Government will look into additional utility vouchers to help households cope with the expected increase in their utility bills when the carbon tax is raised.