Thursday, May 1, 2025

Inflation is a problem in Singapore - but its not the real problem

Inflation is bad - that I agree.  

But you probably didnt see the inflation is global. All these money printing and flooding of money by every country during covid - need to be paid for. 

Increased money supply devalues currency - leading the price increase across the board.

This is also the reason why you SHOULD PAY ATTENTION to geopolitics, especially whatever happens in USA. Decisions in USA impacts entire world - which is why I am super interested in US politics. 

In Singapore, coffee went from maybe 0.80-1.00 before covid to now, 1.20-1.40 SGD. 

But in Batam, Indonesia (just next door), the coffee price actually doubled. 

In Johor Bahru, Malaysia - it went from 1.50 ringgit to now up to 2.80 ringgit. 

Even in London, a latte was 2.30 pounds before covid; it is now selling around 4-5 pounds.


This is why, election arguments over GST and inflations are stupid. The blame inflation on PAP is also ridiculous - when Singapore actually managed the inflationary pressures way way better than almost every country in the world. 

So then again, what should we be arguing in this election then??? 

The mark of the political parties actually knowing what they are talking about - is to see if they are focusing on increasing Singapore's competitiveness vs the world, ESPECIALLY whether they have any ideas on how to engage with USA and take advantage of the geopolitical change that is sweeping the world, due to Trump's trade war against China (as USA is trying to reset the global economic order as every country is gaming the system way too much - thus the global tariff to force everyone to the negotiating table) 

If the parties are just putting blame of the inflation on PAP and use THAT ALONE as a reason to vote against PAP - then you are getting hoodwinked.

No comments: