Keeping Grocery Prices Affordable for Singaporeans Given Rising Prices in Global Commodity Markets
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the measures taken by the Government to maintain affordable grocery prices amidst rising global commodity costs, as raised by Ms Nadia Ahmad Samdin. Minister for Trade and Industry Chan Chun Sing explained that Singapore mitigates these impacts by diversifying food import sources from over 170 countries and maintaining robust port connectivity to ensure competitive pricing. He highlighted collaborations with cooperatives like NTUC FairPrice for price freezes on essential house brand items and the provision of targeted ComCare Assistance for low-income households. The Minister noted that ComCare schemes are regularly reviewed to account for price fluctuations in essential items to support vulnerable families. Finally, he cautioned that global uncertainties, including transportation delays and shipping capacity shortages, may cause continued volatility in food prices.
Transcript
17 Ms Nadia Ahmad Samdin asked the Minister for Trade and Industry given the rising prices in commodities markets around the world, whether there are steps which the Government can take to ensure that prices for groceries are kept affordable for Singaporeans as far as possible.
The Minister for Trade and Industry (Mr Chan Chun Sing): Mr Speaker, Sir, in recent months, global food commodity prices have risen due to strong global demand and tight supply, with the latter caused by adverse weather conditions and restrictions on food exports by some food-producing countries. As a small and open economy that imports our essential food supplies, Singapore has been affected by these developments. To reduce the impact of rising commodity prices on groceries, we have diversified our food import sources and also provided targeted assistance to lower income households.
Today, we import food from more than 170 countries. During the height of the COVID-19 pandemic, when many countries had to deal with food shortages, Singapore was able to ensure the continued availability of most of our fresh food supplies and key essential items. Through our deliberate efforts to diversify our import sources, we were able to keep the prices of food supplies and daily necessities competitive. Such resilience in the essential supply of our food and daily necessities is made possible also because of our excellent connectivity and commitment to keep our ports and key transport operations running even at the height of the COVID-19 pandemic.
To help Singaporeans cope with the increase in prices in daily necessities, the Government continues to work with cooperatives, such NTUC FairPrice, on Community Support programmes, such as the price freeze on essential items under their house brand during the period March 2019 to December 2020.
For low-income and vulnerable families, the Ministry of Social and Family Development (MSF) continues to provide ComCare Assistance to support their daily living expenses, such as food, clothing, transportation and communications. MSF regularly reviews the ComCare schemes to ensure that the assistance given takes into account changes in the prices of essential items and feedback from stakeholders who work closely with the low-income.
We will always do our best to protect our supply of essential food commodities and keep prices stable. However, these are extraordinary times and it is likely that we will continue to see volatility in the prices of food supplies and essential products due to global uncertainties, such as delays in transportation due to border controls and shortage of shipping capacity.