Source : The Business Times, 25 Sep 2007
The Singapore government is worried about rising consumer prices that could hit the city-state's competitiveness, but expects a spike in the property market to stabilise, Minister Mentor Lee Kuan Yew said on Tuesday.
Inflation in the city-state struck a 12-year peak in August due to higher food and transport costs, while private home prices have also soared to decade highs this year amid frenzied buying.
'That's a sudden spike in demand which we will try to meet, but I think it will stabilise,' MM Lee said at an industry conference, referring to the property market.
The government has tried to cool the property market by hiking property development charges and tightening rules on collective home sales, coming as firms such as CapitaLand and City Developments tear down older buildings for new projects.
MM Lee said the cost of living in Singapore was still competitive compared to Hong Kong, London, Tokyo and New York.
'We have to keep our costs below those who are in similar positions as we are,' he said. 'We got to watch it closely to make sure it doesn't run away and drag us to an uncompetitive situation.'
Singapore competes with Hong Kong to be the Asian headquarters for foreign firms and expatriates in the financial services industry. -- REUTERS
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