Singapore: Minister of Trade and Industry Gan Kim Yong said on Wednesday (November 3) that food prices are expected to “further rise in the coming months” as energy prices rise.
In a written answer to a question from Member Wong Wai Chung (People’s Action Party-Jurong GRC) on the impact of supply chain disruption and energy cost increases on food prices, Mr. Gan stated that energy prices contribute to global food costs.
He added that suppliers may need to adjust prices to reflect increased costs.
“Food costs are affected by many factors, including import prices, energy costs, freight, labor, and seasonal weather changes,” he said.
The minister said that the increase in domestic food prices in the past six months was mainly due to “global food prices, energy prices, supply chain bottlenecks and labor shortages.”
In the past three weeks, five electricity retailers have withdrawn from the Singapore market, citing turbulent market conditions following the surge in wholesale energy prices.
Due to the COVID-19 pandemic, the global supply chain has been under pressure, which has led to reduced manpower, ship delays and bottlenecks in major ports around the world.
Mr. Gan said that the government will assist Singaporean households in reducing the impact of rising food prices through “various methods”.
“For example, the Social Services Office of the Ministry of Social and Family Development provides ComCare assistance to low-income families to support their daily expenses,” he said.
“In times of economic uncertainty, the 2020 Budget Grocery Voucher Program has also helped less affluent Singaporeans solve their household expenditure problems.”
Last month, about 160,000 eligible Singaporeans received grocery vouchers worth S$100.
“Singapore will continue to diversify our import sources to maintain price competitiveness and increase supply elasticity,” Mr. Gan said.
