Is Inflation is a greater worry for Singapore?

Inflation is greater worry for S’pore

CONSUMERS in the United States need to repair their balance sheets. They are heavily leveraged. They need to save more.

We are looking for signs of recovery for the US housing market. The reduction in property values has a wealth effect and will affect consumer spending.

We are looking at a U-shaped recovery at least over the next two years or so. We will be examining the financial reports of the players, to see if they have hit the bottom.

Longer term, when all this mess has been cleaned up, policymakers will need to look at how to tighten up regulation of the financial services industry a bit better - for example, how firms incentivise their sales force.

Over here in Singapore, we are far more insulated. Liquidity conditions haven’t deteriorated significantly here. The consumer here doesn’t have the same kind of excesses seen in the US. Our savings rate is still fairly robust by comparison. The more serious issue for Singapore is inflation, which has affected businesses and consumers alike.
LIM CHENG TECK
CEO, SINGAPORE
STANDARD CHARTERED BANK

Source : Sunday Times - 28 Apr 2008