I met someone from Saudi Arabia at a conference in Bahrain. I asked him if the economy in Saudi Arabia is booming due to the revenue from the high oil prices.
He said that the cost of living has increased sharply. Many ordinary people are finding it difficult to cope, as their wages have not gone up to the same extent as the cost of living.
I looks like the problem is the same in most countries, namely, the inflation is too high this year.
Hi Mr. Tan,
ReplyDeleteI can feel it here in NZ too, high inflation and rising cost of living is probably everywhere. The locals here are not very happy with having to pay export prices for the local produce. Butter prices have risen by 100% in the past 1.5 years or so, and milk is now referred to as the "white gold". :)
Oil rich countries may have free education, health care and no income tax.
ReplyDeleteNZ has high deposit interest rates of 7 to 8% and social security.
Malaysia has subsidized petrol and a much lower cost base than Singapore. Besides there is land to grow own food. And their EPF (similar to our CPF) pay much higher interest rates.
In developed countries, if the city area is expensive, move to the suburbs or to another state. The price difference can be great. And also social security benefits.
Are the above options available for Singapore? You will be homeless and starve if you have no money and income. You can't even depend on the one off govt or welfare handouts for even subsistence living.
So although there is inflation, the impact on each country may be different due to above so it may not be fair to generalise without the whole picture.