PM says wage increase has a hidden risk

Should built-in wages grow too much and too fast, Singapore would generate a wage-price spiral that feeds inflation, said PM Lee.

According to his speech, Singaporeans should not go overboard as this may lead to making Singapore vulnerable to a global shock. This may also hurt the Singapore economy and heighten the cost of living.

The government is preparing Singapore to by making sure the people are employed with increasing wages.

However, the government also prepared short-term measures to counter inflation and the possibility of the economy being hit by a global shock.

One of the measures is managing the domestic costs, particulary the HDB prices.

Prime Minister Lee Hsien Loong also emphasized the "predicament of the sandwich group, which worries that if they do not get a BTO flat soon, their incomes may rise beyond the $8,000 ceiling."