NEEDY and older Singapore have received a pledge from PM Lee Hsien Loong. They will get more help to cope with the rising cost of living if finances permit.

Giving an assurance that the Government has not forgotten the retired Singaporeans living off their savings, he said on Monday: 'With the strong economy this year, Government revenues have been buoyant.

'Our finances permitting, we should have something more in the FY2008 Budget to help needy and older Singaporeans.'

Inflation hit a 25-year high of 4.2 per cent in November compared to a year ago.

The Prime Minister offered three key reasons for the rise: the July hike in the Goods and Services Tax (GST) from 5 to 7 per cent; the upward revision of annual values of Housing Board flats; and the worldwide increase in prices of food and energy.

But he also stressed that measures have been taken to cushion the impact on Singaporeans, especially the lower-income.

For the GST increase, he noted that the offset package gave poorer Singaporeans more than the extra tax they have to pay.

As for the taxman's revision of HDB flats' annual value, which raised the Consumer Price Index, he says 'in reality' it does not affect the 95 per cent of HDB families who own their homes and do not pay rent.

To ease the burden of the spike in food and energy prices, the Government is encouraging NTUC FairPrice and other supermarkets to find new supply sources and offer house brands for essential items.

But while prices have gone up, earnings have also gone north, he noted, and generally by more than inflation.

Read the full report in Tuesday's edition of The Straits Times.