PSP suggests shorter work week, rent increase guidelines to cope with economic impact of Iran war

Having a shorter work week and flexible work arrangements are among the measures proposed by the Progress Singapore Party (PSP) to help Singaporeans cope with the economic impact of the Iran war.

The Opposition party put forth these suggestions in their latest weekly newsletter published on Monday (March 16).

It noted that Singapore is "vulnerable" in the ongoing Middle East conflict and could experience inflation arising from the disruption in shipping and aviation, and surging energy costs.

"If the crisis results in prolonged inflation, we hope the Government will not rely solely on CDC vouchers and cost-of-living payments to cushion the impact," it said.

The party also called for structural measures to reduce business costs, including having national guidelines on rent increases.

To save energy, PSP said the Government could encourage work-from-home arrangements and a shorter work week, like what Thailand and the Philippines implemented at the start of March.

Over the past week, fuel companies in Singapore have been raising petrol prices almost daily.

Taxi operator ComfortDelGro said on Tuesday that it will temporarily increase fares and introduce a driver fee for app bookings to support sustainable driver earnings amidst the rising costs.

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Electricity prices in Singapore are also expected to increase in the coming months, said Minister-in-charge of Energy and Science and Technology Tan See Leng.

In a Facebook post on March 11, Dr Tan said the Republic imports energy sources, including liquefied natural gas (LNG), to generate 95 per cent of electricity.

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He assured citizens that about half of Singapore's gas is piped from the region, and LNG importers have diversified sources of imported LNG. The country also has a fuel stockpile.

"While these measures are in place to ensure Singapore has enough energy for our needs, global gas prices are indeed rising due to the conflict," he wrote.

"Households and businesses have a part to play because they can offset some of this impact by conserving electricity and adopting more energy-efficient appliances," he added.

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lim.kewei@asiaone.com