Strengthening the currency is not a cure-all solution

Just read with interest of the views on how to lower inflation in today's newspaper. Both the government, and the Straits Times Paper(which I presume copied from the government stance) sited strengthening the currency as the way to go.

Strengthening the Singapore currency will result in an increase of expenses for all the MNCs which set up headquarters or branches here. No matter how strategically located we are, MNCs always think with their wallets, and that is especially true for listed MNCs (actually its true for all bosses). With increase of expenses, more will start to shift to lower cost countries. That would mean Hong Kong.

Inflation in my opinion, could only be mitigated by free market competition, which is what we do NOT have here. Recently, Hong Kong's MRT has reduced fares because of a merger. In Singapore, we will never have a free market competition because our "first world" government has created a big conflict of interest, Temasek.

Will any sane organization invest in a company, and vote that it should reduce fees/prices?? Temasek has a stake in DBS, SMRT and CapitalLand. So do you expect DBS to start giving us 5% savings rate or SMRT reducing fares? Or Plaza Singapura (own by CapitalLand) to start reducing rentals?? The papers have highlighted the plight of so many residential and commercial property owners on the sky-high increase of property prices here. What is the government reply? They will monitor. Monitor what?!??!? The evidence is already there that we have a shortage of residential and commercial space. Or are they monitoring Temasek?

There is a very strong conflict of interest between the welfare of the general public, and Temasek. The government is giving the perception, at least to me, that they are thinking on the $ sign, and not on the needs of the public. Market competition is designed such that the strongest will prevail. The Singapore government instead, promotes monopoly of services because they claimed that Singapore is too small.

Look at our public transport system. It's dominated by 2 big transport groups. Comfort Delgro, and SMRT. Look at the hot property market. Heard of CapitalLand? Keppel Land? Look at the Telecommunications. Singtel anyone? Look at the media. Mediacorp? SPH? Look at infrastructure. Keppel? Sembawang? Temasek has a stake in all these companies.

I am not suggesting that Temasek should divest off all these investments, but since Temasek belongs to the Singapore government, which indirectly uses Singaporeans' money to invest, something should be given back to the Singaporeans by law on a regular basis (based on a formula), like the Singapore shares given previously every year (discountinued ?!?!?!??).

With this amount of money given back to Singaporeans (must be tax free), it will increase our income and hopefully mitigate the rise of cost of living. This coupled with imports from other countries for our needs, more energy efficient usage, should keep inflation under control.

Sometimes I wonder why the perception that the government gives is to continuously keep flogging a dead horse.