Raising low-income wages: external factors seen having bigger role on long-term inflation

Singapore

THE latest moves to raise wages in Singapore might come with teething pains in the short-term but the impact on inflation will still be largely dependent on external factors, say economists.

Mohamed Faiz Nagutha, Asean economist at BofA Securities, said that he does not expect the policy changes to have much impact on inflation in the near-term given the gradual and targeted approach being adopted.