BASIC FOODSTUFFS (Compilation of price-list)

[Mr Speaker in the Chair]

Inche Abdul Aziz Karim asked the Minister of Finance whether the Department of Statistic will compile a list of prices of basic foodstuffs in the main markets in Singapore and make such information available to the public daily through radio television and the press to keep the people informed of price trends so that they may avoid being overcharged by unscrupulous vendors.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim) (for the Minister for Finance): Mr Speaker, Sir, at present, retail prices for a wide range of basic foodstuffs, perishable and non-perishable, are collected regularly by the Department of Statistics for the purpose of the compilation of the Consumer Price Index. The items included for regular pricing were selected based on a Household Expenditure Survey conducted by the Statistics Department and generally reflect the consumption pattern of the average household. For perishable foodstuffs, e.g., meat, poultry, fish, fruits and vegetables, prices are collected weekly from market-stalls in eight markets in the Republic. In the case of non-perishable foodstuffs where the prices are normally not subject to frequent daily fluctuations, e.g., rice and sundry provisions, prices are collected twice a month from retail shops distributed in the main shopping centres. A total of about 140 items are covered in this regular price collection, and the data are primarily used for the compilation of the Consumer Price Index. Monthly average prices of the major items are also compiled and published in the Monthly Digest of Statistics. Occasional revisions to the list of items have been made as and when necessary, and the Department intends to undertake a detailed study of the existing retail price collection system and the compilation of the Consumer Price Index with a view to assessing the need for any major changes.

The data collected for the compilation of the retail price index are not suitable for use as a daily guide to the consuming public for the following reasons:

(1) the data are not collected daily;

(2) prices tend to vary according to locality, from market to market and in different stalls in the same market;

(3) prices depend on the quality of items, the buyer/seller relationship and the bargaining capacity of the customer.

The retail price index is a weighted average of prices of goods and services entering into the consumption pattern of the average working-class household. In compiling the index, specific care is taken to exclude the influence on prices arising from the variations in locality, quality of product, buyer/seller relationship and the bargaining capacity of customers, which are important factors directly affecting the personal shopper in the market.

These considerations will still obtain even if the data are collected daily and will therefore not provide the kind of guidance to the consuming public that the Member for Kallang would desire.

In view of this and of the expenses that would be involved in a daily collection of data, it is considered uneconomical to employ a large number of staff and resources to undertake such an exercise.