I just came back from the coffeeshop in the next block of flats. For breakfast this morning, I had bought some fried dough fritters for S$0.70 each. I had also bought a packet of fried beehoon with some longbeans and a piece of luncheon meat for S$2.10.

Not so long ago, these breakfast stuff were so much cheaper. But, then this is 2008 — the year when food stuff prices shoot up, not only in Singapore but also in countries around the world.

Here in Singapore, the price of rice has gone up. Perhaps, because of this, nowadays I do not get the usual generously heaped bowl of rice that I get from my favourite food stall in the foodcourt at Hougang Mall.

I just opened a letter from the government which tells me the total amount of money that I will be receiving this year from the GST Offset Package and Growth Dividends. These will be paid to me on 30 April, 1 July and 1 October 2008. The money is good news to everyone of us grappling with the spiralling cost of living.

Should I expect more from the government? I should not. I should take things in my stride and tighten my belt. Already I have not been taking taxi rides for the past four or five years. I also do not smoke or drink. Nor have I been visiting restaurants in recent memory. Therefore, I am at an advantage compared with many others. What more can I do to help myself cut costs? I can do without the morning visits to the coffeeshop. I can cook instant oats for breakfast instead. It’s good for health and so much cheaper.

Yesterday, on the frontpage of the New York Times, I read about the slump in consumer spending in America which has resulted in some large retail stores filing for bankruptcy protection and some others downsizing.

The NYT report said that ‘Even retailers that can avoid bankruptcy are shutting down stores to preserve cash through what could be a long economic downturn.’ Yes, that’s a good measure — preserving cash. And the advice does not only apply to retail stores and companies. It also rings true for us individuals. I say, keep the cash that you have in your hands and resist splurting on unnecessary things. We really do not need to upgrade our handphone again.

While what is happening in America is far beyond our shores, it may not be long before we and the rest of the world feel the after-effects of a drop in American demand for goods. We Singaporeans have been fortunate to have the best that life can offer. We live in far better conditions than do our neighbours. But, let us not be complacent. Let us tighten our belts and help the government help us ride out this storm which may last quite a while.