DPM Tharman on how Singapore can brace for slow growth, recessions in world economy
Deputy Prime Minister Tharman Shanmugaratnam has braced Singaporeans for a "tough ride of slow growth and occasional recessions" in the next three to four years in the world economy, even as he spelt out four priorities for the nation to stay afloat.
Amid a global market correction fuelled by worries over the European debt crisis and a faltering United States economy, Mr Tharman - speaking at a National Day dinner at Bukit Batok yesterday - said confidence in the world economy is weaker than it was three or six months ago.
Noting the weak fundamentals of the United States economy, he said it would not take much for flagging confidence to lead to recession. "Whether there's a recession or not in the next six months, no one can tell in the US, but it is very likely that the next three to four years will be a tough ride of slow growth, and occasional recessions. So we have to accept this as the reality of the world," he said.
"Fortunately, Asia is still well. China is achieving a soft landing in its economy, South-east Asia and India are still by and large doing well, but we will all be affected by the slowdown and troubles in Europe, US and Japan."
Separately, in response to media queries on the downgrading of the US' credit rating, the Government of Singapore Investment Corporation said it has a long-term investment outlook and monitors "closely developments that affect this outlook".
Yet Mr Tharman, who is also Minister for Finance and Manpower, is optimistic for Singapore's future, if the country adheres to four priorities in its next stage of national development.
Even as the recent General Election was a symptom of the change in the political and social landscape, Mr Tharman stressed the need for Singapore to "develop a spirit of consensus and avoid divisiveness". It must "become a mature and functional democracy", as opposed to the dysfunctional ones in Europe and the US.
"The debate in the US over the debt ceiling was a symptom of that: A divided Congress unable to agree on something that really should have been fairly straightforward, because of political posturing and an unwillingness to give and take."
In particular, the discussion in both the Singapore mainstream media and online sphere must "keep the tone of openness, respect and understanding", rather than devolve into contempt or pretending there are simple solutions to all problems.
At a separate event last night, Foreign Affairs and Law Minister K Shanmugam also urged Singaporeans to stay united in the face of a worsening global economy.
Mr Tharman reminded Singaporeans that dealing with crises is part of life - the key is dealing with it decisively and in a spirit of fairness.
Citing rising living costs as an issue that has hit Singaporeans, he noted the Government's provision of assistance packages is worth five to six times the S$600 increase in the costs of a typical low-income family.
Calling for "a sense of perspective", he noted that the latest transport fare hike would result in most commuters seeing an average S$8 increase a year - a low-income household gets S$3,000 in assistance, while transport vouchers are available to those in need.
Mr Tharman also stressed the need to keep investing in the future, especially in education, transport and raising productivity. Singaporeans should also develop a spirit of volunteerism, as inclusive growth "is not just about Government helping the poor but also Singaporeans helping each other", he added.
source: TODAYonline | Hot News | 'Tough ride for 3 to 4 years'
Deputy Prime Minister Tharman Shanmugaratnam has braced Singaporeans for a "tough ride of slow growth and occasional recessions" in the next three to four years in the world economy, even as he spelt out four priorities for the nation to stay afloat.
Amid a global market correction fuelled by worries over the European debt crisis and a faltering United States economy, Mr Tharman - speaking at a National Day dinner at Bukit Batok yesterday - said confidence in the world economy is weaker than it was three or six months ago.
Noting the weak fundamentals of the United States economy, he said it would not take much for flagging confidence to lead to recession. "Whether there's a recession or not in the next six months, no one can tell in the US, but it is very likely that the next three to four years will be a tough ride of slow growth, and occasional recessions. So we have to accept this as the reality of the world," he said.
"Fortunately, Asia is still well. China is achieving a soft landing in its economy, South-east Asia and India are still by and large doing well, but we will all be affected by the slowdown and troubles in Europe, US and Japan."
Separately, in response to media queries on the downgrading of the US' credit rating, the Government of Singapore Investment Corporation said it has a long-term investment outlook and monitors "closely developments that affect this outlook".
Yet Mr Tharman, who is also Minister for Finance and Manpower, is optimistic for Singapore's future, if the country adheres to four priorities in its next stage of national development.
Even as the recent General Election was a symptom of the change in the political and social landscape, Mr Tharman stressed the need for Singapore to "develop a spirit of consensus and avoid divisiveness". It must "become a mature and functional democracy", as opposed to the dysfunctional ones in Europe and the US.
"The debate in the US over the debt ceiling was a symptom of that: A divided Congress unable to agree on something that really should have been fairly straightforward, because of political posturing and an unwillingness to give and take."
In particular, the discussion in both the Singapore mainstream media and online sphere must "keep the tone of openness, respect and understanding", rather than devolve into contempt or pretending there are simple solutions to all problems.
At a separate event last night, Foreign Affairs and Law Minister K Shanmugam also urged Singaporeans to stay united in the face of a worsening global economy.
Mr Tharman reminded Singaporeans that dealing with crises is part of life - the key is dealing with it decisively and in a spirit of fairness.
Citing rising living costs as an issue that has hit Singaporeans, he noted the Government's provision of assistance packages is worth five to six times the S$600 increase in the costs of a typical low-income family.
Calling for "a sense of perspective", he noted that the latest transport fare hike would result in most commuters seeing an average S$8 increase a year - a low-income household gets S$3,000 in assistance, while transport vouchers are available to those in need.
Mr Tharman also stressed the need to keep investing in the future, especially in education, transport and raising productivity. Singaporeans should also develop a spirit of volunteerism, as inclusive growth "is not just about Government helping the poor but also Singaporeans helping each other", he added.
source: TODAYonline | Hot News | 'Tough ride for 3 to 4 years'
