<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Govt doing all it can to tackle crisis, says PM
</TR><!-- headline one : end --><TR>In CNY message, he points to unprecedented move to tap reserves </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Li Xueying, Political Correspondent
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PM Lee says Singapore can ride out the storm, but the people must brace themselves for a challenging year. -- ST FILE PHOTO
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->By taking the unprecedented step of unlocking Singapore's reserves, the Government is sending out this clear signal: It intends 'to respond to the crisis decisively and with all means at our disposal', said Prime Minister Lee Hsien Loong.
And to underscore its severity, he warns that the crisis is one that could see the economy contract for 'more months, and perhaps for the whole year'.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story -->RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
PM Lee's Chinese New Year message
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</TD></TR></TBODY></TABLE>His remarks in his traditional Chinese New Year message are his first on the Budget since Finance Minister Tharman Shanmugaratnam unveiled it last Thursday.
The Prime Minister highlighted the enormity of the decision to ask President S R Nathan for approval to use the reserves. Mr Nathan has given his in-principle approval.
Said Mr Lee: 'This is a major decision, which the Government has thought over very carefully.'
Singapore's reserves, he said, are a key asset for the country. 'We have built them up patiently over the years so that in a critical situation, we have the wherewithal to mount a vigorous response. The present crisis is clearly such a moment.'
And when it is over, Singapore must go back to nurturing its reserves, he stressed.
That Singapore can tap on them now - unlike most other countries - is due to its prudent habit of saving and investing its surpluses over many decades, he said.
=> care to reveal how much his hubby lost?
'We must therefore maintain these critical instincts. When things return to normal, we must resume our habit of putting something aside in the reserves whenever we can. Then when we next face a serious crisis, which is bound to happen one day, we can again meet it with confidence.'
In the message released yesterday, the PM devoted a substantial part to the Budget and the economy - an indication of how pressing the situation is.
'The Year of the Rat ended on a difficult note for Singapore,' he noted. The world is in the grip of a recession, with a stream of worsening news from the United States, Asia and Europe.
'With all our major markets in decline, our exports are falling sharply.'
The result: Singapore has had to revise its growth estimate for 2009 down to between minus 5 per cent and minus 2 per cent - the worst economic outlook since independence.
To tackle the crisis, the Government had put together the $20.5 billion Resilience Package in this year's Budget. Its two special growth boosters are the $4.5 billion Jobs Credit Scheme to help subsidise companies' wage costs and the $5.8 billion Special Risk-Sharing Initiative to help ensure their access to financing. They will be funded by the reserves.
'These measures will help businesses to stay afloat so that they can continue to provide jobs for Singaporeans.'
Additional support is also given to households, with more for low- and middle-income families, he added. 'Hopefully, with some government help, Singaporeans can continue to provide for themselves and their families.'
Mr Lee said that while these measures will mitigate the downturn, they 'will not instantly lift the economy from recession'.
'No government package can do that,' he said, noting that the recession is a global one. 'We must expect to see exports contract, unemployment rise, and growth remain negative for more months, and perhaps for the whole year.'
So looking ahead, Singaporeans must 'brace' themselves for a 'challenging Year of the Ox'.
'But there is no need to be despondent (ministers et al?),' he said. 'Singapore has strengths which will let us outlast this recession. We have the resources, the programmes, and the tenacity to ride the storm.'
At the same time, he also called on the community and the family to play their part in helping Singapore weather the crisis. Already, welfare organisations and grassroots bodies are giving aid to more needy Singaporeans.
The Government will support such community efforts, he promised. He urged Singaporeans to continue giving to worthy causes. 'With many helping hands, every Singaporean can survive the storm,' he said.
'Meanwhile, let us be grateful for what we have in Singapore - a stable society, a sound economy, and a reputation which draws talent, investment and jobs to our shores.
'We must continue building on these strengths so that we will emerge stronger from this crisis, ready to thrive in what will be a very different and more challenging world.' He ended his message by wishing all Singaporeans a Happy Chinese New Year.
</TR><!-- headline one : end --><TR>In CNY message, he points to unprecedented move to tap reserves </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Li Xueying, Political Correspondent
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
PM Lee says Singapore can ride out the storm, but the people must brace themselves for a challenging year. -- ST FILE PHOTO
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->By taking the unprecedented step of unlocking Singapore's reserves, the Government is sending out this clear signal: It intends 'to respond to the crisis decisively and with all means at our disposal', said Prime Minister Lee Hsien Loong.
And to underscore its severity, he warns that the crisis is one that could see the economy contract for 'more months, and perhaps for the whole year'.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story -->RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
<!-- Photo Gallery -->
</TD></TR></TBODY></TABLE>His remarks in his traditional Chinese New Year message are his first on the Budget since Finance Minister Tharman Shanmugaratnam unveiled it last Thursday.
The Prime Minister highlighted the enormity of the decision to ask President S R Nathan for approval to use the reserves. Mr Nathan has given his in-principle approval.
Said Mr Lee: 'This is a major decision, which the Government has thought over very carefully.'
Singapore's reserves, he said, are a key asset for the country. 'We have built them up patiently over the years so that in a critical situation, we have the wherewithal to mount a vigorous response. The present crisis is clearly such a moment.'
And when it is over, Singapore must go back to nurturing its reserves, he stressed.
That Singapore can tap on them now - unlike most other countries - is due to its prudent habit of saving and investing its surpluses over many decades, he said.
=> care to reveal how much his hubby lost?
'We must therefore maintain these critical instincts. When things return to normal, we must resume our habit of putting something aside in the reserves whenever we can. Then when we next face a serious crisis, which is bound to happen one day, we can again meet it with confidence.'
In the message released yesterday, the PM devoted a substantial part to the Budget and the economy - an indication of how pressing the situation is.
'The Year of the Rat ended on a difficult note for Singapore,' he noted. The world is in the grip of a recession, with a stream of worsening news from the United States, Asia and Europe.
'With all our major markets in decline, our exports are falling sharply.'
The result: Singapore has had to revise its growth estimate for 2009 down to between minus 5 per cent and minus 2 per cent - the worst economic outlook since independence.
To tackle the crisis, the Government had put together the $20.5 billion Resilience Package in this year's Budget. Its two special growth boosters are the $4.5 billion Jobs Credit Scheme to help subsidise companies' wage costs and the $5.8 billion Special Risk-Sharing Initiative to help ensure their access to financing. They will be funded by the reserves.
'These measures will help businesses to stay afloat so that they can continue to provide jobs for Singaporeans.'
Additional support is also given to households, with more for low- and middle-income families, he added. 'Hopefully, with some government help, Singaporeans can continue to provide for themselves and their families.'
Mr Lee said that while these measures will mitigate the downturn, they 'will not instantly lift the economy from recession'.
'No government package can do that,' he said, noting that the recession is a global one. 'We must expect to see exports contract, unemployment rise, and growth remain negative for more months, and perhaps for the whole year.'
So looking ahead, Singaporeans must 'brace' themselves for a 'challenging Year of the Ox'.
'But there is no need to be despondent (ministers et al?),' he said. 'Singapore has strengths which will let us outlast this recession. We have the resources, the programmes, and the tenacity to ride the storm.'
At the same time, he also called on the community and the family to play their part in helping Singapore weather the crisis. Already, welfare organisations and grassroots bodies are giving aid to more needy Singaporeans.
The Government will support such community efforts, he promised. He urged Singaporeans to continue giving to worthy causes. 'With many helping hands, every Singaporean can survive the storm,' he said.
'Meanwhile, let us be grateful for what we have in Singapore - a stable society, a sound economy, and a reputation which draws talent, investment and jobs to our shores.
'We must continue building on these strengths so that we will emerge stronger from this crisis, ready to thrive in what will be a very different and more challenging world.' He ended his message by wishing all Singaporeans a Happy Chinese New Year.
