http://newpaper.asia1.com.sg/news/story/0,4136,190282,00.html?
Dip into nation's savings for 'crisis hongbao'?
SM Goh says Government is considering measure
By Shree Ann Mathavan
January 20, 2009
PROTECTING Singapore's reserves is a sacred cow.
Indeed, laws have been changed so an elected president can serve as a custodian of the nation's hard-earned savings.
But exceptional times might call for exceptional steps. And the Government is considering using part of the reserves to help people cope with a recession, that could be the worst in Singapore's history.
So said Senior Minister Goh Chok Tong yesterday morning, when he distributed $100 hongbaos and trolley loads of festive goodies to 41 needy residents from his Marine Parade constituency.
SM Goh noted that Prime Minister Lee Hsien Loong and Finance Minister Tharman Shanmugaratnam were considering the unprecedented measure of getting the President's approval to dip into the reserves.
He said: 'The (economic) weather is so bad and we've always said that the reserves are for a rainy day. If this is not a rainy day, I don't know what is.'
Nevertheless, dipping into the reserves would be a tough call to make.
SM Goh said: 'It's a difficult decision because once you do that, you may open the reserves for future demands, which may not justify the use of the reserves.'
The possibility of this radical move was first floated by PM Lee last Friday.
These comments will fuel expectations as Singaporeans await a crisis Budget, to be announced this Thursday in Parliament.
Political commentators and observers that The New Paper spoke to welcomed the news.
Citigroup economist Mr Kit Wei Zheng feels the time is certainly right for a decisive move by a government that tends to be fiscally conservative.
He stressed: 'We've not digging into the reserves all the time, these are exceptional circumstances.
'One needs bold moves in these times, it's a national emergency.'
Mr Choo Zheng Xi, 23, editor in chief of The Online Citizen, a socio-political website, noted that the Government had previously strongly indicated in parliament its refusal to dip into the reserves, despite calls from the Opposition to do so.
Hence, Mr Choo said: 'The fact that they have readjusted their position shows that there are very persuasive reasons involved.
'It could be because of the bad economic climate and there could also be the possibility of elections held this year.'
Political observer and former nominated member of parliament Mr Zulkifli Baharudin, 49, a businessman, thinks the drastic measure is indicative of the 'very bad' times ahead for Singaporeans.
He said: 'The fact that the Government is considering the move shows that this time is different - that this crisis is more serious than any other that we've experienced before.
'Having to use our reserves is not something to be happy about,' he said.
It means that the dreaded 'rainy day' is indeed here.
Dip into nation's savings for 'crisis hongbao'?
SM Goh says Government is considering measure
By Shree Ann Mathavan
January 20, 2009
PROTECTING Singapore's reserves is a sacred cow.
Indeed, laws have been changed so an elected president can serve as a custodian of the nation's hard-earned savings.
But exceptional times might call for exceptional steps. And the Government is considering using part of the reserves to help people cope with a recession, that could be the worst in Singapore's history.
So said Senior Minister Goh Chok Tong yesterday morning, when he distributed $100 hongbaos and trolley loads of festive goodies to 41 needy residents from his Marine Parade constituency.
SM Goh noted that Prime Minister Lee Hsien Loong and Finance Minister Tharman Shanmugaratnam were considering the unprecedented measure of getting the President's approval to dip into the reserves.
He said: 'The (economic) weather is so bad and we've always said that the reserves are for a rainy day. If this is not a rainy day, I don't know what is.'
Nevertheless, dipping into the reserves would be a tough call to make.
SM Goh said: 'It's a difficult decision because once you do that, you may open the reserves for future demands, which may not justify the use of the reserves.'
The possibility of this radical move was first floated by PM Lee last Friday.
These comments will fuel expectations as Singaporeans await a crisis Budget, to be announced this Thursday in Parliament.
Political commentators and observers that The New Paper spoke to welcomed the news.
Citigroup economist Mr Kit Wei Zheng feels the time is certainly right for a decisive move by a government that tends to be fiscally conservative.
He stressed: 'We've not digging into the reserves all the time, these are exceptional circumstances.
'One needs bold moves in these times, it's a national emergency.'
Mr Choo Zheng Xi, 23, editor in chief of The Online Citizen, a socio-political website, noted that the Government had previously strongly indicated in parliament its refusal to dip into the reserves, despite calls from the Opposition to do so.
Hence, Mr Choo said: 'The fact that they have readjusted their position shows that there are very persuasive reasons involved.
'It could be because of the bad economic climate and there could also be the possibility of elections held this year.'
Political observer and former nominated member of parliament Mr Zulkifli Baharudin, 49, a businessman, thinks the drastic measure is indicative of the 'very bad' times ahead for Singaporeans.
He said: 'The fact that the Government is considering the move shows that this time is different - that this crisis is more serious than any other that we've experienced before.
'Having to use our reserves is not something to be happy about,' he said.
It means that the dreaded 'rainy day' is indeed here.
