Subliminal message: If u're still jobless and hungry, it's your own fault?
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Jan 27, 2009
</TR><!-- headline one : start --><TR>A 'very decisive' Budget <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Zakir Hussain, Correspondent
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On whether the Government would have to again dip into the reserves for further stimulus, PM Lee described this as a 'hypothetical' situation, and said it was still premature to tell if it would be needed. -- ST PHOTO: EDWIN KOO
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PRIME Minister Lee Hsien Loong has described the $20.5 billion Resilience Package as a 'very decisive Budget' that aims to help see Singaporeans through the difficult economic times ahead.
'We know that things are going to be tough. And the Budget is crafted with this scenario in mind, knowing that we are going to have a tough time, and not expecting (things) suddenly to turn around just because we've had the Budget,' he said on Monday.
PM Lee was speaking to reporters after visiting the Tuas plant of pharmaceutical giant GlaxoSmithKline to distribute hongbao and thank those working on the first day of the Chinese New Year, something he has done every year.
The visit came days after the Government announced the $20.5 billion stimulus package to save jobs and cut costs as Singapore braces itself for its worst recession since independence, with the economy forecast to shrink by 2 to 5 per cent.
The Government sought and obtained in-principle approval from the President to draw $4.9 billion from the reserves to fund two special growth boosters: a Jobs Credit scheme to subsidise part of Singaporean workers' wage bills, and an initiative to help share the risks of viable businesses that get loans.
The Budget is also projected to be in deficit by $8.7 billion.
Asked whether there were further off-budget measures planned to boost the economy this year, PM Lee said it was too early to tell.
'We take it one step at a time,' he said.
'We've taken some time to put together this Budget. We had a few months since September when the American financial system started going visibly and seriously out of kilter, and we spent the last few months assessing the situation, deciding what best will fit our circumstances, what the economy needs most.'
He added that the Government would have to watch how things go in America and Europe over the next six to nine months, and said it was assessing the situation 'constantly and very carefully. So if we need to do more, we can do more'.
'But we would prefer to make a decisive move and then monitor for some time, which is what we have done with this Budget, rather than do a little bit and then after a while do a little bit more,' he explained.
'This way, there's an impact. So everybody knows where we stand.'
Noting that reactions to last Thursday's Budget included reports that some households wished they had received more help, he said that the cash they would get was 'not a small amount.'
'We've doubled the GST offsets, we've got 50 per cent more on Workfare and it all comes to $20 billion for the whole package. So let's see how things go over the next few months,' he said.
As for comments that the new Jobs Credit scheme favoured employers, PM Lee said that in helping companies to cut costs, the Government was helping workers keep their jobs.
On whether the Government would have to again dip into the reserves for further stimulus, he described this as a 'hypothetical' situation, and said it was still premature to tell if it would be needed.
Mr Lee said that the move to tap the reserves was 'a signal to Singaporeans that we are attacking this problem with all of the weapons at our disposal and I think that's a strong signal'.
'Having done this, let's give it some time before we reassess the situation.'
He also gave the reassurance that the Government has ample reserves and would use them prudently, and that he himself was glad that some Singaporeans were concerned about the move to dip into the reserves.
This showed that they understood that the reserves should not be spent frivolously, he said, adding that it should be used in critical times for major policies.
PM Lee was cheered that unionists and workers felt that with Jobs Credit and Spur - the Skills Programme for Upgrading and Resilience to foot a large share of the pay of workers undergoing training - Singapore could distinguish itself from other countries and maintain a cordial relationship between employers, unions and Government.
'So we deal with this problem as one team. You have to do that,' he said.
'It's always tough with a storm and amidst the sound and fury of a storm, but we've gone through many of these before,' he added.
'Well, this is a bigger one, but it's not our first battle. Let's fight it together.'
He also expressed his hope that employers who have been planning to lay off staff after the Chinese New Year period would think again about such a move.
Mr Lee noted that there were factories with retrenchments in the pipeline, and urged bosses to consider not just the immediate future but to take a longer-term perspective, now that the Government has announced various schemes to trim wage costs.
This includes the $4.5 billion Jobs Credit scheme, and the Spur programme that was launched in December.
'There are many other things that you can do before you come to make the decision that you have to downsize,' he said.
PM Lee noted that unions were talking to employers to deal with the problem, and that layoffs were an issue 'we can all deal with together'.
'Having said that, there will still be some retrenchments and we will see how the year goes,' he added.
'It depends very much on the overall state of the economy and the important thing is that we try and save as many jobs as possible.' Mr Lee was accompanied on the visit to GlaxoSmithKline by labour chief Lim Swee Say and key unionists.
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Jan 27, 2009
</TR><!-- headline one : start --><TR>A 'very decisive' Budget <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Zakir Hussain, Correspondent
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
On whether the Government would have to again dip into the reserves for further stimulus, PM Lee described this as a 'hypothetical' situation, and said it was still premature to tell if it would be needed. -- ST PHOTO: EDWIN KOO
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->
PRIME Minister Lee Hsien Loong has described the $20.5 billion Resilience Package as a 'very decisive Budget' that aims to help see Singaporeans through the difficult economic times ahead.
'We know that things are going to be tough. And the Budget is crafted with this scenario in mind, knowing that we are going to have a tough time, and not expecting (things) suddenly to turn around just because we've had the Budget,' he said on Monday.
PM Lee was speaking to reporters after visiting the Tuas plant of pharmaceutical giant GlaxoSmithKline to distribute hongbao and thank those working on the first day of the Chinese New Year, something he has done every year.
The visit came days after the Government announced the $20.5 billion stimulus package to save jobs and cut costs as Singapore braces itself for its worst recession since independence, with the economy forecast to shrink by 2 to 5 per cent.
The Government sought and obtained in-principle approval from the President to draw $4.9 billion from the reserves to fund two special growth boosters: a Jobs Credit scheme to subsidise part of Singaporean workers' wage bills, and an initiative to help share the risks of viable businesses that get loans.
The Budget is also projected to be in deficit by $8.7 billion.
Asked whether there were further off-budget measures planned to boost the economy this year, PM Lee said it was too early to tell.
'We take it one step at a time,' he said.
'We've taken some time to put together this Budget. We had a few months since September when the American financial system started going visibly and seriously out of kilter, and we spent the last few months assessing the situation, deciding what best will fit our circumstances, what the economy needs most.'
He added that the Government would have to watch how things go in America and Europe over the next six to nine months, and said it was assessing the situation 'constantly and very carefully. So if we need to do more, we can do more'.
'But we would prefer to make a decisive move and then monitor for some time, which is what we have done with this Budget, rather than do a little bit and then after a while do a little bit more,' he explained.
'This way, there's an impact. So everybody knows where we stand.'
Noting that reactions to last Thursday's Budget included reports that some households wished they had received more help, he said that the cash they would get was 'not a small amount.'
'We've doubled the GST offsets, we've got 50 per cent more on Workfare and it all comes to $20 billion for the whole package. So let's see how things go over the next few months,' he said.
As for comments that the new Jobs Credit scheme favoured employers, PM Lee said that in helping companies to cut costs, the Government was helping workers keep their jobs.
On whether the Government would have to again dip into the reserves for further stimulus, he described this as a 'hypothetical' situation, and said it was still premature to tell if it would be needed.
Mr Lee said that the move to tap the reserves was 'a signal to Singaporeans that we are attacking this problem with all of the weapons at our disposal and I think that's a strong signal'.
'Having done this, let's give it some time before we reassess the situation.'
He also gave the reassurance that the Government has ample reserves and would use them prudently, and that he himself was glad that some Singaporeans were concerned about the move to dip into the reserves.
This showed that they understood that the reserves should not be spent frivolously, he said, adding that it should be used in critical times for major policies.
PM Lee was cheered that unionists and workers felt that with Jobs Credit and Spur - the Skills Programme for Upgrading and Resilience to foot a large share of the pay of workers undergoing training - Singapore could distinguish itself from other countries and maintain a cordial relationship between employers, unions and Government.
'So we deal with this problem as one team. You have to do that,' he said.
'It's always tough with a storm and amidst the sound and fury of a storm, but we've gone through many of these before,' he added.
'Well, this is a bigger one, but it's not our first battle. Let's fight it together.'
He also expressed his hope that employers who have been planning to lay off staff after the Chinese New Year period would think again about such a move.
Mr Lee noted that there were factories with retrenchments in the pipeline, and urged bosses to consider not just the immediate future but to take a longer-term perspective, now that the Government has announced various schemes to trim wage costs.
This includes the $4.5 billion Jobs Credit scheme, and the Spur programme that was launched in December.
'There are many other things that you can do before you come to make the decision that you have to downsize,' he said.
PM Lee noted that unions were talking to employers to deal with the problem, and that layoffs were an issue 'we can all deal with together'.
'Having said that, there will still be some retrenchments and we will see how the year goes,' he added.
'It depends very much on the overall state of the economy and the important thing is that we try and save as many jobs as possible.' Mr Lee was accompanied on the visit to GlaxoSmithKline by labour chief Lim Swee Say and key unionists.
