SINGAPORE is well-poised to take on the challenges of the economic downturn, said President SR Nathan on Monday.
Speaking at the Singapore Chinese Chamber of Commerce & Industry's (SCCCI) annual Lunar New Year gathering, Mr Nathan said Singaporeans should take heart from the fact that the Republic was facing the downturn in a stronger position than in previous recessions.
'Our economy is more diversified. Our banking sector, while not immuned to the global financial turmoil, remains sound,' he said.
'Companies have stronger balance sheets and are less leveraged. Households have low debt, and income has also increased across the board.'
He also added that the Government is in a 'strong fiscal position', having been prudent over the years and built up reserves during the years of growth.
'So while we cannot avoid the painful impact of a recession, we are in a good position to weather the downturn,' added Mr Nathan.
Last week, for the first time ever, the Government said it will be tapping into its past reserves to help pay for this year's Budget expenditure.
Finance Minister Tharman Shanmugaratnam said in his Budget Statement last Thursday that the Government is doing so in order to have 'full flexibility' to respond to the current economic crisis.
Mr Nathan has already given his in-principal approval for the Government to draw $4.9 billion from the reserves.
The money is to fund two measures aimed at saving jobs and keeping businesses here afloat in this downturn.
While the Govehrnment has announced a significantly expansionary Budget, with many aspects focused on helping businesses cut costs and build capability, Mr Nathan urged the business community to continue working together to tackle the challenges ahead.
'For us to do well coming out of this crisis...Industry associations and business chambers can help to reach out to many of our companies who are members,' he added.
'We need to continually emphasize to them that employees and employers have to work together to cut costs and save jobs. Companies need to do their part and take necessary steps to build capability and remain competitive so that they will emerge stronger from the downturn.'
Commending the SCCCI for playing a role in the local business circles, Mr Nathan said: 'The SCCCI has always played a leading role by rallying the business community to respond to national challenges. This partnership with the Government is even more critical during these unusually difficult times.'
Looking forward to the Lunar Year of the Ox, he reminded members and guests of its significance.
'I am told there is now a popular Chinese saying...meaning the Ox can turn around Heaven and Earth,' he said.
'Let us hope the Year of the Ox will help us take whatever hardships, as the Ox is reputed for.'
Speaking at the Singapore Chinese Chamber of Commerce & Industry's (SCCCI) annual Lunar New Year gathering, Mr Nathan said Singaporeans should take heart from the fact that the Republic was facing the downturn in a stronger position than in previous recessions.
'Our economy is more diversified. Our banking sector, while not immuned to the global financial turmoil, remains sound,' he said.
'Companies have stronger balance sheets and are less leveraged. Households have low debt, and income has also increased across the board.'
He also added that the Government is in a 'strong fiscal position', having been prudent over the years and built up reserves during the years of growth.
'So while we cannot avoid the painful impact of a recession, we are in a good position to weather the downturn,' added Mr Nathan.
Last week, for the first time ever, the Government said it will be tapping into its past reserves to help pay for this year's Budget expenditure.
Finance Minister Tharman Shanmugaratnam said in his Budget Statement last Thursday that the Government is doing so in order to have 'full flexibility' to respond to the current economic crisis.
Mr Nathan has already given his in-principal approval for the Government to draw $4.9 billion from the reserves.
The money is to fund two measures aimed at saving jobs and keeping businesses here afloat in this downturn.
While the Govehrnment has announced a significantly expansionary Budget, with many aspects focused on helping businesses cut costs and build capability, Mr Nathan urged the business community to continue working together to tackle the challenges ahead.
'For us to do well coming out of this crisis...Industry associations and business chambers can help to reach out to many of our companies who are members,' he added.
'We need to continually emphasize to them that employees and employers have to work together to cut costs and save jobs. Companies need to do their part and take necessary steps to build capability and remain competitive so that they will emerge stronger from the downturn.'
Commending the SCCCI for playing a role in the local business circles, Mr Nathan said: 'The SCCCI has always played a leading role by rallying the business community to respond to national challenges. This partnership with the Government is even more critical during these unusually difficult times.'
Looking forward to the Lunar Year of the Ox, he reminded members and guests of its significance.
'I am told there is now a popular Chinese saying...meaning the Ox can turn around Heaven and Earth,' he said.
'Let us hope the Year of the Ox will help us take whatever hardships, as the Ox is reputed for.'
