Many years ago, Wooden cited Sg as a yacth, now it's speedboat! I'm not surprise next time Sg will becomes Sampan.
Home > Breaking News > Singapore > Story
Feb 2, 2009
S'pore a speedboat in a storm
SENIOR Minister Goh Chok Tong gave the answer to a question on the minds of many: Why is Singapore prone to recessions despite being economically sound?
The reason lies in Singapore's small but open economy, which is heavily reliant on global trade.
'Our total trade is 3.5 times our gross domestic product, one of the highest in the world,' Mr Goh said yesterday at a Chinese New Year lunch in his Marine Parade constituency.
So the fall is faster and steeper when the global economy collapses, which explains why Singapore was the first in the region to slip into recession last year. It is also the reason for Singapore's bleak outlook this year, with the economy set to contract between 2 per cent and 5 per cent, while some other regional countries are forecasting growth, he added.
Likening Singapore to a small speedboat in an open sea, he said: 'When the sky is clear and the sea is calm, we can easily outrun the larger ships and tankers.
'But when the winds rise and the waves are high, we have to slow down or seek shelter in the nearest harbour.'
While docked in the harbour, it is critical to have the right attitude. 'We must not idle and wait for the storm to pass,' he noted.
'Instead, we should use the time wisely to maintain our vessel, upgrade our engines, go for training, keep ourselves fit, and conduct drills to prepare for the next race.'
This is what the Resilience Package in the $20.5 billion Budget seeks to do - by saving jobs, building new infrastructure and investing in education, he said.
In dealing with the downturn, Mr Goh described Finance Minister Tharman Shanmugaratnam and his officials as a team of doctors that has prescribed the right medication - Budget measures - for the ailing economy.
They were also fortunate to have the collective experience of older ministers to draw on, many of whom have steered Singapore through previous recessions, including Mr Goh.
Delving into history, he sought to show how the Government successfully dealt with previous economic fallouts.
In 1964, Singapore's trade fell sharply owing to political turbulence in the region and the failure to form a common market with Malaysia.
The solution: Leapfrog the region and make the world Singapore's market in an export-led industrialisation strategy, which brought strong economic growth for the next 20 years.
But the economy ran into trouble in 1985 when exports became too costly, owing to a deliberate high-wage policy to move Singapore up the value chain so that workers can earn more.
The solution: Wages were slashed, so were taxes and fees - and growth resumed.
After a decade of strong growth came a succession of economic crises, starting with the Asian financial crisis in 1997, followed by the dot.com bust, the Sept 11 terrorist attacks in 2001, and Sars in 2003.
The solution: Singapore reformed the economy by opening up the financial sector and diversifying the manufacturing base to more value-added productions.
As in the past, Singapore can survive this recession, Mr Goh said. 'If we work together and support each other, we will emerge from this stronger than before.'
For now, the Government is also looking at the United States. 'In six to nine months' time, we will know whether President Obama can turn the US economy around. When the US economy recovers, we will bounce right back...And we will bounce back to a very different Singapore.'
SUE-ANN CHIA
Home > Breaking News > Singapore > Story
Feb 2, 2009
S'pore a speedboat in a storm
SENIOR Minister Goh Chok Tong gave the answer to a question on the minds of many: Why is Singapore prone to recessions despite being economically sound?
The reason lies in Singapore's small but open economy, which is heavily reliant on global trade.
'Our total trade is 3.5 times our gross domestic product, one of the highest in the world,' Mr Goh said yesterday at a Chinese New Year lunch in his Marine Parade constituency.
So the fall is faster and steeper when the global economy collapses, which explains why Singapore was the first in the region to slip into recession last year. It is also the reason for Singapore's bleak outlook this year, with the economy set to contract between 2 per cent and 5 per cent, while some other regional countries are forecasting growth, he added.
Likening Singapore to a small speedboat in an open sea, he said: 'When the sky is clear and the sea is calm, we can easily outrun the larger ships and tankers.
'But when the winds rise and the waves are high, we have to slow down or seek shelter in the nearest harbour.'
While docked in the harbour, it is critical to have the right attitude. 'We must not idle and wait for the storm to pass,' he noted.
'Instead, we should use the time wisely to maintain our vessel, upgrade our engines, go for training, keep ourselves fit, and conduct drills to prepare for the next race.'
This is what the Resilience Package in the $20.5 billion Budget seeks to do - by saving jobs, building new infrastructure and investing in education, he said.
In dealing with the downturn, Mr Goh described Finance Minister Tharman Shanmugaratnam and his officials as a team of doctors that has prescribed the right medication - Budget measures - for the ailing economy.
They were also fortunate to have the collective experience of older ministers to draw on, many of whom have steered Singapore through previous recessions, including Mr Goh.
Delving into history, he sought to show how the Government successfully dealt with previous economic fallouts.
In 1964, Singapore's trade fell sharply owing to political turbulence in the region and the failure to form a common market with Malaysia.
The solution: Leapfrog the region and make the world Singapore's market in an export-led industrialisation strategy, which brought strong economic growth for the next 20 years.
But the economy ran into trouble in 1985 when exports became too costly, owing to a deliberate high-wage policy to move Singapore up the value chain so that workers can earn more.
The solution: Wages were slashed, so were taxes and fees - and growth resumed.
After a decade of strong growth came a succession of economic crises, starting with the Asian financial crisis in 1997, followed by the dot.com bust, the Sept 11 terrorist attacks in 2001, and Sars in 2003.
The solution: Singapore reformed the economy by opening up the financial sector and diversifying the manufacturing base to more value-added productions.
As in the past, Singapore can survive this recession, Mr Goh said. 'If we work together and support each other, we will emerge from this stronger than before.'
For now, the Government is also looking at the United States. 'In six to nine months' time, we will know whether President Obama can turn the US economy around. When the US economy recovers, we will bounce right back...And we will bounce back to a very different Singapore.'
SUE-ANN CHIA
