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SINGAPORE: As Singaporeans brace themselves for a difficult year, a strong response to the global recession will be needed in the upcoming Budget.
This could involve dipping into the carefully-guarded reserves of the country, according to Senior Minister Goh Chok Tong.
"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. So, it's an issue that the Prime Minister is thinking over very carefully," he said.
But Mr Goh stressed that such a move is intended for exceptional times.
"And we've always said, the reserves are for a rainy day. So if this is not a rainy day, I don't know what is a rainy day. But nevertheless it has to be justified to the President. So, that's an issue which Finance Minister and the Prime Minister would have to deliberate quite carefully," said Mr Goh.
When asked what this sum could amount to, Mr Goh's reply was that it depends on the measures that would justify the use of the reserves.
Citing Singapore's latest trade figures which declined sharply, he said that top on the government's priority is to help businesses cut cost.
Mr Goh also noticed that 30 per cent of the cranes at PSA are sitting idle, with shipping freight figures close to zero.
"We must have a muscular response in the Budget. The key issue for us is how to save jobs. Of course, to have economic growth, you've got to stimulate demand. But this time it's a global recession, and it's beyond us. We can do what we can in Singapore, but it's not going to solve our economic growth problem," said the senior minister.
Mr Goh was speaking to reporters after distributing hongbaos and gifts to about 40 needy residents at his Marine Parade constituency, an annual tradition for him.
This year, the increased cash assistance of S$100 in each hongbao could not have come at a better time for some families, as Singapore's economic growth this year - which is forecast to be between minus 2 and plus 1 per cent - will be revised ahead of Thursday's Budget.
On the issue of the investigations into the failed financial products such as those linked to Lehman Brothers, Mr Goh said there are lessons learnt from the episode and more measures will be put in place.
He refused to elaborate, saying: "I would not want to go into this, because there's a question (to be) asked in Parliament (which sits on Monday)... MP will ask the question, so I let the question be answered in Parliament."
- 938LIVE/CNA/ir
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