PM Lee pays tribute to Richard Hu, says Singapore owes its gratitude to late finance minister

SINGAPORE: Prime Minister Lee Hsien Loong on Saturday (Sep 9) paid tribute to the late Dr Richard Hu, saying the country owed the former finance minister its gratitude for a "lifetime of contribution and service to nation".

Dr Hu, who was Finance Minister from 1985 to 2001, died on Friday at the age of 96. He entered politics in 1984, the same year as Mr Lee. 

As a "close colleague and friend for many years", Dr Hu left a "lasting legacy in the field of finance", said Mr Lee, who listed the achievements of Dr Hu - from his time in GIC, to the Monetary Authority of Singapore (MAS) and finally as the finance chief of Singapore.

Dr Hu joined the GIC Board when it was first formed in 1981 and was its first private sector member. He would go on to lead GIC's real estate arm and "with him at the helm, the GIC real estate team made its first foray into the region, and has since grown into a global real estate institutional investor", said Mr Lee.

Mr Lee also recognised Dr Hu's time at MAS where he was both managing director and then chairman between 1983 and 1997. “Under his leadership during these formative years, MAS established its credentials for stringent supervision and regulation of the financial sector, and sound monetary policy,” Mr Lee wrote.

"The 1980s and 1990s saw episodes of volatility in international financial markets," he added. "Throughout, MAS steadfastly maintained its exchange rate-centred monetary policy, emphasising the role of a stable Singapore dollar in preserving the purchasing power of Singaporean households, and saw off a few speculative attacks on the exchange rate."

Mr Lee noted that Dr Hu also "oversaw the overhaul of our securities regulatory framework, which facilitated the subsequent development of our capital markets and laid the foundation for Singapore to become a thriving global financial hub".

On his 16 years as Finance Minister, Mr Lee said Dr Hu oversaw a period of high growth and substantial budget surpluses.

“Under his prudent management, these surpluses steadily accumulated in our reserves, to become the unique resource that Singapore can now rely upon, both for routine budget spending, and in crises with the permission of the President.”

Mr Lee also acknowledged Dr Hu’s contributions to key financial policies in Singapore, including the introduction of the goods and services tax (GST) in 1994.

"This enabled us to lower income and corporate taxes at a time when many other countries were doing the same, challenging our international competitiveness," said Mr Lee.

“It also created a resilient source of revenue which became increasingly important as the government's spending needs grew.”

Mr Lee added that Dr Hu “did not just push through the GST”, but also introduced a comprehensive package of support and offset to help businesses and households cope.

“This was the model for many subsequent assistance packages from the government that have benefitted generations of Singaporeans,” he said.

Current and former finance ministers Lawrence Wong and Heng Swee Keat also paid tribute to Dr Hu. 

"He stewarded our finances well, and provided a steady hand to steer our economy through the 1997 Asian Financial Crisis," Mr Wong, who is also the Deputy Prime Minister, said on Friday.

Mr Heng, currently Deputy Prime Minister and Coordinating Minister for Economic Policies, lauded Dr Hu's "wisdom and foresight", describing how GST "created a more resilient tax base for Singapore and boosted our international competitiveness".

"Dr Hu played an instrumental role in transforming Singapore into a leading financial hub through an overhaul of our financial and banking sectors," he said, adding that his contributions to Singapore will leave a "lasting imprint". 

Offering his condolences to Dr Hu's family, Mr Lee said he would be deeply missed. 

“I will always warmly remember his wise counsel, strong sense of stewardship, and deep concern for Singaporeans.