Liang Eng Hwa on reviewing public finances to help Singaporeans

Singapore must stay fiscally responsible and sustainable while it tackles immediate and longer-term challenges faced by present-day and future generations of Singaporeans, said MP Liang Eng Hwa. It must always be in a strong financial position, as it is a tiny island state, he added. Speaking in Parliament on Wednesday (Feb 7), he pointed out that Singapore was able to fend off vicious market speculators because of its strong reserves. Singapore’s strong reserves are clearly among the top consideration why international rating agencies rated the country highly. They also enable Singapore to respond strongly during crises. In the event of disaster or natural calamities, Singapore’s strong reserves “give us hope” to recover and rebuild, he said. This is why Singapore needs to have strong reserves for contingencies because of the country’s inherent vulnerability. Mr Liang said the stable and growing Net Investment Returns Contribution (NIRC) is a critical advantage that Singapore has. Expenditure is certainly going to keep rising in the years ahead, so it makes good sense to keep growing the NIRC, he added. Mr Liang said growing the NIRC gives Singapore more fiscal space to provide more help and support to its people on an ongoing basis.