It will be the first time in history if our reserves are tapped to save Singapore from the rapidly worsening economy.
I think it’s a major cause for concern, not because tapping the reserves sets a precedence – our government is well known for setting up safeguards to prevent future abuse – but because our economy is in such bad shape that the government is even considering such a drastic measure.
Our Prime Ministers, both past and present ones, have warned against inappropriately tapping into the reserves, reasoning that our reserves are “something which we have built up for a rainy day.”
Well, the rainy day is here.
SM Goh said in an interview earlier today that “if this is not a rainy day, I don’t know what is a rainy day.” (Channelnewsasia, 18 January)
Our trade figures have declined sharply. 30% of cranes at PSA are sitting idle and shipping freight figures are “close to zero”.
It is the
first time second time in 3 days that a senior political leader has suggested tapping into our reserves, which amounts to more than S$250 billion (see MAS) and is the 8th largest in the world ahead of Hong Kong and Germany (see ranking).
History will be made. And let’s brace ourselves for a hard landing.