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.
1 Comment
Although these are facts and figures, I suggest we don’t keep broadcasting bad news. What we believe becomes our own reality. Yes, I 1000% agree that the economy is bad. Therefore we must be positive to win this game. Constant reading of bad news makes us negative. And we will die first before the market dies. “Don’t think of the color blue and u will think of blue” theory applies.
Admin, I reccomend that you write some good news. Maybe those people who got retrenched and started his own business, and made more $$ instead. Those who made $$ during bear market. Those who changed career and became much more happier!!
Cheers!!!