True... Dunno what will happen tomorrow.
But aren't we suppose to spent more to keep the economy going??http://www.channelnewsasia.com/stories/singaporelocalnews/view/388129/1/.htmlSingaporeans can expect next year's budget to be expansionaryBy May Wong, Channel NewsAsia | Posted: 06 November 2008 2137 hrs
SINGAPORE: Singapore will have an expansionary budget next year to help its citizens cope with weaker economic growth.
Senior Minister Goh Chok Tong said this at the launch of Home Improvement Programme (HIP) for some flats in Marine Drive on Thursday evening.
He said Singaporeans should brace themselves for a more difficult time next year, but the government will try to generate growth and help Singaporeans face the tougher times.
Mr Goh added that although many are now concerned about costs,
Singaporeans should not save excessively.
"If all of us go into a power save mode, then the economy will really go into a recession! This is what economists called the
Paradox of Thrift. If you have sufficient savings and can afford to spend, you should continue to spend on life's little pleasures.
"Take your family to the movies, shop, dine out at restaurants and hawker centres, go for your regular foot massage, indulge yourself at a spa, take a taxi,
donate to charity and so on.
"This way, we keep the economy going. In fact, I would say when times are a little slow, you could get the best bargain," the senior minister said.
Mr Goh, who is also the chairman of the Monetary Authority of Singapore (MAS), assured those who bought structured products linked to failed US investment bank Lehman Brothers that the country's central bank is looking after their interests.
He explained that the MAS cannot announce every action that it takes because of market sensitivity.
Mr Goh said: "MAS has to be measured in its actions and statements because what it does has long-term implications on the confidence of investors in Singapore.
"To be fair and transparent to everyone, MAS has to communicate to all investors at the same time through public press statements. Hence, MAS cannot reply to any particular group of individuals or individuals who write to MAS on what it intends to do."
The senior minister pointed out that the financial crisis has caused major stock markets to plunge in value.
He said: "Standard & Poor's reported that in the month of October alone, almost US$6 trillion had been wiped off 52 stock markets worldwide – that is 36 times the GDP of Singapore last year or three times Singapore's cumulative GDP since 1960!
"In the same month, the Singapore stock market lost S$120 billion (-24%). Because of the fear of global economic slowdown, the booming commodities sector has taken a hit.
"Since reaching a high of US$147 per barrel in July, the oil price has plunged by more than half to US$61. Few countries and few investors have been spared from this unexpected global financial tsunami."
Mr Goh said MAS will try to make sure that Singapore does not get swept away in this financial tsunami. Its responsibilities include ensuring Singapore's financial system remains stable and that affected investors of troubled structured products get a fair hearing from various financial institutions.
- CNA/so
