The President and economic uncertainties

QUESTION FROM BUSINESS TIMES

"What are your thoughts on the present climate of this presidential election, taking place during great economic uncertainties in the world? How ready are you to be involved in crucial decisions that affect the economic future of Singapore?"

REPLY BY TAN KIN LIAN

The global economic and financial situation is challenging, with large government debts in the USA and several European countries and the risk of down-grading of the rating of these sovereign countries and the possible turmoil in global markets. In times of uncertainty, it is important for our reserves to be invested prudently, to avoid speculation and to invest for the long term. While the markets may be volatile, we should not be unduly worried about changes in the market values. Instead, we should focus on the long term earning yields of the assets and avoid leveraging.

I am familiar with volatile markets and economic recessions, as I have seem them happen on several occasions over the past decades. While each occasion will bring new challenges, we can rely on the underlying principles of prudence and long term perspective. I am confident of being able to handle these challenges in my role as President, should I be elected. I will also be willing to work with the Government to overcome these challenges, if there is a need to rely on the past reserves.

In using the past reserves, it is important to consider the needs of both the business sector and the people sector, as both sectors will be affected. I would like to see a balanced approach, rather than to focus on helping only the business sector.

Looking beyond the immediate challenge of a possible global crisis, we should also see how the past reserves can be used more effectively to bring down the cost of living for the people, and also to give them greater security in employment and sufficient savings for their retirement needs. This will give them more confidence to raise a family in Singapore and reverse our trend of declining fertility rate.

The Government needs to deal with these long term challenges, and, if I were the President holding the second key to the past reserves, I would be happy to be involved in finding the solutions.
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