SINGAPORE is likely to be the Asian economy that is worst affected by a United States recession, said economists. This is because it is one of the most open economies and has a large manufacturing sector.
I remember MM Lee assured us that its the first time in history that Asia & SGP will not be affected by the US recession becos there is India & China. Now China & India are also suffering from the melt down.
I don't think he use the word "WILL NOT". I believe he meant they will soften the impact on Asia which is true. This report is the very reason why we need a large reserves which we can tap on in times like this to boost our economy through fiscal policy.
The froth generated before the meltdown far surpass the amount of fiscal stimulus pledged by all the countries. I think the stimulus can at best maintain anemic growth for most countries for a long time, maybe 3-5 years before any real decent growth sets in.
I say don't worry. Our leaders asked for higher pay, so we can be assured that they can do something unique and not allow our economy to go badly south. Since the impact of the economic crisis is international, we can't expect our economy to remain unaffected. But, since our leaders are paid higher than many leaders of other developed countries, they should be able to perform better than many leaders of developed countries, creating buffers for Singapore, so that we will not be the worst hit.
If we become the WORST hit, then why are we paying them high salaries? If everything is beyond their control and they can't provide buffers to prevent us from being the worst hit, then we might as well pay them at the same level as other leaders of the developed world.
Hmmmm, if Singapore's fate is so closely tied to the USA, Singapore might as well apply to join as the 51st state of the USA, or as an incorporated territory so that Singaporeans can participate in US elections.
when the economy is going down,the PAP gov will say it's external factors beyond their control but when the economy is booming they spend no time in claiming credit giving themselves huge salary increments.
December 03, 2008 Wednesday, 04:21 AM
