PREPARE for a 'rougher ride' as the economy slows, but the Government will ensure that low income Singaporeans can cope with the bumps.
Minister Mentor Lee Kuan Yew gave this assurance on Wednesday night, pointing out that the Government is paying close attention to the plight of the needy.
Minister Mentor Lee Kuan Yew gave this assurance on Thursday night, pointing out that the Government is paying close attention to the plight of the needy. -- ST PHOTO'We cannot protect our people completely from the high oil and food prices. But we will make sure that they can manage,' he said at the annual National Day dinner at his Tanjong Pagar constituency.
He referred to the slew of relief measures this year, costing the Government over $3 billion, with many of them targeted at low wage workers such as the Workfare Supplement Scheme.
His message comes amid a backdrop of global economic meltdown, with Singapore starting to feel the heat.
The Government had recently revised this year's growth forecast, narrowing the range to between 4 and 5 per cent, from the earlier projection of 4 to 6 per cent.
'We have to be ready for rougher times ahead,' said Mr Lee.
'Singapore could grow at 5 to 6 per cent, even 7 to 8 per cent in some years, if there is no long recession in the United States and European Union.'
'If they go into recession, then we may grow less at 3 to 5 per cent.'
But MM Lee believes it looks 'increasingly likely' that the US credit crunch will cause a downturn when the new US President takes over in January.
This, he added, may lead to a prolonged slowdown in the US that will affect Europe, Japan and Asean.
The result: Job losses.
'There will be retrenchments in those industries whose exports to America and Europe are affected,' he warned.
But foreign workers will take the brunt of the retrenchments, 'saving many Singaporeans their jobs'.
The dark clouds looming over the horizon, however, did not dampen Mr Lee's optimism over the future.
His confidence stems from the 'shock absorbers' that Singapore has to buffer these setbacks.
'There are massive investments with long term implementation periods. There is a construction boom,' he said.
'When the buildings are complete, there will be demand for workers from the integrated resorts, new plants producing solar panels, petrochemicals and pharmaceuticals.'
These new demands for labour, he added, will soften the impact of retrenchments.
Singapore and Southeast Asia also have two new growth engines: China and India, he added.
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