Govt looking at helping Singaporeans overcome economic hardship

Govt looking at helping Singaporeans overcome economic hardship

By Pearl Forss,

Govt looking at helping Singaporeans overcome economic hardship

SINGAPORE: Senior Minister Goh Chok Tong said the government is looking at how it can help Singaporeans overcome temporary economic hardship next year.

Mr Goh, who was speaking at a community event on Saturday, said Singapore’s economy is expected to grow by about 3 per cent this year, but next year’s growth could be even slower.

But the senior minister believes that with Singapore’s current diversified economy and strong economic fundamentals, the country can bounce back if Singaporeans stick together.

“The government is already thinking about what it can do to help businesses and ordinary Singaporeans – in particular lower income Singaporeans – next year,” he said.

On financial products that are linked to failed investment bank Lehman Brothers, Mr Goh said the Monetary Authority of Singapore (MAS) expects financial institutions to pay attention to vulnerable investors such as retirees.

Where there are sufficient indications that the product was mis-sold, the senior minister expects the financial institutions to take full responsibility and reach a fair settlement with investors, on a case-by-case basis.

Mr Goh said: “MAS understands from the banks and financial institutions that they will try to be helpful, so they will investigate each case thoroughly and where there is any doubt, they will try and settle in favour of the investor.

“MAS is a very professional, rational institution. It doesn’t try to put pressure on people, it doesn’t make big speeches to convince people that it is doing many things.

“Behind the scene, I can tell you, MAS has been quietly working with the banks and financial institutions to find a fair solution for people who have invested in the products.”

The senior minister said everyone must view the losses in perspective – millions have lost their savings worldwide, so Singaporeans must be realistic in their expectations.

- CNA/so

Source : Channel NewsAsia - 19 Oct 2008

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R&D spending reaches record high

R&D spending reaches record high

Govt is ‘fully committed’ to investment as it is a key driver of economy for the future, says PM

By Liaw Wy-Cin

FUNDING from the Government for scientific research and development, which helped push it to a record 2.6 per cent of gross domestic product last year, will not be cut in the current economic downturn, Prime Minister Lee Hsien Loong promised yesterday.

He said the Government remained ‘fully committed’ to its investment in R&D as a vital driver of the economy for the future.

Speaking at the opening of science and technology research centre Fusionopolis, Mr Lee said: ‘Our R&D programme takes a longer-term perspective. It will proceed despite these immediate ups and downs. Its funding will not be affected.’

R&D spending here ballooned by 26 per cent, from $5 billion in 2006 to $6.33 billion last year, its largest annual increase.

One-third of this came from the Government.

‘Our steady commitment will continue to draw researchers to set up and root their research activities in Singapore and give investors the confidence to establish high-tech industries and corporate R&D centres here,’ said Mr Lee.

Spending is well on track to hit its target of 3 per cent of GDP by 2010, he added, and the private sector’s huge share is a good sign.

‘This balance assures us that we are on the right track and that the R&D being done in Singapore is market-oriented and productive,’ he told the audience of about 400 scientists and industry players.

Fusionopolis, the second major research hub to be built in five years, will group together institutes in the physical sciences, engineering and digital technology.

It is the high-tech mirror to its sister in the biomedical sciences, Biopolis, 600m away on North Buona Vista Road.

Biopolis, conceived as a fertile breeding-ground for research, now boasts six research institutes and 10 companies doing research in stem cells, infectious diseases and bioengineering, among others.

The national Agency for Science, Technology and Research (A*Star), which leads science research here, has the same high hopes for Fusionopolis.

Said its chairman, Mr Lim Chuan Poh: ‘It could happen over lunch or a chance encounter in the lift, or even at formal meetings. There are many opportunities for ideas to spark when scientists talk to each other.’

Though the scale of Singapore’s R&D effort is new, R&D itself has played an important role in Singapore’s industrial development, Mr Lee said.

As an example, work from the Data Storage Institute, which has now moved to Fusionopolis, helped propel Singapore’s disk drive industry.

More than 20 years ago, Singapore had a 45 per cent share of the global hard disk drive market.

Today, it has a close to 80 per cent share of the world’s market for high-end enterprise disk drives, thanks to the R&D investments in the field.

So far, 13 companies have joined three research institutes at Fusionopolis, said PM Lee.

Another advanced digital sciences centre will be set up in January by the University of Illinois at Urbana-Champaign, partnering with A*Star.

The Media Development Authority is also providing $12 million in funding to 15 projects in interactive digital media R&D.

‘Our public research institutions are the bridge that translates public R&D into useful outcomes for the economy and society,’ noted Mr Lee.

They have done this by intertwining their research programmes with the needs of industry, providing companies access to new knowledge and competitive innovative technologies, he said.

To help companies bring their ideas to market, or spark interest in potential investors, the Standards, Productivity and Innovation Board and the Economic Development Board will also set up shop in Fusionopolis.

Along with Biopolis, it brings together in one location - one-north - the major research areas that Singapore has earmarked for higher-value economic growth, to complement its manufacturing sector.

The number of researchers in Singapore last year hit a record of 27,301, up from 25,033 in 2006. About 60 per cent are in the private sector.

It is the meshing of high-quality research and industrial links in one location that is a selling point of Fusionopolis, say its tenants.

Said the vice-chancellor for research at the University of Illinois at Urbana-Champaign, Mr Ravi Iyer: ‘It is a great advantage to have companies who are interested in our work also located in Fusionopolis. Plus, we have access to A*Star’s scientists and research facilities.’

LONG-TERM VIEW
‘The current global financial turmoil has clouded Singapore’s economic outlook. Our economy has gone into recession. We must expect slower growth and greater uncertainties at least over the next year, maybe longer. But our R&D programme takes a longer-term perspective. It will proceed despite these immediate ups and downs. Its funding will not be affected.’

PM Lee, on the prospects for R&D funding

Source : Straits Times - 19 Oct 2008

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Govt ready to ease pain of crisis fallout

Govt ready to ease pain of crisis fallout

Possible recession is a worry but S’pore will emerge stronger: SM

By Kor Kian Beng

‘We must do this in a way which not only eases the pain, but which also positions us to take advantage of the recovery later on,’ Mr Goh said. — ST PHOTO: CAROLINE CHIA

Bad times may lie ahead but the Government is ready to help, said Senior Minister Goh Chok Tong last night.
He sent out this message of hope even as he gave a realistic sense of the possible fallout from the global financial crisis.

He gave three reasons for why Singapore, as it prepares for a global downturn, can be confident of emerging from the crisis stronger than ever.

First, the Government is ready to provide help if bad times come, he said at a Marine Parade GRC Hari Raya Aidilfitri celebration.

In fact, Prime Minister Lee Hsien Loong has asked Finance Minister Tharman Shanmugaratnam to start thinking of ways to help Singaporeans, particularly lower-income groups, and companies in the Budget next year, he said.

‘We must do this in a way which not only eases the pain, but which also positions us to take advantage of the recovery later on,’ Mr Goh said.

Second, he reminded Singaporeans of past crises they had overcome - the 1997 Asian financial crisis and the 2003 Sars outbreak.

‘Those were the days when it seemed like the crisis would never end, but it did, and we bounced back,’ he said, and urged the nation to ’stick together’ to tackle the financial upheaval if it is prolonged.

Third, Singaporeans can take heart that the Republic’s economic fundamentals are strong. The nation will still draw ‘a healthy pipeline’ of investments through the Economic Development Board.

He cited a recent report by OCBC Bank that rated Singapore as the best-equipped among 50 global economies to overcome a serious economic crisis.

The Singapore economy is also more diversified compared to 10 years ago, he said, adding that the heavy national investment in education will help Singaporeans survive the downturn.

‘With education, skills and a determination to work hard and succeed, we need never fear the future,’ he said. ‘We can survive the temporary difficulties.’

The bigger worry for the Government is whether there will be a global recession, he said. There are signs that this is impending, with a plunge in stock prices worldwide as one indication.

He noted that Singapore’s stock market has fallen by half - wiping $318billion off its value - compared to a record high last year. The sharp dip in wealth could lead to a slump in global consumption.

So, while Singapore is expected to still grow by about 3per cent this year, he said next year’s growth could be slower.

Earlier this month, the Trade and Industry Ministry lowered its full-year growth forecast to ‘around 3per cent’ - from 4to 5per cent previously.

Now, the stability of the financial system is the Government’s top priority, said Mr Goh, who chairs the Monetary Authority of Singapore (MAS).

That was why MAS moved last Thursday to guarantee the bank deposits of individual and corporates until the end of 2010, he explained. This followed similar steps taken in recent weeks by several countries and Singapore’s financial rival, Hong Kong.

Yesterday morning, at an event at which he received an honorary doctorate from South Africa’s University of Pretoria, Mr Goh said the financial crisis underscored the need for the role of government.

Giving examples, he said Western governments had had to intervene in the free-market system by recapitalising commercial and investment banks and providing guarantees for bank deposits.

Noting that the role of government was earlier predicted to diminish in a globalised world, he said: ‘I would argue that the role of the government remains critical, and strong political leadership is more indispensable than before.’

Source : Straits Times - 19 Oct 2008

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