THE Government's move to tap past reserves to combat Singapore's worst recession was lauded by MPs on Tuesday.

At least 18 of the 24 MPs who addressed the House touched on the issue, with many calling it bold, decisive and a watershed decision.

But several also cautioned that it might set a dangerous precedent and asked the Government to provide more information about how the historic decision was reached.

Finance Minister Tharman Shanmugaratnam announced almost a fortnight ago (June 22) that the President had given the Government in-principle approval to draw $4.9 billion from Singapore's past reserves to fund two key initiatives.

These are: the $4.5 billion Jobs Credit scheme which subsidises employers' wage bills for their local resident workers, and the $5.8 billion Special Risk-Sharing Initiative to help companies get access to credit.

While most felt the dip into the reserves was necessary, MPs such as Mr Liang Eng Hwa (Holland-Bukit Timah GRC) and Dr Lim Wee Kiak (Sembawang GRC) wanted the Government to provide clear ground rules for drawing on past reserves as a guide for future governments.

Mr Liang said the Goverment should establish 'precise and transparent principles that govern the tapping of the reserves' as it was being done for the first time.

Dr Lim wanted to know if Singapore's reserves had been reduced by the global financial meltdown and, as a result, how much of it is left after spending on these two initiatives.

'Can the Finance Minister assure the House that our goose that lays golden eggs year after year will continue to do so after this withdrawal and after this financial shock?' he asked.

Worries over whether this move might spark a reliance on past reserves to fix problems also weighed heavily on MPs' minds.