Speaking at the annual Chinese New Year gathering of the Singapore Chinese Chamber of Commerce & Industry (SCCCI) on Monday, Mr Nathan said Singaporeans should take heart from the fact that the Republic was facing the downturn in a stronger position than in previous recessions.

'Our economy is more diversified. Our banking sector, while not immune to the global financial turmoil, remains sound.

'Companies have stronger balance sheets and are less leveraged. Households have low debt, and income has also increased across the board,' said Mr Nathan.

He also added that the Singapore Government was in a 'strong fiscal position' after having been prudent over the years and building up its reserves during the years of growth.

'So while we cannot avoid the painful impact of a recession, we are in a good position to weather the downturn,' added Mr Nathan.

Last week, the Government announced a significantly expansionary Budget, with many aspects focused on helping businesses cut costs and enhance their capabilities, but Mr Nathan urged the business community to continue to work together to tackle the challenges ahead.

'We need to continually emphasise to them that employees and employers have to work together to cut costs and save jobs. Companies need to do their part and take necessary steps to build capability and remain competitive so that they will emerge stronger from the downturn,' said Mr Nathan.

'Industry associations and business chambers can help to reach out to many of our companies who are members,' he added.

Mr Nathan, has already given his in-principle approval for the Government to draw $4.9 billion from the country's reserves - the first time it is doing so.

The money will be used to fund two key measures aimed at saving jobs and keeping businesses here afloat in the current downturn.

Outgoing SCCCI president, Mr Chua Thian Poh, whose term in the 54th Council ends in March, echoed Mr Nathan's view and called for Singaporeans to 'do their part as well'.

'Besides taking advantage of this exceptional package unveiled by the Government, enterprises and individuals should also shoulder a never-give-up attitude and a spirit of togetherness,' said Mr Chua, who is also chairman and chief executive of Ho Bee Holdings.

Other businessmen The Straits Times spoke to at the event, like Mr Erman Tan, chief executive of Asia Polyurethane Manufacturing, agreed with Mr Chua.

'It is in times like these that working together as a team becomes even more important. It is now the best time to engage your staff, your partners and share openly and honestly about the challenges, even with your bankers so they they can help you overcome the challenges ahead,' said Mr Tan.

Mr Nathan also spoke of how the SCCCI could help in the crisis saying: 'The SCCCI has always played a leading role by rallying the business community to respond to national challenges.

'This partnership with the Government is even more critical during these unusually difficult times.'

Looking forward to the Chinese Year of the Ox, Mr Nathan also reminded SCCCI members and guests of its significance.

'I am told there is now a popular Chinese saying...meaning the Ox can turn around Heaven and Earth,' he said in a mixture of English and Mandarin, much to the delight of the audience.

'Let us hope the Year of the Ox will help us take whatever hardships, as the Ox is reputed for.'

franchan@sph.com.sg