Right moves for Singapore in Budget

Annually, the Finance Minister has continued making the right moves for Singapore in the Budget.

Over the past 20 years and two financial crises, people have come to realise the importance of having strong reserves.

In 1997, during the Asian Financial Crisis, South Korea had to rely on an International Monetary Fund bailout, but Singapore only dipped into a short recession and recovered quickly.

Again, during the subprime mortgage crisis from 2007 to 2010, many developed nations in the world fell into recession.

Yet, Singapore marked record growth in 2010, with a 14.7 per cent gross domestic product growth that year.

Over the last 10 years, Singapore's net investment returns contribution has more than doubled from $7 billion in FY2009 to an estimated $15.9 billion in FY2018.

Kudos to GIC, the Monetary Authority of Singapore and Temasek Holdings for managing the fund well. Without a prudent Budget to build up our strong reserves, Singapore would be totally different today.

Sim Lim Onn

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A version of this article appeared in the print edition of The Straits Times on February 28, 2018, with the headline Right moves for Singapore in Budget. Subscribe