Singapore - A Budget for the future

Measures will focus on sustaining Singapore's long-term competitiveness: PM

DAVOS - With the world at a critical juncture - one where policy missteps could trigger a global recession - the Republic has to remain nimble and responsive to the external environment, Prime Minister Lee Hsien Loong (picture) said yesterday.

And the coming Budget, which will be unveiled on Feb 17, will be crafted by policymakers with that in mind, even as they take into account Singapore's transition from a period of rapid growth to a more moderated pace of expansion.

Speaking to reporters at the end of a one-day working trip in Switzerland where the World Economic Forum (WEF) is being held, Mr Lee reiterated that the Budget will be focused on sustaining Singapore's long-term competitiveness, amid the transition and a sluggish global economy.

Said Mr Lee: "(The Budget) should be sustaining our long-term competitiveness, how to build on that, how to make sure that we can make this navigate this change of course."

With Europe not yet out of the woods, Mr Lee noted: "As the economy goes down, we make adjustments; as the economy picks up, we withdraw the stimuli.

"Part of the confidence comes from the long-term consistency which we have, that you are able to offer investors a competitive environment, and investors know if something happens and they need help, which is legitimate, we will be there to help them."

During his visit, Mr Lee met business leaders from German electronics firm Siemens and Japan's biggest drug-maker Takeda Pharmaceutical, both of which have operations in Singapore.

Mr Lee said Takeda Pharmaceutical CEO Yasuchika Hasegawa had told delegates during a conference session at the WEF that Singapore was one of the best places to do business for pharmaceutical firms. "To have people say this about us is far more powerful than anything we can say for ourselves," the Prime Minister said.

During a session at the WEF, Mr Lee was asked by the delegates if significant political reform can be expected in Singapore in the next five years. Mr Lee replied that the situation will continue to change and Singapore must find its own way forward.

"It is not so simple as to say if we have more political parties, we will have a perfectly functioning government," he said. "You need more openness, you need more engagement.

"At the same time, you need people to pay more attention to what is happening in their lives, and think about what is happening to their country and to us as Singaporeans. This calls for effort on both parts - Singaporeans and Government."

'Asia will help rebalance global economy'

Mr Lee also attended a dinner hosted by Mexican President Felipe Calderon for G-20 countries. Singapore was one of several non-G-20 countries invited to give inputs for the G-20 summit meeting in Mexico in June.

In a speech at the dinner, Mr Lee pointed out that Asia is not immune to developments in advanced economies. Nevertheless, Asia's growth - projected at 6.7 per cent this year - will contribute to the "rebalancing" of the global economy, he said.

At another session at the WEF, Mr Lee said China's economy may be in for a rough landing but the country will get through.

"(China) is an economy that is growing very rapidly, urbanising very rapidly. (It needs) a lot of facilities whether it is roads, hospitals, schools," he said.

China will see a change of guard this year and Mr Lee believes there will be continuity in the leadership.

"They are of a similar mould ... Very capable people, very cautious. I think there will be collective leadership, rather than any dominant single personality, which means they will act cautiously, (and) they will need some time to find their feet," he said.

Wong Siew Ying

Today Online

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