PM Lee says to assess impact of Budget before considering further measures 26 January 2009
CNA news: PM Lee says to assess impact of Budget before considering further measures
Said PM Lee: “It’s too early to say yet but we are assessing the situation constantly and very carefully so that if we need to do more, we can do more. But I think we would prefer to make a decisive move and monitor for some time, which is what we have done with this Budget, rather than do a little bit then after a little while do a little bit more, then after while, do a little bit more.
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Going forward, PM Lee said he will keep an eye on how the American and European economies do over the next six to nine months, but cautioned layoffs may still be inevitable.
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Singapore govt may dip into reserves 18 January 2009
CNA news: Singapore govt may dip into reserves
“And we’ve always said, the reserves are for a rainy day.”
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“So if this is not a rainy day, I don’t know what is a rainy day. But nevertheless it has to be justified to the President. So, that’s an issue which Finance Minister and the Prime Minister would have to deliberate quite carefully,” said Mr Goh.
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Singapore to revise 2009 GDP growth forecast 16 January 2009
CNA news: Singapore to revise 2009 growth forecast
Prime Minister Lee Hsien Loong said the situation is gloomier now than at the start of the new year when the growth estimates were announced.
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“The government’s job is not do everything which is asked for, but to look to see which are the items which are the most effective and then (see) how to raise the money to fund all the things which I need to do, either from the Budget’s revenue this year or from the reserves which we have accumulated,” he said.
“To come out from this (financial crisis), it’s a lot harder. We can’t say that we make some adjustments in Singapore and then we will be able to go back to business as usual. We’ll need to do things in Singapore, but what happens after that depends on what happens around the world,” he added.
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Read also:
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Budget 2009 – Singapore’s Limits
The Budget
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Well well, nobody says that government is superman. Then again, you are holding on to super scale pay roll every month.
Not forgetting consistently reminding us Singaporean that only PAP are the capable one or elties you call. So where is your super power now? You mean you admit that your team cannot stand the test of time?
The mighty one that cannot create a stone that he cannot carry.
“The government’s job is not do everything which is asked for, but to look to see which are the items which are the most effective and then (see) how to raise the money to fund all the things which I need to do, either from the Budget’s revenue this year or from the reserves which we have accumulated,” he said.
By the next election, believe me, they will still be looking around until the world economy starts to pick up, then they will say AH! WE FOUND IT NOW! see! this is why we are special!
The wage credit of 12% to be reimnursed every quarter (3 Months). I assume that our Govt is highly efficient that they can process the claims within 30days (1 Month). The companies will see the savings only in 4 months time. This scheme looks good on the surface but the benefits take too long to be felt. Many companies are facing cash flow problems today, 4 months is like an eternity for them. Look at the car companies like GM, without the US Govt funds it will wind up by Feb etc. Look at 100k job losses in one single day on our Chinese New Year day. These companies (giants) couldn’t wait till after we have celebrated the New Year, let alone wait 4 months. I fear to think how many companies will go down and massive job losses in Singapore.
The other thing that PM can do is to remove the rebates to the taxi companies. These taxi companies are still hugely profitable and they are always the first to raise prices during good times. The rationale of helping them do not make any sense to me…Maybe the CEOs went to parliment in Clutches (or with a Clutch Mentality) to ask for money…..Don’t waste my tax money there…sorry golden goose for killing you to make someone else richer.
Bank Loans to companies with Govt guarantee? How many of you have read that the companies who could not get loans from the banks even with this scheme. DBS chairman said do not come to us only when you are in trouble, come before that. Many companies that are facing problems because of the crisis will not have a good balance sheet to show the banks now. That is the reason why they cannot get a loan to tide over this period. These are companies that contributed to our GDP when things were well.
Sorry PM, you do not need a genius to tell you the effect of the budget will not be great because of the way it was implemented. Obviously the Finance think tank put a lot of thoughts into the Budget but they lack the real commercial/business grounding to roll out an effective budget. The few SMEs CEOs that you selected and interviewed said only niceties (at least what is printed in the ST) but does that reflect the real picture?
4) Help me PM Lee, I am on clutches. on January 28th, 2009 11.30 am
Many companies are facing cash flow problems today, 4 months is like an eternity for them
I think the budget is set to help those viable companies, not those in deep trouble. Once the companies get the 1st quarter Job Credit rebate, they can use it to pay for the future quarters.
Many raised the question on whether those big companies will share the benefits with the customers. Incidentally, On Jan 23rd, there was a report of public transport companies going to lower transport fare in February. Another report over the weekend also raised the point that the big companies need to do their part in helping their employees, customers, tenants and sharing the budget benefits.
Logically, it is best to have these companies to pass down the benefits. As many of them are GLC or closed related to the government, it is possible that they will do it. Of course, the question is how will we know if they are doing it or not.
Personally, I think that as we are suffering pay cut, it is also fair for companies like th public transport operators to face deficit in this economic downturn.
Assuming, and i believe, the Job Credit helps GLC companies as well,
i wonder how much money flows back to the garv?
6) Ah Gong on January 28th, 2009 5.48 pm
Assuming, and i believe, the Job Credit helps GLC companies as well,
i wonder how much money flows back to the garv?
The beauty of this is that depend on the political / economic situation, they have a mechanism to flow money back to gov or flow money to help the employees / customers
#5 Sarek
Thanks for your rational explanation on the wage credits.
I personally feel that this crisis happens too fast and too sudden. Role model Companies like Toyota is going into a loss position for the first time in 70 years/since founding. NEC Tokin says stagnant demand is the reason for their retrenchment and I think that basically sums up the overall situation that all companies are facing. Credit crunch causing Companies not able to pay their suppliers and couple with stagnant demand causing inventory pile-up and no production. Yes there are “viable” businesses like many GLCs making from defence, power, etc; those are internally and some artifically fed demand. The “unviable” businesses are those that depend on external global demand and subjected to the market forces. Suppose we do not help those companies timely,who will be left at the end of the year are companies that live off internal demands which are artificially created. The companies that produces exports are gone or would have moved to lower costs locations. Once our economy goes into a prolong slump and Gov has no money to keep these internal demands going; they will have no choice but even to tighten that part of the budget. Who then will be viable businesses?
I personally feel the Jobs Credit scheme is a waste of taxpayers’ money. Owners of profitable companies are just going to say “thank you very much”; it is free money for them. Companies that had planned to retrench workers are still going to do so, with or without job credits. Companies that had planned to reduce employee salaries are also going to go ahead with the plan to cut pay.
It might only make some dfference in the case of struggling companies; the job credit might give them a temporary lifeline.
But is it a good idea to spend so much money just to make a real difference in a small number of cases?
8) Help me PM Lee, I am on clutches. on January 29th, 2009 8.43 am
The “unviable” businesses are those that depend on external global demand and subjected to the market forces.
You divide viable and non-viable businesses along the internal demand and external demand line. I think it is not that simple. It is true that those depend on external demand are likely to face challenge and only the best and strongest will survive. There will be drop in internal demand and companies depending on internal demand will suffer also. In any economic downturn like this, it is a tough call to decide which companies are worth saving.
If you believe there is a prolong slump, then how to preserve those weak companies. It might come to the point we can just help the strongest to survive, preserve the resources to restart the economy when the external markets start to pick up.
‘we’ – who are ‘we’ ?
“us” – when can we be ‘we’ ? – all problems will be solved then.
talk & talk ……….that is all “us” gets .
I say PAP is using a finance crisis solution to solve great depression problem. Nothing had change compared to the last. Well, let’s see how the monkeys fly the rockets to the moon.
With luck, all these monkeys might explode along with the rocket. Then we will have a firework to watch.
real or not?
FYI
Worst yet to come: Tharman
http://www.todayonline.com/articles/299482.asp
CapitaLand: Every dollar saved in property tax will go to tenants
http://www.todayonline.com/articles/299471.asp
Operator’s cabbies get early rebates,but fare surcharge cut option yet tobe discussed
http://www.todayonline.com/articles/299473.asp
The job credits targets the low wage evidently, which should be a good thing.
However, these workers, especially in the electronics sector are in direct competition with China where the big companies are shifting to. 12% reduction in pay is nothing compared to the low wages in China.
So, the likelihood of them leaving Singapore or retrench heavily is very high.
If that does happen, the workers will end up with no job and having to look for one in these difficult times.
How would the job credit help
There is nothing they could do to help these workers except pay them directly which they claimed they will not do.
The government would end up not having to pay the full amount that they projected but having the appearance of having spent big on those workers.
Very good acting.
#15
Well mon, it is well known government like to come out with policy that seems to help but in actual fact do nothing. I personally call it can see cannot touch policy. Like the baby bonus for second child, put in 6000 and government will match that 6k into your account. In the first place, money would be the least concern for couple who can afford the 6k. If these people don’t want to have children, what would the 6k do?
And wait…. For the middle class, you want them to put in the 6k and then you cannot touch them. LOL, Chinese has a saying, can help please help, if not don’t give more problem. They elites really know how to calculate alright, they will always set aside some term and conditions where majority will not be able to reach that’s all.
But don’t worry, they will not get the fall if this wage credit scheme failed, Saturday newspaper had just direct the few scap goats to take the blame. They are the so called creative few young people who came out with this idea. shitty times and Today Saturday articles.
When it is time to be creative during the good time, they PAP just use reason like it is not practical, at time like this, they choose the word “creative” for their so called solution for this potential great depression. Ignoring the fact that practically many families will depend on their right move in making this depression easier.
They simply roll the dices and see BIG or SMALL. So this is what are mandated government can do. Thanks but no thanks.
aiyoyo
need ELITEs to do more than the way they think of get tax/$ from commoners,
and has to be fast also.
times are so bad nowadays.
aiyoyo