Workers Party Nominated Member of Parliament, Leon Perera, continues the opposition party’s trend of asking the relevant questions in Parliament regarding the use of Singapore’s reserves, as PAP MPs have all avoided the issue during the post Budget debate.
Mr Perera questioned the Finance Minister on whether the Reserves should always go up and up at the same rate now as was in previous years, especially since 2008, where during the global financial crisis, Singapore had to use a tiny fraction of the Reserves. For comparison, DPM Heng said that Singapore’s Reserves need not be dipped into during this period, as businesses and Singaporeans are hit hard by the COVID-19 situation.
Perera reminded those in parliament to “Let us bear in mind that during the worst global economic crisis the world had ever seen since the Great Depression of the 1930s, the global financial crisis of 2008, we drew down only a tiny fraction of the reserves.
Should our reserves always go up and up at the same rate? Can we not have reasonable conversations about how to vary the slope of reserves growth while agreeing that the principal should only be drawn down in an emergency? And how, in doing that, we can invest in our people and our companies so as to help them become the most creative, the most resilient, the most innovative and the most entrepreneurial that they can possibly be; so that they can deal with any challenges the world can throw at us with confidence?”