Is there a reason Singapore holds reserves?
A reserve is therefore a rainy day fund, an endowment fund, and a stabilization fund.
But perhaps, it is worth reminding ourselves how fortunate we have been that, because of industrialisation and the development of physical and brain services in Singapore, we have had the foreign exchange to pay for our needs. No one has suffered starvation or malnutrition.
But it underlines the importance of staying keen and efficient. We cannot afford to slacken and become easygoing.
For once we are soft or disorganised, we will never be able to survive world crises of the kind the world is presently facing, food shortages, currency uncertainties, and if the crisis in American is prolonged, a danger of a possible downturn in international trade. Such a recession will affect the whole world.
In conclusion to Mr Lee Kuan Yew's remarks
By then, prices of basic foods like rice should go down dramatically with normal harvests.
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