In 1959, Singaยญpore won self-governing status from the British, and general elections were held. Dr Goh Keng Swee resigned as a civil servant to contest as a PAP candidate. When the PAP won, Dr Goh became Singapore’s first Finance Minister.
He soon discovered that the government was almost broke, and expected a budget deficit of $14 million that year. Dr Goh immediately introduced drastic measures to cut spending, including cutting civil service salaries. This was obviously unpopular, but Dr Goh stood firm.
When he delivered the Budget at the end of the year, he proudly declared that the government had achieved a small surplus of $1 million. He had drafted the speech personally, after secluding himself on the remote island of Raffles Lighthouse to concentrate on the task. Dr Goh set the tone for the PAP government, which ever since has steadfastly upheld budget discipline and fiscal prudence.
In his ministerial statement delivered on 5 July 2021, Finance Minister Lawrence Wong said, “๐๐ ๐๐ซ๐ ๐ฏ๐๐ซ๐ฒ ๐๐จ๐ซ๐ญ๐ฎ๐ง๐๐ญ๐ ๐ญ๐จ ๐๐ ๐ฐ๐ก๐๐ซ๐ ๐ฐ๐ ๐๐ซ๐ ๐ญ๐จ๐๐๐ฒ, ๐ญ๐ก๐๐ง๐ค๐ฌ ๐ญ๐จ ๐ญ๐ก๐ ๐๐จ๐ซ๐๐ฌ๐ข๐ ๐ก๐ญ ๐๐ง๐ ๐๐ข๐ฌ๐๐๐ฅ ๐ฉ๐ซ๐ฎ๐๐๐ง๐๐ ๐จ๐ ๐จ๐ฎ๐ซ ๐๐จ๐ซ๐๐๐๐ญ๐ก๐๐ซ๐ฌ.”
Mr Wong said that the Government will not hesitate to ‘use the full measure of our fiscal firepower to protect the lives and livelihoods of Singaporeans’. However, drawing on our past reserves is a major move that the Government will do so only in exceptional circumstances.
Here’s an excerpt of his speech:
Drawing on Past Reserves is a major move. We do so only in exceptional circumstances.
That was the case last year. Our economy shrank by 5.4% – the largest fall since independence. Our resident unemployment rate rose to nearly 5%.
At the start of this Financial Year, because we were starting out on a new term, we had to draw on Past Reserves again to finance the continuing COVID-related measures in the Budget.
Let me be clear: we will not hesitate to use the full measure of our fiscal firepower to protect the lives and livelihoods of Singaporeans.
But we also need to be careful about the state of our public finances, and ensure they are sustainable for the future.
In many countries, COVID-19 has led to massive increases in debt levels, which have not been seen since the end of the Second World War.
Not many people are paying attention to how all of these debts will be serviced. They may look affordable now, but will not be so once interest rates increase to more normal levels.
The day of reckoning will come, and the burden will surely fall on the young and future generations.
๐๐ ๐๐ซ๐ ๐จ๐ง๐ ๐จ๐ ๐ญ๐ก๐ ๐ฏ๐๐ซ๐ฒ ๐๐๐ฐ ๐๐ฑ๐๐๐ฉ๐ญ๐ข๐จ๐ง๐ฌ ๐ญ๐จ ๐ญ๐ก๐ข๐ฌ ๐ญ๐ซ๐๐ง๐ ๐จ๐ ๐ซ๐ข๐ฌ๐ข๐ง๐ ๐ฉ๐ฎ๐๐ฅ๐ข๐ ๐๐๐๐ญ ๐๐ซ๐จ๐ฎ๐ง๐ ๐ญ๐ก๐ ๐ฐ๐จ๐ซ๐ฅ๐.
๐๐ ๐๐ซ๐ ๐ฏ๐๐ซ๐ฒ ๐๐จ๐ซ๐ญ๐ฎ๐ง๐๐ญ๐ ๐ญ๐จ ๐๐ ๐ฐ๐ก๐๐ซ๐ ๐ฐ๐ ๐๐ซ๐ ๐ญ๐จ๐๐๐ฒ, ๐ญ๐ก๐๐ง๐ค๐ฌ ๐ญ๐จ ๐ญ๐ก๐ ๐๐จ๐ซ๐๐ฌ๐ข๐ ๐ก๐ญ ๐๐ง๐ ๐๐ข๐ฌ๐๐๐ฅ ๐ฉ๐ซ๐ฎ๐๐๐ง๐๐ ๐จ๐ ๐จ๐ฎ๐ซ ๐๐จ๐ซ๐๐๐๐ญ๐ก๐๐ซ๐ฌ.
When the Reserves Protection Framework was introduced in 1991, no one could have foreseen that a pandemic of this magnitude would hit us one day.
๐๐ฎ๐ญ ๐ข๐ญ ๐ข๐ฌ ๐ฉ๐ซ๐๐๐ข๐ฌ๐๐ฅ๐ฒ ๐ญ๐ก๐ข๐ฌ ๐๐ข๐ฌ๐๐ข๐ฉ๐ฅ๐ข๐ง๐ ๐จ๐ ๐ฌ๐๐ญ๐ญ๐ข๐ง๐ ๐๐ฌ๐ข๐๐ ๐ซ๐๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐๐จ๐ซ ๐ซ๐๐ข๐ง๐ฒ ๐๐๐ฒ๐ฌ ๐ญ๐ก๐๐ญ ๐ก๐๐ฌ ๐ฉ๐ฎ๐ญ ๐ฎ๐ฌ ๐ข๐ง ๐ ๐ฌ๐ญ๐ซ๐จ๐ง๐ ๐๐ข๐ฌ๐๐๐ฅ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง ๐ญ๐จ ๐ซ๐๐ฌ๐ฉ๐จ๐ง๐ ๐๐๐๐ข๐ฌ๐ข๐ฏ๐๐ฅ๐ฒ ๐ญ๐จ ๐ญ๐ก๐ข๐ฌ ๐๐ฎ๐ซ๐ซ๐๐ง๐ญ ๐๐ซ๐ข๐ฌ๐ข๐ฌ.
We already expect to draw up to $53.7 billion from our Past Reserves โ ๐ข๐ญโ๐ฌ ๐๐ง ๐๐ฆ๐จ๐ฎ๐ง๐ญ ๐ฐ๐ก๐ข๐๐ก ๐ฐ๐ ๐๐ซ๐ ๐ง๐จ๐ญ ๐ฅ๐ข๐ค๐๐ฅ๐ฒ ๐ญ๐จ ๐๐ ๐๐๐ฅ๐ ๐ญ๐จ ๐ฉ๐ฎ๐ญ ๐๐๐๐ค ๐๐ง๐ฒ๐ญ๐ข๐ฆ๐ ๐ฌ๐จ๐จ๐ง, ๐ข๐ ๐๐ญ ๐๐ฅ๐ฅ.
Our expenditure in FY2020 was the highest ever in the history of our country; and this unprecedented fiscal response has also led to the ๐ฅ๐๐ซ๐ ๐๐ฌ๐ญ ๐๐ฎ๐๐ ๐๐ญ ๐๐๐๐ข๐๐ข๐ญ ๐ข๐ง ๐๐ข๐ง๐ ๐๐ฉ๐จ๐ซ๐โ๐ฌ ๐ก๐ข๐ฌ๐ญ๐จ๐ซ๐ฒ.
๐๐จ๐ฐ ๐ญ๐ก๐๐ญ ๐ญ๐ก๐ข๐ง๐ ๐ฌ ๐๐ซ๐ ๐๐๐ญ๐ญ๐๐ซ, ๐ฐ๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ซ๐๐๐ซ๐๐ข๐ง ๐๐ซ๐จ๐ฆ ๐๐ซ๐๐ฐ๐ข๐ง๐ ๐๐ฎ๐ซ๐ญ๐ก๐๐ซ ๐จ๐ง ๐๐๐ฌ๐ญ ๐๐๐ฌ๐๐ซ๐ฏ๐๐ฌ. ๐๐ง๐ฌ๐ญ๐๐๐ ๐ฐ๐ ๐ฐ๐ข๐ฅ๐ฅ ๐๐ฎ๐ง๐ ๐ญ๐ก๐ ๐ฌ๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ ๐ฆ๐๐๐ฌ๐ฎ๐ซ๐๐ฌ ๐ฎ๐ฌ๐ข๐ง๐ ๐ซ๐๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐ญ๐ก๐๐ญ ๐ฐ๐๐ซ๐ ๐๐ฉ๐ฉ๐ซ๐จ๐ฏ๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ฒ๐๐๐ซโ๐ฌ ๐๐ฎ๐๐ ๐๐ญ.
๐๐ก๐๐ญ ๐ข๐ฌ ๐ญ๐ก๐ ๐ซ๐๐ฌ๐ฉ๐จ๐ง๐ฌ๐ข๐๐ฅ๐ ๐ฐ๐๐ฒ ๐ญ๐จ ๐ฆ๐๐ง๐๐ ๐ ๐จ๐ฎ๐ซ ๐๐ข๐ง๐๐ง๐๐๐ฌ.
[irp posts=”8968″ name=”Full text of Lawrence Wong’s speech on race and racism”]
