We need to be able to defend the Singapore dollar from a speculative attack. Just to give you an idea of the firepower that will be needed to defend the Sing dollar, in normal times, on average, the Sing dollar is traded with a daily turnover estimated at US$37 billion globally (or an annual turnover of US$9.5 trillion.)
Mr Tan Sek Khee said that the debate on specific public spending or revenue should not be viewed from a ‘narrow budgetary perspective’. In the long run, Mr Tan said sustainable public finance is critical because our population is aging rapidly. This is a fact the younger generation must take a serious note, he said.
The seventies proved to be a tumultuous decade that saw high and volatile inflation in Singapore. Barely one year after MAS was established in January 1971, strains on the Bretton Woods system of fixed exchange rates emerged. Amid the turmoil in foreign exchange markets over the next two years, the OPEC cartel of oil-producing countries engineered an embargo in October 1973 that led to a quadrupling in oil prices.