Global economic uncertainties have affected Singapore and Singaporeans need to “save for a rainy day”, said National Development Minister Khaw Boon Wan.
Delivering his message yesterday on the sidelines of a national day observance ceremony in Sembawang, the minister called on Singaporeans to be more prudent and reminded them that spending more than one earns is unwise.
He noted that the US and Europe are in debt because they did not save and worse, have overspent.
“You earn S$1,000 but you spend S$1,200, where does the S$200 come from? These are common-sense values but sometimes, people forget,” he said.
In comparison, he said the Japanese are much better in managing debt but their lack of political leadership is their greatest problem.
“For 20 years, no (Japanese) political leader came forward to say the right thing. Everyone tried to be popular, be populist, and say what people like to hear. But what people like to hear, sometimes, may not be the right thing,” he said.
He stressed that political leaders have the responsibility to lead a country but sometimes “get punished by voters for saying the right thing.”
“So, Singaporeans have to decide — do you always want to hear pleasant things even though they are dishonest?”
“Sometimes you get fine weather, sometimes rainy. But if you have always saved for the rainy day, you’ll be pretty steady and safe,” he noted.
His comments followed Deputy Prime Minister Tharman Shanmugaratnam’s warning that it will be tough for the country in the next three to four years, as advanced economies experience slow growth and possible bouts of recession.
To contact the journalist, you may send your message to editor@propertyguru.com.sg