Daily Lessons from Life 18 May 2009

President Nathan says govt's immediate priority is to see S'pore through crisis
Posted: 18 May 2009 2048 hrs Channel News Asia

SINGAPORE: President S R Nathan said the government's immediate priority is to see Singapore through this economic crisis.

Opening the second session of the eleventh Parliament on Monday evening, he said the best strategy is still to help companies to stay viable and continue employing workers. He said Singapore must also keep up the effort to up-skill and re-skill workers to become more employable and productive in a changing economy.

Mr Nathan added that when the financial crisis struck, Singapore was in a strong position because it had made the necessary preparations. It strengthened its revenue base, budgeted within means and accumulated reserves for a rainy day. This allowed the country to take decisive measures such as implementing the SPUR scheme and the Resilience Package to help companies and workers to save jobs. Mr Nathan said that when the economic crisis clears, the world will be changed with a growing consensus that it's in for an extended period of slow growth."

The President has hit the nail squarely or roundly on it's head! Companies must be viable so that they will hire people - blue, white and gold collar workers - to run the factories, the offices, to market and sell, to account and report, etc...

That is the fundamental premise of moderns economic activities.

Lessons for me are:

1. Singapore has been successful in the past 4 decades, especially the 1st 3. It has accumulated a huge reserve that is now being tapped to keep the troops going and the mother-ship from tilting over! But this is just defensive play. It cannot get us out of troubles in the long term!;

2. As we survive the short term, we then have a chance at a shot at the long term. The competitions are tightening. Our cost of living and doing business are rising. If we depend solely on Foreign Direct Investment (FDI), we will be in trouble eventually as we cannot compete on cost. If we competed on technologies, we still have much to catch up as we don't have enough critical mass of local technological breakthroughs;

3. as bigger and bigger population greyed, the old folks better be more flexible and adaptive to survive. Training on how to eat and live healthily and economically must be taught to the old. Chasing of growth will be counterproductive for this growing population. It is a paradigm shift that need to happen 10 years ago but it is never too late to start!

Singapore will grow for the new citizens, the below 30s while the rest better look for stability and sustainability.

I do not envy the tasks at hand for the government. I wish them best of luck with my fingers firmly crossed!