SM Goh says growing the economy is important for the future

Senior Minister Goh Chok Tong said on Sunday Singaporeans should reflect on how to grow the country’s economy and build on its reserves for future Budgets instead of just asking for more assistance now.

Mr Goh made this point following feedback that some Singaporeans want the government to do more despite a generous Budget announced on Friday.

He also described this year’s Budget, announced on Friday, as a "compassionate, comprehensive and far—sighted one".

In fact, he said few countries in Asia and the world are able to provide such a budget.

He was speaking to reporters at a charity Lunar New Year lunch on Sunday for some 1,000 senior citizens who also received something extra in the form of red packets.

The senior citizens at Marine Parade GRC are enjoying a little charity on top of what they will be receiving from the government.

During the Budget announcement on Friday, the government unveiled a slew of measures to help Singaporeans, like the elderly and the needy, cope with rising costs.

But Mr Goh said Singaporeans need to ask themselves how this Budget was possible in the first place, and not to just keep asking for more help.

Mr Goh said: "I think we should be realistic in our expectation. Because if we are not and we demand more and more of the Finance Minister without trying to understand how this can be produced, some time in the future, there’ll be disappointments."

Senior Minister Goh said this year’s Budget is a far—sighted one because it has focused on providing funds for education, training and research and development.

And all these, he said, would help to grow the Singapore economy in the long term.

Mr Goh added that the objective is always to have a Budget that keeps an eye on the future.

So despite Singapore accumulating S$6.4 billion in reserves last year, the country should not dip unnecessarily into the reserves, which the Senior Minister likened to a golden goose which lays golden eggs.

He pointed out that exceptional economic and property market growth last year contributed to the reserves.

But it’s not possible and desirable to see the property prices continue to rise otherwise it’ll result in an oversupply and the economy will be overheated.

SM Goh said: "The reserves are like a golden goose which lays golden eggs. And if you try and dig into the reserves, you’re actually in a sense not feeding the reserves and the goose gets smaller. So we should, whenever we can, put some funds aside to grow the reserves and then use the earnings in the reserves, which is what we’re doing.

"Produce the wealth first and the surpluses before we talk about sharing and never, never dig into the reserves. That’s like killing the golden goose to get the meat. I think better try and fatten the goose, have more golden geese and then have more eggs to share."

So if Singapore gets the basics right, the government can then deliver more of such compassionate and comprehensive budgets in the future. — CNA/ch