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Singapore. The Government is watching closely for signs of an expected economic slowdown and will prepare the upcoming Budget accordingly, said Prime Minister Lee Hsien Loong last night.

Acknowledging growing worries that problems in Europe may hit Singapore hard in the Year of the Dragon, he sought to reassure Singaporeans that the country is in a strong position, compared to others.

“We know what we are doing and we will make sure that Singapore can get through this,” he said.

“But at the same time we should not panic, because this is not a big crisis, unlike 2008, 2009,” he said, referring to the recent global financial crisis.

Lee was speaking at the annual Chinese New Year dinner in his Teck Ghee ward.

Having just returned from the World Economic Forum meetings in Davos, Switzerland, where he met foreign leaders and top business executives, he described the mood in Europe as concerned but “not too pessimistic.”

He also stressed that short-term economic cycles would not distract the Government from the task of investing in long-term projects such as rejuvenating housing estates, improving the education system and helping companies upgrade.

The Government will also do more to help the elderly and the poor — those most vulnerable in times of uncertainty, he pledged.

Among the 1,500 residents at last night’s dinner was getai organiser and undertaker Ong Yew Bock, 42. He is concerned about the slowdown and said his takings have already started to fall.

He added: “If the Government wants to help small and medium-sized enterprises like mine, it should lower our tax burden.”

“Also, making sure that general prices do not rise too much is important, because that frees up money that people can spend on things other than necessities.”

Final-year ITE student Tsong Jia Yu, 18, worries about her job prospects, and those of her peers.

She suggested the Government help those just entering the workforce.

The economy is forecast to grow by 1 to 3 per cent this year, down from last year’s growth rate of 5 per cent.

Turning to the effects of an ageing population, Lee said he is aware of the worries of elderly Singaporeans. Some are concerned about medical expenses. Some may not have children on whom they can rely for financial support.

And while many own valuable Housing Board flats, some may not have enough savings to fund daily expenses, he said.

The Government has already put in place programmes to help them and will build more studio apartments to benefit this growing segment of the population, he added.

“We will continue to do more to look after older, low-income Singaporeans because we owe them something and we will not forget them,” he said.

The needy, who are most vulnerable to an economic downswing and international competition, will also get more help as the Government moves to strengthen social safety nets, said Lee. He cited schemes such as childcare and kindergarten subsidies, as well as ComCare funds.

But even as he promised that the Government will walk the extra mile, Lee called on every Singaporean to make the effort to stay resilient — by studying hard, by saving for a rainy day, or by upgrading one’s skills.

“Make the effort, individually and collectively, and do your part to help (us) do better,” he said.

Reprinted courtesy of Straits Times Indonesia. To subscribe to Straits Times Indonesia and/or the Jakarta Globe call 021 2553 5055.