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17 Jul 2019
Out of the box
Suggestion View - 1314
Deal with the impending recession

Singapore is expected to enter into a recession. It is likely to be worse than projected by the finance minister, Heng Swee Keat.

What can be done to deal with this challenge? 

I like to suggest the following steps.

a) We must make sure that many workers continue to have jobs. It is inevitable that some workers will be retrenched as businesses scale down their operations. Young workers will find it difficult to get jobs.

b) The public sector should create jobs to absorb some of the unemployed workers and job seekers. These jobs should be funded by the government and should be useful. Some examples of these jobs are to be guides and mentors. They will contribute to improving the lives of the people at large, while creating employment. 

The public sector should also plan ahead to train care givers, nurses, teachers and to build child care centers to prepare for a higher birth rate that is needed for our future population and can be achieved through a change in government policy.

c) Small businesses should get subsidies for their rentals and wages of local employees, so that they can continue to operate.

d) Workers who are not employed should be allowed to draw a monthly sum for their living expenses from their CPF account or as against the mortgage on their property. This will relieve the financial burden on them. Mortgage payments should be deferred. We need to introduce some changes to the CPF and HDB regulations to make this possible.

e) The cost of living can be reduced by a temporary suspension of GST and deferral of price increases for water, electricity, parking fees and public transport.

The harmful effect of a recession can be minimized by measures that can be implemented by the government. They should not continue their old policies that are meant for a booming economy.

Tan Kin Lian

Vote - do you agree with these measures?

Agree: 67  Disagree: 2  Vote