SGHOUSING.COM 新加坡房地产网

SINGAPORE is in recession. The news will not have come as a complete surprise. Given the turmoil engulfing global markets and the knock-on effect this has had on consumer sentiment and investment in Singapore’s export markets, it must be expected that the export-driven economy would feel the chill. As Prime Minister Lee Hsien Loong noted yesterday: ‘Asian countries cannot avoid the impact of weakening US, European and Japanese economies.’ And this is likely to be only the beginning of tougher times ahead for Singapore and the rest of the global economy.

Gearing up to face this challenge requires prudence. For, while the crisis would not be short-lived, it will, in time, subside. That is in the natural order of things. So while cost-cutting is going to be necessary, companies need to appreciate that any overreaction might well handicap them when demand picks up again. We would hope that employers take this into account when considering employee headcount. In fact, what companies should want to do now is to consider how to best position themselves for the global recovery, when it comes.

In this regard, there are lessons to be had from the Asian financial crisis a decade ago. South-east Asia changed markedly after that traumatic event. And the businesses that most successfully weathered that period were those that correctly anticipated the newly evolving commercial landscape. That experience, of course, does not make crisis planning any easier today. Nor does it guarantee success in all cases. But it helps. Moreover, companies will be supported by an economic infrastructure tested and strengthened by crisis. Singapore banks are sound; credit will continue to flow to worthy borrowers. The physical infrastructure itself is first-rate, which should continue to position Singapore as the destination of choice for many who want to do business in the region.

Broadly speaking, Singapore emerged from the Asian crisis in a strong position. Through nimble planning, new industries were started that have taken the economy in new directions and created new jobs and new kinds of jobs for the population. From the gloom of the downturn, the cityscape itself was reinvigorated in ways that are still finding form. The 1997-98 crisis also taught many businesses the importance of a strong fiscal position as the best protection against turbulent times.

None of this is to downplay the hardship that is going to be encountered going forward. But it underscores Singapore’s tested ability to constantly reinvent and reinforce itself to endure in the face of adversity.

Source : Straits Times - 11 Oct 2008