Chapter 13

Impact of Recession

Asian Economic Crisis

• Started in Thailand• External debt and NPL• Spillover to Indonesia, Korea

and Japan • Malaysia : FX control

Impact on Singapore

• Retrenchment in 1998

• NTUC help: Job match

Committee on CompetitivenessRecommendations

• Reduce business costs

• Maintain investor confidence

• Build capability, more productive

• Seek new markets

• Form strategic alliances

Human and Intellectual Capital

• Maximise domestic manpower

• Attract foreign talent

Domestic Manpower

• Continuing education

• Developing executives

• Women and older persons

• Job re-design

Attracting Foreign Talent

• Reduce cost of living: housing

• International schools • Reduce recruitment cost• Foreign worker policy

Cost Cutting Package• Labour• Govt fees• Taxes• Household

rebates

• Telecom• Industrial

land• Transport• Utilities

Cut in CPF rate

Many people affected:

• Provide bridging loan

• HDB Assistance scheme

• Reduce payment, reschedule

July 2001 Off-budget Package

• Boost economy

• Help companies cut cost

• Help retrenched workers

• Incentives for employers

October 2001Off-budget Package

• Tax & fee rebates• Assist local enterprises• Property measures• Infrastructure• Employment assistance• New Singapore shares

NTUC Relief PackagePrice reduction

• FairPrice • INCOME• Foodfare• Childcare• Healthcare

• Choice Homes• Thrift• NTUC Club• Vouchers

SARS Relief

Measures Impact ($m)

Tourism-related

1. Property tax rebate (commercial) 56

2.Property tax rebate (hotel) 8

3. Reduce foreign worker levy 2

4. TV licence rebate (hotel) 2

5. Cess rebate 20

6. Bridging loan (tourismSMEs) 10

7. Increased training grant 57

•

Courage Fund

• Launched April 2003• Rallying point for people to

help SARS victims• Support for healthcare workers• Government: $1 million +

dollar for dollar matching