http://www.channelnewsasia.com/stori...380387/1/.html
Tharman says global economic crunch could impact job market
By Dominique Loh, Channel NewsAsia | Posted: 05 October 2008 1723 hrs
SINGAPORE: Finance Minister Tharman Shanmugaratnam said on Sunday that the global economic crunch could impact Singapore's job market, but he is confident that the country has the right fundamentals to sail through the rough patch.
Even as American lawmakers gave their approval for the US$700 billion bailout programme to save the country's financial institutions, Mr Tharman said US needs to do more to solve the lingering crisis.
After visiting the Toa Payoh East neighbourhood on Sunday, the finance minister sat down for a discussion about the global economic crisis with residents.
He said: "Our confidence in Singapore is very high. Across the board, manufacturing, services, people are confident about Singapore. Our property market is not as overvalued as many other countries, including some others in Asia.
"We have a strong fiscal system. It's just as well we didn't spend all our surplus last year. We were conservative. We preserved some for the future and that's the right approach."
Residents were also concerned about the failure of US banks, insurance companies and money matters - big and small. They questioned the integrity of Singapore's banking system and insurance companies' ability to honour their obligations.
Mr Tharman said: "I can assure you that our Singapore banks are well regulated and there is no risk and no reason whatsoever to have a run on our banks. More importantly, the banks themselves have good risk management.
"So frankly, you need not worry about how solid our banks are, your money is safe. We are not in the same situation as the US, we need not panic.
"Our regulations are stricter compared to Ireland, the United States, in fact compared to many developed countries. We have always been old-fashioned in our regulatory approach."
The minister added that Singaporeans can have the same confidence in insurance companies, which also have to abide by strict regulations.
As for Singapore's full-year economic growth forecast, Mr Tharman said the Trade and Industry Ministry will reveal the numbers on October 10. Singapore's monetary policy update would also be out by then.
- CNA/so