Get businesses to contribute to contingency fund for future crises

Despite our sound macroeconomic foundation, Singapore’s highly open economy is acutely vulnerable to contagion effects of global and regional economic crises.

Ever since Independence, businesses in Singapore have relied on government fiscal policy interventions to tide them over when crises hit. The more serious the crisis – the more generous the Government.

Over time, businesses have become accustomed to the State’s willingness to take effective and timely policy measures to manage the adverse effects.

In order to stimulate and sustain progressive growth, the Government’s interventionist approach during a crisis is to manage short-term problems to attain longer-term objectives.

By virtue of Singapore’s vulnerability to crises, the Government should explore more effective, equitable and sustainable solutions to help businesses.

One way is to introduce a mandatory contingency provision fund, requiring businesses to save a small token percentage of their net income, progressively.

Using net income to fund savings, will not burden business cost.

These savings, cared for by the state, similar to the Central Provident Fund (CPF) Board, would be used in times of crisis.

While it is hard to predict crisis frequency, savings accumulated over time would be significant.

During crises, while waiting for government help to kick in, cash flow remains the main concern for small and medium-sized enterprises. Instant cash becomes a life-saver in dire situations.

When businesses are seen helping themselves, it serves to allay underlying unhappiness of implicit subsidy using taxpayers’ money to support commercial enterprises.

By cost sharing, businesses are freeing funds needed by the State to deal with protracted exigencies.

As the world’s economies are getting more intertwined and connected, future global and regional economic crises will intensify. For a small city-state lacking in natural resources, it’s incumbent on Singapore to look beyond budget surpluses and reserves to fight a perpetual war.

 

KF Chow

 

 

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17 Responses to “Get businesses to contribute to contingency fund for future crises”

  • Chicken egg story:

    Well, not if you understand Chicken first or Egg first or how to ignite a fire or start a business.

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  • Harder Truths:

    Hahahahahaha so funny.

    The people who replace $G citizens with FT and run by FT asked to help $G citizens. They rather see $G citizens DROP DEAD – then they can replace everyone with FT.

    Why should they help $G? They are simply following local practice – you die your business. Chow – go out and work a few years in real job, that is if you can get one – you will understand.

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  • Police Close Down:

    Many businessess already dislike paying CPF, let alone this.

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  • UniQ:

    Dear TS,

    Do you even know what SMEs are paying ‘Protection $$’ to Singapore Business Foundation, which does ZERO to SMEs annually ??

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  • PAP SURE LOSE:

    Basically you’re asking to donate to this chase after every cent regime.

    Leegim has no choice because the private sector is its golden goose.

    Don’t fall for this stupid idea.

    Even making millions in profit SMRT asks you to donate on its website. Hahahaha.

    Ask our multimillionaire ministers who feed on taxpayer money to donate FIRST.

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  • All this chatter ....:

    The greedy cronies must set the example by eradicating the unjustifiable levies on low skilled foreign labour: why this gomen must consume $1050/month from the employer for each labourer employed for example?

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  • Stupifity vanity r crimes:

    LHL should confessed his stupidity n vanity to host the
    liars mieeting wasting $ 28 mil of our good money. The very fact of a threat not to come for the meeting unless he is fully financed. This should send the alarm n thevrt thing to do is to cancel polotely but vanity is more impt to lhl than singaporeans!

    it is now more relevant for the cabinet to make public with proper audit how these 28 m were spent. UN has raised their suspicion n PAP responded but r singaporeans more impt than UN n pap should put their concern n come clean with the fi’ancial statement

    Singaporeans shid be more wary n concern with our staye fund after their murky CPF saga
    Best to vote them out n find out what they n CBs r fearful to hide just to be sure that SIN is not like what mahathir found when najib was outed, a near bankrupt Malaysia so mich so they can’t even pay the penalty of breaking the contract agreement over the rail xith Sin. Thinking abt it sends chills thru concerned citizens.

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  • TruBlu:

    Bu$$ine$$men are $ucker,blood-suckers.
    Do you expect them to help without calculating what they can get back???

    Fark to greedy gahmen n busine$$men.

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  • Coronies Virus:

    Without resorting to cronyism, many rich people in SG would have sold their backsides to earn just a meal a day.

    Squeeze money out of cronies. They have tons of ill gotten gains.
    These are coronies virus. Very bad for humans

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  • Soccerbetting2:

    Reported on Straits Times website :Quote – “Blast off: Space minnow Indonesia eyes celestial success….
    …..

    In November, Indonesia finally confirmed plans to construct its first spaceport off the coast of Papua, acknowledging that its existing launch site is too risky for large rocket launches because it is too small and in a densely populated area.

    The new location on the equator is also ideal as it cuts fuel costs and could potentially draw interest from other countries keen to launch satellites, experts said.”Unquote.

    Response :Wait till all these extreme tons of space debris whether successfully or unsuccessfully launches eventually fall back to near Singapore water and maybe rises the water level of Singapore, and then the Singapore evil women beast wings forces will believe and again cry foul of effects from climate change again when in reality, there is no climate change concerns . And the concerns is more towards both Malaysia and a Indonesia planes skydiving into the waters previously and now got space debris in future. Plus land reclamation make sea water rises and what rubbish climate change is there when Singapore is near Equator with only rain and shine all year round? Fool all people on climate change?

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  • justanothercitizen:

    Giving money to the G to hold for a raining day?
    Never a good idea.
    We already tried that.
    The G couldn’t even give to the President what is the reserve that Sgp had. 56 man years to work out the numbers, remember?
    And the G always say, we ought not to use our reserve.

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  • Employees, Nott Businesses:

    Businesses should have their own contingency plans to meet an unexpected downturn. They have credit arrangements with the banks to help them tide over a crisis like this. It is the workers and employees who need help with unemployment insurance/benefits should they lose their jobs during an economic downturn. Many of them may not have enough savings or contigency funds to tide them over a crisis.

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  • pap doesn't have a clue:

    businesses should set up in JB.

    land is plenty. everything, EVERYTHING, is cheaper than in pap Singapore since no such thing as S$m for ownself pay ownself folks.

    whenever we see a new shop opening, we shake our heads. because these folks are just working for the landlords, mostly connected to pap one way or another.

    very stupid.

    bulk of gain from hard work goes to landlord.

    why not hop across to JB. close enough to sheep land. sooner or later sheep shall realize buying in JB is far more economical than paying so much more for the same things due to pap land cost.

    also when setup is in JB, can always deliver on INTERNET orders.

    buyers in sheep land get things fast and cheap. business owners make more money selling to sheep in JB. Win-Win.

    confession. we buy from INTERNET on most things. we buy from JB as far as we can. we buy local only on emergencies, mostly from Giant or ShengSiong. we avoid giving our good money to pap ntuc.

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  • Xia Suay:

    Cronies have to cum out some money cos that’s the only way they know how to earn a living. You scratch my ass I lick your kunt

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  • King Suah Ling:

    If you all go to your coffeeshops, you can see it’s more packed than usual.

    Yes, I suspect more are not eating at malls, restaurants and food courts which are air-conditioned and escaping to no air-conditioning places.

    This is increasing wealth of Cronies coffeeshops.

    We can boycott these enemy coffeeshops and eat elsewhere or cook at home.

    Now is the time to destroy them.

    King Suah Ling

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  • undermine and downtalk:

    //The people who replace $G citizens with FT and run by FT asked to help $G citizens. They rather see $G citizens DROP DEAD – then they can replace everyone with FT.//

    haha. and many of these FTs have been naturalized and they are not like our dear old daft sinkies who are relatively guai guai gong gong obedient ? these hungry FTs are ‘street smart’ who will capitalize on whatever ‘help’, ‘assistance’, ‘grant’ right to the T and there are quite a good size of ‘consultants’ & ‘experts’ good in this area helping-one-another unlike daft sinkies who have been conditioned by white idiotic propaganda to undermine and downtalk own kind of daft sinkies ??

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  • Great Asia:

    In China, businesses made donation to help the Chinese government to fight the spread of coronavirus. In the US and Singapore, rich towkays and politicians were busy pressing their calculators because they wanted to take the opportunity to milk the country.

    Wait till you see how PAP fat cats raid the country to bail out the property tycoons, let’s see your jaw will drop to the ground or not.

    Ha ha ha!

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