DPM Tharman singled out four strategies to keep Singaporeans afloat during financial crises. (File photo)
Singaporeans have to be prepared for the next three to four years as the journey may not be so smooth, cautioned Deputy Prime Minister Tharman Shanmugaratnam on Saturday.
Speaking at a grassroots National Day dinner at Bukit Batok, he added the next few years could witness slow growth and even bouts of recession in the most advanced economies.
The tumbling of the stock market over the past week at a level not seen since 2008 has amplified the crisis of confidence in the United States, Europe and Japan.
"When there is a crisis of confidence in these three major blocks of the world economy, everyone is affected," he was quoted as saying by The Sunday Times.
When there is a crisis of confidence in these three major blocks of the world economy, everyone is affected DPM Tharman
He highlighted four broad strategies which could help Singaporeans stay afloat during this troubled environment and look forward with optimism.
These include the need for Singaporeans to keep the spirit of consensus and avoid divisiveness.
He noted that the country needs to avoid the problems seen "vividly" in the US and Europe, where although they have mature democracies, they also possess "dysfunctional politics".
"The debate in the US over the debt ceiling was a symptom of that -- a divided Congress unable to agree and willing to take a risk with the American economy and people."
This, he said, is the reason why it will be of extreme importance to sustain "a tone of openness, respect and understanding" in discussions in the mainstream media and online.
The second key point which he pointed out is that Singaporeans should continue to deal with the crisis with a spirit of fairness.
"We come together and take care of the interests of low- and middle-income Singaporeans, and of businesses and we prepare for recovery," he added.
"When we recover, we share prosperity, again with a sense of fairness. Those who have sacrificed more should get more, especially those with lower incomes."
Touching on the third key factor, DPM Tharman -- who is also finance and manpower minister -- stressed that the government will continue to invest heavily in the future.
This will ensure that the country can be a place where the people can have better lives 10 to 15 years from now. He emphasized the importance of education, especially at pre-school and tertiary levels, and of improving the transport system.
Investing in productivity will also be a key strategy to increase the incomes of Singaporeans, he noted.
"Many economists would point that we are ambitious with our targets to achieve, on average over 10 years, a 2 to 3 per cent increase in productivity each year.
"This is how we will achieve an increase in Singaporeans' incomes, where the average Singaporean will see a 30 per cent increase in income in 10 years, after minusing inflation."
Finally, he said that the public needs to continue to develop a spirit of volunteerism.
Saying that he felt "encouraged" after more came forward to volunteer at his constituency, he added, "If we keep this up and if we keep up our policies that are aimed at helping those who are lower down on the income ladder, we can build a truly inclusive society."
DPM Tharman, who was once touted to be the next International Monetary Fund (IMF) chief, also gave his evaluation of the all-important US economy.
He pointed out that the country has weak fundamentals and is hardly achieving economic growth, adding that it has the potential to go into a recession.
"It may or may not happen, we cannot tell yet. But we have to be prepared for any eventuality," he said.
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