Thestar Online, 20 Sep 2008, Seah Chiang Nee
"The US crisis may trigger off a global recession, including Singapore.
However, the city has a protective shield: its large reserves of US$300bil (RM1tril) built up over the years and sound economic fundamentals.
If not for these, Singapore could be overwhelmed.
But the ordinary people are a different story. With their real salaries down, they are vulnerable to any sustained unemployment and the relentless price increases.
With half an eye on the 2011 election, the government is taking precautions. It will change the laws to allow it to dip into investment returns of the country’s reserves to offset rising costs of public services.
It’s seen as a positive move, but also one that serves as a warning that life can get worse for the people."
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