Expect growth to slow, says Tharman

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#1
Singapore is a unique country. Though growth will "slow", people will still be out there spending freely on their iPhones, cars and holiday packages. Tongue

The Straits Times
Oct 29, 2011
Expect growth to slow, says Tharman

Regional banks 'must be anchors of stability to limit Western contagion'

By Robin Chan

DEPUTY Prime Minister Tharman Shanmugaratnam said last night that steps announced to resolve the euro zone debt crisis mark only the start of Europe's path to stability and economic recovery.

Global growth will slow, and Asia will not be insulated from the frailties of advanced economies, as they still account for most final demand for goods made and exported from the region, he said.

Asia could also suffer from a pull-back in cross-border lending by foreign banks and a tightening of trade finance.

'We must therefore expect a period of uncertainty and sub-par growth both globally and in Asia,' he said.

Mr Tharman, who is also Finance Minister and Manpower Minister, was speaking at the 50th anniversary celebration dinner of RHB Bank Singapore at the Shangri-La Hotel last night.

European leaders reached a deal on Thursday to bolster the heft of their rescue fund to €1 trillion (S$1.76 trillion) and persuaded banks and insurers to take a 50 per cent loss on Greek debt.

Measures also included a recapitalisation of European banks and a potentially bigger role for the International Monetary Fund in boosting the bailout fund.

Mr Tharman, who chairs the International Monetary and Finance Committee of the IMF, said: 'Europe's leaders are ploughing forward in a challenging economic and political environment.

'The steps they have announced earlier this week have provided some measure of assurance to the markets, although the details have yet to be negotiated and their implementation not yet certain.

'We should be mindful too that even if successfully implemented, the measures mark only the beginning of Europe's path to stability and economic recovery.'

While Asia is not buffered from the global slowdown, regional banks have the opportunity to play a role in strengthening intra-Asian growth and to lessen the impact of contagion from the West, he said.

'Enhanced regional trade and financial integration will enable Asia to sustain the growth of regional demand, and to efficiently channel surplus savings to where they are needed most,' he said.

'Regional banks must also continue to play a role as anchors of stability. They act as reliable, steadfast counterparties among banks and for borrowers mitigating the effects of contagion from abroad.

'Apart from servicing trade financing needs, they can continue to satisfy the demand for credit generated by the region's strong consumption and investment spending.'

As RHB marked 50 years in Singapore, Mr Tharman said it was 'no small matter in the light of the upheavals the region has experienced in the last half century'.

'(RHB) has successfully navigated the ups and downs of the regional finance, and grown its presence,' he said.

RHB Bank, Malaysia's fifth-largest bank, has injected $350 million into its Singapore operations, bringing its total capital commitment here to $620 million. Headcount is 460. The bank established a presence here in 1961.

RHB Bank chairman Azlan Zainol told The Straits Times that the bank is aiming for 'controlled growth', even as it intends to aggressively market its services to customers in Singapore to increase its market share across consumer, corporate and treasury services.

Its Singapore office - which accounts for 90 per cent of its international business - will therefore increase headcount, especially in marketing, he said.

Beyond that, the bank will be pushing into Islamic finance in the next six months and try to grab a slice of the lucrative private wealth management pie here.

It opened its first premier banking centre at Cecil Street on Thursday.

'We feel that there is huge potential in Singapore. We know Singapore plays a strong leadership role among the financial centres in the world. We plan to put in more effort and focus into Singapore to make sure we remain competitive... We want to make ourselves more relevant over the next 50 years.'

chanckr@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
Reply
#2
I never trust what finance minister say. Recall in 2007 2008 he mention spore will not fall into recession but it turn out spore experience the worst recession in history. One month ago, he say expect a technical recession but spore avoided it. When these pp paint a grave picture be greedy. When they are optimistic, be careful.
Reply
#3
well, as long as he keep saying it and he might just get it right! Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#4
(29-10-2011, 06:01 PM)Musicwhiz Wrote: Singapore is a unique country. Though growth will "slow", people will still be out there spending freely on their iPhones, cars and holiday packages. Tongue

Its not unique but simply said we are complacent. 5-10 years ago, a person receiving $6,000 annual salary was considered high and admired. Nowadays that similar feeling is applicable for those earning $10,000 and above. A fresh graduate would probably earn $3k starting pay and $4k & above after 1 to 2 years of experience.

However, we never question ourselves that are we better in terms of skills and productivity compared to other countries. I compared to my peers in Europe and I realised that they are better programmers, analysts and problem solvers than I am. So what makes us Singaporeans so special? (Although they earn more than me too.. heh heh)
Reply
#5
Sounds like a very interesting topic 'What makes us (Singaporeans) special?'
Is it because of the food we eat? Or is it because of the price we pay for a
car/house? Or just maybe, it's because of our declining birthrate.
Reply
#6
(30-10-2011, 08:15 PM)mrEngineer Wrote:
(29-10-2011, 06:01 PM)Musicwhiz Wrote: Singapore is a unique country. Though growth will "slow", people will still be out there spending freely on their iPhones, cars and holiday packages. Tongue

Its not unique but simply said we are complacent. 5-10 years ago, a person receiving $6,000 annual salary was considered high and admired. Nowadays that similar feeling is applicable for those earning $10,000 and above. A fresh graduate would probably earn $3k starting pay and $4k & above after 1 to 2 years of experience.

However, we never question ourselves that are we better in terms of skills and productivity compared to other countries. I compared to my peers in Europe and I realised that they are better programmers, analysts and problem solvers than I am. So what makes us Singaporeans so special? (Although they earn more than me too.. heh heh)

singaporeans generally don't know what to do with their time when they have it. where time is not spent on work (formal and informal) or family, it is spent on consumption (iphones and holidays).

i never saw salary increases in the last decade to be tied to any improvement in the workforce. rising wages appeared more to be a function of inflation.

i don't think singaporeans are a particularly complacent lot. tension runs high in the everyday singapore life. intense pressure sits on the fore front of the individual mind to attain some sort of achievement, and/or the rewards of those achievements. singaporeans are so stressed they are losing their hair, giving up their lives, and supporting opposition parties. it is tiring, and they want to relax. but the only way they know how is by consuming (otherwise known as retail therapy). if people are taught they can be happy only by having things, how else would you expect them to behave?

if there is 'someone' to blame for singaporean's lust for consumption, it is not the government, nor the individual. but the system of capitalism that survives and thrives by motivating us to buy, buy, and buy. societies less integrated with capitalism generally consumes less. several sections of our neighbouring countries, as well as amish societies, make good examples.

the majority of singaporeans will continue to spend regardless of whether there is growth or not (unless they're flat broke with no credit), otherwise they would be at a loss of what to do with all that time and money. Wink
Reply
#7
1) A tongue in cheek reply to Big Toe - what makes us Singaporeans special?

Kia si, kia su, kia bor! LOL!

2) Karlmarx, same same. Joking only:

a) We kia si - We talk big big in coffee shops or inside taxis; but if press interview, sorli no comment!

b) We kia su - People got new car I must get also! People got Iphone4s I must also. People got new wife... I fantasize only (back to kia si)

c) We kia bo - How else to explain the declining birth rates? Under stress, cannot perform!

LOL!
Just google singapore man of leisure
Reply
#8
hi jared,

i like your light-hearted approach to issues. this forum is serious 99 out of 100 posts (which is good for serious discussion), so your humour is well appreciated. keep them coming. Wink
Reply
#9
Haha, very good one!

I hope we all don't sound too serious as well! In real life, I think I am pretty much a jovial person..... Big Grin
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
Reply
#10
Phew! Thanks Karlmarx and Musicwhiz!

I love this forum and respect the unwritten rules. It's good to relax and laugh at ourselves once in a while Wink

Musicwhiz, I've not met a musician (or music lover) who is not jovial! Rock on man!

Karlmarx... I must admit I must be cautious here. I've not seen a communist that smiles... Just look at Hu Jing Tao or Putin. Min Cao Cao... Look even more scarier when they smile! LOL!
Just google singapore man of leisure
Reply


Forum Jump:


Users browsing this thread: 6 Guest(s)