Singapore in better shape compared to last financial crisis

Written by Writer on Monday, October 13th, 2008

Singapore in better shape compared to last financial crisis

SINGAPORE: Singapore may have slipped into a technical recession, but Senior Minister of State for Trade and Industry S Iswaran said the country is in a better shape compared to the Asian Financial Crisis in 1997.

He made this point to reporters at the end of the Global Indian Diaspora Conference on Saturday.

“The Asian Financial Crisis was an important catalyst for tightening up the financial systems in our part of the world… Not just the financial systems, but corporate sector in terms of the level of debt it took on and how it structured its balance sheet,” Mr Iswaran said.

At the same time, other sectors are holding up. The senior minister of state said services are doing reasonably well and Singapore has several ongoing major projects.

“But having said that, we are not immune when there is a downturn in the developed markets. So, I think the real economic effects will affect us in Singapore. But yes, I think we are in a better position to withstand it compared to the period in 1997,” he said.

Despite the economic slowdown, Mr Iswaran said there are still opportunities to be made, like the Global Indian Diaspora Conference which has just ended.

He said the meeting is a platform for both governments and business leaders to network, and to ride out the storm together.

While the current turmoil may dampen investments, the sentiment from delegates is that the networking and relationships forged will facilitate longer term business and economic growth.

Over 700 participants from 20 countries attended the meeting which was held for the first time outside India in Asia.