Govt ready to act if economy hits a downturn: DPM Tharman

While Singapore continues to grow, the government stands ready to act if the economy hits a downturn. 

Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam elaborated that specific measures and the level of government risk-sharing with businesses and banks, will depend on the severity of the downturn. 

"The Ministry of Trade and Industry expects the Singapore economy to grow by 1.5 to 2.5% for the whole of 2012. Nevertheless, I can assure members that we are monitoring the downside risks to Singapore's economic and financial stability very closely. The government stands ready to provide assistance to businesses and workers should there be a more significant economic downturn." 

Mr Tharman was responding to Nominated MP Teo Siong Seng who asked whether the Finance Ministry will implement extraordinary financing measures like the Special Risk-Sharing Initiative (SRI) introduced as part of the resilience package launched during the financial crisis in 2008/2009 when the Government took up 80% of the risk share for the bridging loan programme, to help SMEs in the event the economy goes into a tailspin; and whether any plan has been drawn up."