| 1. |
The Singapore economy has still
not fully recovered from the slowdown in the
first half of the year. The Iraq War and the
SARS outbreak have taken a significant toll
on the economy. MTI now expects the economy
to grow between 0% and 1% for the whole of
2003. |
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| 2. |
The CPF changes are an important
step to make ourselves more competitive. They
make a significant difference to employers,
especially those in the labour-intensive industries.
In the short term, the lower CPF rate, together
with wage restructuring efforts, will help
save jobs. It buys time for businesses to
restructure and Singaporeans to upgrade their
capabilities. In the long term, a lower CPF
rate will mean a more flexible wage system.
And the changes to the withdrawal rules will
make sure that Singaporeans set aside enough
for their old age. |
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| 3. |
However, as many MPs have pointed
out, while we make these strategic changes
to the economy, we should also not forget
the more immediate worries of Singaporeans.
Some find it hard to service their mortgages.
Low-income families are concerned about making
ends meet. Workers are afraid of losing their
jobs. People who have been retrenched are
anxious to find new jobs. These are real worries.
The CPF changes come on top of them, and will
affect nearly every Singaporean. The government
will therefore implement a package of measures
to preserve jobs, help individual Singaporeans
and businesses, and promote new business activities.
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| 4. |
The measures fall
into six categories: |
| a. |
Help with mortgage payments; |
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b. |
HDB policy changes; |
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c. |
Help for Singaporeans; |
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d. |
Help for businesses; |
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e. |
Acceleration of infrastructure
projects; and |
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f. |
Government cost cutting. |
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| 5. |
These measures will benefit
Singaporeans, especially lower-income earners
and the unemployed. Businesses will also gain,
especially small and medium enterprises. Let
me elaborate on them. |
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