S'pore will grow even if recession hits, said MM Lee - Nov 11
IN THE next five to 10 years, Singapore may 'be in trouble' - with inflation and a possible recession coming its way.
But Singaporeans 'will not starve'. In fact, Singapore will continue to grow, thanks to its good government.
Minister Mentor Lee Kuan Yew said this on Sunday at the annual tree planting ceremony in Queenstown within his Tanjong Pagar GRC.
There, he surveyed the new Alexandra Canal Linear Park, built over a canal. A book on Queenstown - Singapore's oldest housing estate - was also launched.
In a 35-minute off-the-cuff speech made in English and then Mandarin to constituents, Mr Lee first alluded to the government's plan to 'beautify' Singapore in the next five to 10 years - before applying the timeframe to Singapore's growth in the global economy.
It may not be plain sailing, he warned.
'We are doing fine, we're likely to do well, but there are dangerous market signals,' he said. Oil prices are hitting US$100 a barrel - 'unbelievable', he said - and in response, the United States is looking to turn corn into ethanol, an alternative source of fuel.
This causes a domino effect in food prices.
'When you turn food into energy, food prices go up. When you have grain turned into something else, (prices of) chickens go up, pigs go up.'
'So there's a real possibility that a year down the road, prices go out of control, America goes into recession, stop buying so much, China stops exporting so much, India stops exporting, we also stop exporting so much...'
'Please remember don't just believe that everything is just going to go up and never come down,' he said.