• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

Financial crisis has become full-blown economic crisis, says George Yeo

by onlinecitizen
31/03/2009
in Uncategorized
Reading Time: 5 mins read
0

 

Donaldson Tan / Head, TOC International / London

Cambridge – Last Friday, Minister of Foreign Affairs George Yeo visited Cambridge University in conjunction with its 800th Anniversary. During the visit, he discussed the state of the world and the global economic crisis with Singaporean students. “No one is sure where the bottom is or how long this crisis will last, “ he said. “In the meantime, tens of thousands of companies will go bankrupt and tens of millions of people will lose their jobs. What started as a financial crisis has become a full-blown economic crisis. For many countries, worsening economic conditions will lead to political crisis.”

Recent Developments

Mr Yeo spoke out against government interventions in this global economic crisis. Public policies worldwide can hinder the market from reaching the bottom. “Many stimulus packages being proposed will make the adjustment more difficult”, he said, “For example, bailing out inefficient automobile companies may end up prolonging the pain of restructuring at tremendous public expense.” Attempting to shortcut the process may worsen underlying conditions. He also commented that the wages and salaries of Americans, Europeans and Japanese are being held down by billions of Asians and Africans who are prepared to work for much less. He expects protectionist pressures in America, Europe and Japan to grow, in order to keep jobs at home.

He highlighted the White House’s growing dilemma between injecting liquidity into domestic financial markets and managing an international reserve currency. “If governments try to prevent the re-pricing of assets and human beings, international markets will force the adjustment. A country that is over-leveraged living beyond its means will itself be re-priced through its currency. Its currency will be devalued, forcing lower living standards on all its citizens.”

Furthermore, in response to a TOC enquiry, he acknowledged that the calibrated move by the People’s Bank of China to call for the replacement of the US$ as the international reserve currency will put the coming G20 Summit in a precarious position. The minister said that while it is unlikely for any currency to replace the US$ as an international reserve currency, there will be political and economic obstacles in promoting global acceptance of a super-sovereign international reserve currency.

The world today is at similar crossroads as it was during the Great Depression. A global leadership vacuum marked the Great Depression in the 1930s. “Despite the shift of power across the Atlantic, while Great Britain could not lead, the United States would not lead. In between, the world economy fell,” Mr Yeo said. Great Britain then is United States today while United States then is China today. The US is China’s most important export market while China is the most important buyer of US Treasuries. Moreover, today’s world is more complex as due to its multi-polarity, no particular value system will hold complete sway over others. The current crisis has already caused many people to question the nature of capitalism, socialism and democracy. “With the world in turmoil, many developing countries are studying the Chinese system wondering whether it might not offer them lessons on good governance. For the first time in a long time, the Western model has a serious competitor,” Mr Yeo said.

Responses from Singaporeans at Cambridge

A Singaporean commented that the role of Germany, the world’s biggest exporter, in the modern-day epic of the clash between Western and Eastern civilisations is often underestimated. She also noted that Singapore government has succumbed to China’s soft power. “Despite the failure of the Suzhou Industrial Park, the Singapore Government has direct and indirect stakes in the Tianjin Eco-City Project and the Guangdong Knowledge City Project. I also wonder if the objectives of the Speak Mandarin Policy has shifted towards preparing Singaporeans to be employees at Chinese firms.”

Another Singaporean was disappointed that BG(NS) Yeo did not touch on the Singapore economy and the Resilience Package. He was unsure of the Package’s effectiveness to buffer and shield the Singapore economy from the global economic crisis. He also felt that the government was not clear on how long the Package should last. “There should be economic indicators published quarterly to ascertain the continuity and success of certain schemes in the Resilience Package, such as the Job Credit Scheme and the risk-sharing initiative for trade finance and SME loans, “ he said, “This will send a clear signal to the private sector, so that the firms and the public can make timely adjustment should the government suspends or ends these schemes.”  


—-

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Venerable Master Hsing Yun passed away at age 97
Arts & Culture

Venerable Master Hsing Yun passed away at age 97

06/02/2023
No response from Josephine Teo on whether Mediacorp has been instructed to stop coverage of SMT circulation scandal
Singapore

No response from Josephine Teo over alleged blackout of coverage by Mediacorp over SMT circulation scandal

06/02/2023
Earthquake victims stage demonstration after Cianjur Regency Govt cancels temporary housing assistance of US$68 per family
Indonesia

Earthquake victims stage demonstration after Cianjur Regency Govt cancels temporary housing assistance of US$68 per family

06/02/2023
The uncomfortable past appointments by PAP members for CPIB in Keppel’s corruption scandal
Singapore

The uncomfortable past appointments by PAP members for CPIB in Keppel’s corruption scandal

06/02/2023
Not the first time, Tong Chong Heong, former KOM senior executive, was involved in corruption at Keppel
People

Not the first time, Tong Chong Heong, former KOM senior executive, was involved in corruption at Keppel

06/02/2023
Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud
Business

Adani stock rout raises questions about India’s credibility even as S’pore becomes #1 investor in India

06/02/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

Venerable Master Hsing Yun passed away at age 97

Venerable Master Hsing Yun passed away at age 97

06/02/2023
No response from Josephine Teo on whether Mediacorp has been instructed to stop coverage of SMT circulation scandal

No response from Josephine Teo over alleged blackout of coverage by Mediacorp over SMT circulation scandal

06/02/2023
Earthquake victims stage demonstration after Cianjur Regency Govt cancels temporary housing assistance of US$68 per family

Earthquake victims stage demonstration after Cianjur Regency Govt cancels temporary housing assistance of US$68 per family

06/02/2023
The uncomfortable past appointments by PAP members for CPIB in Keppel’s corruption scandal

The uncomfortable past appointments by PAP members for CPIB in Keppel’s corruption scandal

06/02/2023
Not the first time, Tong Chong Heong, former KOM senior executive, was involved in corruption at Keppel

Not the first time, Tong Chong Heong, former KOM senior executive, was involved in corruption at Keppel

06/02/2023
Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

Adani stock rout raises questions about India’s credibility even as S’pore becomes #1 investor in India

06/02/2023
Sixteen killed in China highway pile-up

Sixteen killed in China highway pile-up

05/02/2023

Are IT jobs in Singapore flooded by foreigners?

05/02/2023

Trending posts

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
25

...

Cognizant India transfers staff to work in Singapore as recently as this year

Local IT grads can’t find jobs while engineers constantly transferred from India to work in SG under CECA

by Correspondent
05/02/2023
49

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
47

...

Adani’s brother runs SG company and registers as director with local ID

Adani’s brother runs SG company and registers as director with local ID

by Correspondent
03/02/2023
26

...

Excessively charging for an essential need, and calling it affordable because people still can pay for it?

by Terry Xu
31/01/2023
40

...

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

by The Online Citizen
02/02/2023
19

...

March 2009
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Feb   Apr »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz