Dr Tony Tan,

Chairman, Singapore Press Holdings

Mr Alan Chan,

Chief Executive Officer, Singapore Press Holdings

Mr Patrick Daniel,

Editor-in-Chief, English-Malay Newspaper Division

Mr Mohd Guntor Sadali,

Editor, Berita Harian

Ladies and Gentlemen

1.         It gives me great pleasure to join you tonight as we celebrate the achievements of yet another outstanding Malay/Muslim individual who has done both the community and Singapore proud.

Berita Harian Achiever Award

2.                  This is the 10th year that Berita Harian is giving out the Anugerah Jauhari or the Achiever of the Year Award in recognition of exemplary Malay/Muslim individuals. What struck me when I was preparing this speech was that the past winners of this award had come from diverse fields ranging from medical research to fashion, art, music, sports as well as humanitarian and social work. This is noteworthy as by honouring and celebrating their diverse achievements, we reinforce the idea that we are a society that accepts different kinds of successes.  This is critical as by broadening our definitions of success, we help ensure that every Singaporean can be the best that he can be in his chosen field, whatever that may be.

3.         As such, I would like to commend Berita Harian and the Singapore Press Holdings for their effort to recognise outstanding individuals in the community and highlight their diverse achievements. By doing so, you also inspire other Singaporeans to pursue their own dreams and seek excellence in whatever they do.              

Responding to Today’s Challenges

4.         Ladies and Gentlemen, this evening’s award takes place amidst a time of great economic uncertainty. Singaporeans are understandably concerned about inflation and the rising cost of living. But in seeking to address these concerns, we must be careful that we do not opt for short-term solutions that cause the underlying problems to become worse.

5.         For instance, I was asked in Parliament recently whether the Government could freeze ERP rates until the cost of living stabilised. The argument here is that by freezing ERP rates, the costs to everyone would be reduced. Nothing could be further from the truth. In fact, if our roads are not priced correctly through the ERP, the overall costs to Singapore as a whole would go up, not down. It is just that the costs of not pricing would be hidden in the form of time lost and extra fuel consumed being stuck in traffic. If we freeze ERP, congestion on the roads would increase and this does not only affect the individual motorists who will spend more time in traffic but all other road users such as buses, taxis and commercial vehicles as well.            

6.         Furthermore, if one believes that some form of price control is a good thing, why not take it to its logical conclusion and extend it to other scarce commodities in the economy as well. Countries that have done so, have found this to be a disaster for their people and economy. Former US President Richard Nixon, for instance, instituted wage and price controls on the American economy in the face of rising inflation in 1971. Nixon later admitted that this was one of the worst policy decisions that he made in his Presidency. With a ceiling on the price of goods, economic production fell as producers of goods found it no longer worth their while to produce as much as before. The cut back in production had a knock-on effect on employment as fewer workers were needed. However, cost pressures remained as demand continued to exceed supply – demand was more now as prices had been kept artificially low. For example, people were not paying more for their petrol when the price was capped but overall costs continued to increase as they now had to queue for long hours to get petrol or to drive around looking for a petrol station that was opened as many closed after a few hours once the petrol ran out. Thus, with price controls, society as a whole would have to pay the full costs regardless of what prices are charged to individuals.

7.         Herbert Stein, a long-time economic adviser to Nixon, looking back at the decision to impose wage and price controls, said, “failure to look ahead is extremely common in government policy making.” This is why we should also resist protectionist calls at a time of increasing economic anxiety. If we put up exclusionary walls to keep out goods, services and people that compete with our companies and workers, the end result in the long term would be worse, not better for Singaporeans. Our economy will lose its competitive verve, leading to stagnation and rising social discontent as our standard of living starts to fall.

8.         The way forward is to recognise the concerns and anxieties of Singaporeans at a time of economic stress, but to find better ways to address these problems rather than go for popular, quick fixes that make things worse. Helping those in need can be accomplished in ways other than to control prices and keep out the competition. Thus the Government’s approach is to provide targeted help to needy families to cope with these general cost pressures through measures such as Growth Dividends, GST Credits and Workfare Income Supplement.  Unlike wage and price controls, such measures do not lead to a fall in production and help raise the standard of living of low income workers without discouraging firms from hiring them.

Conclusion

9.         These then are our challenges. I am confident that we will ride out the current economic difficulties because we have through the years – good times and bad times – steadfastly built a market economy that has the flexibility to absorb external shocks. It is this ability which is paramount to ensuring sustainable and stable economic growth and employment for Singaporeans.

10.       In conclusion, I offer my heartiest congratulations to this year’s Anugerah Jauhari winner and wish all of you gathered here tonight – good health, happiness and success.