Sources

How to survive a recession
www.shoestringbudget.org/credit-crunch-how-to-survive-the-recession/

www.ehow.com/how_2121239_survive-economic-recession.html

Understand Financial Terms Better
www.investopedia.com/university/inflation/inflation2.asp

http://en.wikipedia.org/wiki/Measuring_GDP

www.ehow.com/how_2063457_measure-inflation.html

www.bls.gov/cps/cps_htgm.htm

www.economics.about.com/.../economicindicatorinfo/Economic_Indicators.htm

Government dips into reserves for 1st time
http://www.singaporebudget.gov.sg/resilience.html

http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_329409.html

http://www.mis-asia.com/news/articles/singapore-budget-2009-resilience-package-for-an-economy-fighting-deepest-recession

http://www.channelnewsasia.com/stories/singaporelocalnews/view/404182/1/.html

http://business.asiaone.com/Business/News/My+Money/Story/A1Story20090122-116485.html

http://www.asiaone.com/Business/My%2BMoney/Opinion/Story/A1Story20090123-116741.html

新加坡经济衰退，导致失业率大涨
www.youtube.com/watch?v=hacIks_afHE

http://www.singstat.com/

Shanmugaratnam's Quest
en.wikipedia.org/wiki/Tharman_Shanmugaratnam

http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_370549.html

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_330853.html

Understand Financial Terms Better

By Jeremy Yap
26th August 2009

When asked about Singapore’s economic growth over the past few years and how it is faring in the economic crisis, many are left clueless, especially when it comes to the economic growth indicators. Most people are unsure how the percentages and figures that appear in the business section of the newspaper are derived, resulting in them not being interested in how the economy is doing. So, what are economic growth indicators, and how are they derived?

An economic indicator, simply put, is any economic statistic, for example, the unemployment rate, the Gross Domestic Product (GDP), the inflation rate, the Producer Price Index or the Consumer Price Index, all of which inform us how well the economy is doing and how well it is going to do in the future.

The Ministry of Trade and Industry (MTI) recently announced that Singapore’s GDP growth is likely to be -5.0% to -2.0% in 2009, significantly lower than the -2.0% to +1.0% earlier in January 2009. Here, many will ask: What exactly is the GDP? The GDP is the market value of all the goods and services produced by labour and property located in the country, and this figure released every three months or so.

The GDP can be calculated by adding the private consumption of households, gross investment, government spending, and how much more the country exports as compared to how much it imports. Private consumption includes most personal expenditures such as food, rent, and medical expenses. Investment is defined as investments by business or households in capital, such as the purchase of software, or the purchase of machinery and equipment for a factory. The general public buying new houses is also considered as investments.

Government spending is the sum of government expenditures on final goods and services which the Government is responsible for. It includes salaries of public servants, or the purchase of weapons for the military. However, it does not include any transfer payments, such as social security or unemployment benefits. The amount of exports will also accurately capture the amount a country produces, including goods and services produced for other nations' consumption. Imports are subtracted since imported goods will be included in the Government spending, Investments and Consumption, and must be deducted to avoid counting foreign supply as domestic.

For 2009, inflation has been revised downwards from 2.5% to 3.5% to 1% to 2%, due to falls in global commodity prices and the lower than expected annual values of public housing properties. Inflation can be referred to as a rise in the general level of prices of goods and services in an economy. When the price level rises, each unit of currency buys fewer goods. At the same time, inflation is also an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.

In layman terms, a number of goods that are representative of the economy are put together into what is referred to as a "market basket". The cost of this basket is then compared over time. This results in a price index or the current value of the market basket today as a percentage of the value of the same basket the previous year. Over some time, the various (Producer Price Indexes) PPIs and the (Consumer Price Indexes) CPIs show a similar rate of inflation.

The unemployment rate is another important term in finance. For example, the employment rate was 2.93 million in June 2009, and from this figure, the unemployment rate can be found. People with jobs are classified under “employed”. Those who are jobless, looking for jobs or available for work are classified under “unemployed”. People who are neither employed nor unemployed are assumed to not be in the labour force, such as students, are not included. When workers are unemployed, they, their families, and the country as a whole lose out. Workers and their families lose wages, and the country loses the goods or services that could have been produced. In addition, the purchasing power of these workers is lost, which can lead to unemployment for yet other workers. This is why the unemployment rate is a key indicator of the economy.

This article does have its limitations, and hence cannot cover all the terms used in finance, and the figures that are calculated. Now, however, there's a difference: you need not be left clueless in a swarm of financial talk.

经济衰退：青少年是否受影响？

叶俊贤
2009年8月25日

如今，报纸上对经济衰退的报道比比皆是，危机对青少年的影响和青少年对危机的态度更是成了热门话题。多人认为，现代青少年都认为经济衰退是父母的事，跟他们无关，因此根本不在乎这让多人失业的灾难。可是，这是个误解：经济衰退对有些少年来说产生极大影响和改变。青少年这一组不能被硬装进定型，产生不良好印象的少年，只不过是那些少许的害群之马。

十四岁的傅靖隆就是个很好的例子，经济危机对他的影响可大。被问经济危机对他的影响时，他说道：“我父亲最近失业，正在找工作，经济衰退的影响对我来说可大了。现在，妈妈说出去吃饭实在太贵，三餐都在家里吃。我家也要节省开支，好好珍惜每一块钱，我零用钱因此随着下降。虽然如此，我知道父母亲这样做是迫不得已，自己也想办法节省费用。”

但是，有些人又会表示不同意，诉说只有家庭面临失业问题的青年才会如此关心。十五岁的梁妙娴一听到经济危机，虽说家庭无人失业，经济状态良好，但她也根据情况改变习惯。“我觉得自己以前实在太奢侈，一看到什么就买什么。遇到经济不景气，我现在也开始储蓄我的零用钱。买东西时，我也谨慎多了，只买所需要的物品。”

梁妙娴的母亲庄彦丽面对女儿这片孝心，也感欣慰。“女儿能如此懂事，帮助我节省开支，我当然是开心。我女儿学校也管教得很好，听她同学的母亲说女儿如何帮她们，女儿都说是老师交导她们要认真地对待这经济萧条，真令我欣慰。”

但是，说年轻人都如此可说是太夸张了，又有有些年轻人觉得这经济萧条与他们无关，不屑一顾，显示了他们是近视眼，没有国际视野。 本报访问了一个十三岁的一名女生，就显示了此态度。她说：“人们都在谈谈经济危机，但对我来说，这危机对我来说根本没有影响。经过这事件发生，我的生活习惯也没改变，还是去演唱会，买名牌货。我们人生本来就要过得开心，哪能让这风暴波及快乐？”

那么，得到了如此天渊之别的感想及态度，我们最后得到的到底是什么结论？对青少年来说，我们不能笼统地得到结论。因为我们要知道，我们不能把青少年定型，有些少年会关心这经济风暴，这风暴也会对他们产生深刻影响；有些则会不屑一顾，想方设法脱离现实，切断自己与这风暴的关系。

新加坡经济衰退，导致失业率大涨

2009年8月25日
张明杰

最近的经济衰退，使很多来自各个国家的人都失业了。新加坡，也不例外。

在经济衰退前的2009年11月，我国的失业率占了所有新加坡人中小小的2.2%， 是4百万多任命当中的区区95万。但在今年的6月，失业者大涨到了15万多人，从2.2%张到了3.3%。
国庆日献词乐观

在2009年的前四个月，我国制造业的裁员最高，将近有九千人被劫护，服务业则有两千九百多名员工被裁。建筑业又有多七百人被劫护，使2009年的前四个月的总裁员高达一万两千六百员工。

希捷科技公司最近宣布，会从宏茂桥搬迁硬盘制造工厂到其他现行希捷设施。这会使两千多名员工失业，促进新加坡失业率。

国庆日献词乐观

总理很高兴地说一月推出的经济配套又管用又有效，所以大家不必太过担心，因为政府会在今年再检阅情况，再决定适当的行动。

帮助李总理的时国内贸易生意升了7.5%，零售销售也升涨了2.3%。这使经济情况看起来稍微好转。

虽然总理的观点很乐观，但其它的批评者却不这么认为。相反地，他们觉得新加坡的失业率会在年底之前再大涨到5%，明年的预告又更悲观。今年年底预料会有将近两万多人失业，显得不太乐观。

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How to survive a recession

By Zach Lim
26th August 2009

The most intense phase of Singapore's recession may be over, but the economy is not going to bounce back to full health any time soon.

Instead, the recovery will be 'slow, gradual and fraught with uncertainties', unlike the quicker rebounds that followed previous downturns, said the Monetary Authority of Singapore (MAS) on Wednesday.

The central bank said in its latest Macroeconomic Review, a twice-yearly survey of the economy, that the worst economic contractions probably took place in the last quarter of last year and the first quarter of this year. The economy logged record quarter-on-quarter declines in both quarters, of 16.4 per cent and 19.7 per cent respectively.

But the MAS stopped short of saying that the worst is over or that the recession has bottomed out. Private-sector economists say that although the worst is likely behind us, the economy could continue to contract in the months ahead, although the declines will not be as severe.

The MAS warned on Wednesday that despite recent signs of a slight increase in economic activity around the world, the major economies are still 'mired in an extended period of sub-par growth' and Singapore's growth is likely to remain 'below potential' as long as that lasts.
So how will middle-class Singaporeans be able to tide over this crisis?

There are steps that one can take to be able to tide over this economic crisis. However, there is no “silver bullet” that can save one from any crisis, but there are basic things that one can do to survive through it, which can be classified broadly into 3 groups: Income, Expenses and Savings and Investing.

Income
In a recession, keeping one’s job should be the number one priority. This may mean putting in a few extra hours, working a little harder, or simply improving your skills in your field. Those people who keep their jobs or have a good, steady income are generally able to weather the storm. Now, the last thing one wants to be doing is to be looking for a job with the unemployment rate on the rise. Although Singapore’s unemployment rate is not rising as rapidly as some other countries, there are still people that will be caught without a job.

It is important to always, as the Scouts say, to “Be prepared”. While one might be doing everything he can to keep his job, some layoffs are inevitable. No matter how secure you think your job might be, always be ready for the unthinkable. This means updating your resume regularly, knowing who you will go to for job opportunities and where you would apply for a job in case of crisis.

The best method for securing an income would be to have two sources of income. While it may be hard on one, the beauty of having a second income is that it goes right to the bottom line. If one needs an average of $5000 to survive each month, even just an extra $1000 per month will extend your emergency fund by 20%. It will make a huge difference if you ever lose your job.

Expenses
One of the few benefits of the economic crisis is that the interest rate is now low. If you have an adjustable rate mortgage, it’s time to see if you can transform it into a fixed rate loan.
This should be obvious, but it is still important to recognise the many ways to reduce spending. Did you know that your internet services have different bandwidth options? You can switch to a lower bandwidth and save up to $20 a month, and not notice the difference in internet speed. There are literally thousands of ways to save money. While some of them may only save you a few dollars a month, combine a few of them and you will be able to save a decent amount of money every month. Pick those that work for you and start saving money now while you still have a job.

Savings and Investment
In these difficult times, it is more imperative to have a decent emergency fund. An average guide to how much you need is to take you average monthly expenses and multiply it by 6. This ensures that, should you lose your job, you will be able to fall back on you emergency fund for at least 6 months while you find a new job. If you have two cars that are paid off, you might want to sell one and save the money for your emergency fund. Whatever your situation is currently, building up an emergency fund is crucial should the worst occur.
Some examples of small-scale saving include not wasting food. Keep whatever leftovers you can and eat it later. This could save you about $5 per day just on food. If you are into buying music online, buy the songs individually instead of the entire album should you want just one or two songs.

Examples of larger-scale saving include taking public transport instead of your own car. Not only is this cheaper, it is benefits the environment as well. Another simple but potentially rewarding method of saving money is to simply switch of the lights whenever you leave the room. You can also trade the comfort of an air-conditioned room for a fan-cooled one when you go to sleep.

Each of these components will have to work hand in hand: saving but not toning down your expenses, for example, is not that effective as doing both. In the end, these are still just suggestions, and it requires one to act fast in order to tide through this financial meltdown.

Shanmugaratnam's Quest

By Jarrett Toh
26th August 2009

The global economic downturn is now being felt throughout the world and has greatly affected nearly every country. Singapore is no exception and the city-state is currently taking measures to minimize the effects of the recession.

The island country’s Minister of Finance, Mr Tharman Shamugaratnam, leads these efforts in a bid to curb the financial crisis. Recently, Mr Shamugaratnam unveiled a plan to combat the credit crisis. The plan, involving tax cuts and a hefty financial package, aims to help the country bear the full brunt of what could be its worst recession since independence. In addition to cost-cutting measures, the budget that Mr Shamugaratnam has unveiled includes sizeable infrastructure spending and transfer payments to lower income Singaporeans.

“The Government is doing so in order to have full flexibility to respond to the current economic crisis,” said Mr Shamugaratnam. Furthermore, this plan includes incentives for new growth industries and programmes aimed at upgrading workers' skills.

“This year's 'significantly expansionary' budget will emphasise help for businesses. Late last year the government pledged 2.3 billion dollars in credit support for firms trying to survive the economic turmoil,” said Mr Shanmugaratnam.

However, in his Budget 2009 speech, Mr Shamugaratnam highlighted that the budget would not just be for the current downturn. “The Government will build capabilities and infrastructure for the future, step up educational opportunities, and provide best care services for citizens in their senior years,” he said.

To fund this massive initiative, Mr Shamugaratnam has requested the Singapore government to dip into the country’s multi-billion-dollar national savings. This is the first time Singapore has ever used a cent of its massive reserves, but most analysts agree that it is a suitable course of action. As the open, trade-driven economy takes a sharp turn for the worse, the prospect of bankruptcies and layoffs is striking fear in Singapore, whose citizens are long used to near-full employment and bustling economic activity.

In 2008, The city-state became the first Asian economy to feel the effects of the recession. Mr Shamugaratnam, boasting a Master's degree in Economics from Cambridge University, feels confident that he and the Singapore government will be able to lead Singaporeans out of the recession. “When I acquired the position of Minister of Finance in 2007, I wasn’t expecting a credit crisis of such magnitude to take place any time soon. I have to admit that it caught me off guard. Nevertheless, we have the expertise, the manpower and most importantly, the will to solve this problem.”

However, most analysts agree that Shamugaratnam’s resistance package will do much in helping Singapore fight the credit crunch, the road to full recovery is miles long. As the Monetary Authority of Singapore (MAS) said recently, “the recovery will be slow, gradual and fraught with uncertainties, unlike the quicker rebounds that followed previous downturns.”

Despite a slight increase in economic activity recently, the world’s major economies are still trapped in minimal growth. As long as this remains, Singapore is likely to continue to experience below-average growth. Moreover, analysts say that the new scare over swine flu, which has caused tourism to grind to a halt and uncertainty over the future to worsen, will inevitably amplify the effects of the global economic downturn affecting Singapore. Given the sheer severity of the situation, it appears that Mr Shamugaratnam will have a long time solving the issues at hand.

Government dips into reserves for 1st time

$20.5 billion Resilience Package revealed

22 January 2009
By John Yap


In an unprecedented move, the government has dipped into its large reserves to cope with the financial crisis, with approval from the President. In his Budget Speech in Parliament on Thursday, Finance Minister Tharman Shanmugaratnam revealed a Resilience Package, saying that the purpose for dipping into the reserves was to “[help] our people now and secure the future for ourselves”.

The Resilience Package, when implemented, will cost the government $20.5 billion, with $4.9 billion coming from the country’s reserves, leaving the island nation with an $8.7 billion deficit, the largest in its history. The Package, said the Finance Minister, would consist of 5 components, mainly creating jobs for Singaporeans, stimulating bank lending, enhancing business cash-flow and competitiveness, supporting families and building a home for the future. “The Package”, said the Finance Minister, “aims to save jobs to the maximum extent possible in the recession, and to help viable companies stay afloat. It also prepares Singapore to emerge with strength when the global economy recovers, and enhances our capabilities and competitiveness for the long term.”

This package promises a lot for Singaporeans including a $4.5 billion Jobs Credit plan to help lower the cost of keeping workers during this recession.
This plan will last for a year and 12% cash grant on the first $2,500 of each month’s wages for each employee on their CPF payroll will be paid out very quarter, starting from March. The grant will be equivalent to a nine percentage point cut in the employers' contribution rate to the Central Provident Fund (CPF). The plan will “encourage our businesses to preserve jobs as much as is possible in the downturn”' said Mr Tharman.

A special Risk Sharing Initiative, ensuring that viable companies continue to have access to credit to sustain their operations and keep jobs, has also been introduced. By the Loan Insurance Scheme and the Trade Credit Insurance Programme, the government aims to improve access to working capital, sharing most of the risks in financial financing.

- Mr. Tharman outlining the Resilience Package in Parliament

There are also more measures to come, with Mr. Tharman promising that the government "would be ready to undertake further measures if necessary over the course of the year and the next few years”.

Despite this however, Mr. Tharman remains cautious. “'The resilience package will not get us out of recession, but it will help avert an even sharper downturn, and more lasting damage to the economy.”

Mr. Thaman’s announcing of this budget has been mostly greeted with a similar response.

“It will not produce a fundamental turnaround for the economy of course but will help cushion some of the pain.” said Mr. Kit Wei Xin, economist at Citi Group “It's a big bang budget I will call it - most likely funded by the fiscal reserves although we will have to wait for further details.”

Added Ms. Tan Yen Yen, chairman of the Singapore infocomm Technology Association “[The association] welcomes the tax reductions, rental rebates and job credits that allow Singapore to be competitive as an ICT hub and remain attractive for foreign companies.”

Voiced Mr. Song Seng Wun, CiMB-GK economist “[The package is] too focused in terms of targeting specific areas, rather than taking a helicopter approach of helping everyone in this kind of a worst-case scenario of a 5% contraction.”

Singapore financial markets also gave a muted reaction to the announcement, with the Straits Times Index (STI) registering about 1,685 pts at press time.