President Tharman Shanmugaratnam has promised to be “scrupulous and independent” when making judgements about using the “second key” for Singapore’s reserves, whether it is in response to future crises or ensuring Singapore remains safe and liveable.
The “second key”, according to Prime Minister Lee Hsien Loong, pertains to the President having the power to veto the budgets of the government and Fifth Schedule entities (i.e. GIC, Temasek, MAS, CPF Board and HDB) if he is of the opinion that their budgets are likely to draw upon the past reserves.
President Tharman added that in exercising his veto powers on the reserves and key public service appointments, he would consult closely with the Council of Presidential Advisers, and be “thorough and impartial” in his assessments.
Whether the reserves should be used to address challenges like climate change will be weighed carefully
President Tharman was speaking at his inauguration as Singapore’s President on Sep. 14.
He noted that Singapore has built up its reserves over many years of “diligent” saving, particularly in the country’s earlier phase of economic development when it enjoyed strong growth and healthy budget surpluses.
Hence, it has become a significant resource and advantage in securing Singapore’s future, he added.
Thus far, Singapore has drawn on its reserves twice — during the global financial crisis in 2009, and on a larger scale during the Covid-19 pandemic.
“Unfortunately, Covid-19 will not be our last crisis. We must gird ourselves for more crises in a far more uncertain and volatile world,” he said.
President Tharman also cited longer-term threats to Singapore’s existence such as climate change.
Should the need arise in future to use the reserves to address such existential threats and crises, the matter will be weighed carefully, President Tharman added.
“We will have to balance between meeting immediate needs and preserving the reserves so that every generation, now and in the future, enjoys their benefits,” he said.
Multiracialism will be strengthened
President Tharman also spoke about how Singapore’s achievement as a cohesive, multiracial society with a high level of trust and unity is something that is neither assured nor permanent.
Given that Singapore’s society is also maturing at the same time, a greater diversity of views and preferences are to be expected, he noted.
It is therefore crucial to ensure that Singaporeans do not allow any of their differences to divide the public, he added.
The President further vouched to work with the government, community groups and other voluntary organisations to help strengthen Singapore’s multiracialism.
This will involve promoting greater interactions between different communities, while ensuring the vibrance of different cultures, he said.
President Tharman elaborated:
“It may be by encouraging our youth to play sports that are currently played mainly by a particular ethnic group, learning one another’s art forms, or promoting collaborations between our self-help groups, our various community organisations and our business chambers.”
Such interactions will enhance Singaporeans’ respect and appreciation for one another, he noted.
Building an inclusive society
President Tharman also voiced his commitment to making Singapore a more inclusive and “socially just” society.
While government policies have helped “significantly” in achieving this, Singapore must build a strong culture of kinship and respect, he added.
This will be done by encouraging the building of active community stakeholders and a thriving civil society, President Tharman said.
Such a move will entail giving confidence to disadvantaged youth, supporting those who need a second or third chance, helping those who face mental health challenges and launching neighbourhood initiatives to support caregivers and befriend seniors at risk of being lonely, he explained.
In addition, the President said he would lend “active support” to the sports and arts by nurturing and supporting talent, so that they might serve as an inspiration.
He pointed out:
“Our arts scene is becoming more vibrant, supported by our schools and tertiary institutions, community art programmes, and world class performance venues and museums. In sports, athletes like Loh Kean Yew, Shanti Pereira, Joseph Schooling, Yip Pin Xiu, Sheik Farhan and Yu Meng Yu have excelled internationally, under great pressure.”
Representing Singapore abroad
President Tharman also touched on doing his best to represent Singapore abroad and in line with the objectives and priorities of the government.
The President described the current geopolitical landscape as one of “profound global uncertainty and growing fragility.”
He pointed out:
“The ongoing Ukraine war has violated the principles of sovereignty and territorial integrity of nation states. Major economies are shifting away from free trade and investment flows. Strategic trust is lacking between the world’s major powers, with the China-U.S. relationship at its most troubled in decades.”
Singapore must therefore find its way forward amidst these global tensions and always advance its long-term national interests by standing up “firmly” for its principles rather than choosing a side, he said.
President Tharman concluded:
“As President, I will do my part to reflect Singapore’s values and views and to enhance our standing amongst the community of nations. I will work to deepen existing partnerships and build new ones. By remaining a voice of reason and striving for solutions that are of mutual
benefit, we will remain a partner that others find worthwhile to engage with.”
He also thanked the former President, Halimah Yacob, for her service and her counsel on assuming the role.
Top screenshot via CNA
