“On my way to heaven,/ We shall not be moved… On the road to freedom,/We shall not be moved,” sing the Seekers.
It reminds me of Singapore’s rock-like stability in the middle of the global economic turmoil. Recession-hit Singapore stands firm unlike US Treasury Secretary Henry Paulson, who, according to the Telegraph, admitted the partial US bank nationalisation goes against his own philosophy:
"Government owning a stake in any private US company is objectionable to most Americans, me included," he said. "Yet the alternative of leaving businesses and consumers without access to financing is to totally unacceptable."
AFP reports: Asia’s richest countries have responded to the global financial crisis by guaranteeing savers’ deposits, but many in the region still have little or no protection in the event of a banking collapse. Australia, New Zealand and Hong Kong have guaranteed bank deposits; Japan is considering a similar move; Indonesia has raised the guaranteed sum to $206,000. Accounts are insured up to $2,000 in India while Pakistan is in no position to guarantee bank deposits with the government facing bankruptcy.
In Singapore accounts remain insured up to 20,000 Singapore dollars ($13,200), it adds.
There will be changes, however, if banks in Singapore become uncompetitive internationally, which possibly means if money flows out. The Monetary Authority of Singapore (MAS) said yesterday:
Over the past week, various jurisdictions have announced extraordinary measures to bolster confidence in their financial systems. In Singapore, our financial system remains stable and robust. Financial institutions here are sound and are operating normally. Our domestic Singapore dollar money and foreign exchange market have been calm and banks have been able to obtain funding in the interbank market.Confidence in Singapore’s markets and financial institutions remains high. We have not had to take any exceptional measures.
Nonetheless, MAS is assessing the impact of the extraordinary measures taken elsewhere.
We will take the necessary steps to ensure that banks in Singapore are not disadvantaged and are able to operate on an equal footing with other banking systems internationally.
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