Non-Constituency Member of Parliament (NCMP) Hazel Poa from the Progress Singapore Party (PSP) asked the government for greater transparency with regard to the National Reserves, as well as an honest assessment of budget measures.

These were some of the points she raised in a speech delivered during the Budget debates on Wednesday (Feb. 24).

Greater transparency to better understand rationale for policy decisions

Poa referred to DPM Heng Swee Keat's Budget statement saying that Singapore can expect a budget deficit of S$11 billion, attributed to the Covid-19 Resilience Package.

Members of Parliament are asked to vote on a Budget that would require a draw down on our reserves without knowing its size, she continued.

But how would one know that S$11 billion is a "prudent" deficit figure? Poa asked.

Because the exact size of the reserves is a secret and MPs are not fully aware of the nation’s financial position, Poa argued that it would be difficult to make sound and informed decisions.

Hence, she asked for greater transparency with regard to our reserves, so Singaporeans might better understand the rationale for "difficult decisions" — like the need to raise the Goods and Services Tax (GST) to nine per cent in future, for instance.

The topic of Singapore's reserves is not new.

It has been previously said that the size is not publicly revealed because it is not in our national interest to do so.

Publicising the exact size of the reserves will make it easier for markets to mount speculative attacks on the Singapore dollar during periods of vulnerability.

Fuller accounting of budget measures' benefits

In addition, Poa asked the Ministry of Finance to give a fuller accounting of budget measures' benefits, as well as an assessment of whether resources have been used effectively and efficiently.

She quoted the Monetary Authority of Singapore's (MAS) estimate that 155,000 jobs were saved or created as a result of the government's S$100-odd billion in financial measures in 2020.

However, if the government were to simply pay 155,000 people S$4,000 a month each, this would cost just S$7.4 billion.

By measuring the effectiveness of each measure, this can help us make better allocations in future, she explained.

Poa acknowledged that it is not easy to come up with such measures to deal with the pandemic within such a short time.

Hence, she is asking not for a perfect solution but an honest and transparent assessment, with a cost benefit analysis of each scheme.

On growing the economy

In her speech, Poa also touched on other suggestions for the government, such as for the government to consider preferential treatment for local businesses in government procurements in order to help SMEs grow.

Quoting the example of Israel, she said that "few would think" that their preferential regulations have affected their competitiveness to the point where they are unable to compete globally.

She also urged the government to set a target for the wage component of Singapore's GDP, adding that it should be at least 50 per cent of GDP.

This is to ensure that people can enjoy the fruits of Singapore's economic development.

Nevertheless, Poa said that she supported the Budget.

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Top photo via PSP/YouTube, Ryan Shine/Google Photos.