Three cheers for Singapore

Strong Government, strong economy and strong army – these are crucial for Singapore. Besides for our own well-being, it enables us to deal firmly with pressure and demands from our neighbours, negotiate trade packs and other agreements with other countries and participate in international missions. Which country would want to cooperate with us or help us if we can’t defend ourselves and have little money.

Foremost is an efficient, strong and non-corrupt government. In future if no party can provide that, it is bad omen for our Country. But that doesn’t mean no oppositions in Parliament. But we must have competent ones who put the Country’s interests in first place.

I believe certain things will not change whichever party forms the Government: People who are a threat to our security will still be detained. People who defame others will still be sued. Say-all-the-nonsense-you-like type of free speech will not be allowed. That also applies to controversial issues on race and religions.

If we have a mediocre Government, Singapore will be no different from other Asean countries. There will be strikes, confrontations and even chaos because being a small country, a few incidents could spread and affect the whole country rapidly. Troublemakers might stir up racial tensions. Why then would investors, foreigners or even tourists want to come here. Who would want to become our citizens.

And there must be the rule of law. Some people may think a certain law is silly but a law is made only after careful considerations. You may not agree with it, but I believe there is a reason or purpose for a law to be there.

Cut GST to stimulate spending?

Will people spend more if the GST is cut?

Say a poor family that spends about $2000 or less a month and saves little or nothing. If the GST is reduced by 2%, the family can buy a bit more with the $2000 or it spends less on the same amount of things and save about $40.

Or say another family that spends about $4000 pm and saves $200. If the GST is reduced, probably it will still spend $4000 but I don’t think it will spend more by using the money budgeted for saving.

Also people in the lower-income group might spend more if they are thinking of buying a costly item. But this is not something that happens frequently.

If you take a rich family that spends $8000 or more. The rich is not bothered by GST. If the GST is reduced, it will continue its normal lifestyle. Since prices are lower, it will spend less than $8000.

So I don’t think cutting the GST will encourage people to spend more. Instead the Government will collect much less revenue from the rich, the amount of which can be used to help the poor.