Singapore has not been spared the effects of the crisis. However, we have not been hit as badly because of our prudent fiscal policies and because we have invested in education, training and infrastructure development. Learnt The Importance of Confidence One of the lessons of this crisis is the importance of confidence. Confidence, which takes years to build, can be destroyed in a few days. As the crisis brewed, it became clear that once investors lost confidence, economies deteriorated very quickly.
Confidence is all the more important for Singapore because of our size.
Besides having sound economic fundamentals, we have to be certain of our stability and security. Without this assurance, we would not have been able to establish the confidence that underpins our continued economic well-being. Put simply, we would not have been able to ride the storm that is sweeping across the region. The regional economic crisis reminds us that we must always be prepared, in every sense. Even though we have not seen war for many years, we must not underestimate the importance of military readiness.