HOW MIGHT IT PLAY OUT AS A CAMPAIGNING ISSUE?
If it does become an electoral issue, the PAP would “certainly remind voters that it is a dependable party to secure Singapore’s long-term future with a track record of fiscal prudence and a position of intergenerational equality with regard to spending the reserves,” said Dr Gillian Koh, senior research fellow at the Institute of Policy Studies.
This was a key point emphasised by Mr Lee in parliament during the debate on the issue. Urging Singaporeans to continue to nurture the reserves nest egg left by Singapore’s forefathers, he said that despite the difficulties and the challenges earlier generations faced, they put aside the savings that current Singaporeans now enjoy.
“We are beneficiaries of our forefathers’ sacrifice and vision but we are also trustees protecting this inheritance for future generations,” Mr Lee added.
Assoc Prof Tan said this suggests that the PAP thinks highlighting this would resonate with the electorate: “In throwing the challenge at the opposition, it would appear that the PAP leaders are confident that voters will support their approach to the management and use of the national reserves.”
On the other hand, opposition parties may put forward the idea that it’s possible to remain fiscally prudent while tapping on the reserves for immediate issues, the analysts said.
“For the opposition, they are likely to make the case that the government can be less tight-fisted, to empathise with the people, and to not ignore immediate concerns even as it continues to prepare for a rainy day,” said Assoc Prof Tan.
He added that one of their arguments could be how they are not advocating a radically different approach from the PAP, but that more can be done to help Singaporeans without compromising the interest of future generations.
“The temptation to use the past reserves may well be seductive enough given that whether we have S$500 billion or S$1 trillion in reserves, spending a couple of ten of millions may be regarded as a drop in the ocean,” he said.
Dr Mustafa said that if the reserves does become an election issue, “pragmatism will most likely prevail at the ballot box”.
“The middle ground voter will favour fiscal prudence for ensuring the sustainability of the reserves for future generations,” he added.