PROPERTY cycles in Singapore are hard to predict, but the Government will try to minimise the ups and downs in the real estate market as far as possible, said Finance Minister Tharman Shanmugaratnam on Tuesday.
‘We will keep our eyes on the ball and use every tool at our disposal in a calibrated fashion to try to manage that cycle as best as we can,’ he told about 80 business leaders in a forum held to garner feedback on the Economic Strategies Committee. Mr Tharman is heading this committee to look into new ways for Singapore to grow.
The Government will probably not use ‘macro tools’ to manage property cycles, such as changing the interest rate or exchange rate, because these rates affect businesses as well, said Mr Tharman in his concluding remarks at the forum.
But there are other options. These include tweaking rules on credit, adjusting land supply, and – in extreme cases – amending tax policies, he said.
‘We do want to manage the property cycle as best we can, prevent boom and bust,’ said Mr Tharman, adding that this is ‘not easy’ as it is difficult to anticipate Singapore’s property needs four or five years in advance.
Source : Straits Times – 10 Nov 2009
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