Water price hike could weaken Singapore’s position

I refer to the report “Govt will ensure ‘higher water prices do not hurt Singapore’s competitiveness” (Feb 9).

Perhaps there is a case for increasing water prices, but I am concerned about the timing of such increases. The global economy is weakening, and Singapore could be hard hit. And Singapore is not in the same category as countries that have the domestic resources to stay comfortably afloat, or in a commanding position to negotiate better trade terms.

So many things have gone awry since United States President Donald Trump’s ascension, and there is already a climate of fear, or caution, amongst investors of Singapore’s future. To increase water prices at this stage could weaken the Republic’s position.

Mr Trump has reaffirmed his election promise to pursue an “America First” economic policy and some European countries could adopt the same stance for their respective economies.

The situation called for a new economic mission where creation of industries, markets and jobs becomes the priority.

Wooing investors is part of the deal, by going beyond traditional incentives. The Government and the private sector should work more closely together to identify which are the industries that could take Singapore further.

Raising water prices at this time could dampen the momentum by deterring investors.

Reacting to global events is no longer enough. Having already anticipated what could happen on the global stage, we must not procrastinate in doing the right thing by our economy.