By Alvin Foo

THE Ministry of Finance (MOF) will continue to adopt policies to see Singapore through the downturn, while investing for future growth and maximising opportunities for every Singaporean.

These were among the key themes outlined by Finance Minister Tharman Shanmugaratnam yesterday in an addendum to President SR Nathan's address in Parliament on Monday.

The Government is drawing $4.9 billion from past reserves to fund one-off Budget measures to boost the economy. Mr Tharman said government expenditure is likely to increase from 15 per cent of gross domestic product to about 17 to 19 per cent of GDP over the next five to 10 years, as Singapore responds to 'a more competitive global environment and the needs of an ageing population'.

The Government will continue to use a framework to enable the Government of Singapore Investment Corporation and Temasek Holdings to 'invest in diversified portfolios aimed at achieving long-term returns', he said.

While using fiscal strength to deal with the downturn, MOF is also stepping up investments to turn Singapore into a 'high-capability economy' and a global city noted for its liveability. He added: 'We will intensify our push into R&D, enhance efforts to commercialise research output, and make innovation more pervasive across the economy.'

It will also keep taxes competitive and improve tax administration, as well as encourage charitable giving and philanthropy. Fiscal policy will also be geared towards supporting the Government's efforts to build a secure and inclusive society.

This article was first published in The Straits Times.