Singapore has sufficient financial reserves for most circumstances, though it would be the “biggest misconception” to think that will always be the case, Prime Minister Lee Hsien Loong said.
The city-state’s spending needs are already outpacing revenue growth, Lee told CNA in an interview published Wednesday. He didn’t disclose the size of the reserves.
“I’m anxious that we keep it like this for as long as we can,” Lee said. “Because it’s one of those things – once it’s gone, it will never come back again.”
Allocating 2% to 3% of Singapore’s gross domestic product to build a sovereign fund from zero would be “very hard,” he said. “The economy will not be able to take it.”
Read more: Singapore Narrows GDP View After Second Quarter Growth Slows
