Recession has hit Singapore - its worst since independence 45 years ago.

But don't panic or despair. Stay calm and positive. Gird yourself and prepare to navigate through the choppy waters of the economic storm

Take heart. Recession, as proven in economic history, does not last forever. In every recession, there is always light at the end of the tunnel.
The Singapore Government, in its recent $20.5 billion "resilience budget", announced measures to save jobs, stimulate bank lending, improve business cash-flow and its competitive edge, support families and build a home for the future.

Under this budget, companies will get a 12 per cent cash grant under the job credit scheme, reduction of corporate tax from 18 per cent to 17 cent and a 40 per cent property tax rebate for industrial and commercial properties.

Individuals will get 20 per cent personal income tax rebate, 40 per cent property tax rebate, and housing rental and fee rebates. Under its pump-priming strategy to stimulate economic recovery, the Government will spend millions of dollars on construction and infrastructure projects.

Generous though this budget may be, individuals, as well, as companies, should not rely too heavily on the Government package to ride though the present turbulence in the economy.  Instead, they should adopt a resilient and resolute approach - and take the necessary steps to get them out of the woods.

Recession is a time of reflection - for both individuals and companies.

Individuals

For individuals, they should take a long, hard look at themselves and learn how to deal with pressing problems brought about by the downturn. Most importantly, they should adopt a positive attitude.



Do not allow the bad situation to wear you down.

Be forward looking; explore new ways and opportunities to get you out of your present plight. Take comfort that you are not alone in economic distress as most Singaporeans are knuckling under the backlash of recession.



Stay updated, stay connected.

Read newspapers and magazines and continue to network with your professional contacts and friends to keep track of new job openings and the latest developments in commerce and industry. Keep you resume updated - especially if you are retrenched, or simply on the lookout for better job openings if you are currently employed.  Be ready to seize better opportunities when economic recovery comes.



Use the current economic slack to upgrade yourself professionally.

Take relevant courses and attend seminars to enhance your professional and job knowledge and learn new skills. Make yourself more employable, more skillful and more job versatile.

An important point we have to bear in mind is to change our perceptions and mindsets. Job-seeking Singaporeans should discard old ways of thinking and be adaptable to change. They should not be fussy and rigid, insisting on doing jobs that fit their present lifestyle and status.

They should be versatile and realistic, and willing to take on even lower-ranking, and lower paying jobs to stay relevant - and to survive. During an economic downturn, they should re-think and re-assess their priorities.

One example of the blinkered mindsets of some Singaporeans is the four-day career fair held at SUNTEC City in early March this year. During the fair, there were thousands of people lining up for the 800 jobs offered by the seemingly glamorous and glitzy, but morally questionable integrated resorts.

In contrast, there were few job takers for the numerous job openings in the less fanciful, but critically-needed and socially respectable healthcare,  nursing  and social service sectors. Even amid the rising unemployment rate,  with the jobless figure poised to cross the 10,000 mark this year, many people are still picky about jobs and  overly conscious about how others  will view them if they work on certain types of jobs.



Exercise prudence and good judgment in managing your personal finances.

If you are financially hit by the economic downturn, trim your spending. Reduce purchase of luxury items and buy what is really necessary. In your regular shopping, switch to cheaper brands and zero in on sale or promotional items.

Take advantage of vouchers, reward points and free samples. In your family outings, cut down visits to restaurants and eat more at food courts, coffee shops and hawker centres.  In your homes, reduce your electrical and water bills by avoiding wastage.

If you are in debt, get out as soon as possible by finding ways to pay for it. Debt is money you owe, meaning bills. There are "good bills' and "bad bills". The "good" ones are necessities like rents and utilities. The "bad' ones are those that land you into trouble - buying a $2,500 computer instead of $1,000 one which will suffice, or a $800,000 condominium instead of a $450, 000 five-room HDB flat. Keep a tight rein on your credit card spending. As far as possible, settle your monthly card bill in full.  It is a fact that many Singaporeans are mired in heavy debt because of heavy credit card spending.



Stay fit and take care of your health

In a downturn, people should adjust their lifestyle to stay fit and healthy - without  resorting to heavy spending on gym and spa memberships and extra health foods and supplements. They should cut down ( if possible give up; ) smoking and stop going to the pubs. They should eat more home-cooked food, which is healthier, than eating out in hawkers centres, coffee shops and restaurants. They could also save on transport costs by walking more - and getting good, healthy exercise at the same time.



Lastly, individuals should use the lull in economic activity to reexamine themselves, weigh and reassess their priorities in life and plan for the future.



Companies

For companies, the recession may present opportunities for them to streamline work processes, cut costs and generate new revenues. It is also a time to make effective use of their professional staff and workers. They should send some of their employees for special training to sharpen their skills or equip them with new  skills. As part of their training programme, they should take advantage of the Government's skills programme for upgrading and resilience (SPUR) scheme for their workers.

Also, bosses should embark on "out-of-the-box" initiatives to spur business growth - and not be overwhelmed by depressing economic conditions. Also they should stay lean and be financially prudent - and not fall prey to banks and lenders by adopting a highly-geared financial policy for their firms.

The economic slowdown should not deter companies from pushing ahead with innovative plans and efforts. However successful their products or services may be, firms should explore new initiatives to improve them.

When export and customer orders have plunged, many firms have no choice but slash expenses such as overseas travel, marketing campaigns and the purchase of new expensive machinery. But they should avoid indiscriminate cost-cutting and other anorexic behavior which may sap their business strength.

Bleak though the economic situation may be, companies should not turn a blind eye to growth opportunities. For example, a company may consider launching new products or services to attract cost-conscious customers.

This means companies should stay relevant and respond to market demands. To stay connected to their customers, companies should not compromise on the right marketing strategies to push their business growth

For companies, the current economic crisis is  a wake-up call for  chief executive and top management to evaluate corporate policies and growth strategies, re-assess priorities, and make necessary changes to beef up their companies in readiness for the economic upturn when it comes.

For individuals, it is time to reflect and find new ways of living and making a living.