SINGAPORE: Singapore's economy grew 1.2 per cent this year, hurt by weak US, European and Japanese economies, said Prime Minister Lee Hsien Loong in his New Year message on Monday.
Mr Lee said overall, Singapore has made steady progress this year though economic growth was weaker than the 4.9 per cent expansion last year.
The slowdown was
attributed to weakness in Western and Japanese economies as well as
difficulty some industries have in hiring the workers they need to grow.
Mr Lee did not give figures for the fourth quarter, but
analysts said Singapore's economy would likely contract in Q4, thereby
pushing the economy into a recession, as it had also contracted in the
third quarter.
Song Seng Wun, CIMB's regional economist, said
based on the 1.2 per cent growth, Q4 would likely see a contraction of 4
per cent from the last quarter.
The third quarter saw a contraction of 5.9 per cent on a quarter-on-quarter basis.
The overall growth projection for next year is between 1 and 3 per cent.
"In our new phase, we must expect slower growth than we have become accustomed to," Prime Minister Lee said.
He also warned of pressures companies will face to raise productivity. He said the government will lend them support to do so.
Mr Lee said that only through higher productivity can there be sustained real wage increases for Singaporeans.
He
also pointed to one long-term initiative that was launched this year --
"Our Singapore Conversation" -- which involves Singaporeans coming
together to forged a shared vision for the future.
Mr Lee said it
has been a productive airing of views, but added that the process is
also about building consensus and learning to walk in one another's
shoes.
He said the next step is to translate the ideals and aspirations into programmes that improve lives.
One issue where consensus needs to be forged is on population.
Prime Minister Lee said it is critical to strike a right balance in Singapore's population policies.
Fundamentally,
Mr Lee said it is about maintaining a strong Singaporean core. But
there are also practical concerns to prevent the population from ageing
and shrinking, and to keep the economy competitive.
Mr Lee added
that Singapore needs capable and committed leaders, who uphold high
standards of integrity and set good personal examples so that they have
the moral authority to lead the nation.
He said the instances of lapses by persons in senior positions are unfortunate and disappointing.
He
stressed that while no system can be perfect, Singapore must do its
utmost to run a clean and good government -- this means investigating
wrongdoings thoroughly, and putting things right decisively and openly.
The government will release advance estimates for fourth quarter economic growth on Wednesday.
- CNA/al
Mr Lee added that Singapore needs capable and committed leaders, who uphold high standards of integrity and set good personal examples so that they have the moral authority to lead the nation.
Does he has????? if don't have, please step down.