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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>2009 growth forecast to be revised again
</TR><!-- headline one : end --><TR>Outlook is gloomier than it was a couple of weeks ago, PM indicates </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Goh Chin Lian
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ST PHOTO: JOYCE FANG
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View more photos
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->SINGAPORE will revise its growth figures again ahead of Thursday's Budget announcement, Prime Minister Lee Hsien Loong said yesterday.
This second revision within a month is prompted by unexpected developments, he said, citing the steep fall in Singapore's December trade figures which show the economy of its major trading partners has taken a turn for the worse.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>5 DAYS TO BUDGET 2009
It promises to be a Budget like no other. But what will the Government unveil on Jan 22?
IN THE SATURDAY SPECIAL REPORT:
</TD></TR></TBODY></TABLE>The gloomier state of the economy was also affirmed at his meetings with businessmen and unionists since last week, as he met 30 of them on four separate days.
Mr Lee told reporters that one company had built up six months' worth of goods with no buyers. At the PSA container terminals, cranes are lying idle. 'It's a situation which is already gloomier now than it was on New Year,' he said after a lunch meeting with unionists.
The day after New Year, the Government revised downwards this year's growth forecast to between -2 and 1 per cent, from November's projection of between -1 and 2 per cent.
In the past couple of weeks, growth and trade numbers in Asia and elsewhere have fallen very drastically, Mr Lee said.
Yesterday, Singapore reported that its non-oil exports fell by 21 per cent last month compared to the same month a year earlier.
Most economists interviewed expect Singapore's economy to contract by 3 per cent. Said CIMB-GK economist Song Seng Wun, who predicts a worst case scenario of between -2 and -5 per cent: 'We should be more aggressive in providing support for the local economy.'
The business and union leaders who met Mr Lee suggested reducing business costs such as property tax, and the rental of space from HDB and JTC Corporation.
Others want the Government's $600 million Skills Programme for Upgrading and Resilience to take in more professionals and middle managers. Unionists also urged Mr Lee to help middle-income workers, who are hit by the turmoil too.
The Prime Minister said the Government would need to balance the various suggestions, adding that the Budget will run into a deficit this year and if necessary, the Government will dig into the reserves.
'The Government's job is not to do everything which is asked for but to look to see which are the items which will be most effective and then how do I raise the money which I need to fund all the things which I need to do, either from the Budget revenues this year or from the reserves which we have accumulated.'
He also said that Singapore can make the necessary adjustments, 'but what happens after that depends on what happens around the world'.
Mr Lee declined to give specifics of the Budget but indicated it would not follow that of other countries in spending money to boost demand because of Singapore's open economy.
'People will spend it once and then most of the money will leak overseas and that's the end of the warm feeling.'
The Budget focus will be to help companies stay afloat and save jobs, so that workers can look after their families throughout the downturn, he said.
It will also deal with the longer-term concerns of competitiveness and creating new capabilities, he added.
This is important because employers, particularly multinational companies that have weathered previous crises, see long-term opportunities in Asia, said the Prime Minister.
They also think Singapore is a good springboard for exploiting these opportunities when conditions improve, he added.
One lunch participant, Mr Daniel McHugh, chief executive officer of express cargo carrier DHL Express (Asia Pacific), cited the government efforts to train and re-train workers as one reason for his confidence in Singapore. 'I've been in Asia for 25 years and I've not seen this level of government commitment to working with MNCs on people development.'
Mr Lee also gave his reason for holding his lunch meetings, as other ministers and government agencies have also sought views from businesses, unionists, grassroots leaders and members of the public on the Budget.
He said he wanted to have his own feel of the ground. 'I usually have a sounding of a range of views during the year and particularly before Budget. But this time I'm doing more because it's a very critical moment...it's not an ordinary Budget.'
Despite the gloomy picture, Mr Lee is heartened that unionists and bosses share similar views on the need to work together to keep jobs and companies viable.
'It's a tremendous strength for us, in a situation like this, which not many other countries would be able to do,' he said. [email protected]
</TR><!-- headline one : end --><TR>Outlook is gloomier than it was a couple of weeks ago, PM indicates </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Goh Chin Lian
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
ST PHOTO: JOYCE FANG
</TD></TR></TBODY></TABLE>
<TABLE><TBODY><TR><TD>
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->SINGAPORE will revise its growth figures again ahead of Thursday's Budget announcement, Prime Minister Lee Hsien Loong said yesterday.
This second revision within a month is prompted by unexpected developments, he said, citing the steep fall in Singapore's December trade figures which show the economy of its major trading partners has taken a turn for the worse.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>5 DAYS TO BUDGET 2009
It promises to be a Budget like no other. But what will the Government unveil on Jan 22?
IN THE SATURDAY SPECIAL REPORT:
</TD></TR></TBODY></TABLE>The gloomier state of the economy was also affirmed at his meetings with businessmen and unionists since last week, as he met 30 of them on four separate days.
Mr Lee told reporters that one company had built up six months' worth of goods with no buyers. At the PSA container terminals, cranes are lying idle. 'It's a situation which is already gloomier now than it was on New Year,' he said after a lunch meeting with unionists.
The day after New Year, the Government revised downwards this year's growth forecast to between -2 and 1 per cent, from November's projection of between -1 and 2 per cent.
In the past couple of weeks, growth and trade numbers in Asia and elsewhere have fallen very drastically, Mr Lee said.
Yesterday, Singapore reported that its non-oil exports fell by 21 per cent last month compared to the same month a year earlier.
Most economists interviewed expect Singapore's economy to contract by 3 per cent. Said CIMB-GK economist Song Seng Wun, who predicts a worst case scenario of between -2 and -5 per cent: 'We should be more aggressive in providing support for the local economy.'
The business and union leaders who met Mr Lee suggested reducing business costs such as property tax, and the rental of space from HDB and JTC Corporation.
Others want the Government's $600 million Skills Programme for Upgrading and Resilience to take in more professionals and middle managers. Unionists also urged Mr Lee to help middle-income workers, who are hit by the turmoil too.
The Prime Minister said the Government would need to balance the various suggestions, adding that the Budget will run into a deficit this year and if necessary, the Government will dig into the reserves.
'The Government's job is not to do everything which is asked for but to look to see which are the items which will be most effective and then how do I raise the money which I need to fund all the things which I need to do, either from the Budget revenues this year or from the reserves which we have accumulated.'
He also said that Singapore can make the necessary adjustments, 'but what happens after that depends on what happens around the world'.
Mr Lee declined to give specifics of the Budget but indicated it would not follow that of other countries in spending money to boost demand because of Singapore's open economy.
'People will spend it once and then most of the money will leak overseas and that's the end of the warm feeling.'
The Budget focus will be to help companies stay afloat and save jobs, so that workers can look after their families throughout the downturn, he said.
It will also deal with the longer-term concerns of competitiveness and creating new capabilities, he added.
This is important because employers, particularly multinational companies that have weathered previous crises, see long-term opportunities in Asia, said the Prime Minister.
They also think Singapore is a good springboard for exploiting these opportunities when conditions improve, he added.
One lunch participant, Mr Daniel McHugh, chief executive officer of express cargo carrier DHL Express (Asia Pacific), cited the government efforts to train and re-train workers as one reason for his confidence in Singapore. 'I've been in Asia for 25 years and I've not seen this level of government commitment to working with MNCs on people development.'
Mr Lee also gave his reason for holding his lunch meetings, as other ministers and government agencies have also sought views from businesses, unionists, grassroots leaders and members of the public on the Budget.
He said he wanted to have his own feel of the ground. 'I usually have a sounding of a range of views during the year and particularly before Budget. But this time I'm doing more because it's a very critical moment...it's not an ordinary Budget.'
Despite the gloomy picture, Mr Lee is heartened that unionists and bosses share similar views on the need to work together to keep jobs and companies viable.
'It's a tremendous strength for us, in a situation like this, which not many other countries would be able to do,' he said. [email protected]
... juz do wat 1 fella had said: 'upturn ze downturn', can oredi ...
