Singapore PM warns of more layoffs later this year
AP
AP - Sunday, August 9
SINGAPORE - Singapore's prime minister warned workers they could face fresh layoffs this year as the city-state struggles to emerge from a severe recession.
Prime Minister Lee Hsien Loong said companies such as Singapore Airlines Ltd., which last week reported its first quarterly loss since 2003, may have to cut costs as the pillars of the economy _ trade, finance and tourism _ slowly recover.
"We might see another wave of retrenchments later in the year," Lee said in a televised National Day speech. "Companies like Singapore Airlines are still facing very tough conditions."
Singapore's economy was hit hard by the global recession as demand for the country's exports dried up. The unemployment rate rose to 3.3 percent in June from 2.5 percent in December as the economy shrank 6.5 percent in the first half.
Lee said consumer demand from developed economies would likely remain weak next year, weighing on any Singapore recovery.
"Our exports remain much lower than last year," Lee said. "Beyond this year, we expect the global situation to remain difficult for some time. The advanced economies are not expected to bounce back soon."
The government expects gross domestic product to contract up to 6 percent this year.
AP
AP - Sunday, August 9
SINGAPORE - Singapore's prime minister warned workers they could face fresh layoffs this year as the city-state struggles to emerge from a severe recession.
Prime Minister Lee Hsien Loong said companies such as Singapore Airlines Ltd., which last week reported its first quarterly loss since 2003, may have to cut costs as the pillars of the economy _ trade, finance and tourism _ slowly recover.
"We might see another wave of retrenchments later in the year," Lee said in a televised National Day speech. "Companies like Singapore Airlines are still facing very tough conditions."
Singapore's economy was hit hard by the global recession as demand for the country's exports dried up. The unemployment rate rose to 3.3 percent in June from 2.5 percent in December as the economy shrank 6.5 percent in the first half.
Lee said consumer demand from developed economies would likely remain weak next year, weighing on any Singapore recovery.
"Our exports remain much lower than last year," Lee said. "Beyond this year, we expect the global situation to remain difficult for some time. The advanced economies are not expected to bounce back soon."
The government expects gross domestic product to contract up to 6 percent this year.
