May 19, 2009 11:55 AM
Singapore's Economy On Roller Coaster
By Zakaria Abdul Wahab
SINGAPORE, May 19 (Bernama) - Singapore's economy which has gone through a roller-coaster ride in last few years might face yet another worse year this year.
Its growth domestic product (GDP) is expected to decline by six to nine percent, with rising unemployment, according to President S. R Nathan when opening the second session of the Singapore Parliament Monday night.
He said 2006 and 2007 were very good years with growth averaging eight percent but last year it fell to one percent after the global financial crisis hit the city-state.
However, he said Singapore was fortunate because it had restructured the economy during good times by upgrading its workforce and attracting many new investments and high-value jobs.
"When the financial crisis struck, we were in a strong position," the president said adding that due to its wise financial policies Singapore was able to accumulate reserves for a rainy day and avoid a credit bubble.
Nathan said the government's immediate priority during the current crises was to see Singapore through, and the best strategy was still to help companies to stay viable and continue employing and upgrading their workers.
The president also said the global economy would not be the same as before when the crisis was over because there was a growing consensus that the world was in for an extended period of slow growth.
The problem of bad banking assets in many countries, especially the United States and Europe, would take several years to unwind, he added.
Nathan also warned of the dangers of protectionism that might be adopted by governments that were under economic pressures to shield domestic industries and markets from foreign competition and imports.
"If governments succumb, international trade will be damaged and globalisation which has benefited many countries will be disrupted," he said, hoping that major economies would recognise its dangers and cooperate to keep markets open and trade flowing.
The president also touched on the escape and recent recapture of fugitive Mas Selamat Kastari, the suspected leader of the Jemaah Islamiah militant group by the Malaysian police, saying his recapture was not the end of the terrorism threat.
He said the episode not only reminded Singaporeans of the threat of extremist terrorism to its security but also to its racial and religious harmony, and following that they must continue to continue building trust and confidence between the different communities.
Nathan also hoped Singaporeans will continue to welcome the foreign workers and its new citizens who helped contribute to its economy and society and help grow its population over the long term.
He said one-day Singapore would have a new generation of population that would be indistinguishable and would collectively build Singapore's future. On the state leadership, the president said Singapore politics must evolve over time as the world and its society changed, and its leadership team too must self-renew.
The city-state must find outstanding leaders, younger men and women who were in touch with the new generation, and understood how Singapore works to lead the republic, Nathan added.
-- BERNAMA [/QUOTE]
Singapore's Economy On Roller Coaster
By Zakaria Abdul Wahab
SINGAPORE, May 19 (Bernama) - Singapore's economy which has gone through a roller-coaster ride in last few years might face yet another worse year this year.
Its growth domestic product (GDP) is expected to decline by six to nine percent, with rising unemployment, according to President S. R Nathan when opening the second session of the Singapore Parliament Monday night.
He said 2006 and 2007 were very good years with growth averaging eight percent but last year it fell to one percent after the global financial crisis hit the city-state.
However, he said Singapore was fortunate because it had restructured the economy during good times by upgrading its workforce and attracting many new investments and high-value jobs.
"When the financial crisis struck, we were in a strong position," the president said adding that due to its wise financial policies Singapore was able to accumulate reserves for a rainy day and avoid a credit bubble.
Nathan said the government's immediate priority during the current crises was to see Singapore through, and the best strategy was still to help companies to stay viable and continue employing and upgrading their workers.
The president also said the global economy would not be the same as before when the crisis was over because there was a growing consensus that the world was in for an extended period of slow growth.
The problem of bad banking assets in many countries, especially the United States and Europe, would take several years to unwind, he added.
Nathan also warned of the dangers of protectionism that might be adopted by governments that were under economic pressures to shield domestic industries and markets from foreign competition and imports.
"If governments succumb, international trade will be damaged and globalisation which has benefited many countries will be disrupted," he said, hoping that major economies would recognise its dangers and cooperate to keep markets open and trade flowing.
The president also touched on the escape and recent recapture of fugitive Mas Selamat Kastari, the suspected leader of the Jemaah Islamiah militant group by the Malaysian police, saying his recapture was not the end of the terrorism threat.
He said the episode not only reminded Singaporeans of the threat of extremist terrorism to its security but also to its racial and religious harmony, and following that they must continue to continue building trust and confidence between the different communities.
Nathan also hoped Singaporeans will continue to welcome the foreign workers and its new citizens who helped contribute to its economy and society and help grow its population over the long term.
He said one-day Singapore would have a new generation of population that would be indistinguishable and would collectively build Singapore's future. On the state leadership, the president said Singapore politics must evolve over time as the world and its society changed, and its leadership team too must self-renew.
The city-state must find outstanding leaders, younger men and women who were in touch with the new generation, and understood how Singapore works to lead the republic, Nathan added.
-- BERNAMA [/QUOTE]
