http://news.bbc.co.uk/2/hi/asia-pacific/7949794.stm
BBC News, 18 Mar 2009, Jonathan Head
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Singapore's prime minister Lee Hsien Loong has warned that his country faces its worst economic crisis since World War II.
Exports from Singapore are falling at their fastest rate since records began, down 24% last month on 2008 figures, and down 35% in January.
Ministers are predicting that Singapore's trade-dependent economy will contract by up to 10% this year.
In an exclusive interview, Mr Lee told the BBC how his government will cope.
He said government spending would help cushion the blow, but that the island state would have to wait for a global recovery to revive its economy.
Worst in decades
Trade has driven Singapore's economy throughout its 200 years of existence.
And, says Mr Lee, even record levels of government spending cannot stop the island state sliding into its worst recession in decades.
"Well we're going to have very negative growth this year," Mr Lee said.
"So I think if we need to do more, we will do more. We had a very decisive budget this year - a very directly focused one - on saving jobs... and helping people to see through the downturn.
"But we must understand is that what we can do is buffer the impact. We must wait for the storm to pass," he said.
Economic barometer
Almost everything Singapore makes - from electronics, to pharmaceuticals, to oil rigs - is exported.
t is the world's busiest container port - one fifth of all container shipments pass through its state-of-the-art facilities.
So it is a perfect barometer for the health of the global economy, and the dramatic fall in exports and shipping here this year show trade grinding to a standstill, as do the dozens of empty ships lying at anchor offshore.
This island has also become a regional financial services hub in recent years, attracting hundreds of thousands of foreign bankers - many of their jobs have now gone.
But perhaps the biggest question hanging over Singapore is what the impact record levels of local unemployment will have on the government's popularity.
There is no political opposition to speak of, and public demonstrations are banned, but people may find other ways to express their discontent if this recession proves to be a prolonged one.
---------------------------------------------------
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BBC News, 18 Mar 2009, Jonathan Head
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Singapore's prime minister Lee Hsien Loong has warned that his country faces its worst economic crisis since World War II.
Exports from Singapore are falling at their fastest rate since records began, down 24% last month on 2008 figures, and down 35% in January.
Ministers are predicting that Singapore's trade-dependent economy will contract by up to 10% this year.
In an exclusive interview, Mr Lee told the BBC how his government will cope.
He said government spending would help cushion the blow, but that the island state would have to wait for a global recovery to revive its economy.
Worst in decades
Trade has driven Singapore's economy throughout its 200 years of existence.
And, says Mr Lee, even record levels of government spending cannot stop the island state sliding into its worst recession in decades.
"Well we're going to have very negative growth this year," Mr Lee said.
"So I think if we need to do more, we will do more. We had a very decisive budget this year - a very directly focused one - on saving jobs... and helping people to see through the downturn.
"But we must understand is that what we can do is buffer the impact. We must wait for the storm to pass," he said.
Economic barometer
Almost everything Singapore makes - from electronics, to pharmaceuticals, to oil rigs - is exported.
t is the world's busiest container port - one fifth of all container shipments pass through its state-of-the-art facilities.
So it is a perfect barometer for the health of the global economy, and the dramatic fall in exports and shipping here this year show trade grinding to a standstill, as do the dozens of empty ships lying at anchor offshore.
This island has also become a regional financial services hub in recent years, attracting hundreds of thousands of foreign bankers - many of their jobs have now gone.
But perhaps the biggest question hanging over Singapore is what the impact record levels of local unemployment will have on the government's popularity.
There is no political opposition to speak of, and public demonstrations are banned, but people may find other ways to express their discontent if this recession proves to be a prolonged one.
---------------------------------------------------
Latest News Updates At Singapore News Alternative:
1. Asia Sentinel's editor barred from entering Spore
2. "Dendrobium Thein Sein" - Spore orchid named after the Myanmar junta leader
3. Spore fares the worst in SE Asia despite world costliest govt
4. Myanmar foreign investments rose sharply, Spore is 3rd largest investors
5. Spore urges Myanmar to cooperate with the world
6. No expenses spared as Spore splurges on cultural event to entertain Gulf dignitaries
7. No safe haven to artful tax dodgers - Alexander Smith
8. Despite recession & dipping into its reserves, Spore will still hosts star-studded global theatrical production
9. Spore delays completion of new cruise terminal to 2011
10. Unlike Spore, Macau gov is highly concern about recall of Brand's Essence of Chicken US
New videos added:
1. Peter Schiff Vblog Report- 17 Mar 2009
2. Jim Rogers on Bloomberg - 17 Mar 2009
3. Mac Faber - Buy gold but keep it out of US & Swiss banks
