Singapore’s economy cannot grow another 10 percent in 2011 as another growth spurt would mean risks in overheating bringing in foreign workers, said Prime Minister Lee Hsien Loong.
A growth range of 3 percent to 5 percent in the medium term would be more realistic, said Mr. Lee after the two-day APEC meeting held in Yokohama.
“Even if the external conditions are strong, we are not able to expand so quickly, unless you are prepared to take in more foreign workers and take the risk of overheating,” said Mr. Lee.
“So we have to moderate down. And I think our estimate of 3 to 5 percent growth for the medium term is still a good one. If we can do that, we would be doing well,” he added.
Mr. Lee’s comments come as Singapore experienced a strong economic recovery this year despite a slow recovery in the American financial sector.
Singapore will likely see a growth of 13 percent to 15 percent for the whole year.
While a lot of progress was made during the meeting, Mr. Lee still urged APEC leaders to study new areas of trade liberalisation and facilitation amidst changing business needs.
“There are areas which we have … taken a few backward steps, but overall, the region has gone forward, and I think Apec has helped to create an environment where countries feel the tide is in this direction, and so it is easier for them to move,“ said Mr. Lee.
Mr. Lee also asked the 21 member-grouping to work towards reaching the Bogor Goals, which are intended to achieve free and open trade and investment in the Asia Pacific region by 2010 for developed economies. Meanwhile, developing countries can do so until 2020.