Singapore’s Ministry of Trade and Industry (MTI) expects Singapore’s GDP to grow between a meagre one and three percent this year.
"We are already seeing weaker demand in our manufacturing sector, reflecting sluggishness in the developed markets. However, prospects remain positive for companies with markets or investments in Asia," said Finance Minister Tharman Shanmugaratnam in his Budget 2012 speech.
"They (companies) are continuing to hire and expand, although with some caution given the unpredictable global conditions."
According to Mr Tharman, there will be continuing economic weakness in the US, Japan and Europe but Singapore’s economy will see continued growth in the finance, logistics and tourism sectors, expected to come from Asia.
"Our economy will slow down this year, but we should look at this in perspective. We enjoyed an exceptional rebound in 2010. By the middle of that year, we had recovered the lost output from the 2008 – 2009 crisis."
"Growth in 2011 too was healthy, at about five percent. Against this backdrop, a slowdown of one to three percent growth in 2012 is still consistent with our medium-term growth potential of three to five percent," added Mr Tharman.
Related Stories:
Innovation is key for construction productivity: Khaw
HDB to be more active in IRH scheme
CEA receives feedback from public