Current Affairs Analysis TITLE: Singapore economy expected to grow 2.5-3.

5% this year By S Ramesh POSTED: 08 Aug 2013 7:06 PM URL: http://www.channelnewsasia.com/news/singapore/singaporeeconomy/769554.html Singapore economy grew by 2.0% in the first half of 2013 and is expected to grow by 2.5-3.5% this year, says Prime Minister Lee Hsien Loong in his National Day message on Thursday. SINGAPORE: Singapore's economic growth forecast for this year is between 2.5 and 3.5 percent. This is higher than the previous official forecast of between 1 and 3 percent. In the first half of 2013, Singapore's economy grew by 2 percent. Revealing the figures in his National Day Message, Prime Minister Lee Hsien Loong said in a world that is changing rapidly and unpredictably, Singapore must reassess its position, review its direction, and refresh strategies to thrive. Recording his National Day Message at the new Toa Payoh Safra clubhouse, Mr Lee said Singapore has made steady progress in the past year. Queues for HDB flats have been cleared and Build-To-Order flat prices have stabilised. In the area of transport, more buses have been added and Singapore is trying out free early-morning MRT rides into the city. Turning to Singapore's economy, Mr Lee said it is holding steady amidst global uncertainties and Singapore is attracting more quality investments. Unemployment remains low, but he emphasised that even as Singapore tightened the inflow of foreign workers and immigration, the country must maintain investor confidence and keep Singapore open for business. Mr Lee said: "The world is changing rapidly and unpredictably. Singapore is changing too. The economy is maturing and our population is ageing. Different groups in society now have more diverse and even conflicting interests. Older Singaporeans worry about healthcare and costs of living. Younger ones aspire to wider education opportunities and more affordable homes. Our road ahead will be different from the road we have travelled." Mr Lee said the Our Singapore Conversation process has helped people crystallise their aspirations. He said: "A Singapore which gives its citizens opportunities to succeed and live fulfilling lives. A nation which defines success in many ways, and offers multiple paths to many peaks. A society with safety nets that give people peace of mind. A community where the disadvantaged get help, and those who have done well in turn do more to help others." The government, said Mr Lee, will set goals and work out plans to realise these aspirations.

Current Affairs Analysis The prime minister added that today, Singapore stands tall internationally with many countries admiring it. At the same time, other countries are rapidly progressing and catching up. Mr Lee stressed that Singapore must stay ahead of the competition, and maintain its standing in the world. To do so, Mr Lee said Singapore must adapt its basic approach to nation building by striking a new balance between the roles of the individual, the community and the state. Mr Lee added that the government will also play a bigger role to build a fair and just society. He said: "We will keep avenues to rise wide open to all. We will help those from families with less get off to a good start in life, beginning from pre-school. We will tackle the cost of living, for example healthcare costs, especially for the elderly. We will foster a more equal society, by helping every family afford their own HDB flat, and giving low income workers a better deal through Workfare. In Singapore, everyone will always have a stake in this country, and ample chances to make good in life." But all this is only possible, Mr Lee said, if Singaporeans are united and not divided by race, social class, or political faction. He added that Singapore must always have able, honest and committed leaders, who can be trusted to serve Singaporeans, and a good government that thinks and plans ahead, and more importantly feels for the people's concerns and hopes. - CNA/xq/ir TITLE: Business leaders cheer revised growth forecast for Singapore's economy By Dylan Loh and Vimita Mohandas POSTED: 08 Aug 2013 9:28 PM URL: http://www.channelnewsasia.com/news/singapore/businessleaders-cheer/769660.html Business leaders Channel NewsAsia spoke with cheered the revised growth forecast of between 2.5 and 3.5 per cent for Singapore's economy this year. Some were surprised that a two-per cent growth was registered in the first half of the year, given the weak nature of external economies. SINGAPORE: Business leaders Channel NewsAsia spoke with cheered the revised growth forecast of between 2.5 and 3.5 per cent for Singapore's economy this year. Some were surprised that a two-per cent growth was registered in the first half of the year, given the weak nature of external economies. But they also said the positive news does not mean companies should rest on their laurels. Singapore's tourism and services sectors may have helped the economy grow by two per cent in the first half of 2013.

Current Affairs Analysis That was the sense of many business leaders, upon receiving news that the country's economy is doing better than expected. But the sense of optimism was not shared by all. Thomas Chua, president of Singapore Chinese Chamber of Commerce and Industry, said: "From our dialogue session with the many trade associations leaders, their feedback is not very optimistic, because of labour shortage, because of the rental that drives the business costs." While business leaders cheer a more positive growth forecast for Singapore, they said there are certain companies that need help, especially the smaller ones. Government help is available for small and medium enterprises, but some businesses said more can be done to keep firms informed of such help. At the same time, they said the onus is on them to be creative and raise productivity, even if times are tough for the smaller players. Teo Siong Seng, managing director of Pacific International Lines, said: "Regular dialogue is important for the government to understand their plight, and at the same time for them to heed to the government's call for improvement and also innovation." Some experts said the relatively poor growth in the manufacturing sector did not dent Singapore's potential for doing well too much, thus far. Song Seng Wun, economist at CIMB, said: "The bottom line here is we had a slow start to the economy, the economy picked up pace in the second quarter itself on manufacturing recovery, and that perhaps could be sustained into the second half." Observers noted that if the momentum for growth can carry on, Singapore can look forward to a better-than-expected year in 2014.