HOUSTON, TEXAS: Prime Minister Lee Hsien Loong has said Singapore economy is on a "firm path" towards a record year.He was commenting after the Ministry of Trade and Industry (MTI) upgraded Singapore's 2010 GDP growth forecast to a blistering 13 to 15 percent, outstripping estimates for China.
The revision followed the 16.9 percent year-on-year GDP growth in the first quarter while second-quarter expansion is estimated at 19.3 percent.
Mr Lee, speaking to reporters at the end of an official visit to the US, attributed the rebound mainly to the success of the two integrated resorts and a sharp increase in pharmaceutical output.
He said the two resorts, which opened early this year, "made a significant difference" this year and boosted tourism to Singapore.
Mr Lee also said Singapore should go into double-digit growth this year. But he tempered sentiments, saying that this is an exceptional year.
He said: "Numerically the growth figures may be higher than other countries. I would hesitate to compare myself to China. I think if you compare yourself to Shanghai they may well be ahead of us.
"But it's a good result and we should be happy but at the same time we should understand that it doesn't mean that next year you're going to get this, and the year after that you're going to get this."
Mr Lee said Singapore needs to press on with restructuring and improving productivity to sustain long-term growth.
He said: "This is a rebound. We are on a firm path upwards. Now we must make the most of this opportunity to implement the restructuring, the upgrading, the productivity improvement which we have been pursuing and talked about in the Budget.
"Because unless you get these longer term structural changes, we are not going to be able to sustain growth in the future years. And when we say 'sustain growth', we don't mean 9, 10 percent or 11 percent in future years but 3, 4, 5 percent steadily for another 10 years."
One issue being closely watched will be the property market. Mr Lee said the government will be mindful of the economy overheating with the strong growth - which will also mean having more foreign workers.
Mr Lee said: "I believe this year foreign worker numbers will go up in Singapore. It cannot be helped because with the market so tight, if we don't allow the foreign workers in you are going to have overheating.
"But we are managing the foreign worker numbers - the levies are being calibrated to moderate the inflow. Even with that, I would imagine there would be more than 100,000 extra foreign workers this year. I cannot see otherwise, but we have to accept that."
On Singapore's aim to raise the real median wage of Singaporeans by 30 percent in 10 years, Mr Lee described this as a "reasonable target".
He said: "It is not an easy task to achieve by any means because you are talking about the median wage, the 50th percentile, and that means a broad uplifting of the standard of living for Singaporeans and not just 10-20 per cent of the most successful Singaporeans.
"That means not just economic growth but also upgrading of workers, their jobs and training of the skills and restructuring so that when new companies come in they are able to make productive use of the workers whom we have re-trained. That is something we have to work towards. It is better for us to under-promise and over deliver than to make grand promise and then be disappointed!"
Mr Lee was also asked about the detention of a national serviceman under the Internal Security Act. He said it did not come as a surprise as there have been cases of self-radicalised Singaporeans before.
He added Singapore has systems to monitor trends, but the problem is a global one as the jihadist propaganda is now reaching a new audience with websites in English.
Mr Lee said: "We must expect our people to be exposed to the material, to read the websites, and once in a while you'll find somebody who goes astray and is misguided and may take another further step. We must be prepared for this to happen and have measures to detect and to intervene when necessary.
"It doesn't mean that you will succeed every single time. We have to succeed every single time. On the other side, the terrorist only has to succeed once! So we have to understand that that is the nature of the challenge we face."
Mr Lee was also asked about his thoughts on issues that may crop up at the next General Election due by 2012.
But he remained tight lipped.
"I think it's too early to say. I mean we are just midway through 2010, with a record economy. I have not decided when the election will be."
- CNA/ir
By Imelda Saad Posted: 14 July 2010 1000 hrs
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