2010 will be record growth year for Singapore: PM Lee

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

Economists raise 2010 growth outlook for Singapore to 6.5%

Economists have upped their growth outlook for Singapore as the city-state's key industries continue to rebound from last year's recession, according to a central bank poll.


The Monetary Authority of Singapore's survey of 20 private-sector economists showed they expected average growth of 6.5 per cent this year, higher than the previous forecast of 5.5 per cent in December.

The economists also raised their outlook for the island-state's major industries including manufacturing, which is now predicted to expand an annual 9.7 per cent this year - higher than the previous forecast of 6.3 per cent.

Wholesale and retail trade is seen growing 8.4 per cent instead of 7.0 per cent while construction is tipped to expand 8.9 per cent, from a previous projection of 7.1 per cent.

The government in February upgraded its 2010 economic growth outlook to 4.5-6.5 per cent from 3.0-5.0 per cent.

Singapore's economy contracted 2.0 per cent last year due to the global economic downturn. But it has managed to pull out of recession and rebounded strongly.

Improving global trade and continued consumption by major Asian markets like China spurred a rapid recovery in the beginning of this year.

Song Seng Wun, regional economist at CIMB-GK Research, said: "We see a very strong start to the year for the manufacturing sector, led by the pharmaceuticals sector, as well as a firmer contribution from the tech sector itself. So, collectively it looks like we're off to a very strong start for the year, and for the first quarter. Indeed the first-half performance may lift the overall figures for the full year itself."

Private-sector economists surveyed by the central bank said they expected GDP growth of 9.5 per cent for the first quarter.

Sector-wise, they said the long-term prospects for the financial services sector remain strong although it is expected to lag behind the others in the first quarter.

David Cohen, director of Asian economic forecasting at Action Economics, said: "Those numbers can fluctuate quarter on quarter, and as far as the financial services, the outlook is still bright in the long term. The fact that the stock market has bounced back nicely from a year ago should help support investment activity."

As for 2011, GDP growth estimates for Singapore came in at 5.5 percent. Experts said the lower expectation is the result of the inventory restocking cycle being over, and concerns over the pace of recovery in the more developed OECD economies.

- CNA/yb/ir

Marina Bay Sands staff move into complex

SINGAPORE : Staff of Marina Bay Sands have started to move into their new home at Bayfront Avenue, as they prepare for the resort’s opening on April 27.

The first team moved in just after 9am on Monday, an auspicious time according to the Marina Bay Sands’ feng shui consultant.

Teams from Food & Beverage, Hotel Housekeeping, Facilities and IT were the first to move in.

By the end of next month, thousands of employees would have moved in.

Staff will be served hot cooked meals at two dining rooms.

The two staff dining rooms are expected to serve 2.5 million meals a year round the clock. — CNA/ms

Channel NewsAsia - Tuesday, March 9

Property launches to go into high gear

DEVELOPERS are gearing up to launch more projects - especially prime ones - into a thriving property market driven by confident buyers keen to splash out on the back of the improving economy and a low interest rate environment.

The Government's anti-speculation moves last month are having little effect on genuine home hunters, who have ever wider real estate options.

Potential buyers will certainly have no lack of choices when it comes to new launches this month with 'easily half a dozen launches' coming up, said CB Richard Ellis (CBRE) executive director of residential services Joseph Tan.


Mass-market projects have been setting the pace for months but prime developments, which began inching back into the market late last year, are becoming more prevalent.

A CBRE Research report yesterday said that Singapore's luxury residential market is expected to make a strong rebound.

It noted that new luxury projects recorded launch prices of between $2,500 and $3,400 per sq ft (psf) in the fourth quarter of last year.

This beats the $2,100 psf to $2,700 psf range achieved at the end of 2008, demonstrating a strong turnaround, it said.

In January and February, 88 units of CapitaLand's prime Urban Suites were sold at $2,500 psf on average while about 35 units of The Laurels in Cairnhill Road went at $2,500 psf to $2,900 psf, it said.

The launches coming up on the weekend include the Hiap Hoe Group prime estate Waterscape At Cavenagh, and Hong Leong Holdings' Aalto.

The Waterscape At Cavenagh will house 200 one- to four-bedroom units and penthouses ranging from 581 sq ft to 2,992 sq ft. Prices at this weekend's launch will be about $1,880 per sq ft.

Hiap Hoe gave a preview of the project in late November and sold just three units at a median price of $1,909 psf. Another five units were sold in December. But this year it has sold 88 units, with the bulk transacted over the weekend after Chinese New Year, from $1,715 psf to $2,020 psf or $1.03 million to $3.15 million.

This weekend will also see Hong Leong Holdings release 60 high-floor units at the freehold 196-unit Aalto in Meyer Road. Prices will start from $2,000 psf.

A handful of lower-floor units are also available, from $1,500 psf. Absolute pricing ranges from $3.1 million for a 1,442 sq ft three-bedder to $5.3 million for a 1,959 sq ft four-bedroom unit.

The Aalto was first released in 2007 with units selling for around $1,950 psf. It was then launched in January 2008.

One unit was sold in January this year at $2,011 psf, leaving 78 unsold units in the condo, which will receive its temporary occupation permit in September.

A Hong Leong Holdings spokesman said: 'We have maintained the original selling price of the Aalto in light of premium value and location.'

Next weekend, buyers can look forward to Cheung Kong Holdings' The Vision in West Coast Crescent, The Laurels and Tiong Aik's Coralis in Joo Chiat Road. The Vision, a 99-year leasehold condo, is said to be priced about $1,100 psf.

Coralis is a freehold condo featuring one-bedders as small as 495 sq ft and penthouses of up to 3,089 sq ft. Indicative pricing is from $1,350 to $1,550 psf.

The pace will quicken over the next two to three months with possible launches including 76 Shenton Way, Seascape and Residences at W in Sentosa Cove, The Waterline on the former Toho Gardens site in Yio Chu Kang, UOL Group's Dakota Crescent project, and Starlight Suites in River Valley Close.

CBRE Research said the luxury projects Ardmore 3 and those on the sites of the old Grangeford, Hillcourt and Parisian estates are likely to be marketed in the first half of the year. Prices and rents of luxury properties are expected to rise by 10 per cent to 15 per cent and 5 per cent to 10 per cent respectively this year.

Overall, prices will continue to rise but at a much less frenetic pace, said Mr Tan. 'If you look at the recent land tenders, there's a certain replacement cost that developers need to look at. Some developers may want to put a forward price on their projects now as they don't want to run out of their landbank too quickly.'

Sat, Mar 06, 2010
The Straits Times