Singapore economy grew 14.7% in 2010
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By Imelda Saad | Posted: 31 December 2010 1806 hrs
SINGAPORE: Singapore's economy grew a dramatic 14.7 per cent for the whole of 2010, the best growth on record ever for the country.
Economists say the last time Singapore saw anything close to this was from 1968 to 1970 when growth was around 14 per cent.
Fourth quarter figures came in at 12.5 per cent year-on-year.
In his New Year's Message, Prime Minister Lee Hsien Loong described the growth as "a dramatic rebound from negative growth last year".
But he also tempered expectations, saying the results are because of "special circumstances" and are "unlikely to be repeated soon".
The Ministry of Trade and Industry (MTI)'s growth projection was for 4 to 6 per cent next year, much lower than this year.
Mr Lee noted that the outlook for the world economy is mixed and cited among other things, pressures in the US and Europe.
He said that Asia is however maintaining a strong growth momentum.
"China and India are forging ahead, and countries in Southeast Asia are growing steadily. Hopefully Asia will continue to do well despite the weakness in developed countries, and create a favourable regional environment for Singapore," he said.
But, Singapore has its own challenges - managing inflow of immigrants and foreign workers, the need to keep home ownership affordable and helping low-income Singaporeans cope with the increasing cost of living.
Mr Lee said: "We have the means to tackle these problems, and make things better. But in doing so we must remember to keep Singapore open and welcoming to talent, preserve the value of the flats of 800,000 HDB homeowners, and strengthen the spirit of self-reliance among Singaporeans."
He also acknowledged that globalisation has led to a widening income gap in Singapore, a phenomenon also seen in other countries like the US, China and India.
But in Singapore, he said the government strives to ensure the broad majority of citizens benefit from growth including the lower-income, less-skilled and sandwiched class.
He cited schemes such as ComCare and Workfare which are meant to give poorer Singaporeans a leg up.
For middle-income earners, Mr Lee said the government has lowered income tax rates and is building more executive condominiums to widen housing choices.
But Mr Lee added that the most important programmes are not what he called "financial transfers" from the government but efforts to upgrade people and workers.
That is why, Mr Lee noted, Singapore has been investing heavily in workers' training and education.
He cited results of the Program for International Student Assessment (PISA) as proof that these investments have paid off.
In PISA, Singapore students ranked among the top five for reading, mathematics and science.
Noting that other Asian economies - South Korea, Hong Kong and Shanghai - had high scores, Mr Lee said that showed the quality of talent in Asia and the competition that Singapore was up against.
He said: "To hold our own, Singapore needs to continue to upgrade schools, teachers and pedagogy as well as attract and integrate talent in our society."
The government has also launched a S$5.5b fund to be rolled out over five years to boost the productivity drive. This would go into funding workers' training and also support for innovation among enterprises. A high-level National Productivity and Continuing Education Council was also launched to help drive this national effort.
Prime Minister Lee said other tangibles that influence the performance of a nation include superior teamwork and leadership, as well as having the right Singapore spirit and said Singapore showed some of that spirit during the Youth Olympic Games (YOG).
"We showed this spirit in the Youth Olympic Games. We came together to organise a successful YOG, despite our small size and the short preparation time. The result was an intense, enriching and memorable experience for all...We must nurture and strengthen this spirit which makes Singapore work, and Singaporeans special," he said.
"With high-quality education, alert and dynamic leadership and the Singapore spirit, we can be confident of the future. We can overcome challenges that come our way, seize opportunities in a booming Asia and continue improving the lives of all our people. Let us strengthen these fundamentals that underpin our success, and commit ourselves to realise our dreams for our nation," added Mr Lee.
The Prime Minister wishes all Singaporeans a Happy New Year.
- CNA -
PURE BULLSHIT LAH................
only goons will believe a mature economy can grow by more than even 5%............
14.7% growth more likely due to property bubble and inflation than anything...........
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even if economy grew by 1000000% no one except them will see the $$$$.no b8ig deal
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My life didn't change at all.....
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Bullshit !!! None of my family member believe.
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only person who believes him would be folks at IMH.
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Originally posted by Hitman 778:
only person who believes him would be folks at IMH.
I think IMH gt patients who hate PAP one.
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Originally posted by Hitman 778:
only person who believes him would be folks at IMH.
They stuck in ward cannot go out vote, no voting rights.Maybe singapore too stressful they kanna IMH stay .
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GDP growth but many Singaporeans still unable to get out of the recession.
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In other news, laksa costs $17 now.
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GDP doesn't make a difference to the standard of living for Singaporeans.
What matters most is.
Did your salary increased?
How much have the cost of necessities increased by?
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the growth spike is a lucky stroke....thats why they remain conservatively low for 2011
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when you calculate inflation and influx of foreigners....................it's actually recession...........
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high gdp means high bonuses for ministers. What does it mean for singaporeans? This gdp bullshit is terrifically rearing it's ugly head.
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another excuse for raising ministers salary.
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They can pad their own back for a job well done but wonder what n which end of the data r they plucking? very skeptical le.
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I wish my pay go up 14%..
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I FORGOT ALL ABOUT THE CASINO LAH...............
they probably accounted for 50% of the increase.............the other 50% come from inflation and influx of foreigners...............
so if casino make big money.........inflation go up and more foreigners..............= recession for S'poreans.............
but PAP top lackeys get 14% pay rise ???
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2011 inflation forecast: 2.9%
MAS survey reveals slightly higher figure than estimate for this year
05:55 AM Dec 09, 2010SINGAPORE - While the Republic's pace of economic growth next year is expected to slow to a third of this year's blistering performance, inflation is projected to inch upwards.
According to a Monetary Authority of Singapore (MAS) survey of economists, inflation will hit 2.9 per cent next year, up marginally from the estimate for this year.
The forecasts were made before the latest COE prices were announced a few hours later.
Singapore will likely be the world's fastest-growing economy this year - with the official GDP forecast standing at between 13 and 15 per cent - helped by a rebound in manufacturing and financial services as well as contributions from the new integrated resorts.
But, even as the growth moderates to a more sustainable level, inflationary pressures will continue - spurred by rising wages and housing costs as well as increasing energy and commodity prices globally.
Inflationary pressures have already prompted the MAS to tighten its monetary policy twice this year, both at its April and October meetings. It has allowed stronger appreciation of the Singapore dollar to ease imported inflation.
Inflation in Singapore hit a 28-year high in 2008 - driven by higher cost of food, accommodation, electricity tariffs, petrol, holiday travel and taxi fares - before dropping to less than 1 per cent the following year, when the global financial crisis struck.
Economists noted that, this time round, a tight labour market will push up wages which, in turn, is likely to lead to higher prices of food, clothing, accommodation and transportation.
"Wages are picking up and from a policy point of view, wage-price spiral risks is one ball to keep an eye on," said Mr Vishnu Varathan, Asia Economist at Capital Economics.
Mr Tai Hui, Head of South East Asia Economic Research at Standard Chartered Bank, pointed out that inflation next year could be as high as 3.4 per cent, driven in part by higher property prices and rentals.
Economists who are expecting inflation to moderate next year are betting that the Government's measures to cool the property market will have an impact on prices and that the El Nino weather effect that crimped harvests in Southeast Asia this year would not be as pronounced in the next twelve months.
"We're looking for inflation to ease back to 2.6 per cent for 2011, but that's on the assumption that oil doesn't go to US$100 a barrel, there's a stabilisation in property prices and there are no food supply problems," said Ms Selena Ling, head of treasury research at OCBC.
MONETARY TIGHTENING, ASSISTANCE FOR LOW-INCOME ON THE CARDS?
Economists say that the MAS still has room to allow further appreciation of the Sing dollar - which would counter imported inflation given that Singapore imports much of its food and oil. With regional currencies also continuing to strengthen, Singapore is unlikely to lose its competitive edge against regional peers, they added.
Said Mr Varathan: "Even after the policy tightening in October, the inflation outlook has not softened, and has instead edged up modestly. In the context of enduring supply-side price pressures, as is evident in higher commodity prices, and demand-pull risks to inflation, we can't decisively say the MAS is done yet,"
The Sing dollar has appreciated by 7 per cent against the greenback so far this year. According to the MAS survey of economists, another 6 per cent appreciation is expected next year.
Apart from further monetary tightening, Standard Chartered economist Alvin Liew said the Government could help Singaporeans - especially the low-income - cope by giving "some kind of assistance... in terms of handouts".
Said Mr Liew: "I think it will go well; especially we are looking at an election year in 2011."
Mr Liew noted that the Government could also allow more foreign workers to enter the workforce in the short term "as a cushion for price cost pressures".
Barclays Capital senior regional economist Leong Wai Ho added that the Government might not wait until the Budget - which is traditionally announced in March - to act. Said Mr Leong: "One of the things (the Government) can do to limit asset price rises - which is not inflation per se - is actually to implement more cooling measures targeted at the property market." -
2011 GDP to grow 5.1%: MAS survey Teh Shi Ning Thu, Dec 09, 2010
The Business Times
(SINGAPORE) Economists now expect Singapore's gross domestic product (GDP) to grow 5.1 per cent next year, moderating to just a third of expected growth of 15 per cent this year.
These median forecasts from 22 economists surveyed by the Monetary Authority of Singapore (MAS) in November were each 0.1 of a percentage point higher than forecasts a quarter ago. The three-monthly survey consolidates professional forecasters' views and does not represent MAS's own.
Headline growth predictions from the survey are in line with the current official 2011 growth forecast range of an above-trend 4-6 per cent, as well as the official 2010 forecast of 15 per cent - which places Singapore among the fastest- growing economies globally this year.
Growth might overshoot the forecast too, with the survey predicting a larger than 50 per cent probability that the economy could grow more than 15 per cent this year.
In this final survey before the close of the year, economists also hiked their 2010 forecasts for manufacturing and financial services growth, but tempered growth expectations for construction, wholesale & retail trade, as well as hotels & restaurants.
The view that services will power growth next year surfaced in the numbers too, with economists forecasting the strongest growth in financial services, thanks to strong capital flows, as well as the robust hotels & restaurants sector in 2011.
The opening of more attractions in the integrated resorts (IRs) and a buoyant economic outlook bode well for tourist inflows, and thus for the tourism-related services segments, economists have said. Of these, the gaming segment in particular could contribute up to 1.7 percentage points of next year's GDP growth, DBS economist Irvin Seah said in a recent note.
Job creation is also expected to benefit from the robust services sector, which could explain why the already low unemployment rate forecast of 2.1 per cent this year is expected to shrink further to 2 per cent in 2011.
On the inflation front, however, economists now expect prices to rise at a faster clip than they predicted a quarter ago. The median consumer price inflation forecast for 2011 is now 2.9 per cent, higher than the 2.5 per cent forecast in the September edition of the survey.
This means that they no longer think 2011 price increases will moderate from this year's median inflation forecast of 2.8 per cent.
Non-oil domestic exports growth is expected to halve to 12 per cent next year, from the higher base after this year's forecast rebound of 24 per cent.
With Asia's strong economic recovery and loose US monetary policy prompting investors to seek higher yields here, the Singapore dollar is also expected to appreciate further next year to $1.24 against the US dollar, from an expected $1.29 by end-2010.
Interest rates are expected to recover slightly, with economists forecasting a 3-month Singapore-dollar interbank rate of 0.7 per cent by end-2011, compared to the 0.47 per cent rate forecast for end-2010.
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According to PAP's monetary policy, things in singapore will only get more and more expensive. That's the reason for the continuous appreciation of the S$.
Let us welcome 2011 with open arms! :)
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Updated UBS study: Singapore is 9th most expensive city in the world
According to the updated UBS study ‘Price and Earnings’ released in August last year, Singapore is now the 9th most expensive city in the world (if rents are included). It is the second most expensive city in Asia after Tokyo. (download full study here)
Heading the list is Oslo, Zurich, Geneva, Tokyo and Copenhagen. However, the citizens of all the cities which are more expensive than Singapore have higher wages and domestic purchasing power.
The same study also revealed that Singaporeans have relatively low domestic wages and purchasing power compared to other first world nations and is the lowest among the Asian Tigers.
While Singapore may have a first world economy and infrastructure, its citizens do not enjoy the standard of living befitting of a first world nation.
With inflation running at an all-time high of 3.8 percent, an increasing number of Singaporeans are struggling to make ends meet with their meager wages which have more or less remained stagnant.
The median monthly wages of an average Singapore worker is only $2,500 which is far below that of workers in other first world nations.
Despite the ’spectacular’ growth of Singapore’s economy at 14.7 percent last year, the fruits of the growth is not distributed equally among Singaporeans due to the open-door immigration policies of the government which allow the rapid influx of cheap foreign workers to boost the GDP growth artificially while depressing the wages of locals at the same time.
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It's funny that our leaders take the highest salaries in the world but our purchasing power is the lowest among developed nations.
Does it remind you of emperors and their poor peasants? :)
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do they bother?
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i m still soured over the increase in electricity tariffs
January 3rd, 2011 | 
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