Sg growth expected to slow in next decade
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By Lynda Hong | Posted: 08 June 2012 2246 hrs
SINGAPORE: Singapore's economy will experience growth slower than in the last 10 years.
This, against the backdrop of a more developed economy, internal resources constraints and fierce competition from the region.
But Singapore needs to strive for growth to improve the collective well-being of its people.
Prime Minister Lee Hsien Loong said this at the Economic Society of Singapore's annual dinner on Friday evening.
Since 2003, Singapore's economy grew an average 6.3 per cent per year.
Mr Lee said: "Singapore cannot avoid slower growth in the next decade and beyond. This is natural because we are now more developed and we are also running up against land and labour constraints, especially as we reduce the inflow of foreign workers.
"Plus competition is fiercer, not only from hundreds of millions of hungry workers in the emerging economies, but also from new technologies that will transform industries all over the world."
Mr Lee noted that some Singaporeans may desire slower growth, but deliberately slowing growth beyond Singapore's economic potential could have irreversible consequences.
"For Singapore, slow growth will mean fewer new investments. Good jobs will be scarcer, and unemployment will be higher," he said.
"Enterprising and talented Singaporeans will be lured away by the opportunities and the incomes they can earn in other leading cities. Low-income workers will be hardest hit, just as they were each time our economy slowed down in the last decade. Over time, our confidence will be dented."
The government is also prioritising low-income Singaporeans through skills upgrading and sharing productivity gains.
Low-income households are also not neglected.
According to Mr Lee, a low-income household will receive more than S$500,000 in transfers from the government over a lifetime.
And to boost their assets more than incomes, Mr Lee said the bottom 20 per cent of households have an average of more than S$200,000 of equity in their HDB flat.
To continue doing so, he pointed out that Singapore must have a successful thriving economy to improve the collective well-being of its people.
But Mr Lee cautioned that the Singapore government must strike a balance between raising social spending and taxes.
Expenditure has so far been 17 per cent of GDP including defence, while tax revenue is only 15 per cent of GDP.
"For decades, we have gradually reduced our income tax rates, and partially made up with indirect taxes like the GST, in order to stay competitive with other Asian economies like Hong Kong. This has helped to foster growth, and increase the resources available to strengthen our social compact," said Mr Lee.
"As we enhance our social safety nets, expenditure will inexorably rise, and revenue must keep up. Surely within the next 20 years, the government of the day will need new sources of revenue, which means raising taxes," he said.
But this will require public consensus to support the government of the day's policies and the country's leaders. In the long run, Mr Lee hopes that Singaporeans will understand the options and trade-offs to collectively choose an optimal path forward.
At an answer-and-question session, Mr Lee said there is no country in the world where the population gets smaller and incomes rise at the same time.
Therefore, Singapore needs to have an inflow of talent and people for continued growth.
"We need to maintain that spirit of being exciting, of being welcoming, of being open and adventurous... at a time when there are constraints to our size... when our population is growing gradually less young and therefore perhaps less adventurous... that's the challenge," said Mr Lee.
- CNA/cc -
good times say the same thing.
bad times also say the same thing.
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Slowdown?
becos we have a useless PM.
no answer only threats just like his old man.
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Good timing hor! Next decade the pok qua loong retire liao then slow down. Sibeh good timing! Probably next decade after the pok loong retires no minister getting same pay as it so want it to slow down. Now cannot slow down coz pok ah loong still drawing the highest pay . Damn the qua pok loong! sibeh gian lui!
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Originally posted by Clivebenss:
Slowdown?
becos we have a useless PM.
no answer only threats just like his old man.
both father and son all the negative they do to the citizens they accumulate the bad karma. They will pay for it when they pass on.
Any news if the old man is well now? Was told he was looking weak when he appeared on TV few weeks ago.
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Dont talk rubbish low income not neglected. Damn. Low income go seek help from govt dept kena left, right, up, down, front, back top and bottom. Damn LHL, don;t lie la. kumeh si la
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Times are bad.
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Originally posted by charlize:
Times are bad.
It will not be good until the evil one is rooted out and getting in capable souls to do the job.
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But Hdb prices might still go up.
Huat ah.
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HDB flats prices is not the only item going up, everything la. If no constant price increase there is no possibility for the people to sustain paying them millions, billions. hahahahahahah
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I think growth will not slow because they will be increasing population size every year.
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Propaganda - discourage foreigners to become citizens. Tell them they will be treated like the bred and born citizens after they convert to be citizens.
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Inflation is going to drag us down, that's why youngsters these days do not have the habit to save money because it is really useless to do so. They make $ and spend it - be happy.
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low growth???then deduct big boss salary for having bad business plans!
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Inflation forever in sinkingpore? The happiest people for inflation would be the papigs.
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Inflation is good for the ministers; can demand pay hike.
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Originally posted by Clivebenss:
Inflation is good for the ministers; can demand pay hike.
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Originally posted by Clivebenss:
Inflation is good for the ministers; can demand pay hike.
If % vote increase, then can demand pay hike.
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They run out of vision after the failure of so many hubs.
Now, it is a hub for:
- Suicide
- Money Laundering
- Under age gal sex
- Elite Corruption (Bribe and Sexual)
- Charity Fund Mis-use
- PRC, Pinoy and Indian cheap labour
They built three high maintenance white elephants:
- The durian
- The anti-clockwise rotating wheel
- The garden that is not free
With service standard and productivity drop with more un-certified and un-trained labour, the future of the place look bleak once these cheap labour run out of job or finished their contract.
I am expecting more social problems from the foreign and local population that the authority can continued to ignore.
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Originally posted by charlize:
If % vote increase, then can demand pay hike.
As long as they are voted in.
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Originally posted by Medicated Oil:
They run out of vision after the failure of so many hubs.
Now, it is a hub for:
- Suicide
- Money Laundering
- Under age gal sex
- Elite Corruption (Bribe and Sexual)
- Charity Fund Mis-use
- PRC, Pinoy and Indian cheap labour
They built three high maintenance white elephants:
- The durian
- The anti-clockwise rotating wheel
- The garden that is not free
With service standard and productivity drop with more un-certified and un-trained labour, the future of the place look bleak once these cheap labour run out of job or finished their contract.
I am expecting more social problems from the foreign and local population that the authority can continued to ignore.
garden is free except for some areas right?
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Originally posted by charlize:
garden is free except for some areas right?
Botanic Garden is free.
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Originally posted by Clivebenss:
Botanic Garden is free.
yes, free but who goes there?
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Originally posted by charlize:
yes, free but who goes there?
you dun but others do.
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Originally posted by Clivebenss:
you dun but others do.
You?