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.
Source : Channel NewsAsia – 31 Dec 2010