S'pore Medium Term Growth To Outperform 3-5% Forecast: SM Goh

Source : Channel NewsAsia, 11 August 2007

SINGAPORE : Singapore's economy should hit the estimated medium term growth rate of 3-5 percent.

Senior Minister Goh Chok Tong is also optimistic the economy will outperform that target and that the current stock market turmoil is only temporary.

Speaking at the Marine Parade National Day dinner on Saturday, Mr Goh said with the favourable external conditions in Asia, he expects Singapore's economy to continue doing well.

The senior minister pointed out several factors that work in Singapore's favour.

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S'pore's medium-term growth to outperform 3-5% forecast: SM Goh
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With China and India continuing to grow, it means more trade, tourists, investments and opportunities.

Singapore's foreign relations with neighbours are also sound.

Mr Goh said the Malaysian and Indonesian leaders both want better ties with Singapore.

But even with the positive outlook, Mr Goh cautioned Singaporeans not to take it easy because there are still challenges ahead.

Likening Singapore to being a sail boat, SM Goh said Singapore must watch for big waves to avoid a capsize.

But to sail the high seas successfully with other mega container ships like the US, China and India, will depend on a capable crew.

"We have a strong boat, a good captain, an excellent crew and hardworking, united people on board. And we are happily entering a favourable stretch. The currents are with us and the winds are rising. We should trim our sails, catch the wind and sail full speed ahead," said the senior minister.

Still, Mr Goh said it won't be plain sailing, as Singapore is part of the globalised world.

There are also concerns over the widening income gaps in the island state.

But the government is taking a serious look at this issue, with programmes like Workfare.

Other measures are also being studied such as paying a higher return on CPF savings.

Raising the retirement age and topping up CPF for the lower-income older Singaporeans.

And because Singapore has no natural resources, Mr Goh said it can only depend on its talent pool.

So, the government is investing heavily in education.

With nearly a quarter of each cohort entering university, Mr Goh said the aim is to increase the number further, either by increasing university places or even building a fourth university. - CNA /ls