The recent turbulence in the financial markets has not shaken the government's economic forecast for the year. Speaking in Parliament on Monday, Minister of State for Trade and Industry S Iswaran said that his Ministry was standing by its forecast of 7-8 percent economic growth this year.
He noted however that Singapore is not immune to a slowdown in major economies such as the US and Europe.
"If growth slows in these major economies, Singapore will be affected," he said. "Strong growth in the region and diversity of our export markets will provide some buffer, but we are not immune to a slowdown in the major industrial economies."
Still, the government is keeping a close watch and ready to step in.
Mr Iswaran said: "The current shakeout in the financial markets, if well managed and contained, can yield some positive outcomes. If it results in more realistic risk assessments and stronger credit standards, it will make for healthier markets and more sustained growth.
"Governments and central banks are working together to minimise the fallout and help bring about a smoother adjustment in credit markets. Restoring confidence to financial markets is the key.
"Like central banks around the world, the MAS (Monetary Authority of Singapore) has been closely monitoring the situation and stands ready to inject additional liquidity if necessary. To date, our markets have been functioning in an orderly fashion." - CNA/ir
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