S'pore Economy More Diversified Than Decade Ago: Official

Source : The Business Times, October 23, 2007

Singapore's economy, the most advanced in Southeast Asia, has become more diversified over the past decade as growth of the biomedical and chemical industries cut dependence on electronics, a trade official said on Tuesday.

Minister of State for Trade and Industry, Lee Yi Shyan, said that as the republic's economic base diversifies, growth will become more stable and sustained.

Tourism, financial, business and transport services have become strong growth engines, while new industries such as energy, environment and water technologies and digital media are emerging, Mr Lee said in parliament.

Singapore's economy grew 9.4 per cent in the third quarter to September, faster than the 8.7 per cent expansion in the second quarter.

Mr Lee allayed concerns raised by a fellow member of parliament that the strong third quarter expansion may not be sustainable because it relied much on the performance of the construction industry.

'On the contrary, economic performance has been broad-based, with healthy growth by all major sectors,' he said.

'Singapore's economy is more diversified than it was 10 years ago. The growth of the biomedicals and chemicals industries has helped to reduce our dependence on electronics,' he said.

Singapore is a major base for the manufacture of active pharmaceutical ingredients used in a wide array of medicines worldwide.

The government says Singapore is on track to meet its full-year target of 7.0-8.0 per cent growth, but some economists project 2007 growth could be even better.

The economy expanded 7.9 per cent last year, one of the fastest growth rates in Asia. -- AFP