Established in 1999

Public Others Government Business Arts Community
Entertainment Lifestyle Services People Travel Internet Stuff



     FrontPage Edition: Fri 10 August 2007

Weather: Meteorological Service Singapore    High & Low Tides

Yesterday   2007   2006   2005   2004   2003   2002   2001   2000   1999

Performance of Singapore economy in 2nd quarter 2007


Improved Outlook for 2007 As Growth Broadens and Economy Diversifies
The Ministry of Trade and Industry announced today that the economy is expected to grow by 7.0-8.0 per cent in 2007, riding on the momentum of the second quarter and supported by a favourable external environment and broad-based growth across the major sectors.
Performance in Second Quarter
Growth picked up pace in the second quarter, with GDP expanding by 8.6 per cent year-on-year following 6.4 per cent in the previous quarter.
Growth on a seasonally-adjusted quarter-on-quarter annualised basis increased to 14 per cent from 8.8 per cent in the first quarter. Overall, the Singapore economy grew by 7.6 per cent in the first half of 2007.
Growth has become more broad-based in the second quarter, with the financial services and construction sectors registering double-digit growth, and the manufacturing sector remaining healthy despite a slowdown in electronics.
Financial services expanded by 17 per cent in the second quarter, up from 14 per cent growth in the first quarter.
The banking cluster was supported by strong growth in both the domestic segment and offshore Asian Dollar Market, with loans to non-bank customers rising by 10 per cent.
The wealth advisory cluster remained buoyant, riding on growing affluence in the region and continued demand domestically for professional fund management services.
The construction sector grew by 18 per cent, the strongest growth in almost 10 years. Private construction was supported by robust growth in the residential, commercial and industrial segments while public construction was led by housing projects.
Growth in the manufacturing sector picked up pace to 8.3 per cent, with strong growth in biomedical manufacturing and transport engineering more than making up for the slack in electronics.
Increased diversification within the manufacturing sector C with electronics, chemicals, biomedical manufacturing, transport engineering and precision engineering acting as the main growth engines C has made the sector more resilient to industry-specific shocks.
Continued strong economic growth has supported job creation. Employment grew strongly by 61,900, higher than 49,400 in the first quarter.
The seasonally adjusted unemployment rate fell to 2.4 per cent in June 2007 from 2.9 per cent March 2007. The number of workers retrenched declined to 1,600, from 2,000 in the previous quarter.
Labour productivity increased by 0.4 per cent following a 1.3 per cent decline in the previous quarter. This helped to moderate the increase in unit labour cost, which rose by 5.7 per cent in the second quarter after a 5.9 per cent increase in the preceding quarter.
The unit business cost of manufacturing also improved, rising by 1.9 per cent compared to 3.3 per cent the first quarter.
Stronger economic growth has also led to some cost pressures but they are well contained.
The consumer price index rose by 1.0 per cent in the second quarter compared with a 0.5 per cent gain in the first quarter. Even so, consumer price inflation for the year as a whole is not expected to average higher than 1.5 per cent, which is low by international standards.
Outlook for 2007
The Ministry of Trade and Industry has raised the full-year GDP growth forecast for 2007 from 5.0-7.0 per cent to 7.0-8.0 per cent, taking into account a healthy external environment, the broad-based growth momentum across major sectors, continued growth in the composite leading index and strong business expectations.
The global economic environment continues to be healthy. Growth in the US has moderated but remains intact in the face of problems in the sub-prime credit markets. The Japanese and EU economies continue to recover on the back of strong domestic demand and firm business sentiment.
Prospects in Asia remain robust, with the Chinese economy growing at a rapid pace. The chief downside risk to this favourable external outlook is the potential for current problems in US credit markets spreading to other financial markets and possibly dragging down consumption and investment.
From a sectoral perspective, growth in financial and business services, manufacturing, and construction is expected to be higher than earlier envisaged.
The driving factors underpinning this higher growth are broad-based: strong global demand in the biomedical, aerospace and marine industries, robust regional demand for financial services, and a buoyant domestic property market and construction industry with a steady pipeline of contracts awarded.
The latest surveys of business expectations show that both manufacturing and services firms expect better business conditions in the coming half of the year.
Ministry of Trade and Industry

10 August 2007


Source: Press Release 10 Aug 2007

Important Notice

Our FrontPage Editions are a historical record of our Web site and reflect the changing of the times, and also of our Web site through time. We do not and will not update the links and stories on these FrontPages even if they have become obsolete.

If you have an event or some news to share with our readers, send the details, including picture(s), to us at 

We are now 14015 pages thick and growing.

Public Holidays HARI RAYA PUASA is the next public holiday. It falls on 13 October 2007.