|
Source:
www.gov.sg |
PRIME MINISTER'S NEW YEAR
MESSAGE 2008 |
|
|
ANOTHER GOOD YEAR |
This year, the world economy faced a number
of challenges. Oil prices continued to rise, and are now close to US$100
a barrel. The US sub-prime loans crisis has uncovered deeper problems in
the banking and financial system, not only in the US but also Europe.
But so far Asia’s growth continues to be strong, and this has benefited
us. |
Singapore has enjoyed another year of robust
expansion, although the fourth quarter saw slower growth. The economy
grew by 7.5% for the year. |
Manufacturing and services are doing well.
The construction sector is especially strong. Many major projects are
underway, which when completed will upgrade our infrastructure and
economy. Financial services also grew vigorously, as financial
institutions shifted more regional activities to Singapore. |
High growth has benefited all Singaporeans.
A record 172,000 jobs were created in the first three quarters of the
year. Unemployment is down to 1.7%, the lowest in almost a decade.
Companies are reporting bigger profits, and workers are enjoying higher
bonuses and wages. Low-income workers too are earning more, unlike in
some previous years. |
In 2007, the Economic Development Board (EDB)
drew in a record $16 billion of fixed asset investments (FAI) in
manufacturing, and projects generating $3 billion of total business
spending in services. |
Existing investors continued to expand their
operations in Singapore, like ExxonMobil which is building a second
world-scale chemical complex here. We are also getting high-quality,
‘first-of-its-kind’ investments. One is by a Norwegian firm, REC, which
chose Singapore against stiff competition to build the world’s largest
integrated solar plant. These projects are a strong vote of confidence
in Singapore and will generate many new jobs. |
On the international front, we successfully
hosted the 13th ASEAN Summit. This was a significant milestone in
regional cooperation. The countries signed the ASEAN Charter to make
ASEAN a more effective and cohesive organisation, and adopted a
Blueprint to create the ASEAN Economic Community by 2015. |
In this globalised world, more and more
Singaporeans study and work abroad. We need to keep in touch with them,
and help them to stay engaged with home both in heart and in mind. |
The Overseas Singaporean Unit has been
reaching out to the Singaporean diaspora around the world.
Ministers, senior officials and business leaders meet up with
overseas Singaporeans when they travel. In April we held the first
“Singapore Day” in New York City, which attracted 6,000
Singaporeans. These efforts help to strengthen our sense of
belonging and national identity. |
OUTLOOK FOR 2008 |
I am cautiously optimistic on the
outlook for 2008. The US may go into a recession because of the
financial market problems. A US downturn would affect Asia too, but
the impact on us would be offset somewhat by the strong momentum in
the dynamic Asian economies. |
At home, 2008 will see the realisation
of several major projects. The Singapore Flyer will be up in March,
and the inaugural F1 Singapore Grand Prix – the first F1 night race
ever – will flag off in September. |
The Marina Barrage will create a
freshwater lake, buzzing with activity in the heart of the city.
Work on the two Integrated Resorts is in full swing, and should be
completed by 2010. As these plans progressively fall into place, we
can look forward to a more exciting and vibrant city landscape. |
Internationally we will continue to
expand our economic space, seize opportunities all over Asia and tap
new areas of growth. A more diversified economy will weather
external shocks better. All things considered, we expect to grow by
4.5-6.5% in 2008. |
PROBLEMS OF SUCCESS |
The last four years of sustained strong
growth have created some problems of success. First, there is a
shortage of prime office space. The Government is releasing enough
land to meet the demand for more office space over the next few
years. In the interim, we are making available more transitional
office sites. |
Second, the construction industry faces
resource constraints. To ease the pressure, the Government has
deferred some of its less urgent projects. This will help to spread
out the workload and moderate construction costs. |
Third, the labour market is tight. We
need more workers at all levels, especially those with professional
skills. This is why we are upgrading and re-skilling our workers,
and bringing in foreign workers to top-up the numbers. We must seize
the moment and ride this wave of growth, while the winds and tides
are with us. |
COST OF LIVING |
In recent months, inflation has picked
up. This has caused concern to Singaporeans, as REACH has reported. |
There are several reasons for this.
First, the GST rate went up to 7% in July. However, the GST Offset
Package has buffered that fully for lower-income citizens, who are
receiving much more in offsets than the extra GST they have to pay. |
Second, IRAS has revised up the Annual
Values of HDB flats. This will push up the Consumer Price Index, but
in reality does not affect the 95% of HDB households who own their
homes, and so do not pay any rents. |
Third, prices of food and energy have
increased worldwide. This affects us directly, because we are a
small and open economy which imports all our food and fuel. |
But we are doing what we can to lessen
the burden on Singaporeans, for example by encouraging NTUC
Fairprice and other supermarkets to find new sources of supply and
offer house brands of basic essential items, and helping low-income
families through U-Save and other rebates. |
But remember that while prices have gone
up, so have earnings, and generally by more than inflation. That is
why shopping malls were thronged with Christmas shoppers, and
tourist agencies have had a record year arranging overseas holidays
for Singaporeans. So although nobody likes to see prices go up, most
working Singaporeans should be able to cope, and in reality are
better off despite the inflation. |
Understandably, retired Singaporeans
living off their savings worry the most about rising prices. The
Government has not forgotten them. Whenever we have had a Progress
Package, GST Offset Package, or CPF top-ups, we have given
significantly more to older and lower-income Singaporeans. |
With the strong economy this year,
Government revenues have been buoyant. Our finances permitting, we
should have something more in the FY2008 Budget to help needy and
older Singaporeans. |
But every citizen should also do his own part to upgrade himself.
Low-income workers should make full use of reskilling and retraining
programmes offered by WDA and NTUC. Unemployment and retrenchments
may be down, but your efforts will help you to earn more in a better
and more productive job, and stand you in good stead as economic
conditions continue to change. |
More..... |
Source:
www.gov.sg Media Release 31 Dec 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. |
|