SINGAPORE: PM Lee Hsien Loong said earlier this week that while the country may expect slower economic growth in 2023, Singapore “should avoid an outright contraction.”
The Prime Minister expressed the hope of inflation letting up in the latter part of the year and for retrenchment numbers to stay “manageable.”
The semi-annual report on the country’s economy from the Monetary Authority of Singapore (MAS), released on Apr 26, said that the country’s gross domestic product (GDP) is expected to grow between 0.5 and 2.5 per cent, notably lower than 2022’s growth of 3.6 per cent.
“This year we expect to see slower growth, but should avoid an outright contraction. Inflation is still high, but there is some hope it will moderate in the second half.
Meanwhile, unemployment rates have stayed low, and retrenchment numbers remain manageable. Overall, we can be cautiously optimistic about our immediate economic prospects,” he said.
PM Lee added in his May Day speech a warning concerning the serious geopolitical tensions that keep the external environment volatile, with the risk of recession in the West as interest rates go up to tamp down inflation.
“The multilateral trading system is being progressively undermined by growing nationalist and protectionist sentiments, affecting international trade and cooperation.”
He also reiterated the need for Singapore to stay open for the country’s survival.
“We must respond to these broader trends by adapting to them, while doing all we can to buffer those adversely affected. Singapore’s survival depends on us staying open and doing business with the world.
This means continually transforming our industries, enhancing existing capabilities and building new ones as we move into growth markets. This will cause disruptions to some existing jobs, but at the same time it will create new jobs with better prospects for the future.”
In a May 1 Facebook post, he wrote, “Singapore must remain competitive and relevant to the world. Our tripartite partners will continue to work hard and ensure job security and work productivity. We do so by upskilling and reskilling workers, so as to seize the opportunities in emerging areas.
By strengthening our strong tripartite relationship, we are confident that we can weather the storm together, just like how we have done so in the past generations.”
PM Lee’s full message may be read in full here. /TISG