Singapore's growth slows to 6.5%<\/p>\n
SINGAPORE (AFP): Singapore's economic growth slowed to 6.5
\npercent in 1996 following an electronics downturn, and could dip
\nfurther next year, Prime Minister Goh Chok Tong said in a New
\nYear message Tuesday.<\/p>\n
Goh, leading the ruling People's Action Party (PAP) into
\ngeneral elections today, said economic growth should range
\nbetween five and seven percent in 1997.<\/p>\n
He reminded Singaporeans that the current slowdown reflected
\nthe extent of the island state's dependence on external factors,
\nsaying it required a competent government to manage it.<\/p>\n
\"Despite careful economic management and despite remaining
\ncompetitive, we could not insulate ourselves from the winds
\nblowing in the international economy,\" Goh said.<\/p>\n
\"We must have a competent team in charge of our economy, to
\nsteer our little country safely through the winds and waves,\" he
\nsaid. \"We cannot afford to make mistakes, unlike other bigger
\ncountries.\"<\/p>\n
Goh's PAP was returned to power last week after the opposition
\ndecided to contest less than half the 83 seats up for grabs in
\nthe January 2 polls. But some younger ministers are facing
\nchallenges in hotly contested wards.<\/p>\n
The island state's manufacturing-driven economy grew by 8.8
\npercent in 1995 and about 10 percent in each of the two previous
\nyears.<\/p>\n
The government in August had projected that the economy would
\ngrow by seven to eight percent in 1996 but last month trimmed the
\nforecast to six percent.<\/p>\n
Goh said Tuesday that the economy slowed down in the second
\nhalf of 1996 because of a global electronics downturn and other
\ncyclical factors but added that inflation remained low at 1.3
\npercent.<\/p>\n
Electronics account for almost half of Singapore's
\nmanufacturing output and two-thirds of its manufactured exports.
\nThe slowdown has had a ripple effect over virtually all sectors
\nof the tiny city state's economy, analysts say.<\/p>\n
Many expect a recovery in electronics only by mid-1977.
\nGoh said wages rose 6.1 percent, adding that incomes increased
\nfaster than the cost of living, as they had done for many years.<\/p>\n
The inflow of foreign investments also remained strong, with
\nmanufacturing investment commitments reaching a record 8.1
\nbillion Singapore dollars (5.78 billion US) in 1996.<\/p>\n
\"We should have no difficulty making steady growth of five-to-
\nseven percent in 1997,\" said Goh, a 55-year-old economist who
\nassumed power in November 1990 from Lee Kuan Yew, now a senior
\nminister in his cabinet.<\/p>\n
Goh said that building a strong economy would remain one of
\nthe government's top priorities.<\/p>\n
\"We have ambitious plans to make Singapore our best home. We
\nwant to invest in infrastructure, better homes, health care and
\neducation. We want to enhance your assets. But first we must
\ncreate the wealth,\" Goh said.<\/p>",
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