Singapore prime minister: 'we won't lose to China, India'
By Kim Deok-hyun
BUSAN, Nov. 17 (Yonhap) -- Singapore's Prime Minister Lee Hsien
Loong on Thursday brushed off concerns that his city state's
economy may be dwarfed by the growing economic power of China and
India.
Along with services, the manufacturing sector has been one of the
two main engines propelling Singapore's growth so far. But many
economists say the Singaporean economy's reliance on manufacturing
may leave it vulnerable to competition particularly from China and
India, which are poised as the world's manufacturing hubs armed
with cheaper labor.
"We won't lose to China and India," Lee told his audience after
making a keynote speech at a business gathering on the sidelines of
the Asia-Pacific Economic Cooperation (APEC) forum here.
"Though China is huge and there is enormous competition, it is now
our biggest trading partner," Lee said.
India's economy is also growing but the Singaporean economy is
actually benefiting from India's growth, he said.
To avoid direct competition with China and India in manufacturing,
Singapore is moving to bolster its finance and other service
sectors with the aim of creating a knowledge-based economy, Lee
said.
To achieve the goal, Singapore plans to invest 3 percent of its
gross domestic product into research and development, he
said.
"As these two economies grow, we can also grow," said Lee who took
over from Goh Chok Tong who stepped down in August 2004.
Lee is the son of Singapore's founding father Lee Kuan Yew, who has
still kept an influential role in the city-state's cabinet.
Singapore's economy registered high growth in 2004 on the back of a
recovery from SARS-afflicted 2003, according to the APEC's 2005
Economic Outlook released here.
However, as it rebounded from a low base, there had already been
early indications towards the end of 2004 of an expected moderation
in 2005, the report said.
The Singaporean economy is expected to grow between 3.5 percent and
4.5 percent in 2005, it said.
However, there are a number of factors that will influence the
extent of moderation in 2005, the report said.
Concerns over external demand from key trading partners, the pace
of recovery of the global electronics cycle, and higher oil prices
are expected to have a negative impact on the Singaporean economy,
it pointed out.
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